Q4 2018

4Q2018 PROPERTY MARKET OVERVIEW
Research | Colliers International Philippines

4Q 2018 PROPERTY MARKET OVERVIEW
MACROECONOMIC OVERVIEW
PHILIPPINE HISTORICAL GDP

Lower growth forecast for 2018
2019 GDP
6.0% - 6.5%
9% growth forecast
8%
Government spending
7% 6.7%
7.1% 6.9% 6.7% 12.8% growth vs 7% in 2017
Real GDP Growth (Constant 2000 Prices)
6% 6.1% 6.2%
6.1%
Consumer spending
5% 5.6% rise vs 5.9% in 2017
4%
3% AGENCY 2019 FORECAST

2% World Bank 6.5%
1% S&P 6.4%
0% Standard Chartered 6.4%
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
-1% Fitch Solutions 6.1%
-2% Oxford Economics 6.1%
Source: Philippine Statistics Authority
OFW REMITTANCES
Up 3% YoY January to
35 December 2018
• Nearly 80% of remittances

30
USD 32.2Bn
during the period from the 25
United States, Saudi Arabia,
USD (in billions)

UAE, Singapore, Japan, UK, 20
Qatar, and Canada
15
• Government’s target is 4% 10
growth in 2018
5
1Q 2Q 3Q 4Q
Source: Bangko Sentral ng Pilipinas
LENDING RATES
18%
5.2%
• Lending Rates: 16% 2018 inflation rate
4Q 2018: 5.2% - 7.8% vs 2.9% in 2017
4Q 2017: 4.1% - 6.5% 14%
12%
• Average Bank Mortgage Rate: 10% 7.8%
4Q 2018: 7.0%*
8% 6.8%
• Average Inflation Rate: 6%
12M2017: 2.9% 4%
12M2018: 5.2% 5.9%
2%
Dec 2018: 5.1% 5.2%
0%
Policy rate hike in 2018
1Q18
2Q18
3Q18
4Q18
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
175 bps Lending Rate (Low) Lending Rate (High) Headline Inflation Rate
Source: Bangko Sentral ng Pilipinas; Colliers International Philippines Research

Average Mortgage Rate
*Average of mortgage rates offered by major banks in the Philippines

METRO MANILA AVERAGE LAND VALUES

Land values continue to increase given the lack of developable land
1200K
985K
4Q 2018 4Q 2019F* 1000K
LOCATION PER SQ M (YoY)
782K
800K
PHP / sq m
Makati CBD 782,000 26% 805K
600K
Fort Bonifacio 655,000 23%
655K 390K
400K 300K
Manila Bay Area 300,000 30%
Ortigas Center 255,000 7% 200K 273K

255K
Source: Colliers International Philippines Research
*Forecast K
4Q18F
1Q19F
3Q19F
4Q19F
1Q18
2Q18
3Q18
2Q19F
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Makati CBD Fort Bonifacio Ortigas Center Manila Bay Area
OFFICE SECTOR
In a nutshell:
Vacancy at PEZA
+ 5% proclamation
Outsourcing
drives delays to
demand curtail BPO
growth
COLLIERS INTERNATIONAL | PRIVATE & CONFIDENTIAL
METRO MANILA OFFICE STOCK AT 11 MN SQ M
As of 4Q 2018 (in sqm GLA, except YoY growth percentages)
ORTIGAS CBD
1.3M QUEZON CITY
5%
ORTIGAS FRINGE 28%
22% 1.7M
MAKATI CBD 503K MAKATI FRINGE
1% 320K 30%
3.3M
MANILA BAY AREA
2.2M FORT BONIFACIO
68% 673K
12%
Total office stock in Metro Manila
ALABANG
11 million sqm 633K 11%

