Real estate bulls predicting demand to exceed 2007 peak

THE property sector could grow by 5 and up to 15 percent this year, driven by the increasing demand for office, residential and commercial space, real estate consultant CB Richard Ellis chairman Rick Santos said Wednesday

The office space take-up this year might exceed the record 300,000 units posted in 2007, he said.

“It will be the best year ever for commercial office space leasing,” Santos said, adding the call center industry was expected to grow by 15 percent.

The average office lease rate is now P697 a square meter a month at The Fort, P520 a square meter in Alabang, and P516 a square meter in Quezon City.

Richard Ellis also expects the rental yields in Makati’s luxury residences to increase to 10 to 13 percent this year.

Property giant Ayala Land made similar projections, saying its Alveo Land was expected to generate P1 billion in sales from the newly launched mid-rise residential development in Clark, Pampanga.

Alveo Land division manager Aries Gonzales said the company posted P370 million in one-day sales for its Marquee Residences in Clark. More than 30 percent of the 199-unit project was sold in the first day of pre-selling, he said.

Alveo is building an eight-story building and another 13-story building within a 1.3-hectare gated compound in Clark. It is offering a 53-square meter unit at P4 million to P5 million, a 73-square-meter, two-bedroom unit at P6 million to P7 million, and a 105-square-meter, three-bedroom unit at between P8.5 million and P10 million.

Marquee Residences is Alveo Land’s third project in Pampanga. It follows the three-story shopping Marquee Mall and the 35-hectare Marquee Place subdivision, which is more than 70 percent sold.

Alveo reported having sold 1,200 units in the year to June, which compares with the 685 units it sold in the first half of 2010.

Alveo chief operating officer Robert Lao said Alveo Land would also be launching residential projects in Cebu, Davao and Tagaytay within the second half of the year.

“We are bringing cosmopolitan living to other parts of the country,” he said. –Jenniffer B. Austria and Julito G. Rada, Manila Standard with Bloomberg