By Emmie V. Abadilla
“The office property market registered a strong start in the quarter when the Tax Reform for Acceleration and Inclusion (TRAIN)’s first package was implemented and inflation rose to its highest since 2011,” Pronove Tai International Property Consultants’ CEO, Monique Pronove, announced in yesterday’s First Quarter 2018 Metro Manila Office Market Overview media briefing.
Interestingly, the office space market was robust, with 250,000 sqm, or 8 new buildings, completed in the first quarter of the year.
This was equivalent to a 3% growth quarter-on-quarter and 55% higher than the same quarter in 2017.
Taguig City contributed the most, with 106,000 sqm, or 42% of the total supply for the period, followed by Quezon City, or 34%, and Mandaluyong City, 16%.
Total office stock for Metro Manila now stands at 10M sqm, largely from the three office districts of Makati City, Taguig City and Ortigas Center.
Meanwhile, Quezon City recorded the fastest growth rate at 9%.
“Bay Area, which was the fastest growing district for the past 2 years, registered no new completions for the first three months of 2018,” she noted.
Still, Quezon City recorded a high 13 percent vacancy rate.
While Metro Manila vacancy rate remained at a healthy average of 5%, Quezon City saw a rise in vacancy at 13% from 11% of the previous quarter. Mandaluyong City has 12 percent and Ortigas Center, 6%.
Vacancy rate in Bay Area remained the lowest at only 1%. “As in the previous quarter, this tight stock for Pasay and Parañaque could be attributed to the aggressive absorption from offshore gaming corporations,” the Pronove Tai CEO added.
The first quarter recorded an actual take up of 262,000 sqm. Nevertheless, the office market’s biggest demand driver, ITBPM took up 51% of the available stock.
Traditional offices recorded a vigorous 30% take up and offshore gaming corporations followed, with 19%.
ITBPM, had a strong showing following the implementation of the TRAIN Package 1.