colliers apr 2006 market overview

8/18/2019 Colliers Apr 2006 Market Overview

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COLLIERS INTERNATIONALQUARTERLY RESEARCH REPORT

PHILIPPINES

2 PHILIPPINE PROPERTY MARKET OVERVIEW

APRIL 2006

ECONOMIC INDICATORS

National Statistical Coordination Board

• It appears that capital appreciation is lagging behind rentalescalation. We have observed a two-tiered market whereinpre-selling condominiums are achieving a 10% premium overthe secondary market due to the availability of exible nanc-ing schemes.

Retail: OFW Remittance Lends Support

• The stock of retail space in Metro Manila remained static inthe last three months at 3.93 million square meters. The stockis forecast to expand by 9% in the remainder of 2006 with theaddition of two SM developments having an aggregate area of366,000 square meters

• As at end-March, Manila-wide retail vacancy rate slightlyeased to around 12.9% from 13.0% in the previous quarter.Moving forward, we expect vacancies to increase in 2Q06 tonearly 15% due to the signicant inux of supply. However,this should ease to around 14% by year-end.

2001 2002 2003 2004 2005

Gross National Product 4.8% 4.3% 5.6% 6.2% 5.7%

Gross Domestic Product 3.7% 4.3% 4.7% 6.0% 5.1%

Personal Consumption Expenditure 3.6% 4.1% 5.3% 5.8% 4.9%

Gov’t. Expenditure 1.7% -3.7% 0.5% 0.0% 2.7%

Investments 2.4% -5.0% 0.1% 9.5% -4.3%

Exports -4.0% 3.6% 4.4% 14.1% 2.3%

Imports 3.8% 4.7% 10.2% 5.9% 1.8%

Agriculture 4.7% 3.8% 3.8% 4.9% 2.0%Industry 2.3% 3.6% 3.8% 5.2% 5.3%

Services 4.1% 6.0% 5.9% 7.1% 6.3%

Inflation 6.1% 3.1% 2.9% 5.5% 7.6%

Budget Deficit (billion Pesos) P147.0 P210.7 P199.9 P187.1 P146.8

P:US$ (Average) P51.0 P51.6 P53.6 P56.0 P55.0

Average 91-Day T-Bill Rates 9.7% 5.5% 5.9% 7.3% 6.0%

• Effective rents in Ayala Center posted a slight QoQ increase ofnearly 3% to an average of P1,183 per sq m per month. Overat Ortigas, rents were nearly unchanged at P930 per sq m permonth – up by less than 2% QoQ.

• Motor vehicle sales in the rst four months of 2006 dropped3% YoY to 29,329 units while appliance sales for the rst threemonths of 2006 continue to disappoint with an 18% YoYdecline to 1.130 million units.

• Remittances from overseas Filipino workers (OFW) in the rstquarter reached an eight-year high of $2.8 billion, up by nearly15% YoY. The government expects remittances to increase by 9% this year and reach $11.8 billion.

ECONOMY

Consumer prices in the Philippines rose by 7.1% YoY in April from7.6% in March as ination for all commodity groups decelerated.

It appears that the passthrough effect from the increases in theVAT tax rate has moderated. It can be recalled that the recentincrease in ination reects the combination of higher taxes afterthe implementation of the EVAT in November and the rise inenergy prices. The recent surge in global oil prices is expected to be reected in May.

The country posted a better-than-expected 1Q06 budget decit ofP67.6 billion or 6% below the target level of P71.8 billion, despitemissing the budget decit target for March. The budget decit in

March came in at P27.2 billion, almost 15% higher than the targetof P23.7 billion.

The NPL ratio of universal and commercial banks fell to 8.3% asof end-February from 8.4% in the previous month and 11.8% inFebruary 2005. The NPL ratio is its lowest level in eight years.The improvement is attributed to the 1.5% MoM decline in NPLsto P158.7 billion.




PHILIPPINES APRIL 2006

PHILIPPINE PROPERTY MARKET OVERVIEW 3

AVERAGE LAND VALUES - MAKATI CBD AND ORTIGAS CENTER

Land Values

Land values in the Makati CBD (prime location) are estimated tohave posted a 3% QoQ increase to an average of P223,130 per sq.m.This translates to an estimated accommodation value of P13,946per developable square meter. While we doubt that a transactionwill transpire at these levels soon, our estimates are supported bythe signicant escalation in the ofce segment and the current

pre-selling levels of residential condominiums.

