market insights 5.5 - leechiu property...
TRANSCRIPT
REAL ESTATE MARKET INSIGHTSMay 2017
THE PHILIPPINES
3
The Philippines
103million
POPULATION
LITERACY RATE
97.5%
CREDITRATING
BBBS & P
MOODY’S Baa2
FITCH BBB-
6.8%GROWTHGDP
INFLATION RATE
2.6%
D E B T
E X T E R N A L
$76.62B (SEPT 2016)
47.4% of GDP(1H2016)
P U B L I C
LABOR FORCE68.1 Mn
FOREIGN RESERVES
$81B
24 years oldAverage age of Filipinos
PHILIPPINEGDP
$292.45B
Source: Trading Economics, BSP
4
Foreign Investment in the Philippines
Source: Trading Economics, BSP
40%FOREIGN EQUITY LIMIT
30%CORPORATE INCOME TAX
LEASE TERM
25 yearsRenewable for another 25 years
50 yearsRenewable for another 25 years
In some cases,
PERSONAL INCOME TAX
32% If annual net taxable income is at least P500,000 annual income (USD10,000)
5
Philippine Foreign Direct Investments (FDI)
In USD Billions
Source: World Bank
6
Government’s Socioeconomic Agenda
Current macroeconomic policies
PRES. DUTERTE’S 10-POINT SOCIOECONOMIC AGENDA
Tax Reform Ease of Doing Business
InfrastructureSpending
Rural andvalue chaindevelopment
Security andland tenure
Human CapitalDevelopment
Science, technology, andcreative arts
Social protectionprograms
ResponsibleParenthood &ReproductiveHealth
Source: DOH
7
Demand Drivers
Urban Population Growth
It is projected to rise to 56.3% by 2030 and 66% by 2050.
BPO Employee’sHousing Need
Growing number of BPO workers
Need to liveneartheir
workplace.
Overseas FilipinoRemittances
10 millionOF’s can invest in Real Estate
More than 50%
of remittances are real estate related
Source: Keynote speech of Sec. Arsenio M. Balisacan Director General of NEDA“The Philippine Economic Growth and the Growth in the Property Sector” 2015* 2010
Housing backlog needs to be addressed and
demand for dormitories will rise.
OFFICE MARKET
Quezon City
Ortigas/Pasig
Makati
BGC / Taguig
Bay/Pasay
Alabang
Parañaque
Las Pinas
Manila
Mandaluyong
San Juan
9
Metro Manila Outlook Key Insights
There is a very strong pipeline of office space coming in 2017.
Demand drivers are also very strong primarily fueled by IT-BPM industry and recently, the online gaming industry.
Market has seen an unprecedented level of pre-commitments at 500,000 sqm
In 2017, we will see an equilibrium of supply and demand.
Bonifacio Global City remains to be the biggest producer of office space and is still the preferred location over other districts.
LAOAG
CAGAYAN
BAGUIO
TARLAC
PAMPANGA
BULACAN
QUEZON
CAVITE /BATANGAS / LAGUNA
CAPIZ
PALAWAN ILOILO
BACOLOD
DUMAGUETE
DAVAO
ZAMBOANGA
10
Provincial Outlook Key Insights
Companies will continue to look for new and untapped labor markets.
National Government promotes new developments in the provinces.
Preferred areas for expansion are Luzon and Visayas.
BPOs in the provinces will continue to offer relocation incentives to interested applicants.
11
Provincial Outlook IT-BPAP Roadmap 2022
Whilst 70% of the total projected IT-BPM workforce will still remain in Metro Manila, National Government’s all inclusive-plan will positively impact expansion in the provinces.
IT-BPM labor workforce in the provinces is estimated to grow by 60% in 2022.
