27 minute read
AUSSIE FIRM’S PLUS POINTS
Plus points
Plus Architecture has established itself as a formidable force throughout Australasia by deploying a philosophy of smart, usable design
BY DIANA HUBBELL
Since 1997, Plus Architecture has been steadily proving itself to be a force to be reckoned with in Australia’s design scene.
The firm started exclusively in Melbourne’s residential market. But in subsequent years it has branched out to an impressive range of projects throughout Australasia. Today, the company’s portfolio encompasses everything from commercial workspaces to ambitious mixed-use developments to wellness facilities. It has even collaborated with the likes of international architectural heavy hitters like Zaha Hadid and Kengo Kuma.
“This year marks our 25th birthday. During that time, we have grown to have eight offices,” says Jessica Liew, director of Plus Architecture’s Melbourne office. “We have a strong presence in New Zealand and Australia. Much of the growth happened in the last five years. It all happened very quickly and organically.”
As Plus Architecture’s first female director, Liew has been influential in overseeing the firm’s recent explosive trajectory. A natural polyglot who is fluent in both Cantonese and Mandarin, she has been an asset in reaching out to the Asian market, as well as catering to the Asian expat investor community in Australia and New Zealand.
According to Liew, Plus Architecture’s decision to expand beyond Melbourne was a necessary survival strategy for building a more robust future for the company.
“We have learned lessons from market downturns,” says Liew. “We wanted to spread our wings into other sectors. We have a lot of talent in the firm. And these guys needed room to grow. So they were able to open offices in other cities or states.”
That willingness to go boldly forth, both literally and figuratively, has served Plus Architecture well. Liew is proud of the firm’s ability to adapt to varied site specifications and client needs. “We believe in exploration and collaboration,” Liew says. “We don’t like to design with a signature style because it might not necessarily be the right answer to every site. We draw upon site context.”
JESSICA LIEW IS PROUD OF THE PRAGMATIC —BUT STILL CREATIVE— APPROACH PLUS ARCHITECTURE TAKES TOWARDS ITS PROJECTS
Naturally, adapting to the site context often entails designing the most eco-friendly building possible. While some architectural firms go all-in on the latest bells and whistles—which may sound good in a press release, but not make a meaningful difference in the building’s overall carbon footprint or waste—Liew firmly believes in tried-and-tested sustainability strategies.
“Greenwashing can be a potential issue,” she says. “Figuring out what has a positive impact can be complex—you must factor in lithium mining and production and all sorts of supply chain issues. I understand a lot of others push for a lot of technologies and smart materials, but we always ask at what cost.”
To that end, Plus Architecture sticks to one of the most trusted options out there: passive design. In other words, every building goes through a daylight assessment to determine how to best maximise or minimise sunlight and natural cross-ventilation to maintain a comfortable internal temperature with minimal wasted electricity or fossil fuels. The firm incorporates solar panels whenever possible and encourages clients to steer away from inefficient gas heating systems. “Although it’s quite an old-school principle, passive design is just so powerful, no matter how basic it is,” says Liew. “We want to be able to put our hand to heart and say this is the best product.” That strategy of creative pragmatism is emblematic of Plus Architecture’s overall style. While many of the firm’s buildings are visually striking to behold, Liew prefers to create smart, usable design that will endure—an outlook very much in line with the prevailing attitudes Down Under.
As much as she admires dazzling starchitecture structures, she insists that the tastes and needs of the average Australian or New Zealander trend slightly more pragmatic.
“Architecture in Australia is not at the Norman Foster or Zaha Hadid level of extravagance,” Liew says.
Nevertheless, she believes that flair need not be sacrificed for the sake of simplicity. “A lot of the designs that we are doing here are still exciting,” she says. “Even the simplest buildings”
Much of this has to do with a general standard of excellence. According to Liew, there is an almost universal acceptance in the region of the idea that every building project—no matter the scale—is worthy of smart, savvy design. A healthy level of friendly competition drives everyone to do better.
“Everyone pushes as far as possible to create a great piece of architecture,” she says. “Everyone tries to excel. People push a lot of boundaries.”