METRO MANILA STOCK TO GROW 26% IN 2021

Office supply forecast by location as of 4Q 2018 (in sqm GLA, except growth percentages)
CHANGE
LOCATION END 2018 2019F 2020F 2021F END 2021
(2021 vs 2018)
Makati CBD 3,283,300 75,700 107,600 103,300 3,569,900 9%
Makati Fringe 320,000 31,300 131,400 - 482,700 51%
Fort Bonifacio 2,152,500 179,100 232,800 32,900 2,597,300 21%
Ortigas Center 1,722,000 268,200 283,900 65,000 2,339,100 36%
Ortigas Fringe 503,100 28,100 - - 531,200 6%
Bay Area 673,200 194,300 119,700 170,300 1,157,500 72%
Alabang 633,300 89,100 77,800 - 800,200 26%
Quezon City 1,309,300 235,700 134,200 158,600 1,837,800 40%
Others 393,000 122,400 33,100 - 548,500 40%
Total 10,989,700 1,223,900 1,120,500 530,100 13,864,200 26%
QUEZON CITY AND FORT BONIFACIO DOMINATE

40% of completion in 4Q2018 was in Quezon City
SUBMARKET BUILDING NAME LEASABLE AREA

152K
High Street South Corporate Plaza Quezon City
53,000
Tower 4Q2018
20,300
Fort Bonifacio Twenty-five Seven McKinley Completions
Asian Century Center
25,000
25,500
43K
380k sqm
Ortigas
Capital House Center
Frabelle Corporate Plaza 6,400

Makati CBD
Liberty Plaza 8,600 15K
Makati CBD
Ortigas Center Robinsons Cyberscape Gamma 43,300

12K
Manila
Bay ARea 124K
Bay Area Filinvest Cyberzone Bay City bldg. A 12,200 Fort Bonifacio
One Griffinstone Building 21,300

Alabang
Nissan Sucat Zentrum 12,600
Araneta Cyberpark Tower 2 70,500
Robinsons Zeta Tower 34,500
Quezon City
Mpire Center
Vertis BPO Phase 3
7,400
39,900
34K
Alabang

UPCOMING SUPPLY 2019
New Buildings to Support Spike in Demand
Ortigas Center
Quezon City Estancia Extension (Estancia 2), Sta.
Robinsons Giga Tower, The Upper Class, SM North Lucia Business Center, SM Keppel
EDSA Tower 1 and Tower 2, MTE Tower, Alphabase Land Office Tower/ The Podium West,
Building, Studio 7, Centris Cyberpod 5, JSO Buidling Jollibee Tower, Glas Tower
Makati Fringe
100 West BPO Building, Ewest Pod, Mandaluyong
Autometrics Center Equinox Plaza
Makati CBD
Ayala North Exchange BPO /Citygate, NEX Fort Bonifacio
Tower, 223 Salcedo Udenna Tower, Milestone at Fifth
Avenue (Mendrez Building), World
Commerce Plaza, The Brilliance Center,
Manila Bay Area Ecoprime
Y Building, Meridian Park Tower 5 (East),
Meridian Park Tower 6 (West), Ayala Bay
Area Corporate Center, Met Live, Philflex
Building, Prestige Bay Mall, MAAX Alabang
Building 2, Four E-com Center Tower 1 2019: Parkway Corporate Center,
Filinvest Axis Tower 2, CTP Asean,
UPCOMING SUPPLY 2020

New Buildings to Support Spike in Demand
Ortigas Center
SM Mega Tower, Exquadra Office
Quezon City
Tower, Cyber Omega, Corporate
Eastwood Global Plaza, One Paseo
Finance Plaza
(ArcoVia City T1), Araneta Cyberpark
Tower 3
Makati Fringe Fort Bonifacio

Park Triangle Corporate Plaza North
Century Spire (Office Component),
Tower, 2 MCWest, Worldwide Plaza,
Forbes Media Tower, The Stiles
One LeGrand, BGC Corporate Center
Corporate Plaza West Tower
2
Makati CBD
Alveo Financial Tower, AO2 The Central,
Ayala Triangle Gardens Tower 2
Manila Bay Area

Four E-com Center Tower 2, Four E-com
Center Tower 3, Anchorland Corporate
Center, Sunrise Tower

OFFICE MARKET OVERSHOOTS FORECAST

Vacancy at +5% until 2021
1,400K 10%
9%
1,200K
“Wait and see approach” 8%
1,000K for 2021 7%
800K 5.0% 5.3% 6%