Provincial full time employees will grow from 1.2 million to 1.8 million in the next 5 years, which translates to 3 million of office requirement
Source: IT-BPAP Roadmap 2022
Quezon City
Ortigas/Pasig
Makati
BGC / Taguig
Bay/Pasay
Alabang
Parañaque
Las Pinas
Manila
Manda-luyong
San Juan
12
Metro Manila Cityscapes
3 MAJOR CBDs
46 BUSINESS PARKS
QUEZON CITY. UP TECHNOHUB. EASTWOOD CITY. ETON CENTRIS.
ARANETA, CYBERARK. ROBINSONS BRIDGETOWNE IT PARK. VERTIS NORTH. UP TOWN
CENTER. FAIRVIEW TERRACES. ALI CLOVERLIEF BALINTAWAK. NUVO. MANDALUYONG. GREENFIELD DISTRICT. ROBINSONS CYBERGATE. ROCKWELL SHERIDAN. SAN JUAN. SANTOLAN TOWN PLAZA. MUNTINLUPA. FILINVEST CORPORATE CITY. LA FUERZA.
NORTHGATE CYBERZONE. MADRIGAL BUSINESS PARK. ALABANG WEST. TAGUIG. ARCA
SOUTH. LAS PINAS. PORTOFINO. EVIA. PASAY. NEWPORT CITY. SM MALL OF ASIA
COMPLEX. METROPOLITAN BUSINESS PARK. DOUBLE DRAGON CYBERCAMPUS. FILINVEST
CYBERZONE PASAY. PARANAQUE. ASIAWORLD CITY. ASEANA BUSINESS PARK. AYALA
ASEANA. MANILA. CITYPLACE. SAN LAZARO.
• Most of these districts will be fully developed by 2018.• There will be little land left for development.• The most important districts moving forward will be
Bonifacio Global City, Bay Area, Filinvest City, Evia and Arca South.
ORTIGAS CBD. ROCKWELL BUSINESS CENTER. ARCOVIA CITY. SILVER CITY. CAPITOL COMMONS.
MAKATI MAKATI CBD. CENTURY CITY. ROCKWELL CENTER. CIRCUIT MAKATI.
ORTIGAS
BGC BONIFACIO GLOBAL CITY. MCKINLEY WEST. MCKINLEY HILL.UPTOWN. VERITOWN.
13
Regional Cityscapes
LAOAG. CAMELLA. VALDEZ CENTER. CAGAYAN. CAGAYAN SPECIAL ECONOMIC ZONE AND FREEPORT. PROJECT PRIMO.
BAGUIO. BAGUIO AYALA LAND TECHNOHUB. SM BAGUIO CYBERZONE BUILDING. PCH IT CENTER. ABANAO SQUARE. TARLAC. LUISITA BUSINESS PARK. TARLAC PROVINCIAL IT
PARK. BULACAN. PDC TECHNOPARK. ALTARAZA. FIRST BULACAN IT PARK. CIUDAD DE VICTORIA. ABS-CBN
CAMPUS. URDANETA. CB MALL.
Over 83 I.T. parks and
business districts
Countryside development going throughunprecedented construction boom driven by
BPO and tourism.
PAMPANGA. CLARK SPECIAL ECONOMIC ZONE. PHILEXCEL BUSINESS PARK. BERTAPHIL BUSINESS PARK. SM CITY CLARK. CLARK GREEN CITY. GGLC.
NEPO CENTER. ALVIERRA. CAPILION. AKLAN. BORACAY NEW COAST. CAPIZ. PUEBLO DE PANAY
TECHNOPARK. ILOILO. ILOILO TECHNOHUB. ATRIA PARK DISTRICT. GAISANO CAPITAL. AYALA SICOGON.
ILOILO BUSINESS PARK. BACOLOD. LOPUE’S EAST IT CENTER. ONE AND TWO SANPARQ. THE
BLOCK IT PARK. ROBINSONS CYBERGATE CENTER.
LOPUE’S SOUTHSQUARE IT PARK. BACOLOD IT PARK. CAPITOL CENTRAL. DUMAGUETE.
DUMAGUETE BUSINESS PARK. LINKSYS IT PARK. LP IT PARK. YY STAR DAS.
