Mandani Bay to Turnover 1.2k Units in April; Phase 3 in Planning Stage
HT Land Inc. aims to turn-over 1,200 condominium units in April 2020. The joint venture between Hongkong Land and Taft Properties intends to deliver Towers 1 and 2 of Mandani Bay Suites, located within their 20 hectare (49.4 acres) township. A five-star hotel is also included in the township’s development pipeline.
Metro Cebu is the largest condominium market outside Metro Manila. Condominium take-up for H1 2019 reached 4,100 units, higher than the 1,900 units registered in the same period of 2018. We believe this demand for condominium units is buoyed by the sustained growth of Overseas Filipino Worker (OFW) remittances. For the first 11 months of 2019, OFW remittances in the country grew to USD30.3 billion (PHP1.5 trillion), 4.1% higher than the USD29.1 billion (PHP1.4 trillion) recorded in the same period of 2018. In addition, the 2018 Survey on Overseas Filipinos by the Philippine Statistics Authority (PSA) show that 6% of OFWs came from Central Visayas. We also project demand to be partially driven by the influx of foreign tourists likely to invest in the province due to its natural attractions and integrated communities. We believe some investors and end-users find condominiums within master-planned communities attractive due to the convenience offered by a live-work-play lifestyle.
Restaurant Pioneers Digital Ordering System in Cebu
Harbour City Group has introduced a new ordering system in its second branch of Ding How Dimsum House in Ayala Malls Central Bloc located in Cebu IT Park. The company invested around PHP1.5 million (USD29,400) for the new technology which features a screen for each of the 24 tables where customers can access the menu and place orders. The company plans to further expand its brand by opening two more branches in Cebu and another two outside the province by the end of 2020.
Colliers believes that the rising popularity of digital technology coupled with the higher purchasing power of a predominantly young Cebu workforce would likely push malls and retailers to further tap into technological innovations. Utilizing technology makes retailers more attractive to consumers as it offers a more convenient retail experience. New ordering systems may also lessen foregone sales brought about by customers leaving restaurants due to long queues and slow customer service. Colliers recommends retailers to explore other digital innovations such as e-wallets and self-checkout counters to capture the preferences of tech-savvy consumers and retain footfall.
Megaworld Further Ramps up Office Portfolio in Iloilo
Megaworld is launching two office towers within its 72 hectare (177.9 acres) Iloilo Business Park in Mandurriao, Iloilo City. Enterprise One and Two will likely stand at 12-storeys each and offer a combined 78,000 sq metres (839,600 sq feet) of office space. Both towers are likely to apply for Leadership in Energy and Environmental Design (LEED) certifications. Moving forward, the national developer expects to add 35,000 sq metres (376,700 sq feet) of office space by 2021 upon the delivery of One Fintech Place A and B, and Two Fintech Place. This is in line with their goal to reach 175,000 sq metres (1.9 million sq ft) of office stock by 2022.
Colliers believes that Iloilo remains attractive to outsourcing companies looking for Philippine Economic Zone Authority (PEZA) proclaimed office spaces outside Metro Manila. This is partly due to the moratorium on PEZA approvals in the country’s capital region. From 2020 to 2022 we expect the delivery of more than 153,000 sq metres (1.6 million sq feet) of PEZA space with bulk located in Mandurriao. Colliers sees majority of the new supply coming from Iloilo Business Park. The business district continues to be one of the major outsourcing hubs in Western Visayas. We recommend locators to be quick in taking up available PEZA spaces due to limited new supply. On the other hand, we recommend developers waiting on their PEZA approvals to look into the possibility of housing traditional firms that do not require PEZA-proclaimed office spaces..