Pagcor casino hub boosts property demand in Pasay, Manila

Aya Lowe

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There is strong demand from expatriates moving to Manila to work in Pagcor's Entertainment City

The upcoming Entertainment City is set to boost demand in the Pasay area. Photo by Aya Lowe/Rappler

MANILA, Philippines – The upcoming integrated gaming and tourism hub of the Philippine Amusement and Gaming Corp. (Pagcor) in the Manila Bay area has boosted demand for residential units in the cities of Pasay and Manila, according to Colliers International’s latest report. 

The international real estate consultancy firm said demand is coming mainly from expatriates who are moving to Manila to work at Pagcor’s Entertainment City.

“While demand for leasable properties remains high in Rockwell, Makati and Bonifacio Global City, the Pasay-Manila area has also become a preferred destination for expatriates engaged particularly in the Pagcor Entertainment City,” said Colliers in its first quarter 2013 Philipine Real Estate Market Report.

The Entertainment City will feature 4 entertainment venues. The first of the 4, Bloomberry Resorts Corp.’s Solaire Manila, opened in March. The other 3 are scheduled for completion in 2014.  

Solaire alone will be hiring as any as 10,000 workers by the time the second phase of its casino-hotel development is finished. So far the casino has a total of 4,500 employees on its payroll.

Aside from the gaming industry, expatriate demand for residential units is driven by the expansion of international schools and institutions and outsourcing firms, Colliers said.

Residential supply to increase 10%

Around 18 new residential condominiums or 7,181 new units will be introduced across Manila in 2013. This a 10% increase from the new supply delivered in 2012.

However, while supply of units is up, units are getting smaller. According to Colliers, majority of units expected to come in fall into the smaller-sized categories – studio and one-bedroom. Only about 21% are 3- to 4-bedroom units, which are required by many expatriates.

The availability of premium condominiums remains limited with only 3 new projects slated to be completed this year. These developments are Discovery Primea in Makati City, and Beaufort East and West Towers in Bonifacio Global City.

As demand has increased, vacancy rates have decreased since the third quarter of 2012.

In the first quarter of 2013, residential vacancy in Makati slightly decreased by 0.24% from the previous quarter to 9.7%. However, the substantial upcoming supply in the second half suggests that the rate may increase toward the end of the year. Despite the increase, demand for premium condominiums will remain the strongest with a vacancy rate of below 5% the first quarter of 2014.

Colliers’ report also found that premium 3-bedroom rental rates in Makati grew by 2.3% in the first quarter from the last quarter of 2012, and are pegged at P737 per sqm on average. In Rockwell, where supply is limited, premium rental rates grew 2.0% quarter on quarter and have started to exceed the P800 level. Premium rates for both the Makati and Bonifacio Global will increase by 8% to 9% in the next 12 months. – Rappler.com

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