4.8%
5%
600K 5.3% 5.0% 4%
400K 3%
3.4%
2%
200K
1%
0 0%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019F 2020F 2021F
New Supply Net Take-up Vacancy
Net take-up for 2018,

1.18M sq m higher than Colliers’
forecast of 1.15M sq m
STRONG PRE LEASING CONTINUES

Q1 2019 to Q4 2019 Completion
250
19%
200 23%
46%
28%
GLA (‘000 sqm)
150
100 Pre-leasing status

75% 49%
as of Q42018
50
57% 76% 57%
-
Makati Fort Ortigas CBD Manila-Bay Makati Ortigas Alabang QC
Bonifacio Area Fringe Fringe
Taken Available
OUTSOURCING TO STAY & GROW

2017 (Inner Circle) vs. 2018 (Outer Circle)
19%
• Outsourcing’s share almost
doubled in 2018 9% 34%
40%
• Offshore gaming firms continue 35%
to take up space 21%
16%
• Demand from traditional firms
fueled by stable economy 26%
Others* BPO (KPO) Gaming BPO (Voice)
*Includes traditional firms, government agencies, and flexible workspace operators
OFFSHORE GAMING TAKE-UP

Since 2016
1600
1.5M
1400
1200
874K
710k sq m
1000
785K
Thousands
800
600 Offshore gaming take-up

400 since 2016
200
311K 303K
0 85K
2016 2017 2018
Gaming KPO Others* Voice

NOTABLE TRANSACTIONS
1.5M total transactions for 2018
Quezon City (38,000 sqm)
(24,000 sqm)
291K
(38,400 sqm)
(2,100 sqm)
Ortigas Fringe
(14,900 sqm)
77K
(1,800 sqm) (33,700 sqm) Ortigas Center
118K (19,800 sqm)
(1,080 sqm) (15,800 sqm)
(6,200 sqm)
Makati Makati Fringe
(3,600 sqm) (4,600sqm)
190K 54K
(3,000 sqm) (3,300 sqm) (2,900 sqm)
Manila Fort (15, 900 sqm)
(75,000 sqm)
Bay Area Bonifacio
(1,800 sqm)
(30,300 sqm) 220K 329K (4,000 sqm)
(4,200 sqm) (1,800 sqm)
(24, 300 sqm) 12,400 sqm) (1,800 sqm) (70,000 sqm)
(7, 100 sqm) (12,400 sqm) (9, 500 sqm)

Alabang
(4,100 sqm) (8,000 sqm)
(5,000 sqm) 137K
(72.800 sqm) (11,100 sqm)
DIVERSIFIED TENANCY ACROSS SUB-MARKETS

Demand drivers across sub-locations
180 166K
BPO (voice)
160
139K 147K
140
120 111K 113K
shifts to QC
GLA (‘000 sqm)
100
80 66K
60 39K 52K
36K 37K 39K 41K
30K
40
23K 29K 25K
20
-
Makati Fort Bonifacio Ortigas CBD Manila-Bay Makati Fringe Ortigas Fringe Alabang Quezon City
Area
Primary Business District Secondary Business District
Gaming KPO Others* Voice

Vacancy stable at 5%
1% to 3% vacancy in key CBDs except Fort Bonifacio
ORTIGAS CENTER
QUEZON CITY 650 – 950
11% 550 - 800
650 – 950
550 - 850 MAKATI FRINGE
12%
MANDALUYONG 3% 600 – 1,400
550 – 1,200
650 – 850
600 - 800 1% 4% BGC/North Bonifacio*
MAKATI CBD (P) 975– 1,600
1,400 – 1,900 950 – 1,500
1,200 – 1,750
6% McKinley
0.5
MAKATI CBD (A) % 875 -1,000
1,000 – 1,600 850-900
900 – 1,400 ALABANG
675 – 800
MANILA BAY AREA 650 – 750
1,000 – 1,100 2%
900 – 1,000 Headline / Transacted
Vacancy (QoQ decrease, stable, increase)
*FORT BONIFACIO’S INCREASE IN VACANCY IS MAINLY DRIVEN BY STRATA BUILDINGS
PEZA DILEMMA Ilocos Norte