Meanwhile, in the alternative business district of Ortigas, ourestimates point to an average land value of P100,979 per sq.m. oran accommodation value of P5,049 per developable sq.m. Quarter-on-quarter, values are estimated to have increased by 3%.

Given the continued strengthening of the ofce segment andhealthy take-up rates in residential condominiums, our 12-monthforecast points to an escalation of 15%. For the Makati CBD, thisis an average of P256,600 per sq.m. while values in Ortigas is atP116,125 per sq.m.

HLURB LICENSE TO SELL (CUMULATIVE)

License to Sell

For the rst two months of 2006, licenses approved by the HLURBposted a 71% YoY increase to 62,472 units as most property seg-ments posted expansions. Sectoral highlights are:

• The socialized segment is up by 46% YoY to 10,149 units.Meanwhile, the low cost segment is down by nearly 26%

to 4,242 units as compared to 5,704 in the same period in2005.

• Mid income housing registration expanded by almost 35%YoY to 9,213 units as mortgage rates continue to head south.The increased OFW remittance has boosted this sector asremittances increased by 27% in 2005 to US$10.85 billion.Including inows coursed through informal channels, remit-tances in 2005 are estimated to have reached US$12.3 billion.Remittances in 2006 are expected to post a 9% growth toUS$11.8 billion. Including inows coursed through informal

Units Jan - Feb 2006 Jan - Feb 2005 % Change (YoY)

Socialised Housing 10,149 6,949 46.0%

Low Cost Housing 4,242 5,704 -25.6%

Mid Income Housing 9 ,213 6,829 34.9%

High Rise Residential 3,497 1,910 83.1%

Commercial Condominium 477 - +100.0%

Farmlot 240 136 76.5%

Memorial Park 34,582 14,784 133.9%

Industrial Subdivision 4 - +100.0%

Commercial Subdivision 68 255 -73.3%

Total (Philippines) 62,472 36,629 70.6%

HLURB LICENSE TO SELL 12-MONTH MOVING AVERAGE

Colliers International Research

COMPARATIVE LAND VALUES

Peso/sq m 1Q06 4Q05 % Change 1Q07F % Change

(QoQ) (YoY)

Makati CBD 185,670-260,590 180,263-253,000 3.0% 213,521-299,679 15.0%

Ortigas Center 71,662-130,295 69,575-126,500 3.0% 82,412-149,839 15.0%


Housing and Land Use Regulatory Board

Housing and Land Use Regulatory Board

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PHILIPPINES


APRIL 2006

OFFICE STOCK - MAKATI CBD

MAKATI CBD OFFICE SUPPLY AND DEMAND

OFFICE SECTOR

At the close of the rst quarter, CBD-wide vacancy stood at 7.0%from 7.4% in the previous quarter. In absolute terms 184,172 squaremeters of space is currently vacant. Throughout 2007, expectationsare for vacancies to further decline to 5% by the end this year. Forthe rst three months of the year, the estimated absorption of ofcespace in the Makati CBD was recorded at 11,431 square meters. Forthe whole of 2006, our forecast absorption is 63,931 square meters– down by 22% YoY from 81,829 square meters in 2005 due to theavailability of space in the market.

The Premium Grade segment is virtually full. As at end March,vacancy rate fell to 1.2% from 1.4% in 4Q05. This translates to only3,615 square meters of unoccupied space. Indeed, space is so tightthat it is nearly impossible to nd a sizeable amount of contiguous

space. Vacancy is expected to remain at the current level given thedearth of ofce space that could be leased in this segment. At theclose of the rst quarter, absorption in the Premium Grade segmentwas a paltry 831 square meters as the segment is virtually full.

channels, this could reach US$13.5 billion. Notable projectsregistered during the quarter are Playa Calatagan (LandcoPacic Corp.), Terrazas de Punta Fuego Blk. 7B (Fuego LandCorp.), Metrogate Tagaytay Ph. 1A (Moldex Realty), CanyonRanch (Century Properties), Sunrise Hills I (Empire EastProperties ), Governor’s Hills Ph. 7 (Empire East Properties),The Ranch (Filinvest Land), Trails of Maia Alta (CrownAsia), Vermont Park Ph. 1D (Sta. Lucia Realty), Serra MonteVillas Ph. III (Filinvest Land) and Spring Country 1 (FilinvestLand).

