Businessmirror may 12, 2018

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A CULTURAL VOYAGE IN THE AGE OF MISSILES A By Roger Pe

20-KILOMETER sea trip amid crazy winds is bad enough, what about a distance 50 times longer, in varying degrees of weather condition and you’re on your own in a wooden boat 20 times smaller than an aircraft carrier? This is the story of Filipino pride called the Balangay. It is an epic sea voyage that made Chinese immigration people shake their heads in disbelief. On May 3 another milestone in Philippine history was achieved: as three 18-meter boats, each a replica of a Balangay—a type of vessel used in the region as far back as 320 A.D.—retraced the route made by Filipino Sultan Paduka Batara in 1417 and successfully reached Xiamen (formerly Amoy), China, almost 600 years after. What made the voyage truly historic was that no sophisticated navigational

equipment aided them to traverse the treacherous South China Sea.

Long live

WE were supposed to meet the 33man crew of the expedition at the Xiamen port terminal, but a Chinese immigration glitch had prevented us from getting nearer. After a 24-hour quarantine policy elapsed, we were able to give the proud Philippine team our most heartfelt joy and screams of “Mabuhay ang Pilipinas [Long live the Philippines]!” The team was then ushered into a rousing welcome prepared

THE Filipino Balangay boats docked in Xiamen port after a five-day voyage from Manila.

PART of the 33-man crew that retraced the historic route.

by the Philippine and Xiamen Filipino-Chinese groups at the plush lobby of the Xiamen International Cruise Center. While the celebration was going on, the festive mood grabbed the attention of onlookers and the Xiamen city folk gamely joined in the momentous occasion. Edsa People Power Commis-

sioner Pastor Saycon, Princess Jacel Kiram (daughter of the late Sultan Jamalul Kiram III), Abraham Idjirani and his wife Dayang Dayang Sitti Idjirani, Manila Councilor Bernie Ang, Gerry Sanchez (who represented Ambassador William Lima), businessman Paul Shi, Consul GenSee “Voyage,” A2

Chinese investors changing landscape of property market

MANILA skyline

PHOTOSOUNDS | DREAMSTIME.COM

T

By VG Cabuag

HERE’S a decent medium-rise hotel located near the Manila South Cemetery and abuts the Makati Central Business District (CBD). The hotel has no lavish frontage. Residents from informal settlements nearby have put up a makeshift basketball court across the hotel entrance. There was no competition around the area, but operating the hotel became tougher as there were less people renting a room, a person familiar with the matter said. The owner recently sold the hotel to a Chinese who holds a license for Pogo, short for Philippine

Offshore Gaming Operator. The hotel will be repurposed as both a gaming facility and a dormitory for Chinese workers. This business decision reveals how Pogo and the Chinese are changing the face of the property industry. In fact, Pogo may have even saved the country’s property sector last year. “But I keep on asking people how long [is this] going to last? And everybody is asking the same

PESO EXCHANGE RATES n US 51.8870

thing; nobody knows,” Isidro A. Consunji, chairman and president of DMCI Holdings Inc., said.

Cornering demand

MANY feared 2017 was the start of the cyclical downturn of the property industry, which has been growing since the 2007 to 2008 global financial crisis. The fidgeting among the industry players was partly caused by the inability of the government to release Philippine Economic Zone Authority licenses to many buildings meant for the businessprocess outsourcing (BPO) sector. Data from property broker Leechiu Property Consultants, however, showed that office takeup for Metro Manila still reached an all-time high of 775,000 square meters. Such amount is 23 percent higher than the previous year’s

takeup of 630,000 square meters. The BPO industry took up less than half of the demand. The offshore or online gaming segment, to note, took up the slack and cornered some 30 percent of the demand. Leechiu said this year’s office takeup will be close to a million square meters as the BPO industry will want more office space and Pogo will continue to grow. And while there will be some 1.2 million square meters to be added to Metro Manila this year, about a fifth of it will be likely delayed. This is a sign that developers are deliberately slowing down construction.

Many questions

ACCORDING to Frederick Rara, manager of KMC-Savills, another property broker, the pipeline of construction is only for this year and announcements for construction activities beyond 2018

are getting few and far between. “We’re only focusing on the vacancy [of buildings]. We have enough slack, so it is okay for them not to build right now. But what if the takeup and rental growth [becomes] faster [than they could build],” Rara said in an interview. He added the broker is still awaiting for developments for this year. “Are they going to push through with the construction or are we going to change the product line to residential or office leasing? These are the questions being asked right now especially if you are a developer, and you own a land but you don’t know what you will do [with such asset] next,” Rara said. Over the past decade or so, the property market only showed pockets of development, mainly in mixeduse facilities such as the former mili-

tary camp in Taguig, the reclaimed lands of the Mall of Asia complex in Pasay, the neighboring Entertainment City in Parañaque and older CBDs of Ortigas and Makati.

Pogo explosion

DEVELOPERS such as Andrew Tan’s Megaworld Corp. were constructing buildings meant for a specific BPO company, a strategy it used over the last two decades. Such strategy ensures the facilities have takers. However, here come buyers from mainland China. And with prices increasing, the equation suddenly went awry with Pogo occupiers. The arrival of buyers and Pogo occupiers began late 2012 when Communist China cracked down on gambling. A slew of Pogo licenses targeting Chinese gamblers were released some time only in 2016, upon the assumpSee “Chinese,” A2

n JAPAN 0.4744 n UK 70.1408 n HK 6.6101 n CHINA 8.1764 n SINGAPORE 38.8027 n AUSTRALIA 39.0813 n EU 61.8337 n SAUDI ARABIA 13.8354

Source: BSP (May 11, 2018 )


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