PEZA Applications (from 2016 to 2018) 9K -
Benguet Metro Manila
Pending approvals for Metro
805k sq m - 10K 586K 805K
Manila
Laguna
Bataan
49K 25K
Pending approvals outside 15K 5K
184k sq m Camarines Sur
Metro Manila Cavite
17K 13K 6K -
586k sq m Approved for Metro Manila Ilo-ilo Cebu

- 4K 62K 20K
62k sq m Approved for Cebu Palawan Misamis Oriental

- 1K 19k 4K
Legends: Davao Del-Sur

Negros Occidental
Approved Pending Center of Excellence
- 17K - 85K
Approved Pending Next Wave Cities

RECOMMENDATIONS
1 Accelerated PEZA proclamation and
outside Metro Manila expansion
2 Target non-outsourcing tenants
3 Take advantage of pre-leasing rate
Consider office set-up/ expansion in

4 Quezon City
5 Flexible space operators to differentiate

RESIDENTIAL SECTOR
In a nutshell:
Launches
New threatened
record-high by high land
Aggressive
values
launches in
the fringes

CONDOMINIUM STOCK PER LOCATION
Bay Area completion sustains pace
ORTIGAS CENTER EASTWOOD CITY

17,900 7% 8,500
ARANETA CENTER
MAKATI CBD 15%
4% 4,500
27,000
4% ROCKWELL CENTER
MANILA BAY AREA 23%
4,500
19,900 17% FORT BONIFACIO
27%
32,200
ALABANG
118.9k
4,200 Condominium
4% units in Metro
Manila CBDs
CONDOMINIUM SUPPLY PER LOCATION
Fort Bonifacio led other sub-markets in terms of delivery for 2018
GROWTH
Location END 2018 2019F 2020F 2021F TOTAL
(2021 VS END 2018)
Alabang 4,230 200 - - 4,430 4.7%
Araneta Center 4,550 - - - 4,550 -
Eastwood City 8,540 - 630 - 9,170 7.4%
Fort Bonifacio 32,230 4,300 1,200 2,100 39,800 23.5%
Makati CBD 27,020 690 750 240 28,700 6.2%
Manila Bay Area 19,850 2,600 6,200 160 28,800 45.1%
Ortigas Center 17,940 800 200 410 19,300 7.6%
Rockwell Center 4,510 760 - - 5,270 16.9%
Total 118,870 9,350 8,980 2,910 140,020 17.8%

COMPLETIONS IN 4Q 2018
New units in almost all areas
Ortigas Center
Makati CBD • Twin Oaks Place – East tower
• The Lerato Tower 3 (569 (360 Units)
Units)
7% Fort Bonifacio
Manila Bay Area • Avida Towers Verte (562 Units)
• Shore Residences Building 3 • Central Park West (356 Units)
(2,006 Units) 7% • Grand Hyatt Residences (209
Units)
11% • The Florence at Mckinley Hill
Rockwell Center Tower 1 (164 Units)
• The Proscenium at Rockwell 36% • Two Maridien @ High Street
Kirov Tower (187 Units) 39% South Tower 2 (566 Units)
• The Proscenium at Rockwell
Sakura Tower (159 Units)

5,138 Units
delivered
SELECTED PROJECTS IN 2019 Ortigas Center
Bulk of new units coming from Fort Bonifacio • The Royalton (422 Units)
• The Sandstone at Portico (374 Units)
Makati CBD
• Escala Salcedo (250 Units)
• Salcedo Skysuites (253 Units) Fort Bonifacio
• East Gallery Place (407 Units)
• Madison Park West (851 Units)
8% • The Florence at Mckinley Hill Tower 2
Manila Bay Area
• Bayshore Residential Resort (414 Units)
Clusters 1,2,5 and 6 (446 Units) • The Montane (781 Units)
• Shore Residences 4 (1,817 Units) 8% • The Trion Towers T3 (548 Units)
• Verve Residences T1 (566 Units)
7%
Rockwell Center
• The Proscenium at Rockwell 46% Alabang
Lincoln Tower (492 Units) 28% • Southkey Place (203 Units)
• The Proscenium at Rockwell
Lorraine Tower (269 Units)

