Filipinos’ buying power driving mixed-use development demand
The demand for mixed-use developments will continue on the back of stronger purchasing power among Filipinos, according to a real estate analyst.
In a statement, Leechiu Property Consultants (LPC) chief executive officer David Leechiu said the demand for mixed-use developments is driven by the emergence of the 'live-
work-play' lifestyle of Filipinos.
"As more Filipinos are able to wield a stronger purchasing power as a result of the country's prosperous outlook, real estate buyers have now settled for a 'live-work-play' lifestyle," Leechiu said.
The country's infrastructure and transportation gaps are also influencing the demand for mixed-use developments, Leechiu noted.
"Developments that address this type of lifestyle are able to afford buyers with a holistic experience through their business, residential, and recreational features. These spaces are also more dynamic, with schools and churches that build communities," he added.
He cited the booming local Information Technology and Business Process Management (IT-BPM) sector as another driver of the demand for mixed-use development.
Similarly, Jones Lang Lasalle Philippines Head of Research, Consultancy and Valuation Claro Cordero Jr. said the growing business process outsourcing (BPO) sector is driving developers to create mixed-use developments outside Manila.
"The growth of the BPO market and the growing tourism market in areas outside of Metro Manila has resulted into the growth of mixed-used projects," Cordero noted.
At present, there are 3,000 hectares of land currently being developed outside Metro Manila. Cordero said the land may be used for projects in the office, residential, retail, and hotel sectors.
"There is a growing demand for these provincial sectors, especially for BPO centers since majority are going to be now in areas outside of Metro Manila, Cordero said. "Developers are going to expand to be able to set their footprint in places such as Cebu and Davao."
A testament to the interest in mixed-use and BPO offices outside Metro Manila is the Suntech iPark development, a pioneering campus-type information technology park developed by Property Company of Friends Inc.
Suntech iPark is the first in a series of buildings within Lancaster New City, a master-planned 25-hectare commercial, business, and lifestyle district in Imus, Cavite. The development addresses the demand for BPO spaces. It offers 88,300 square meters of gross leasable area (GLA), equivalent to around 17,500 seats.
"The development of Suntech iPark in Lancaster New City highlights how these mixed-use spaces offer Filipinos with a dynamic working and living environment. It also presents an exciting opportunity for businesses to expand outside Metro Manila and harness the rich CaviteAo talent," Leechiu noted.
Other developments within the district include a campus-like strip mall called The Square, educational institutions, and Central Greens leisure park.
"As a mixed-use space, Suntech iPark is ideal for both residents and businesses who want to enjoy the perks of the 'live-work-play' lifestyle," Leechiu said.
Source: Manila Time