CAVITE. BATANGAS. LAGUNA. VERMOSA.PONTEFINO. SUNTECH IT PARK. HAMILO COAST.
SMDM IT CENTER. SOUTHFORBES IT PARK. SOUTHWOODS. NUVALI. ETON CITY.
GREENFIELD CITY. PUERTO AZUL. CEBU. CEBU IT PARK. CEBU SRP.
CEBU BUSINESS PARK. MACTAN NEWTOWN. ABOITIZLAND CEBU. WATERFRONT TOWNSHIP.
CITTA DE MARE. SMC. OAKRIDGE BUSINESS PARKDAVAO. MATINA IT PARK. ABREEZA. DAVAO PARK
DISTRICT. LANANG IT PARK. DAMOSA IT PARK. NORTHPOINT. CAMELLA. CIUDADES. LUBI ISLAND
PLANTATION.
Approximately 132,028 hectares of master-planned or
mixed-use developments
PALAWAN. LIO RESORT TOWN. SAN VICENTE. QUEZON. BALESIN ISLAND
CLUB
ZAMBOANGA. MEGALAND MALL. CITYMALL ZAMBOANGA.
ZAMBOECOZONE AND FREEPORT NEW TOWNSHIP. ZAMBOECOZONE
HIGHLANDS. CAGAYAN DE ORO.LIMKETKAI CENTER. SM CITY BPO 2.
CENTRIO. ONE PROVIDENCE.
LAOAG
CAGAYAN
BAGUIO
TARLAC
PAMPANGABULACAN
QUEZONCAVITE /
BATANGAS / LAGUNA
CAPIZ
PALAWAN ILOILO
BACOLOD
DUMAGUETE
DAVAO
ZAMBOANGACAGAYAN DE ORO
PANGASINAN
22
4
2
9
1
11
1
25
79 CEBU
4
4
4
9
Number of townships
Legend:
51
Unprecedented countrysidedevelopment.
1AKLAN
14
Growth Sectors
Persistent growth despite
prevailing political, infrastructure, security
problems and natural disastersfor the past 15 years.
Prepare for a boom in
TOURISM AND INFRASTRUCTURE
Source: UNWTO, iBPAP, World Bank
15
PH Growth Amidst Historical Events
16
Philippines Office Supply Current vs. Pipeline
METRO MANILA OFFICE MARKET
18
Metro Manila Office SupplyCurrent vs. Pipeline
Current vacancy rate across Metro Manila is very tight at 4.3%.
The take-up of the BPO industry alone is projected to reach 750,000 to 800,000 sqm this year. The Online Gaming industry could potentially reach BPO industry’s demand numbers within its first year of entry in the market.
Bonifacio Global City will produce most of the office supply pipeline, by 2020 Bonifacio Global City will be the same size as Makati office stock. The highest concentration of wealth will be in Bonifacio Global City.In the next 6 years, Bay Area will double its office supply.Quezon City and Ortigas Area will grow by 56% and 44% respectively.
Legend: Leased Pre-committed Vacant
Metro Manila Office Supply PipelinePer District, Per Year (2017 to 2023E)
19*Gross Leasable Area in thousands (sqm)
FY 2016 Supply and Demand
20*Gross Leasable Area in thousands (sqm)*Gross Leasable Area in thousands (sqm)
Metro Manila - Demand Activity2016 | By Industry
21
70% of demand are coming from the information technology – business process
management (IT-BPM) industry and 60% prefer Bonifacio Global City (BGC)
over any other district.
FY 2017 Supply and Demand
22*Gross Leasable Area in thousands (sqm)
Metro Manila - Demand Activity2017 | By Industry
23
*Online gaming transactions are concentrated in the Bay Area
A total of 89K sqm take-
up from online gaming within the last 6 months.