2%
9,394 Units expected
to be delivered
VACANCY PER LOCATION
Vacancy went down in comparison to last quarter
EASTWOOD CITY
ORTIGAS CENTER 3Q18 4Q18 1Q19F
3Q18 4Q18 1Q19F 4.7% 4.3% 4.2%
5.0% 4.77% 4.79%
ROCKWELL CENTER
MAKATI CBD
3Q18 4Q18 1Q19F
3Q18 4Q18 1Q19F
10.0% 9.7% 9.6%
10.9% 10.81% 10.77%
FORT BONIFACIO
MANILA BAY AREA
3Q18 4Q18 1Q19F
3Q18 4Q18 1Q19F
14.9% 14.6% 14.3%
12.5% 12.1% 12.4%
Eastwood and
Ortigas Center
Fastest Decline
10.6% Overall Metro
Manila Vacancy
NEW RECORD-HIGH
Relentless take-up in the pre-selling market
60
50 54 53 54
40 43 43 43
Units (in '000s)
40
30 37 35 33 35 36
20
10
-
2013 2014 2015 2016 2017 2018
Launch Take-up
Surpassed
53K in2017
BREAKDOWN OF TAKE-UP PER YEAR

Breakdown of 2016-2018 take-up per segment
25,000
22,985
20,954
20,000
18,099
Units Launched
15,000
10,000
5,000
-
2016 2017 2018
Economic Affordable Mid-Income Upscale Luxury
BREAKDOWN OF TAKE-UP
Breakdown of 2018 take-up per segment
Affordable
Upscale (1.7M to 3.19M)
(6M to 7.99M) - 17,300 units
- 5,400 units
10%
32%
Economic
(450K to 1.69M)
39% - 2,400 units
Mid-Income 4%
(3.2M to 5.99M) 14%
- 21,000 units Luxury
(8M and Above)
- 7,500 units
BREAKDOWN OF LAUNCHES PER YEAR

Breakdown of 2016-2018 launches per segment
20K
18K 17,313 17,547
15,747
16K
14K
Units (in ‘000s)
12K
10K
8K
6K
4K
2K
K
2016 2017 2018
Economic Affordable Mid-Income Upscale Luxury
SHIFT TO FRINGE
Sales performance per location of newly launched projects in 2018
300,000
Makati Highest no. of
average units
1,070 1,200
Ave. Monthly sales (Units)

250,000 1,000
Fringe sold per month
Price / sq m (PHP)
200,000 800
150,000 664 600
100,000 400
50,000 200
- -
Ave. P/sq m (RHS) Ave. Monthly Sales (LHS)

VION RESIDENCES BY MEGAWORLD
Along EDSA corner Chino Roces Avenue
Units Average total

1,051 launched
since 4Q18
6.4 mn contract price
as of 4Q18
Sold or Average
52 %
577 units
sold per 173K price per
sq m
month

LUSH RESIDENCES BY SMDC
Bagtikan St. corner Kamagong St., Brgy. San Antonio
Average total
Units
674 launched
since 4Q18 6.3 contract
mn price as of
4Q18
Sold or
Average
32 %
223 units
sold per 245 price per
K sq m
month

AVIDA TOWERS MAKATI SOUTHPOINT BY AVIDA LAND
2236 Chino Roces Ave
Average total
4.4
Units
397 launched
since 4Q18
contract price
mn as of 4Q18
Sold or 115 Average
56 %
units sold
per month 175 price per
K sq m

ASTON RESIDENCES BY DMCI
Dominga Street, Pasay, Metro Manila
Average total
5.4
Units
596 launched
since 4Q18
contract price
mn as of 4Q18
Sold or 168
55 % units sold
per month
119
Average price
K per sq m

