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Finding Real Value in Premium City’s Steady Rise
Published By: Amy R. Remo - Reporter / @amyremoINQ Philippine Daily Inquirer | May 24, 2019
Nothing trumps location.
At least as far as real estate is concerned, a strategic location, characterized by its proximity to businesses, establishments, key institutions, and other modern conveniences, will almost always be your best bet to securing a wise, practical investment.
This is perhaps why, for many, Makati City remains the most coveted address. Many continue to aspire to have a piece of Makati—be it someone wanting to either reside permanently in this highly urbanized city or have a halfway home here, or for one wanting to set up his or her business within the country’s leading financial and business district.
But there are other equally important reasons why this cosmopolitan hub continues to be the address of choice, making it all the more harder to ignore the enduring allure of Makati City.
As it is, real estate is said to offer capital and income appreciation. Much more, perhaps, if this piece of land, building or home is located in an area deemed premium as Makati.
Data from Jones Lang Lasalle (JLL) showed that Makati City registered the highest pre-selling prices for residential units as of end March this year. Existing developments in the city commanded prices ranging from P145,000 to P433,000 per sqm while future developments are seen to dictate anywhere between P177,000 and P421,000 per sqm.
In the secondary market, capital values continue to increase with average prices of prime three-bedroom units in Makati hitting P131,000 to P329,000 per sqm as of the fourth quarter of 2018, according to Colliers International Philippines. These are forecasted to further rise to about P139,000 to P349,000 per sqm for the same quarter this year.
Rising rental rates
Expectedly, residential units being rented or leased out in Makati City can generate among the highest yields compared to other locations in Metro Manila. This is, of course, good news for those who have invested and are leasing out their residential units located in Makati City.
A JLL report showed that as of the first quarter this year, Makati City continued to demand the highest rental rates due to the concentration of luxury developments in this district. Rental rates were said to have ranged anywhere from P450 to P1,920 a sqm per month.
Colliers Philippines meanwhile reported that in the fourth quarter last year, average rents in prime three-bedroom units in Makati CBD rose by 0.6 percent quarter on quarter. Rents in Makati CBD meanwhile are seen rising by 0.8 percent this year, it further said.
There are a number of reasons why this city commands such a premium, foremost of which is the fact that it is home to Metro Manila’s premier financial and business center, which is said to be the country’s link to the global economy.
The Makati central business district, according to its city government, has the largest concentration of commercial activities in the Philippines, as it hosts some of the biggest multinational companies, local businesses, commercial and entertainment centers, financial institutions, international hotel brands, embassies and consulates, among others.
And it continues to attract even more high value developments and fresh capital, as the Makati City government ensures to provide a highly conducive business environment that will enable local and foreign investors to thrive.
In 2018, Makati City government reportedly generated P17.8 billion in revenues, comprising mainly of business tax (P9.1 billion) and real estate tax (P6.2 billion). These are being funneled back into more reforms and innovations that help make Makati City a more livable, sustainable location for businesses and residents alike.
Makati City is said to be one of the most accessible cities in the metro, given the number of roads and transport infrastructure that pass or cut through the city, including the PNR line, MRT, South Luzon Expressway, Edsa and C-5 Road.
According to the Makati City government, the “high capacity transit systems support Makati’s aspiration to become a more energy-efficient and sustainable city. In addition, there are new infrastructure projects that are expected to further increase the city’s access to other transport infrastructure such as airports and seaports.”
Earlier this year, Makati City Mayor Mar-len Abigail Binay-Campos gave an update about the Makati Subway Project, a highly-efficient mass transport system, whose completion in 2025 will help curb traffic congestion.
Makati City is indeed where the action is. Practically everything you need will be within reach, whether you’re in the CBD or at its outskirts.
That’s because some of the biggest malls and commercial centers, as well as the most renowned hotels, retail brands, and dining destinations can be found within this highly dynamic, vibrant hub.
Here, you have a wide array of choices that will cater across markets and price points, from the most luxurious to the most affordable. You have topnotch hospitals, schools and churches ready to serve your needs, too, while for the creative, artistic minds, art galleries and studios abound in Makati City as well.
Wherever you are in Makati, you are sure to have easy access to all these conveniences as the city continues to be at the forefront of everything modern and avant garde.
SM Development Corp. (SMDC) affords you that chance to be right at the center of all these conveniences with its third residential high-rise in Makati, SMDC Red Residences.
Rising along Chino Roces Avenue, the 33-storey SMDC Red Residences offers easy access to the CBD and other key areas in Makati City, making it the ideal home for the passionate, enterprising urbanites.
Here at Red Residences, unit owners are assured of a strategic location, a dynamic lifestyle, as well as utmost convenience and accessibility to all things that should matter most to you.