• The high-rise residential segment is up by 83% as at end-Febru-ary as developers are now tapping the overseas market for mid-income condominiums. Discussions with developers revealedthat the current pre-selling residential developments deriveat the very least 20% of their sales from the overseas market.Developers that actively market and spend for roadshows everyquarter are said to achieve as much as 40% of project sales from

this market. Notable registrations are: Amara en Terrazas(Fuego Land Corp.), Manila Executive Regency (CitylandDev’t. Corp.), Vito Cruz Tower 2 (Cityland Dev’t. Corp.),Celadon Residence Ph. 2 (Community Innovations)

• We believe that demand for farmlot properties is starting tozzle out. While the rst two months of the year registereda 78% YoY increase, this is due to the low base in 2005. Wewould not be surprised if registrations for 2006 would start todecline. Notable registration is Ponderosa Leisure Farms Ph.3A (Landco Leisure Dev’t. Corp.)

• For the rst two months of 2006, the memorial park segment isup by more than two-folds at 34,582 plots due to the low basein 2005. Take note that there was a 31% YoY decline in thememorial park segment last year.


Sq m 1Q06 4Q05 % Change 1Q07F % Change(QoQ) (YoY)

Premium & Grade A 819,897 819,897 - 819,897 -

Grade B & Below 1,827,047 1,827,047 1.7% 1,827,047 -

All Grades 2,646,944 2,646,944 1.1% 2,646,944 -

1Q06 4Q05 1Q07F

Premium 1.2% 1.4%

Grade A 5.7% 6.9%

Grade B and Below 8.3% 8.6%

All Grades 7.0% 7.4% 4.5%

COMPARATIVE OFFICE VACANCY RATES - MAKATI

After the completion of the Convergys Center in 4Q05, there is noofce development under construction within the Makati CBD. Thestock of ofce accommodation in the CBD is expected to remain at

2.65 million square meters throughout 2006.

Demand



MAKATI CBD OFFICE STOCK

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OFFICE RENTS - MAKATI CBD




Rents

OFFICE VACANCY RATES - MAKATI CBD



NOTABLE LEASING DEALS - MAKATI CBD

Building Tenant Size (Sq m)

Equitable-PCI Bank Tower McKinsey 1,200

Equitable-PCI Bank Tower Globedez 350

Peso/sq m/month 1Q06 4Q05 % Change 1Q07F % Change

(QoQ) (YoY)

Premium 550-770 550-748 1.7% 693-942 23.9%

Grade A 330-660 330-605 5.9% 416-762 19.0%

Grade B 275-413 275-385 4.2% 332-465 15.9%

COMPARATIVE OFFICE RENTAL RATES - MAKATI CBD

(BASED ON NET USEABLE)

The Premium Grade segment escalated by nearly 2% QoQ to anaverage of P660 per sq.m. per month. After falling by 50% to the2003 trough, rents have rebounded by 36%. For the whole of 2006,escalation in this segment is expected at 20% YoY at an average ofP779 per sq.m. per month.

The Grade A segment was the top performer during the quarter asit posted an increase of nearly 6% QoQ to an average of P495 persq.m. per month. For the whole of 2006, we expect rents to escalate by 20% to an average of P561 per sq.m. per month.

Grade B rents were up by 4%QoQ to an average of P344 per sq.mper month. This is a rebound of 30% from trough. Our forecastpoints to an escalation of 15% YoY for 2006. By the end of the

year, the average rent for this segment is expected at P380 per sq.m.

Given the tight supply in the Premium-Grade buildings, the next best option is the Grade A segment. Vacancy has fallen to 5.7%from 6.9% in 4Q05. Absolute vacancy is currently below 30,000square meters. Our forecast points to vacancy breaching the 5%level by the end of the year. Option in this segment for contiguous

oors is limited to Equitable-PCI Bank Tower. After the signicanttake-up in the past three months, expect more transaction in this building.

