Collingz expects rental income to rise 15 percent in the coming 12 months after gains of as much as 30 percent since January 2006, when Pacific Concord Properties Inc are set to launch Condo Hotel operations of their flagship Lancaster Suites located in the Ortigas business district in Metro Manila.
UK Private equity units of banks and investment clubs, driven in part by the current strength of the Pound Sterling in international trading, are being attracted by returns in the Philippines as much as double those in the United States and Europe, are purchasing significant blocks of real estate for investment trusts for Asian commercial property.
"There are large amounts of capital now chasing increasingly limited investment-grade real-estate opportunities in Asia," said Collingz. "We are currently in the closing stages of packaging the investment of some $20M in private-equity real estate funds for new Lancaster Brand Apart-Hotel or Condotel developments in Metro Manila and Cebu, on the strength of expected rental returns which will continue to grow at a rapid pace."
With funds raised for commercial property deals in Asia having doubled in each of the past five years, Collingz see the market value of Condotel investments in the Philippines reaching new heights in 2007/8 as more developments come on line.
Rising demand for homes, hotels, short and medium term rental accommodation, offices and shopping malls in the Philippines, home to a population of almost 80 million and with a significant number of the more than 10 million returning overseas Filipino ?Baby Boomers?, is fueling rents.
Residential rents in Metro Manila rose 26 percent in the three months to March 2007, their highest quarter-on-quarter increase in more than a decade, as more and more IT companies set up shop in the Philippines. Companies like Texas Instruments are investing $1B in expanded operations in the Philippines. High-end rents rose some 13 percent from a year earlier, said Collingz.
Collingz projects that Rents in the region are set to effectively jump up by at least 8.7 percent per annum over the next five years, compared with 3.3 percent in the United States and 3.7 percent in Europe. Yields from 8 percent to as high as 14-16 percent ROI on rental income property contrast with the 4 percent to 5 percent that private equity firms get in the United States and Europe.
"People are in general looking to shift fund flows relatively towards Asia," Collingz said. "It already has had a profound impact in markets where there's a lot of this money chasing the same assets." In Singapore, the region's second- biggest market after Japan, investments by private real estate funds accounted for seven of the 19 office blocks, worth 6.7 billion dollars, sold since September 2005. REITs bought six. A Goldman Sachs fund paid 690 million dollars for two buildings last November that house the headquarters of DBS Group Holdings. In Hong Kong, property funds of Morgan Stanley and Macquarie Bank paid a total of 7.9 billion Hong Kong dollars, or $1.02 billion, for four office blocks from March to May, according a recent article published by CB Richard Ellis.
As the Singapore, Japan and Hong Kong markets become saturated, the Philippines will be the next real estate market to attract substantial overseas investments. Lower prices and retirees? spending money are also directing foreign attention to residential condominium hotels in the Philippines, which in turn is driving up more construction.
?A lot of this interest is being driven by the relatively cheap market prices here compared to Europe ? especially UK housing prices ? and the easy payment options available for condominium hotel developments? Collingz said. ?The buyers gain rental incomes that on today's purchase prices give a projected ROI of some 8 percent to 14-16 percent depending on the mode of payment for the unit? she said.
Beth Collingz PLC International Marketing Networks
PLC International Marketing Networks has revealed that some institutional investors are trying to diversify their property portfolios through areas like Southeast Asia, China and beyond - with the Philippines heading the list, then Thailand, Japan, China, and Singapore property investments featuring in some portfolios.
In the UK, "Investors are moving to new areas to find value" said Beth Collingz, Global Marketing Director of PLC International Marketing Networks based in Metro Manila and Cebu in the Philippines. "More and more of clients for Condotel Investments are coming from the UK. There has been a distinct market shift from US based clients over the past few months and we see that trend continuing over the winter months of 2006 and on into 2007 has Sterling continues its increase in value over the US Dollar.
A lot of this interest is being driven by the relatively cheap market prices in the Philippines compared to Europe, specially UK Housing prices, and the easy payment options available for our Condotel Developments, but there are other factors, too. Offshore Property Investors, Foreign baby boomers as well as overseas Filipinos, are looking for ways to maximize their return on investments as they approach retirement, and so are purchasing second homes, particularly Condotel Investments where they can use the Condo for vacations and rent it out through our In-House Condotel Management when they are not using the unit thereby gaining rental incomes that on today's purchase prices, give a projected ROI on their investments of some 12-16% depending upon the mode of payment for the unit.
Metro Manila remains a popular choice with international buyers and institutional investors. Collingz says clients tell her that it makes more sense to buy in a year-round vacation destinations and business centers. Lancaster - The Atrium Condotel developments by Pacific Concord Properties located in Shaw Boulevard, Metro Manila - fits the bill with all it offers to International buyers.
Accessibility is also a factor. Flights from London to Manila, for example, average just 16 hours, add to that the many airline specials and it's easy to see why this area is becoming an international community. Unlike other offshore rental properties, where the rental market is largely seasonal, in the Philippines there is a strong market for rental properties year round. This gives buyers greater flexibility in choosing when to use and when to rent their property. The strong rental/second home market also has resulted in a proliferation of professional property managers and rental agents, making property ownership and rental easy. Pacific Concord Properties Inc with it's flagship Lancaster Condotel Developments fit's the bill
Lancaster Manila Atrium Tower A, Shaw Boulevard, Metro Manila, Philippines is a "Full Service" Condominium Hotel ["Condotel"] offering Studio, One, Two and Three Bedroom Suites for sale. To be completed and ready for turnover from December 2010, the Lancaster Suites Manila Atrium Tower II will provide unit owners with premier residential condo units with the option of enrolling their units in the Lancaster Condotel Rental Pool and earn Rental Incomes as Owner Non-Residents when not using their units through Condotel Management and reciprocal arrangement with Lancaster Cebu Resort Residences. This makes Lancaster Suites Manila, one of the Hottest Investment Opportunities in the Philippines said Collingz.
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Lancastersuites has sinced written about articles on various topics from Real Estate, Investments and Property Investment. Pacific Concord Properties Inc., Manila Head OfficeShaw Boulevard, Mandaluyong City. Metro Manila. PhilippinesPhone: Manila [632] 717 1958Fax: Manila [632] 718 1828Pacific Concord Properties Inc., Cebu OfficeLapu-Lapu City, Mactan. Cebu. PhilippinesPhone:. Lancastersuites's top article generates over 550000 views. to your Favourites.
Plcmarketing has sinced written about articles on various topics from Banner Advertising, Investments and Property Investment. PLC International Marketing NetworksPacific Concord Properties Inc., Manila Head OfficeShaw Boulevard, Mandaluyong City. Metro Manila. PhilippinesPhone: Manila [632] 717 1958Fax: Manila [632] 718 1828Pacific Concord Properties Inc., Cebu OfficeLapu-Lapu C. Plcmarketing's top article generates over 74000 views. to your Favourites.