Pogo exit, new projects to keep many condos vacant
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ACANCY rates of condominiums are expected to continue in the wake of the exodus of Philippine offshore gaming operations (Pogo) and the completion of projects this year, according to a local property consultancy firm. In an East West Bank economic forum, Colliers Philippines Research Director Joey Bondoc said the overall vacancy rate in Metro Manila was at 17.2 percent as of the second quarter of 2024. Bondoc said the country’s vacancy rate could continue to hover above 17 percent. The projected vacancy rate could average 17.7 percent by yearend and average 17.3 percent next year. “Vacancy is declining. We saw this being at 17.9 percent in 2021 because of the height of the Pogo exodus as well as the Covid-19 pandemic. We are now seeing some improvement,”
Bondoc said. “However, we’re likely to see vacancies slightly inching up by the end of 2024. Why? Because there will be substantial completion this year, 2024. About 11,300 will be completed across Metro Manila this year,” he added. Bondoc noted that the projects to be completed this year are the same ones launched in 2018-2019, at the height of Pogo demand for units. This has led to a 65-percent decline in preselling launchings and 58-percent decline in preselling takeup as of the first semester of 2024. In 2018, there were 55,000 units launched and 59,000 units taken up; while in 2019, 56,000 units were launched and 51,000 units were taken up. However, in the first semester of 2024, only 5,000 units were launched and 6,000 units
were taken up. In the full year of 2023, a total of 25,000 units were launched and 23,000 units were taken up. “Two out of three unsold ready-for-occupancy units are coming from the mid-income segment. It’s still this segment that is growing, that is still seeing sustained demand,” Bondoc said. Nonetheless, these units will continue to be taken up as the economy’s prospects for growth are looking up. Bondoc said many infrastructure projects are also coming online further supporting various real estate projects. Bondoc said the real estate sector will also be driving growth in regional areas and the resilience of key sectors like outsourcing and tourism. “Given the rapid changes in the Philippine economic environment, particularly in the real
estate sector, it is crucial to equip our clients and stakeholders with the knowledge needed to make informed and calculated decisions,” Richie Tamayo, Senior Vice President and Head of Wealth Management at EastWest, said. “At EastWest, we continue to provide platforms like this to foster conversations that help shape business strategies and investment opportunities for our clients,” he added. East West Bank said the briefing is part of their ongoing efforts to equip stakeholders with the knowledge needed to make informed financial and investment decisions. It was co-presented by Signature Residences, Celestia at Timberland Heights, and Fortune Hill, all of which underscore EastWest’s dedication to promoting growth and success in various industries, including real estate.
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Thursday, October 17, 2024 Vol. 20 No. 8
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IN RATE TWEAKS IN ’25 B C U. O @caiordinario
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ESPITE reducing key policy rates by another 25 basis points on Wednesday, the Monetary Board intends to take “baby steps” when adjusting policy rates next year, according to the Bangko Sentral ng Pilipinas (BSP). The Monetary Board reduced its Target Reverse Repurchase (RRP) Rate to 6 percent while the overnight deposit and lending facilities were accordingly adjusted to 5.50 percent and 6.50 percent, respectively. These will take place on October 17, 2024. In an earlier interview on Bloomberg, BSP Governor Eli M. Remolona Jr. said the Monetary Board may reduce rates by 100 basis points next year. However, on Wednesday, he said this will be done in a measured manner. “If we rule out a hard landing [in S “MB,” A
SHAKING THINGS UP
Dr. Hari Kumar, Regional Coordinator for South Asia at GeoHazards International, shares insights on “Be Prepared for a Mega Earthquake: The Role of Public-Private Partnerships in Science and Technology Against Seismic Disasters” during the Asia-Pacific Ministerial Conference on Disaster Risk Reduction (APMCDRR) in Pasay City. Panelists include Eng. Liza B. Silerio of SM Supermalls, Mr. Satoshi Negoro of Spectee Inc., VAdm. Alexander Pama of ARISE Philippines, and Mr. Katsuhiko Kita of Japan’s Cabinet Office, discussing the importance of risk communication through media and social media for inclusive early warning systems. Hisan Hasaan of the Maldives, UNICEF’s Dalen Sea, and Alfred Mark Rosete of Internews Philippines also fielded questions from attendees. Senator Loren Legarda delivers a plenary address on “Leaving No One Behind: Gender-Responsive and Inclusive Disaster Risk Governance.” Stories from APMCDRR conference on A5 News. NONIE REYES
WB FLAGS PINOYS’ ISSUES IN Aim for 8% GDP to sharply SOCIOECONOMIC MOBILITY reduce poverty–economist
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ILIPINOS continue to suffer from a lack of opportunities for socioeconomic mobility that would have been a key to achieving inclusive growth, according to the World Bank. In the World Bank’s new Poverty, Prosperity, and Planet Report, the Philippines still has a gini coefficient of 40.7 percent, which placed it as a high-inequality country together with Malaysia and the United States. Based on the report, high-inequality countries have a gini coefficient of 40 and above. The Gini coefficient is a measure of inequality where perfect inequality is 100 and perfect equality is zero. “The number of economies with
high income inequality has declined over the past decade,” the World Bank said. “High inequality reflects a lack of opportunities for socioeconomic mobility, which hinders prospects for inclusive growth and poverty reduction.” The World Bank report said 49 countries are classified as having high inequality countries based on their gini coefficients. However, the number of countries classified as such has declined over the years. “[Some] 1.7 billion people—20 percent of the global population—still live in high-inequality economies, concentrated mostly in S “WB,” A
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HE Philippines may be one of the fastest-growing economies in Asia, averaging growth of 6-7 percent annual gross domestic product. But with 17.54 million poor Filipinos, that GDP rate is still “not enough,” a Filipino economist said on Wednesday. The government should aim for a higher gross domestic product growth to 8 percent to be able to achieve its target of bringing down poverty incidence from 15.5 percent to 9 percent by 2028, according to Dr. Bernardo Villegas, vice president of the University of Asia and the Pacific. “A high rate of GDP means very little if close to [17] million Filipi-
nos go to bed hungry every day,” Villegas said in a briefing with the diplomatic corps Wednesday. The Philippines has the highest poverty rate incidence compared to neighboring Asean countries such as Singapore, Thailand, Vietnam, Malaysia and Indonesia which register single-digit poverty incidence. “Even 9 percent is not good enough,” he added, considering that other Asean countries average between 0 to 5 percent in poverty incidence. Villegas said he offered “strategic” solutions to President Ferdinand Marcos Jr. to achieve an 8 percent GDP. “We’re asking him, ‘Please, Mr. C A
PESO EXCHANGE RATES US 57.6490 ■ JAPAN 0.3864 ■ UK 75.3991 ■ HK 7.4220 ■ SINGAPORE 44.0371 ■ AUSTRALIA 38.6248 ■ SAUDI ARABIA 15.3558 ■ EU 62.8028 ■ KOREA 0.0423 ■ CHINA 8.0976 Source: BSP (October 16, 2024)