It appears that some tenants are now considering the Grade B seg-ment given the dearth of options. End-March vacancy was recordedat 8.3% from 8.6% in 4Q05. Current absolute vacancy is 151,616square meters. Forecast vacancy by the end of the year is at 6%.The Grade B segment posted a take-up of 4,761 square meters for therst quarter of the year. Our full-year take-up is forecast at 51,486

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PHILIPPINES



APRIL 2006

Capital Values

COMPARATIVE OFFICE CAPITAL VALUES - MAKATI CBD


Peso/sq m 1Q06 4Q05 % Change 1Q07F % Change

(QoQ) (YoY) Premium 74,340-94,500 70,800-90,000 5.0% 89,208-113,400 20.0%

Grade A 54,075-67,620 51,500-64,400 5.0% 64,890-81,144 20.0%

Grade B 36,359-48,410 35,300-47,000 3.0% 42,625-56,753 17.2%

Premium Grade capital values are estimated to have expanded bynearly by 5% in the rst three months of 2006 to an average ofP84,420 per sq m. Measured year-on-year, capital value apprecia-tion is estimated at nearly 15%. Our forecast for 2006 is an upsideof 20% to an average of P96,480 per sq.m.

Grade A ofce valuations similarly increased by 5% QoQ to anaverage of P60,848 per sq.m. This compares with the average

of P52,900 in the same period in 2005. During the quarter, twosale transactions were noted. Reportedly, 1,300 square meters inEquitable-PCI Bank Tower were sold for P65,000 per sq.m while1,407 square meters in Ayala Life-FGU were closed at P73,000 persq.m. The Equitable-PCI Bank transaction is in line with our pricerange while the Ayala Life-FGU is ahead of our valuation. For thewhole of 2006, our forecast is an appreciation of 20% to an averageof P69,540 per sq.m.

We have increased our capital value for Grade B buildings at anaverage of P42,385 per sq.m. –up by 3% over the quarter. Giventhat tenants will start to consider this segment due to the dearthin better quality buildings, capital appreciation in 2006 is forecastat 15% YoY to an average of P47,323 per sq.m. Grade B valuation

has recovered 21% from trough levels (with peak to trough correc-tion of 44%).

OFFICE CAPITAL VALUES - MAKATI CBD


RESIDENTIAL SECTOR

MAKATI CBD RESIDENTIAL SUPPLY AND DEMAND


RESIDENTIAL CONDOMINIUM STOCK - MAKATI CBD


Units 4Q05 3Q05 % Change 4Q06F % Change(QoQ) (YoY)

Luxury 4,071 3,706 9.9% 4,603 13.1%

Others 6,283 6,283 - 6,283 -

All Grades 10,354 9,989 3.7% 10,886 5.1%

Supply

RESIDENTIAL CONDOMINIUM STOCK - MAKATI CBD

The stock of residential condominiums in the Makati CBD expanded by 5% QoQ with the addition of 532 units from the completionof Shang Grand Tower and the rst instalment in The Columns.The stock should remain at the current level until end-December

as no other project is slated to complete this year. The next projecthandover will be the second tower in The Columns in early 2007.

It is interesting to note that while development has slowed in theCBD, there appears to be a construction binge in other areas. Esti-mates point to an aggregate of 10,917 units slated to complete from2006 to 2010 in the Makati CBD, Fort Bonifacio and Rockwell.Only 22% or 2,434 units are located in the CBD.

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COMPARATIVE RESIDENTIALVACANCY RATES - MAKATI CBD

1Q06 4Q05 1Q07F Luxury 6.3% 7.4%

Others 16.2% 15.9%

All Grades 12.0% 12.5% 14.5%


Peso/sq m/month 1Q06 4Q05 % Change 1Q07F % Change(QoQ) (YoY)

Luxury 3 Beds 301-542 301-542 - 341-614 13.3%

RESIDENTIAL VACANCY RATES - MAKATI CBD

As at end-March, residential vacancy in the Makati CBD was postedat 12.0% - a slight improvement from 12.5% in end-2005. It isestimated that 1,308 units remain vacant. In the course of 2006,expectations are for vacancies to hover at around 13% given thecompletion of two developments in 1Q06.

Net take-up for residential condominiums in the CBD for the rstquarter is 521 units. Take note that the absorption for the rstquarter is extraordinarily high due to:

• The completion of Shang Grand Tower and The ColumnsTower 1 with an aggregate supply of 532 units

• The high pre-sales rate of these developments. The Columnsis 100% sold while only 20 units remain in Shang GrandTower

• Units usually take at least three months to be ready for theleasing market

For the whole of 2006, our forecast take-up is 393 units – down by56% from the 889 units absorbed in 2005. Take note that absorp-tion is a function of the units completed during the year and thestrength of the pre-selling effort.



