The Philippines, Vietnam Cited as Top Real Estate Players in 2015
Property Report, one of Asia’s leading luxury real estate, architecture, and interior design publications, recently cited the property markets in the Philippines and Vietnam as two of the best-performing markets in 2015 amid an overall slow year for the rest of the property sectors in Southeast Asia.
Duncan Forgan, writer for Property Report, who also chose Ayala Land Premier’s residential towers Park Terraces and Century Properties’ residential tower Century Spire Residences as two of his top picks for 2016, wrote: “The Philippines has continued to be a solid performer and although analysts are predicting a slight slowdown in growth, they see plenty to be positive about—especially in an office market likely to be the beneficiary of a thriving BPO (business process outsourcing) sector.”
Based on earlier industry forecasts, the IT (Information Technology)-BPO industry in the Philippines is poised to create up to 1.3 million jobs this year, thus the rise in demand for more office spaces.
“The growth pillar in the Philippines, its BPO industry, is powering ahead thanks to sound economic management, a stable political landscape, and a largely young and well-educated population,” Sigfrid Zialcita, managing director of research at commercial real estate firm Cushman and Wakefield, told Property Report.
He added, “The next five years could still see BPO companies enlarging their footprints across the country to ensure high occupancies and a platform for long-term moderate growth of more than five percent.”
Vietnam, on the other hand, made quite an impressive noise last year with the construction of its economic hub, Ho Chi Minh City (HCMC), where the twin towers The One HCMC will rise. Many property investors were also keen on buying properties across the country, including HCMC, Hanoi, the capital of Vietnam, and Danang.
The property market in Vietnam has been supported by a stable economy and, due to the growing strength in the US dollar, the Vietnam dong has become one of the strongest currencies in the Asia Pacific region. Both decreasing interest rates and a strong currency are expected to attract foreign investors,” Dung Duong, a director of research at real estate advisory firm CB Richard Ellis-Vietnam, told Property Report.
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