Bay Area 42%
Alabang 32%
BGC/Taguig 26%
Metro Manila - PEZA StatusFull Year 2017E and 2018E Office Buildings
24
PEZA StatusBy District | FY 2017E to 2023E
25
*Gross Leasable Area in thousands (sqm)
Total PEZA-Accredited space: 1,257,241 sqm (35 buildings)Total space under application for PEZA: 2,341,618 sqm (86 buildings)Total non-PEZA space: 464,229 sqm (15 buildings)
4.06M sqm
Total supplyFY 2017-2023E
Metro Manila Current SupplyDeveloper Market Share (1960’s to 2016)
26
Metro Manila Supply PipelineDeveloper Market Share (1960’s to 2016)
27
28
Metro Manila Rental RangePhP / sqm / month
Land Values by Business District
29
BusinessDistrict
*FARRange
Y-o-YIncrease
%(2014-2015)
Land ValuesPhp/sqm(2015)
AccommodationValue
GFA/sqm(2015)
Land ValuesPhp/sqm(2016)
AccommodationValue
GFA/sqm(2016)
Y-o-YIncrease
%(2015-2016)
Filinvest City 6 – 14 17% 99k – 264k 19,000 120k-280k 20,000 6%
Arca South 6 – 8 0% 210k – 220k 28,000 210k-280k 35,000 27%
Bay City 6 38% 150k – 180k 30,000 198k 33,000 10%
Bonifacio Global City
6 – 15 14% 270k – 600k 40,000 360k-900k 60,000 50%
Makati 6 – 16 27% 210k – 560k 35,000 300k – 800k 50,000 43%
Ortigas N/A 10% 109k – 223k N/A 200k – 350k N/A 57%
Bonifacio Global City still has the highest land values in the Philippinesin the last 10 years.
PROVINCIALOFFICE MARKET
31
Provincial Office Supply (2017-2021E)Luzon, Visayas, and Mindanao (excluding Metro Manila & Cebu)
The ever-growing IT-BPM industry significantly impacts acceleration of developments not just in Metro Manila, but all over the Philippines.
The efforts of the National Government to fund infrastructure projects positively impact cities nearby Metro Manila such as Cavite, Laguna, and Pampanga as these cities become more accessible.
Major developers are expanding nationwide such as Ayala, DoubleDragon, Megaworld, Profriends, Robinsons and SM.
Legend: Leased Under Nego Vacant
*Gross Leasable Area in thousands (sqm)
32
Cebu SupplyCurrent vs. Pipeline
Cebu continues to be one of the options of IT-BPM companies expanding outside Metro Manila.
Pipeline supply in Cebu will increase by 57% within the next six years.
Cebu IT Park is the core market in Cebu representing 62% of the total pipeline supply.
Legend:
Leased
Vacant
Pre-committed
Pipeline Supply – Under Negotiation
33
All Provincial - PEZA StatusFull Year 2017E and 2018E Office Buildings
LEGEND: PEZA STATUS
ACCREDITED UNDER APPLICATION
Leased Vacant
Under Negotiations
Vacant
34
Provincial Rental RangePhP / sqm / month
300 350 400 450 500 550 600 650 700PhP
Cebu
Pampanga
CALABARZON
Iloilo
Davao
Cagayan de Oro
Bulacan
Bicol
Bacolod
Baguio
Dumaguete
Tarlac
Palawan
Tuguegarao
Roxas
Kalibo
Tacloban
Nueva Ecija
35
Provincial – Demand Activity Leading Third Party Service Providers Expands Regionally
15Bacolod, Baguio, Cebu, Clark, Davao, Laguna
4 Cebu, Iloilo, Laoag
7Laoag, Pampanga, Batangas, Cebu, Davao
3 Baguio, Puerto Princesa
6Antipolo, Baguio, Bacolod, Cebu, CDO, Davao
10Bacolod, Cainta, Cebu, Dumaguete, Iloilo, Lipa, Pampanga, Laguna
2 Davao, CDO
No. of Sites(Provincial)
The top 7 IT-BPM companies employs 220K full time employees nationwide and continue to expand aggressively in the provinces as they continue to lease space at
a big scale.