Demand PRIME 3 BR RENTS - MAKATI CBD

COMPARATIVE PRIME 3BR RENTAL RATES - MAKATI CBD

Rents

Rents for luxury 3-BR units in the Makati CBD were unchanged overthe quarter at an average of P421 per sq.m. per month or P101,610on a per unit basis. It appears that there is a slowdown in rentalescalation after the 25% YoY increase 2005. We have downgradedour rental forecast to P464 per sq.m. per month or an upside of 10%YoY in 2006.

Rockwell managed to post a slight rental increase of 1% QoQ toP566 per sq.m. per month despite the handover of The Manansalain December 2005. Per unit, the average 3BR rent in Rockwellstands at P127,250 per month. Expectations are for rents to postan increase of 10% YoY in the course of 2006 to an average of P616per sq.m. or P138,600 per unit.

Rents in Fort Bonifacio escalated by 1.4% QoQ to an average ofP509 per sq.m. per month orP147,725 per unit – the highest levelachieved by this location. Expectations are for rents to post anincrease of 10% YoY in the course of 2006 to an average of P553per sq.m. or P177,045 per unit.

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PHILIPPINES


APRIL 2006

COMPARATIVE RESIDENTIAL LEASE RATES - THREE BEDROOM, SEMI FURNISHED


PRIME 3BR CAPITAL VALUES - MAKATI CBD


Minimum Average Maximum % Change (YoY)

Capital Values

PRIME 3 BEDROOM CAPITAL VALUES - MAKATI CBD


We have maintained our capital value estimates for Makati CBD inthe last three months at an average of P75,250 per sq.m. Year-on-year, prices are up by nearly 7%. As we have reported in the pastreports, we have observed a two-tiered market wherein pre-sellingcondominiums are achieving a 10% premium over the secondarymarket due to the availability of exible nancing schemes.

Apartment Ridge/

Roxas Triangle

Rental Range 50,000 93,000 180,000 -

Average Size 220 270 305

Salcedo Village

Rental Range 4 0,000 74,929 110,000 -0.2%


Rockwell

Rental Range 90,000 131,250 170,000 -


Fort Bonifacio

Rental Range 63,000 124,800 180,000 0.4%


NOTABLE SALES TAKE-UP AS AT END-MARCH 2006

Project Sales Rate Units Sold

One Rockwell 50% 397

The Columns Tower 3 96% 272Residences at GB (Laguna) 96% 238

Residences at GB (San Lorenzo) 63% 243

The Columns Legazpi Village 45% 174

Serendra District 1 86% 419

Serendra District 2 90% 707

Forbeswood Parklane 1 65% 164

Forbeswood Parklane 2 3% 10

The Residential Resort Newport 48% 441


Peso/sq m 1Q06 4Q05 % Change 1Q07F % Change(QoQ) (YoY)

Luxury 3 Beds 70,000-80,500 70,000-80,500 - 79,310-91,207 13.3%

Residential capital values in Rockwell remained at an average ofP82,500 per sq.m. In the next 12 months, our forecast points to prices increasing by 10% YoY to an average of P90,750 per sq.m.Take note that Rockwell’s latest pre-selling offering is achieving aprice in excess of P90,000 per sq.m.

Residential capital values in Fort Bonifacio was static QoQ at anaverage of P80,000 per sq.m. We believe that price appreciation could be tempered by the signicant supply coming on line in the next 12months. Take note that 6,037 units are slated to compete from 2006to 2010, of which 73% is scheduled in 2007 and 2008.

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RETAIL STOCK - METRO MANILA

Sq m 1Q06 4Q05 % Change 1Q07F % Change(QoQ) (YoY)

Super Regional 2,250,062 2,250,062 - 2,616,062 16.3% Regional 900,623 900,623 - 900,623 - District/Neighborhood 781,686 781,686 - 781,686 - All Malls 3,932,371 3,932,371 - 4,298,371 9.3%

Supply

METRO MANILA RETAIL SUPPLY AND DEMAND

RETAIL SECTOR


RETAIL STOCK - METRO MANILA

The stock of retail space in Metro Manila remained static in the last

three months at 3.93 million square meters. The stock is forecastto expand by 9% in the remainder of 2006 with the addition of twodevelopments having an aggregate area of 366,000 square meters- both being developed by SM Prime Holdings.

