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Sunday, May 28, 2017 Vol. 12 No. 227
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Pinnacle study shows robust real-estate inventory expansion in Q1
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Still no way but up for property sector
T
By Roderick L. Abad | Contributor
HERE’S still no way but up for the property industry, as it continues its growth trajectory, along with all the macrofundamentals, pointing to the country’s strong economy, according to Pinnacle Real Estate Market Insight report for the first quarter of 2017.
The study reveals that the office market is constantly bolstered by the business-process outsourcing (BPO) sector that keeps on taking up spaces, either for their expansion or new facility requirements, amid concerns over the protectionist policy of US President Donald J. Trump. “Ultimately, business decision to outsource service may be more efficient as compared to outsourcing manufacturing that may face additional tax backlash from the
US federal government,” said Jojo Salas, director of research and consulting at Pinnacle Real Estate Consulting Services Inc. “The consensus is that when US companies outsource the service component, the Philippines remains to be on top of their list.” Because of the ever-increasing population, demand for housing and residential units is not being met, as that of commercial-retail and hotel that have been underserved, as well. Likewise, manufac-
turers here and abroad have been searching for suitable industrial spaces, as well, to set up plants or production sites. “With this kind of growth, a lot of companies will continue to grow to serve these various realestate demands,” he said.
Office
THE Information Technology-Business Process Association of the Philippines (IT-BPAP) Roadmap 2022
1.8M
The projected headcount of BPO employees in the next five years, indicating strong demand for office spaces
Continued on A2
Cleaning up MRT 3 mess
DOTr admits inadequacy to run, manage the country’s busiest, but breakdown-prone, railway system
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or half-a-million Filipinos using the Metro Rail Transit Line 3 (MRT 3) daily, the grandiose vision and impressive features of the Duterte administration’s Build-Build-Build program mean little, until they can see a real solution of their most basic problem: When will they see an end to the long queues and frequent breakdowns of the trains? And the more fundamental question: Will the government ever be able to untangle a system that right now is in total disarray? The gravity of the MRT 3 crisis was hammered home at last Tuesday’s Senate Public Services Committee hearing, when a ranking Department of Transportation (DOTr) official admitted to senators the government is illequipped to run the MRT 3, and
suggested turning over management to the Light Rail Transit Authority (LRTA). The DOTr’s exasperation is understandable, given the many years its predecessor, the Department of Transportation and Communications (DOTC), especially during the terms of former secretaries Manuel A. Roxas II and Joseph Emilio A. Abaya, miserably failed to improve the MRT 3 services decisively. Sen. Grace Poe, chairman of the Public Services Committee, summed up the still-unresolved issues needing resolution at MRT 3: 1) Compel the maintenance provider Busan Railways Inc. (Buri) to ensure zero, or the most minimal breakdowns or glitches; 2) Getting on stream the new trains from Dalian; 3) Exacting accountability from all those responsible for the
ed davad
By Butch Fernandez
See “MRT,” A2
PESO exchange rates n US 49.8750
n japan 0.4460 n UK 64.5432 n HK 6.4015 n CHINA 7.2593 n singapore 35.9771 n australia 37.1669 n EU 55.9199 n SAUDI arabia 13.3004
Source: BSP (26 May 2017 )