36
Provincial Real Estate Top Picks for BPOsCurrent, 2017 and 2018
Source: Commission on Higher Education
LEGEND
Provincial options with none, one, or two BPO locators
Provincial options with exclusivity
Presence of 3+ BPO locators
*Calamba and Batangas City offers exclusivity
RE Options PEZA Graduates Population
Batangas1
(5,000 sqm)0
13,111(AY 2014-2015)
2,694,335
Bohol1
(5,000 sqm)0
7,586(AY 2014-2015)
1,313,560
Bulacan4
(31,039 sqm)2
(17,167 sqm)15,188
(AY 2014-2015)3,292,071
Cagayan3
(23,280 sqm)0
6.527(AY 2014-2015)
1,199,320
Cavite8
(73,074 sqm)6
(49,174 sqm)10,630
(AY 2014-2015)3,678,301
Cagayan De Oro7
(64,865 sqm)4
(23,300 sqm)7,799
(AY 2014-2015)1,564,459
Davao8
(89,289 sqm)6
(26,730 sqm)14,128
(AY 2014-2015)2,537,909
Kalibo/Aklan1
(5,000 sqm)0
3,707(AY 2014-2015)
574,823
Laguna6
(81,540 sqm)0
15,679(AY 2014-2015)
3,035,081
Leyte2
(10,000 sqm)0
10,094(AY 2014-2015)
1,966,768
Palawan3
(14,860 sqm)0
2,718(AY 2014-2015)
1,104,585
Rizal5
(15,300 sqm)1
(5,300 sqm)5.824
(AY 2014-2015)2,884,227
CAGAYAN
BULACAN
RIZAL
BATANGAS
CAVITELAGUNA
KALIBO/AKLAN
LEYTE
BOHOL
CAGAYAN DE ORO
PALAWAN
DAVAO
37
Provincial Pipeline Developer Market Share (2017 to 2022E)
RESIDENTIAL MARKET
39
Residential OutlookKey Insights
Developers have no more significant landbank, thus the direction to go out of NCR, looking at:
1) Reclamation projects along Manila Bay and Laguna de Bay.2) Townships in major cities and towns like Cavite, Laguna, Clark, Cebu, Iloilo and Davao.3) Government land and military bases.4) Improving industrial estates and manufacturing will result to out of Manila subdivision
projects or townships outside Metro Manila.
Demand Drivers:• IT-BPM sector has created a growing market for residential condominium
developments
• Overseas Filipinos is a main pillar of the Real Estate industry making up a major part of the widening middle income market. Over 60% of remittances go to real estate investments*
There is no expected residential sales hike due to the cautiousness of the Banks and Bangko Sentral ng Pilipinas.
Source: Bangko Sentral ng Pilipinas, World Bank
40
Residential Demand Driver
2016 OF Remittances has seen a growth of 5% y-o-y or US$26.8Bn from 2015’s US$25.6Bn.60% of remittances is being invested into the real estate sector
As interest rates collapse, more residential condominium units are being introduced to the market and more money from OF remittances are channeled into real estate.