• SM Mall of Asia Mall will have more than 300,000 square metersof leasable space is slated to open on May 21. The development,which sits on a 60-hectare reclaimed property, will have SM

As at end-March, Manila-wide retail vacancy rate slightly eased toaround 12.9% from 13.0% in the previous quarter. Moving forward,we expect vacancies to increase in 2Q06 to nearly 15% due to thesignicant inux of supply. However, this should ease to around14% by year-end.

RETAIL VACANCY RATES - METRO MANILA


METRO MANILA COMPARATIVE RETAIL VACANCY

1Q06 4Q05 1Q05 Metro Manila 12.9% 13.0% 14.0%

Demand

anchor tenants such as the SM Department Store, the SM Hyper-

market, an I-MAX theater and an Olympic-sized skating rink. Itwill also house the call center ofce of Dell, Inc, which will occupya 13,470-square meter area at the north parking building.

• SM North EDSA is adding about 30,000 square meters of leasablearea by 2Q06. The new building, formerly a parking lot, will havea hypermarket, stand-alone retailers and cinemas.

-

100,000

200,000

300,000

400,000

500,000

600,000

1 9 9 0

1 9 9 2

1 9 9 4

1 9 9 6

1 9 9 8

2 0 0 0

2 0 0 2

2 0 0 4

2 0 0 6 F

i n s q . m .

-5%

0%

5%

10%

15%

20%

New Supply During Year Take-Up During Year

2,400,000

2,900,000

3,400,000

3,900,000

4,400,000

4,900,000

1 Q 9 8

4 Q 9 8

3 Q 9 9

2 Q 0 0

1 Q 0 1

4 Q 0 1

3 Q 0 2

2 Q 0 3

1 Q 0 4

4 Q 0 4

3 Q 0 5

2 Q 0 6 F

1 Q 0 7 F

4 Q 0 7 F

i n s q . m .

-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Retail Stock YoY Change (RHS)

0%

2%

4%6%

8%

10%

12%

14%

16%

18%

20%

1 Q 9 6

4 Q 9 6

3 Q 9 7

2 Q 9 8

1 Q 9 9

4 Q 9 9

3 Q 0 0

2 Q 0 1

1 Q 0 2

4 Q 0 2

3 Q 0 3

2 Q 0 4

1 Q 0 5

4 Q 0 5

3 Q 0 6 F

2 Q 0 7 F




PHILIPPINES

Ayala Land Inc. Colliers International Research

APRIL 2006


OFW REMITTANCE

Bangko Sentral ng Pilipinas

Remittances from overseas Filipino workers (OFW) in the rst quarterreached an eight-year high of $2.8 billion, up by nearly 15% YoY. InMarch alone, remittances amounted to $1.03 billion –15.5% higherthan the US$892.49 million level achieved a year ago. The increaseis attributed to enhanced remittance network of commercial banksand the continued expansion in the number of deployed OFWs forthe rst quarter from 266,931 last year to 267,985 this year.

The government expects remittances to increase by 9% this year andreach $11.8 billion. Including inows coursed through informal chan-nels, remittances in 2006 are expected to reach $13.5 billion.

Rents

COMPARATIVE EFFECTIVE RETAIL RENTS

Ayala Land Inc., Colliers International Research

Peso/sq m/month 1Q06 4Q05 % Change 1Q07F % Change

(QoQ) (YoY) Ayala Center 1,183 1,150 2.9% 1,222 3.3% Ortigas 930 920 1.1% 977 5.1%

EFFECTIVE RETAIL RENTS - MAKATI CBD

Effective rents in Ayala Center posted a slight QoQ increase of nearly3% to an average of P1,183 per sq m per month. Over at Ortigas,rents were nearly unchanged at P930 per sq m per month – up by lessthan 2% QoQ.

Moving forward, we believe that the saturation of retail space inMetro Manila coupled with the general preference for bargain itemsare expected to exert pressure on rents. Our forecast rent by end 2006

is an expansion of only 5% or an average of P1,207 per sq m in AyalaCenter and P965 in Ortigas.

QUARTERLY VEHICLE AND APPLIANCE SALES

Chamber of Automotive Manufacturers of the Philippines Inc.,

Philippine Electrical, Electronics and Allied Industries Federation

Spending Indicators

Motor vehicle sales in the rst four months of 2006 dropped 3% YoYto 29,329 units from 30,246 in the same period last year due to theApril sales slump and temporary stock and supply problems caused byshipment delays. April is historically a lean sales month as expenditureis set aside for tax payments and school tuition.

