Metro Manila (CNN Philippines) — As the global economy climbs out of the Covid-19-induced slowdown, investors are discovering new gems in the Asian property landscape, which has seen tectonic shifts in the aftermath of the pandemic. Foremost among these is the Philippines, site of a landmark project by two leading property developers in the region: Hongkong Land and Robinsons Land Corporation.
Drawing the attention of serious investors is a compelling combination that the Philippines alone can offer at this time: a fast-growing economy, resilience to external shocks, and a price advantage compared to other Asian locations. These have created a buying opportunity for investors looking for property with a strong upside potential.
A winning combination: cost advantage and higher rental yields
Sheila Lobien, Chief Executive Officer of Lobien Realty Group, believes that “2022 is the best time to invest in Philippine real estate,” pointing out that prices are still low, offering a window of opportunity to investors ahead of an imminent increase in property prices driven by economic growth. “The uncertainty brought about by the pandemic softened property prices but the expected economic recovery is also expected to affect property demand and increase prices,” she said.
A study by Colliers on the residential condominium outlook in H1 2021 noted that Metro Manila enjoys higher rental yields of 3.9 to 5.7% compared to Bangkok (4.4 to 5.2%), Ho Chi Minh (3.7 to 4.8%), Kuala Lumpur (2.3 to 5.4%), and Singapore (3 to 3.3%).
This is collaborated by consultancy firm Santos Knight Frank, which noted a strong demand for residential properties, especially in the condominium rental market in Metro Manila central business districts, as a result of re-opening borders, higher vaccination rates, and return-to-office programs.
Resilient and growing economy
By all indications, the Philippine economy — which has proven to be extremely resilient to external shocks — is primed for growth. Remittances from overseas Filipino workers are growing back to pre-pandemic levels, unemployment is improving, and interest rates remain low. In fact, property loans increased 9.3% in 2021 despite the pandemic, indicating that investors have taken advantage of the low interest regime to build their portfolios.
Further, the Philippine economy maintained its growth momentum in the first three months of 2022 as it expanded by 8.3%, beating forecasts.
The Philippines also gains considerable advantages from being in a demographic sweet spot, with an average age of 23, translating to a strong domestic market and a competent workforce. Moreover, it has an English-proficient, customer-focused, highly trainable and adaptable talent pool to power its economic growth.
Massive infrastructure rollout
Adding impetus to the Philippines’ economic recovery is the government’s ambitious Build Build Build infrastructure development program which remains in high gear, and has led to the development of major roads, railways, airports, and the country’s first subway system.
These new roads have improved connectivity within the metropolis, and have created new high-growth centers outside the traditional business hubs, feeding off from the heightened economic dynamism around these areas.
New high-growth corridors
A prime example is the C5 growth corridor that connects the cities of Quezon City, Pasig, Makati and Taguig, which is experiencing unparalleled levels of economic activity resulting from these infrastructure projects. Property developers are noticeably gravitating towards the area, which still retains a relative cost advantage compared to other built-up areas.
Colliers noted that property developments along the C5 corridor are competitively priced — with average launch prices averaging P230,000 per sq. m., well below the Bonifacio Global City and the Makati business district — providing ample room for growth. More tellingly, the 5-year compound annual growth rate (CAGR) along the C5 corridor is 16.9%, nearly double that of Metro Manila’s 9.2% CAGR.
The Velaris Residences: Elevating the luxury property segment
Cognizant of the C5 corridor’s immense growth potential, Hongkong Land and RLC’s joint venture project has chosen the progressive district to be the site of The Velaris Residences.
Located in Bridgetowne, a 31-hectare master-planned destination estate that spans Pasig City and Quezon City, The Velaris Residences enjoys direct access to C5 Road, Ortigas Avenue, and Amang Rodriguez Avenue, which are sufficiently close to infrastructure projects that are now under construction or in the pipeline. Bridgetowne also offers easy access to the established business districts of Ortigas Center and Bonifacio Global City, as well as commercial establishments.
Standing 45 storeys high, The Velaris Residences is redefining the Philippine luxury market with its masterfully designed units following an intentional design philosophy. Its club-like facilities include a SkyClub, an interconnected suite of entertainment amenities.
In a nod to hybrid ways of working, The Velaris Residences has introduced a gorgeous workspace featuring soundproof office pods and modern personal work stations for the use of residents.
Features that promote physical fitness and wellness include a golf simulator studio that uses best-in-class camera-based technology to allow residents to practice their swing without leaving the building, an Olympic length infinity pool, and a Japanese onsen and lounge. Aside from the Lifestyle Gym, there is also an outdoor fitness station where residents can exercise amid the lush greenery and landscaped gardens. The Velaris Residences itself is across a verdant central park, and Bridgetowne is dotted with artworks set against landscaped gardens — creating a tranquil environment that is so essential to ensuring residents’ well-being.
The Velaris Residences also offers a contactless lifestyle experience using smart technology. Residents have access to a mobile app that allows them to pay for condominium dues, submit maintenance requests, communicate with the property administration office, or reserve smart lockers to safely receive deliveries.
A partnership of property giants
Most importantly, The Velaris Residences is managed by a world-class property management team of two property giants, international property development leader Hongkong Land and Philippines real estate giant Robinsons Land. Both have a solid track record that is especially assuring to discriminating investors.
Hongkong Land is a major listed property investment, management and development group. The Group owns and manages more than 850,000 sq. m. of prime office and luxury retail property in key Asian cities, principally in Hong Kong, Singapore, Beijing and Jakarta. The Group also has a number of high quality residential, commercial and mixed-use projects under development in cities across Greater China and Southeast Asia. In Singapore, its subsidiary, MCL Land is a well-established residential developer. Hongkong Land is a member of the Jardine Matheson Group.
Robinsons Land Corporation (RLC) is one of the leading real estate companies in the Philippines and a subsidiary of one of the country’s largest conglomerates — JG Summit Holdings, Inc. With close to three decades of experience in property development, RLC is known as a reputable developer of mixed-use properties and residential condominium developments in key cities and urban areas nationwide.
To know more about The Velaris Residences, visit thevelarisresidences.com or call +63908 881 5033.
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The article was originally published in CNN.
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