Source: Bangko Sentral ng Pilipinas, LPC Research
41
Residential Constructions (Ongoing)Approved Building Permits by Floor Area in 2015
*Source: Philippine Statistics Authority
42
REGION2016
Number of Deployed OFWs
National Capital Region
NCR 278,580 278,580
Cordillera Administrative
Region
LUZON 1,417,996
57,724
REGION I 240,934
REGION II 153,093
REGION III 383,988
REGION IV-A 454,261
REGION IV-B 47,685
REGION V 80,311
REGION VI
VISAYAS 414,105
223,366
REGION VII 160,623
Region VIII 30,117
REGION IX
MINDANAO 399,047
57,724
REGION X 70,272
REGION XI 77,802
REGION XII 110,428
REGION XIII 45,175
ARMM 37,646
TOTAL 2,509,728
Residential Constructions vs OFW DeploymentApproved Building Permits by Floor Area in 2015
Top 5 regions in terms of number of ongoing construction (2015):
▪ Region IV-A (CALABARZON) 25%▪ Region III (Central Luzon) 11%▪ NCR (Metro Manila) 10%▪ Region VII (Central Visayas) 10%▪ Region X (Northern Mindanao) 7%
Residential Constructions
*Source: Philippine Statistics Authority
43
✓ Sudden increase of residential supply in 2012, but significant decline from 2013-2015
✓ Supply introduced in 2012 is more than previous 3 years supply combined
• Steady economic growth• Western firms offshoring to PH• Buying power of OFW• Low interest rate
Residential Supply2016 NCR Approved Licenses to Sell
Source: Housing and Land Use Regulatory Board
Market Segment
Price Range
Socialized P450k & below
Low Cost
Low Cost 1P450k-P1.7Mn
Low Cost 2P1.7Mn to P3Mn
Medium Cost P3Mn-P4Mn
Open Housing Above P4Mn
Residential Condominium SupplyCombined Preselling and RFO units in Metro Manila (1992 to 1Q 2017)
45
Residential Condominium SupplyBy Selected Major Developers (2010-2016)
Source: LPC Research
Residential Condominium SupplyBy Selected Major Developers (2010-2016)
46Source: LPC Research
47
Historical Residential Rental RateIncrease in the rent rates of residential condominiums over the last 5 years
*Based on typical studio or 1BR unit*Inclusive of DuesSource: LPC Research
Metro Manila VillagesHigh End Residential Villages (Number of Household)
48
METRO MANILA TOTAL HOUSEHOLDS: 15,187
Residential Historical Land ValuesHigh End Residential Villages (2011 to 2016)
49Source: LPC Research
TOURISM
TourismGlobal Boom → Local Zoom
In 2016, the global tourism economy contributed
10% of world GDP and provided 10% of the world’s jobs.
MAJOR GROWTH MARKETS• Emerging markets(+)• Asia Pacific(++)• Middle-class families, 50-60 year
old “empty nesters”, and millennials• Regional travelers
GROWTH DRIVERS• Ease of travel & reduced travel costs• Online travel agents (12% CAGR)
and digital disruption • Rise of Low-Cost-Carriers (7.1%
CAGR)
THREATS TO THE INDUSTRY• Spike in fuel prices• Geopolitical instability
• Tightening of national borders• Unstable currency markets
BILLION1.2
2015TOURIST ARRIVALS
ESTIMATED 2030TOURISTARRIVALS
BILLION
1.8+50%
The bounties that the tourism industry yields will reach unprecedented heights, the
trillion dollar question is whether we can take a good share of the spoils.
Source: UNWTO, SKIFT
52
2015 International Tourist ArrivalsAsia Pacific
Source: UNWTO
53
Travel and Tourism CompetitivenessSouth East Asia
Singapore Malaysia Thailand Indonesia Sri Lanka Vietnam Philippines Lao PDR Cambodia
Tourist Arrivals 12M 25.7M 29.9M 10.4M 1.7M 7.9M 5.3M 3.5M 4.7M
GDP Contribution 4.8% 4.4% 9.3% 3.3% 4.6% 6.6% 4.2% 4.6% 13.5%
COMPETITIVENESS RANKING (out of 136 countries)
Overall Ranking 13 26 34 42 64 67 79 94 101
Business Environment 2 17 45 60 50 68 82 47 125
Price Competitiveness 91 3 18 5 20 35 22 14 51
Air Transport Infrastructure 6 21 20 36 68 61 65 97 96
Ground & Port Infrastructure 2 34 72 69 45 71 107 111 108
Tourist Service Infrastructure 24 46 16 96 94 113 87 86 102
Natural Resources 103 28 7 14 31 34 37 71 62
Safety & Security 6 41 118 91 59 57 126 66 88
Source: WEF Travel and Tourism Competitiveness Report 2017, World Trade and Tourism Council
Tourism: PhilippinesGlobal Boom → Local Zoom
DOT GROWTH TARGETS
NATIONAL TOURISM DEVELOPMENT PLAN 2017-2022
Indicative budget:
PHP 2.9 Trillion
Duterte administration takes action to maximizeour share of the global
tourism boom.