GROSS RESIDENTIAL YIELDS
Selected Asian Economies 4Q17
Jakarta 8.0%
Ho Chi Minh 6.0%
Manila 5.3%
Bangkok 4.0%
Singapore 2.9%
Shanghai 2.0%
Hong Kong 2.0%
Guangzhou 1.6%
0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0%

STILL ATTRACTIVE COMPARED TO PEERS
Manila prices are still low compared to other Asian countries
LOCATION PROJECT USD/SQ M
Manila Proscenium 4,400
Park Central 6,700
Hong Kong Mount Nicholson 208,100
Singapore Sculptura Ardmore 34,300
Gramercy Park 27,600
Bangkok 98 Wireless 18,400
The Ritz Carlton Residences 15,600
*Note ex-vat Manilla

RECOMMENDATIONS
Explore residential potential in

1 Quezon City, Ortigas Center and
fringe
More upscale projects in the Bay

2
Area
Aggressive development in the

3
fringes

HOTEL SECTOR
In a nutshell:
Leisure a
Philippines
household
trails Asian
Homegrown spending
peers
brands driver
proliferating

RECORD-HIGH ARRIVALS Top 12 Sources of Visitor Arrivals (Jan-Oct 2018)
Below DOT’s Target
%GROWTH
COUNTRY ARRIVALS %SHARE
(YoY)
• Department of Tourism targets Korea 1,295,862 22.04% -2.72%
10 million tourists by 2022 China 1,059,788 18.02% 30.71%
USA 850,735 14.47% 8.34&
MANILA • China and India among the Japan 530,228 9.02% 8.02%
fastest growing source market Australia 220,367 3.75% 6.74%
Taiwan 204,776 3.48% -0.50%
Canada 178,134 3.03% 12.58%
United
7.1 Mn Kingdom
Singapore
163,015
144,101
2.77%
2.45%
9.73%
3.64%
Malaysia 120,976 2.06% 1.53%
Total arrivals in 2018,
a record-high Hong Kong 102,947 1.75% 10.81%
India 101,622 1.73% 14.40%
COLLIERS INTERNATIONAL | PRIVATE & CONFIDENTIAL Source: Department of Tourism
PH VISITOR ARRIVALS VS. MM OCCUPANCY
2H 2018
8M 80%
• Overall hotel occupancy reached 68% in 7M 70%
2H 2018, from 70% a year ago
6M 60%
• Colliers sees occupancy rates in Metro
Manila hovering between 68% and 70% 5M 50%
over the next twelve months. 4M 40%
• We see similar occupancy rate for 2020
3M 30%
to 2021 as delivery in Metro Manila
tapers and hotel completion in Clark 2M 20%
accelerates 1M 10%
Occupancy Rate 2018 0M 0%
69%
2009
2001
2002
2003
2004
2005
2006
2007
2008
2010
2011
2012
2013
2014
2015
2016
2017
2018
Visitor Arrivals (LHS) Average Occupancy (RHS)
Source: Department of Tourism; Colliers International Philippines Research

RECORD-HIGH SUPPLY IN 2018
Metro Manila
3,000
• About 2,700 rooms opened in 2018, a 2,500

record-high
• About 1,800 new keys are projected to 2,000
be delivered annually from 2019 to
2021 1,500
• Most of the new supply will be in Fort
Bonifacio and Bay Area 1,000
2018 completions 500
2,700 rooms 0
2019F
2020F
2016
2017
2018
Source: Department of Tourism; Colliers International Philippines Research
HOTEL ROOM RATES
Growth across sub-locations
QUEZON CITY (USD)
MAKATI CBD (USD)
HoH HoH
Category 1H2018 2H2018 Category 1H2018 2H2018
Change Change
3-star 60.2 60.6 2% 3-star 56 57.7 3%
4-star 103.8 108 4% 4-star 95 96 1%
5-star 187.5 187.9 1%
MANILA BAY AREA(USD)

