The Philippine market has been emerging and remains attractive to investors due to its economic fundamentals. With an average growth rate of 6.2% year-on-year in the third quarter of 2019, accelerating from a 5.5 percent growth in the previous quarter and beating market consensus of 6 percent - even reaching 7.8% in 2017—we can proudly say that the Philippine economy is now traversing a higher growth trajectory path. The average growth in the past five years was, in fact, the highest in nearly four decades. This growth has been supported by sound and stable macroeconomic fundamentals, characterized by low and stable inflation, a robust financial sector, prudent fiscal ratios, and a healthy external position that has made our economy much more robust and less vulnerable to global volatilities.
The table below shows how the Philippines fair, in terms of GDP growth among its Southeast Asian neighbors in the last two years.
The Philippines has been successful during the real estate boom, and is predicted to be sustained in the years to come. Mainly due to increasing development projects by the private sector and the improvement of public infrastructure, the current administration is experiencing economic growth, particularly in the property sector. In terms of GDP, the country is one of the fastest growing economies in Asia compared to China and Vietnam.
METROPOLITAN DEMAND
A key source of growth in the Philippine property market is rapid urbanization and the accompanying rise of the residential sector. As of 2010, a little under half of the Philippine population lived in urban areas (48.6%), but this is projected to rise to 56.3% by 2030 and 66% by 2050. Demand for residential properties is mainly driven by our middle class
Across the country, office buildings, condominiums, houses, malls, hotels and industrial parks are growing in demand. The influx of offshore gaming companies and Filipino workers looking for co-living accommodations in the crowded cities. Infrastructure projects like the “Build, Build, Build” Program strives to further develop the urban areas and ease the extreme traffic congestion in Metro Manila and beyond.
PROMISING DISTRICTS OF THE METRO
When talking about the upper class or the high-life, Metro Manila comes top of mind because of the great quality of life, full-blown developments and living within the central business districts are professionals and a pool of international demographics. The properties go beyond industry standards, that our luxurious real estate are world-class compared to major cities around the globe.
INVESTING IN BONIFACIO GLOBAL CITY
Out of all the cities in Metro Manila to choose from, considering important factors like prices of property, inventory size, prime location, population size and lifestyle experience, there’s no city that meets all of the criteria like BGC can. It has become comparable to Makati but more reasonably priced for a city located in Metro Manila.
Bonifacio Global City (BGC) a.k.a. Fort Bonifacio, The Fort, is approximately a. 240-hectare financial district located inTaguig City, one of the top highest-earning cities in the Philippines since 2015 based on Commission on Audit’s (COA) annual financial report (AFR). This financial district is strategically accessible as it was bounded by three major roads: Metro Manila Skyway, C-5 and EDSA.
Bonifacio Global City (BGC) has developed dramatically over the past few years, featuring state-of-the-art and eco-friendly residential and office buildings. Its planned infrastructure has larger open spaces and cables that run underground, keeping the city less unkempt. Taguig City where BGC is located, boasts a total of 613,343 residents per square mile. The majority of the BGC market consists of people who both live and work in BGC. Predominantly, they are composed of foreign expatriates, the local upper-middle class, and international students. All of them drawn by the appeal of BGC’s orderly community and vibrant nightlife as well as the easy access to Makati.
Bonifacio Global City, better known as BGC for short, was a major urban development project by Bonifacio Land Development Corporation (BLDC) in 1995. Celebrating its silver jubilee in the year 2020, here are some points that show BGC’s global potential for real estate investment:
- Humble Reputation - Despite being located in the heart of Metro Manila, Taguig once flourished as a fishing district due to its proximity from Laguna de Bay. They have been known for their efficiency in the service sector and corruption-free local administration.
- Contribute to Economic Growth - BGC also benefits from the BBB program to improve local infrastructure, the inventory also exceeded half a million sqm. Other factors that affect BGC’s growth are brought by the steady increase in the working population, capital, property appreciation and more.
- Competitive Business District - While BGC is ranked second as the largest central business district in the Philippines, the rate of demand for commercial and industrial space provides assurance that it’s bound to be the fastest in terms of growth. Other than financial institutions, BGC attracts a lot of startups, BPOs and manufacturing industries for the tax relief provided. Considered as the real “center” of Metro Manila since it’s located between EDSA & C-5 road, with 7 major access points.
- Elegant Lifestyle - Living in BGC exposes its residents to a simple yet luxurious vibe of being surrounded by nature in the middle of a highly-urbanized city. Everything is accessible from the workplace and schools to entertainment hubs like malls and restaurants for families to enjoy.
- Ideal Real Estate - Other than being in a prime location, the spaces are more affordable compared to neighboring cities like Makati. Although their Grade-A structures are built in recent years, designed with wide, open spaces, engineered to exceed industry standards; and equipped with the latest technology and advanced IT infrastructure.
INVESTING IN BONIFACIO GLOBAL CITY
BGC is divided into 6 districts:
- North Bonifacio
- Crescent Park West
- Bonifacio Center
- Station Square East
- University Park
- Bonifacio South
Uptown Bonifacio is the newest township developed by Megaworld within BGC, which houses residential condominiums, mixed-use business and commercial developments. This 15-hectare development is not part of BGC from the time Megaworld bought the land, and no longer managed by BCDA. There are currently 89 residential towers in BGC with an average of 34 floors each. This translates to roughly 30,600 units available in the market.
PRICE PER SQM IN BGC
Land prices are now ranging between PHP 480,000 - PHP 1,200,000 per sqm as of 2019. For more information on how to invest in world-class cities like Bonifacio Global City, you should consult a trustworthy real estate broker. No one is more qualified to give advice than an expert. As the 2019 President of City of Taguig Real Estate Board (CTREB), Ms. Catherine Ocariz of Sqft Global Properties Philippines Inc. is more than just your consultant, but also your friend. Contact us and we’ll discuss everything you need to know about global investments, property management and even interior design.