Source: National Tourism Development Council
55
Over 631,000 tourist arrivals in January 2017, the highest ever recordedvolume of tourists in a single month.
13 new international routes from local carriers in 2016. New direct flights byboth foreign and local carriers create 888,056 additional annual seatcapacity.
DOT’s National Cruise Tourism Development Strategy identifies theTurquoise Triangle (Manila, Boracay and Northern Palawan) as priority areas forcruise development. In 2016, the PH attracted 72 port calls. Target is for morethan 100 port calls in 2017.
Infrastructure Development
Safety and Security
Tourism Investments
Inclusive and Diversified Growth
Philippine TourismMoving Forward
Source: PhilStar Department of Tourism
56
Clark International Airport Terminal 1 Expansion
Iloilo InternationalAirportExpansion
2016San Vicente International Airport
Bicol International Airport
KaliboInternational Airport
El NidoAirport Terminal
Puerto PrincesaInternational Airport
2017Mactan-Cebu International Airport
2018Bohol-PanglaoIsland International Airport
Caticlan
International Airport
2019 Sangley Point International Airport (Bidding)
San Fernando Airport (Planning)
Clark International Airport Terminal 2 (Planning)
Davao Airport (Bidding)
Bacolod SilayInternational Airport (Bidding)
Ninoy Aquino International Airport (Planning)
Coron Airport (Planning)
~2025
RECENTLY COMPLETED
EXPANSION/REDEVELOPMENT
AIRPORTS TO BE BUILT
Every year, there is an increasingly larger share of air passenger traffic into the country’s secondary destinations, driven by LGU and
private efforts, cheaper flights and improved airport infrastructure. – DOT
Philippine AirportsPipeline
EXPANSIONPassenger Capacity:
8.8 M – 24 MArea: 37, 000 sqm –
82,000 sqm
Philippine Tourist ArrivalsTop 10 Markets
Source: Department of Tourism
Airports in the Philippines2016 Passenger Count
Average Number ofDaily
Flight Arrivals (2011)
Average Number ofDaily
Flight Arrivals (2016)
Annual Passenger Footprint(Inbound
and Outbound)
Growth inPassengerFootprint
(2011 to 2016)
Metro Manila350 flights daily
(100 are Int’l flights)650 flights daily
(182 are Int’l flights) 39.5 Million (2016)31.5 Million (2011)
25%
Cebu City84 flights daily
(25 are Int’l flights)170 flights daily
(38 are Int’l flights)8.8 Million (2016)6.2 Million (2011)
42%
Davao City15 flights daily (1 is Int’l flight)
54 flights daily(5 are Int’l flights)
3.5 Million (2016)2.6 Million (2011)
35%
Kalibo11 flights daily
(5 are Int’l flights)43 flights daily
(8 are Int’l flights)2.7 Million (2016)1.3 Million (2011)
108%
Iloilo 14 flights daily33 flights daily(1 is Int’l flight)
1.9 Million (2016)1.7 Million (2011)
12%
Cagayan de Oro 9 flights daily 27 flights daily1.7 Million (2016)1.4 Million (2011)
21%
Puerto Princesa 6 flights daily 21 flights daily1.6 Million (2016)
988K (2011)62%
Bacolod 10 flights daily 24 flights daily1.4 Million (2016)1.3 Million (2011)
8%
Tacloban 10 flights daily 17 flights daily1.1 M (2016)
1 Million (2011)10%
Zamboanga 6 flights daily 16 flights daily980 K (2016)804K (2011)
22%
Clark5 flights daily
(2 are Int’l flights)23 flights daily
(16 are Int’l flights)950 K (2016)767K (2011)
24%
Source: Civil Aviation Authority of the Philippines, ourairports.com, NSCB statistics, Civil Aeronautics Board
Significant growthin passenger traffic from 2011 to 2016.
