East Manila and Ortigas

PROPERTY REVIEW SEPT 2019 Eastern Manila and Ortigas

Property Management and Consulting Services Authored by: Ramon Fernando Balbin

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Philippine Snapshot

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Market Overview Metro Manila Population Manila's 2019 population is now estimated at 13,698,889 Comprise 12.6% of entire population

Median Age

24.4 years old

Labor Force

73.1 Million

Literacy Rate

96.5%

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Demand Drivers Foreign Expat 2017-2018 Total of 99,529 alien employment permits

Foreign nationals with AEP are employed in the following major industries based on 2017-2018 Philippine Standard Industrial Classification • • • •

Administrative and support services (43% or 42,608) Manufacturing (13% or 13,029) Information and Communication (12% or 11,714) Arts, Entertainment and Recreation (9% or 8,638) Construction (6% or 6,400)

POGO Employee’s where given Php10,000 budget for housing allowance

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Philippine Work Force BPO Sectors still takes up the majority of Philippine workforce.

Household Median Income = PHP 563,042/annum

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Tourism

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Philippine Property Overview *Global Property Guide Price/SQM in USD

Rental Yield

P/E Ratio

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Property Management and Consulting Services; The main objective of this research is to scan property across Metro Manila where price is still below Php150,000/sqm as we believe this price is not vulnerable to any price correction.

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Eastern Manila NEW CBD ON THE RISE \

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Travel time cut down to 12 minutes between 2 CBD Area BGC and Ortigas

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Circulo Verde Google Map Street View Market Driver Pogo BPO Students Businesman Investment Highlight • Gated Quite Community • Bike, Pet, Skate & Park, Basketball Court, RC Track and Soccer Field • Ready For Occupancy • 106k/sqm • Bigger Cuts • Exceptional Property Management

DEVELOPER: Strategy: Buy Rent Hold Status Sold By Unit Size Property Type Foreign

Ready for Occupancy Owner/Bank 45 1 Bedroom with Balcony With Allocation

Secondary Market

Developer Price

Parklink North Tower

Purchase Price

4,800,000.00

6,300,000.00

6,543,096.00

4,971,428.64

Price/Sqm Current Rental Rate

106,666.67

140,000.00

272,629.00

207,142.86

25,000

25,000

30,000

25,000.00

6.25% 8.52x

4.76% 11.19x

5.50% 11.62x

6.03% 8.82x

Gross Yield Price to Rent

Verdant Tower Ortigas East

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Cirrus \

Google Map Street View

Demand Driver Pogo BP Students Businesman

DEVELOPER: Strategy: Buy Hold Sell Status Sold By Unit Size Property Type Foreign

Purchase Price Price/Sqm Current Rental Rate Gross Yield Price to Rent

New Development/ Off the plan Developer 24 Studio No Allocation

Investment Highlight • Mixed Used Community (Township) • C5 corner Ortigas Ave • Flexible Payment term 13k/monthly • 7% rental yield • 5 Mins to Ortigas Centre

Developer Price

Parklink North Tower

Verdant Tower Ortigas East

4,262,600.00

6,543,096.00

4,971,428.64

177,608.33 25,000 7.04% 7.6x

272,629.00 30,000 5.50% 11.62x

207,142.86 25,000.00 6.03% 8.82x

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Ortigas CBD

Ortigas Center is a central business district located within the joint boundaries of Pasig, Mandaluyong and Quezon City, within the Metro Manila region in the Philippines.

With an area of more than 100 hectares (250 acres), it is Metro Manila's second most important business district after the Makati CBD

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Supply and Demand - Office

Office Rental

Ortigas and Alabang is still the lowest office rental /sqm on a CBD Area

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Prominent companies at Ortigas

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2018 Average PSM in Ortigas PHP140,400/psm *exclusive of vat and oc

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Ortigas Rental Price

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Maven Google Map Street View

Demand Driver Pogo BPO Students Businesman

DEVELOPER: Strategy: Buy Hold Sell Status Sold By Unit Size Property Type Foreign

Purchase Price Price/Sqm Current Rental Rate Gross Yield Price to Rent

New Development/ Off the plan Owner 24 Studio With Allocation

Investment Highlight • High End Mixed Used Community (Township) • Walking distance to future subway station • 7% rental yield • Central Business District • Upward Trending Market

Secondary Market

Developer Price

SMDC Shine Residences

Pearl Place Residences

4,200,000.00

5,500,000.00

5,000,000.00

4,500,000.00

175,000.00 25,000 7.14% 7.45x

229,166.67 25,000 5.45% 9.76x

272,629.00 25,000 6.00% 8.8x

207,142.86 25,000.00 6.67% 7.99x