Meanwhile, appliance sales for the rst three months of 2006 continueto disappoint with an 18% YoY decline to 1.130 million units as com-pared to 1.378 million units in the same period in 2005.

Ayala Land Inc.

AYALA CENTER RETAIL INDICATORS

For the rst three months of 2006, same-store sales in Ayala Centerwere recorded at 3% due to the low base as compared to the -1% in thesame period in 2005. Meanwhile, retail sales is up by 3% as compared

with the 8% YoY growth posted in 1Q05.

550

650

750

850

950

1,050

1,150

1,250

1,350

1 Q 9 6

4 Q 9 6

3 Q 9 7

2 Q 9 8

1 Q 9 9

4 Q 9 9

3 Q 0 0

2 Q 0 1

1 Q 0 2

4 Q 0 2

3 Q 0 3

2 Q 0 4

1 Q 0 5

4 Q 0 5

3 Q 0 6 F

2 Q 0 7 F

i n p e s o p e r s q . m . p e r m o n t h

0%

5%

10%

15%

20%

Monthly Rent YoY Increase (RHS)

15,000

17,000

19,000

21,000

23,000

25,000

27,000

2 Q 9 8

4 Q 9 8

2 Q 9 9

4 Q 9 9

2 Q 0 0

4 Q 0 0

2 Q 0 1

4 Q 0 1

2 Q 0 2

4 Q 0 2

2 Q 0 3

4 Q 0 3

2 Q 0 4

4 Q 0 4

2 Q 0 5

4 Q 0 5

i n u n i t s

1,300

1,400

1,500

1,600

1,700

1,800

1,900

2,000

2,100

2,200

i n t h o u s a n d u n i t s

Car Sales Appliance Sales (RHS)

-6%-4%-2%0%2%

4%6%8%

10%12%14%

2 0 0

1

2 0 0

2

3 M 0

3

6 M 0

3

9 M 0

3

1 2 M 0

3

3 M 0

4

6 M 0

4

9 M 0

4

1 2 M 0

4

3 M 0

5

6 M 0

5

9 M 0

5

1 2 M 0

5

3 M 0

6

Same-Store Sales Retail Sales

-

2,000

4,000

6,000

8,000

10,000

12,000

1 9 9 5

1 9 9 6

1 9 9 7

1 9 9 8

1 9 9 9

2 0 0 0

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

i n m i l l i o n U S D o l l a r




PHILIPPINES

248 Offices Worldwide

131 Americas 75 Europe, Middle East & Africa 42 Greater Asia

51 Countries on 6 Continents

Argentina New Zealand

Australia Northern Ireland

Austria Norway

Belgium Peru

Brazil Philippines

Canada Poland

Chile Portugal

China Republic of Ireland

Colombia Romania

Czech Republic Russia

Denmark Scotland

England Singapore

France South Africa

Germany South Korea

Hong Kong Spain

Hungary Sweden

India Switzerland

Indonesia Taiwan

Israel Thailand

Italy Turkey

Kazakhstan Ukraine

Japan United Arab Emirates

Malaysia United States

Mexico Uruguay

Mozambique Venezuela

Netherlands Vietnam

For more information contact

Richard Raymundo at:

APRIL 2006

The content of this report is for information only and should not be relied upon as a substitute for professional advice, which should be sought from Colliers International Philippines Inc. prior to acting in reliance upon any such information. The opinions, estimatesand information given herein or otherwise in relation hereto are made by Colliers International Philippines Inc. and afliated companies in their best judgement, in the utmost good faith and are as far as possible based on data or sources which they believe to bereliable in the contest hereto. Notwithstanding, Colliers International and afliated companies disclaim to the extent permitted by law, any liability in respect of any claim which may arise from any errors or omissions or from providing such advice, opinions,judgement or information.

Reproduction of the contents of this publication is prohibited without gaining prior permission from Colliers International.

10/F Tower 2 RCBC Plaza6819 Ayala Avenue

cor. Sen. Gil J. Puyat Ave.

Makati CityTel 63 2 888 9988Fax 63 2 845 2612

www.colliers.com

Notes:

colliers apr 2006 market overview

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