59
No. 1 Most Beautiful Beach in the World (El Nido) – Conde Nast Traveler, 2014 and 2015No. 1 Best Beach and Island Destination in the Philippines – CNN Go, 2014No. 2 Best Island in the World – Conde Nast Traveler, 2015 and 2016One of World’s Best Budget Travel Destinations – Forbes, 2017
1.1 million hectares of coral reefs, representing 35% of PH totalPH’s largest marine sanctuary: El Nido-Taytay Managed Resource Protected Area – UNEP
2,000 kilometers of coastline
Regular daily flights via:Puerto Princesa – 15 daily flightsBusuanga – 16 weekly flightsEl Nido – 4 to 5 daily flights
1.8 million tourists in 2015
1.4 million hectares of landLargest PH province by land area
Long Beach, San Vicente
Matinloc Shrine, El NidoUnderground River,
Puerto Princesa
Philippine TourismPalawan
Source: Conde Nast Traveler, Forbes, Department of Tourism, airline websites
AboutLEECHIU PROPERTY
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IT-BPM SiteSelection Clients
Project Leasing
BGC. Citibank Plaza. Ecoprime. Menarco Tower. Net Park. Milestone at Fifth Avenue.
Orē Central. The Curve. Twenty-five Seven McKinley. W CityCenter. W Fifth Avenue. W Global Center. W Office at High Street. High Street South Corporate Plaza I. The Finance Centre Retail
QUEZON CITY. Hexagon Corporate Center. One Luna Global Connections.
Panorama Technocenter.
ALABANG. Asian Star Building. One Griffinstone Building
MAKATI CITY. Frabelle Corporate Plaza. Liberty Plaza. M1 Tower. MJ Corporate Plaza. Nex Tower.
ORTIGAS. St. Francis Square. L&Y Plaza. Ortigas Technopoint Two
BAY AREA. DoubleDragon Plaza. Nexgen Tower.
CAVITE. Suntech iPark.
CEBU. Latitude Corporate Center. Mabuhay Tower.
We also advise and support landlords, building owners and real estate developers. Our leasing experts
create and implement strategies for finding the right tenant mix and ensure maximum occupancy in a
timely manner. Our real estate brokers have managed to lease more than thirty office buildings in Metro
Manila on behalf of developers.
Currently marketing 32 projectsTotal of 792,585 sqm
Looking to exclusively handle more project leasing appointmentsacross the Philippines in 2017
LPC looking to transact circa PhP 25 billion or USD 500 million in 2017
Investment Sales
LPC officially started October 1, 2015 and in the first year of operating, we have concluded the following:
PhP 3.5 billion or USD 70
million
✓ Prime Commercial Lots in Bonifacio Global City
✓ Office floor in Grade AAA building
along Ayala Avenue, Makati
✓ Prime Residential Apartment Building
in Salcedo Village, Makati
✓ Residential Apartment Buildings
in Kalayaan Avenue, Makati
✓ Office floors in Filinvest City
USD to PHP $1 : 50.04 PHP
65Source: Investment Sales pipeline as of January 2017
Research and Consultancy
Our research and consultancy arm allows us to offer to clients a full suite of consulting services
that include business planning, highest and best use studies, market research, project
conceptualization, and project feasibility.
Completed Projects – Highest and Best Use Study
Project Cost of PhP 58.1 billion
or USD 1,211 million
Central Business District:
BGC and Muntinlupa
Mixed Use developments:
Lakewood City Cabanatuan
Batulao, Woodlands Batangas
Pico de Loro, BatangasUSD to PHP $1 :48 PHP
CBRE Strategic Alliance with Leechiu Property Consultants
Source: CBRE Website
