Metro Manila Attracts More Developers Than Singapore, Hong Kong And Shanghai

Makati City

When it comes to feasible urban hubs, a new study reveals that Metro Manila is a more attractive area for various developers and real estate investors looking for significant yields in 2017.

“(The country) continues to appeal to foreign investors with good growth in just about every sector, especially the office-oriented business process outsourcing (BPO) market,” Urban Land Institute’s (ULI) recent report titled “Emerging Trends in Real Estate” for Asia Pacific 2017 said.

Metro Manila named among top four 2017 prospects

Manila ranks third among the 22 city investment prospects of 2017, only being outranked by Bangalore and Mumbai. On the other hand, Manila currently ranks fourth in the city development prospects of 2017, having been outranked by Bangalore, Ho Chi Minh City and Mumbai. It must be noted that for both prospects list, Manila has managed to beat out the likes of Shenzhen, Shanghai, Jakarta, Bangkok, Sydney and Tokyo.

At the same time, the report also said that 2017 marks a clear shift from core markets like Japan and Australia to “emerging-market” destinations like the Philippines, India and Vietnam when it comes to investment prospects. It is also clear that Singapore, a previous investor favorite, is no longer a favored investment destination due to falling demand, over capacity and its residential sector slump.

The Philippines still has some investment issues to work on

Nonetheless, being high on the prospects list does not mean that the Philippines is not without some issues.

“The real problem in the Philippines for international funds, however, is that the market has always been hard to access because it does not have much need for what foreign capital has to offer,” the ULI report said.

Furthermore, one foreign fund manager had remarked that market-wise, they like the country. However, they chose to stay away because they haven’t found the right confluence of pricing and partner opportunity over the last five years.

What do you think about Metro Manila becoming a top developer prospect for 2017? What are your thoughts on Manila attracting more developers than Singapore, Hong Kong and Shanghai? Let us know in the comments section below.

Leave a Reply