FORT BONIFACIO (USD)
HoH
Category 1H2018 2H2018
Change HoH
Category 1H2018 2H2018
3-star 79.4 77.8 -2% Change
4-star 141.7 143.1 1%
4-star 121.3 118.9 -2%
5-star 213.2 221.3 4%
5-star 182.6 177.1 -3%
COMPLETED PROJECTS
Number of Rooms and Daily Rates, 2018
Manila Quezon City

Red Planet Red Planet
(170 units), USD33 6% (167 units), USD41
6%
Makati Fringe
Lub D Fort Bonifacio
(230 units), USD35
8% Grand Hyatt Manila
Manila Bay Area (461 units), USD199
and Newport City

Okada
(190 rooms), USD220 Las Piñas
Savoy Hotel 58% 17% Mella Hotel
(684 rooms), USD82
(132 rooms), USD68
Holiday Inn Express
(200 rooms), USD62
Hilton (357 units) USD190
Sheraton (350 units) 5%
USD189
UPCOMING SUPPLY
Selected Hotels in Metro Manila, 2019 to 2021
Makati CBD
Seda Hotel-CityGate
(293 units)
Mandarin Oriental
(275 units)
Fort Bonifacio
Seda Hotel-Circuit 42% 17% Seda Hotel-BGC Tower 2
(255 units) (342 units)
Manila Bay Area Others-South

and Newport City
27% 13% Seda Hotel-Arca South
Seda-Bay Area (265 units)
(350 units)
Hotel Okura (191 units)

Hilton Manila
Newport Area
sq m, size
357 Number of
rooms
40 per room
USD
600 Ballroom
capacity 190
ADR
Source: https://www3.hilton.com/en/hotels/philippines/hilton-manila-MNLPHHI/index.html

Sheraton Manila
Newport Area
sq m, size
390 Number of
rooms
44 per room
USD
800 Ballroom
capacity 189
ADR
Source: https://www.marriott.com/hotels/travel/mnlsi-sheraton-manila-hotel/

PHILIPPINES TRAILS ASIAN PEERS

Selected Asian Cities (in USD)
CITY
Hong Kong 581 350 236 319 289

Tokyo 802 560 357 518 517
Shanghai 375 245 163 157 294
Bangkok 349 182 206 187 205
Singapore - 289 309 294 368
Manila 168 162 207 223 182

TOURIST ARRIVALS, MANILA VS. ASIA

Selected Asian Cities
TOURIST ARRIVALS* TOURIST RECEIPTS**

CITY
(2017) (2017)
Hong Kong 28 25
Tokyo 29 18
Shanghai 61 32
Bangkok 35 12
Singapore 14 25
Philippines 6.6 13
Source: World Bank
*Million
**USD Million

AIRPORT MODERNIZATION
Airport Expansion Projects Across the Philippines

LEISURE A KEY SPENDING DRIVER

Restaurants and Hotels has been rising faster than GDP
12
10
8
8%
6
Average growth
since 2010
4
0
2010 2011 2012 2013 2014 2015 2016 2017 2018
GDP Growth Restaurants and hotels Inflation

RECOMMENDATIONS
More two-and-three stars hotel in the
1 fringes of business hubs
2 Development of homegrown brands
3 Position near modernized airports
4 Monitor air service agreements

between government and airlines

A Total Solution Provider
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direct experience in their local markets. Our professionals know their communities and the industry inside and out. Whether
you are a local firm or a global organization, we provide creative solutions for all your real estate needs.
Investors Owners Occupiers Tenants

Capital Markets & Investment Services Asset & Lease Management Corporate Solutions
Consultancy Services Brokerage / Agency Services Tenant Representation
Valuation & Advisory Residential Sales & Leasing Real Estate Management Services
Landlord Representation Project Management Facilities Management
Hotel and Leisure Advisory

Our Clients
Colliers represents a wide range of companies and industries. We are committed to exceeding our clients’ expectations and
delivering a memorable experience each and every time they choose to do business with us.
In partnership with our clients, we strive to make real estate a competitive business advantage and a strong financial asset.

Colliers International | Philippines
Colliers International Philippines (Manila Office)
11F Frabelle Business Center
111 Rada Street Legaspi Village
Makati City 1229 Philippines
Tel: 632 888 9988 Fax: 632 858 9001
This document has been prepared by Colliers International for general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or
implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the
information. ColliersINTERNATIONAL
COLLIERS International excludes unequivocally
| PRIVATE all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages
& CONFIDENTIAL
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Q4 2018

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4Q2018 PROPERTY MARKET OVERVIEW

Research | Colliers International Philippines

PHILIPPINE HISTORICAL GDP

3% AGENCY 2019 FORECAST

• Nearly 80% of remittances

USD (in billions)

Source: Bangko Sentral ng Pilipinas; Colliers International Philippines Research

*Average of mortgage rates offered by major banks in the Philippines

METRO MANILA AVERAGE LAND VALUES

Ortigas Center 255,000 7% 200K 273K

COLLIERS INTERNATIONAL | PRIVATE & CONFIDENTIAL

METRO MANILA STOCK TO GROW 26% IN 2021

QUEZON CITY AND FORT BONIFACIO DOMINATE

SUBMARKET BUILDING NAME LEASABLE AREA

Frabelle Corporate Plaza 6,400

Ortigas Center Robinsons Cyberscape Gamma 43,300

One Griffinstone Building 21,300

COLLIERS INTERNATIONAL | PRIVATE & CONFIDENTIAL

UPCOMING SUPPLY 2020

Makati Fringe Fort Bonifacio

Manila Bay Area

COLLIERS INTERNATIONAL | PRIVATE & CONFIDENTIAL

OFFICE MARKET OVERSHOOTS FORECAST

800K 5.0% 5.3% 6%

Net take-up for 2018,

COLLIERS INTERNATIONAL | PRIVATE & CONFIDENTIAL

STRONG PRE LEASING CONTINUES

100 Pre-leasing status

OUTSOURCING TO STAY & GROW

OFFSHORE GAMING TAKE-UP

600 Offshore gaming take-up

COLLIERS INTERNATIONAL | PRIVATE & CONFIDENTIAL

(7, 100 sqm) (12,400 sqm) (9, 500 sqm)

DIVERSIFIED TENANCY ACROSS SUB-MARKETS

COLLIERS INTERNATIONAL | PRIVATE & CONFIDENTIAL

PEZA DILEMMA Ilocos Norte

586k sq m Approved for Metro Manila Ilo-ilo Cebu

62k sq m Approved for Cebu Palawan Misamis Oriental

Legends: Davao Del-Sur

COLLIERS INTERNATIONAL | PRIVATE & CONFIDENTIAL

2 Target non-outsourcing tenants

3 Take advantage of pre-leasing rate

Consider office set-up/ expansion in

5 Flexible space operators to differentiate

COLLIERS INTERNATIONAL | PRIVATE & CONFIDENTIAL

COLLIERS INTERNATIONAL | PRIVATE & CONFIDENTIAL

ORTIGAS CENTER EASTWOOD CITY

COLLIERS INTERNATIONAL | PRIVATE & CONFIDENTIAL

COLLIERS INTERNATIONAL | PRIVATE & CONFIDENTIAL

COLLIERS INTERNATIONAL | PRIVATE & CONFIDENTIAL

BREAKDOWN OF TAKE-UP PER YEAR

BREAKDOWN OF LAUNCHES PER YEAR

Ave. Monthly sales (Units)

150,000 664 600

Ave. P/sq m (RHS) Ave. Monthly Sales (LHS)

COLLIERS INTERNATIONAL | PRIVATE & CONFIDENTIAL

Units Average total

COLLIERS INTERNATIONAL | PRIVATE & CONFIDENTIAL

COLLIERS INTERNATIONAL | PRIVATE & CONFIDENTIAL

Sold or 115 Average

COLLIERS INTERNATIONAL | PRIVATE & CONFIDENTIAL

COLLIERS INTERNATIONAL | PRIVATE & CONFIDENTIAL

COLLIERS INTERNATIONAL | PRIVATE & CONFIDENTIAL

LOCATION PROJECT USD/SQ M