The Pacifica
Towering over the heart of Auckland, this 178-metre structure is New Zealand’s tallest residential tower and is truly a sight to behold. It’s also home to some of the most luxe accommodations in the country, including a series of super-penthouses with jaw-dropping views. While the facade is hyper-modern, it also pays homage to the old warehouse and port district’s historic past. The angular designs slicing through the exterior mimic the patterns of the neighbourhood’s old laneways rendered vertical. To counter all the glittering glass and steel, the designers incorporated lots of warm, dark timber on the interior, as well as enclosed winter gardens on the upper floors.
Tawarri Hot Springs
Once opened, this sprawling 4,000-sqm site located just outside of Perth will become one of Australia’s premier wellness destinations, complete with a host of saunas, pools, treatment rooms, and dining outlets. To take advantage of the facility’s stunning natural surroundings, the design team used the sloping site to accentuate the stellar views of the Swan River and incorporated local, found limestone into the plan. The team also tried to preserve as much of the original landscape vegetation as possible, in addition to incorporating sustainable design strategies such as the harnessing of geothermal energy.
voco® South Melbourne + Vivére Apartments
One glance at the striking facade of this 20-storey Melbourne stunner is enough to confirm that this is no average apartment building. One of the challenges of this site was the fact that it was situated between two tall buildings. “We didn’t want to create a sandwich tower, so we started investigating what else we can do to make that architecture fit into its context and converse with the neighbours,” says Liew. The resulting facade is filled with intentional recesses and open spaces, creating depth and movement. All the 171 hotel rooms in this mixed-use project overlook lush gardens, while the luxury apartments have a view of Port Philip Bay.
Chongqing Towers and Villas
Consisting of seven glass-fronted residential towers, this bold project in Chongqing draws on the natural geology of western China for inspiration. Chongqing is built on an area that once experienced tectonic upheaval, resulting in jagged mountain ranges and rock formations stretching throughout the region. To mimic this, Plus Architecture envisioned eyecatching facades with cubic glass formations jutting out. Not only do they make for particularly dynamic structures full of movement, they also imbue the structures with a sense of place. Each building is unique and appears to have been frozen in a moment of expansion or upheaval.
River Terrace
Nestled on the Nerang River, with unimpeded views of the Gold Coast and the Pacific Ocean, the two towers of this upscale residential project in Queensland are a sight to behold. To accentuate the water situated all around, Plus Architecture incorporated a series of reflection and infinity pools so that it would seem almost like the building is melting into the sea. Floor-to-ceiling windows and wraparound terraces in the upper-level apartments make the most of that cerulean panorama. Both towers twist slightly as they rise, creating a dynamic facade. Finally, the tastefully muted, earth-toned colour palette with bronze accents mirrors the nearby sandy coastline.
711 Hunter Street
After winning a prestigious competition to help rethink and redesign the West End in Newcastle, Australia, Plus Architecture knew that they needed to come up with something truly visionary. The animating principle behind the firm’s concept was that of a public meeting place—a polis for a modern-day city. The project is also intended to help revitalise the district, bringing jobs and an influx of capital to help offset the economic impact of the global pandemic. Once completed, this landmark building will be home to 1,400 sqm of commercial floor space, as well as 267 residential units.
ADVERTORIAL
STAY GREEN
The old ways of building, designing, and operating hotels are changing, with Pan Pacific Hotels Group, a member of UOL Group Limited, charting a sustainable course forward for the future of the hospitality sector
Pan Pacific Orchard, Singapore
Hoteliers have a duty to do their part in the global movement towards strong climate action. According to The World Bank, ordinary hotels have a higher carbon footprint than other types of buildings. These findings come as a recent survey shows that 83% of global travellers believe sustainable travel to be very important, with 61% attributing a desire for more sustainable travel to the pandemic.
The hotel sector must cut its emissions by 66% by 2030 if it were to prevent global warming from crossing the point of no return. To do that, hoteliers need to build fewer carbonemitting edifices; retrofit existing ones; and promote sustainable hospitality practices.
Hospitality properties by Pan Pacific Hotels Group, a member of Singapore-listed property developer UOL Group
Limited, which was named Best Hospitality Developer (Asia) at the 2021 PropertyGuru Asia Property Awards Grand Final, are built and managed far more sustainably than the average hotel building. The global hospitality group has made strides in utilising high-quality hardware with sustainable features, enhancing the overall lifestyle and design quotient of its projects. This ethos in sustainability shines through in three of its Singapore projects: Pan Pacific Orchard, PARKROYAL COLLECTION Marina Bay, and PARKROYAL COLLECTION Pickering.
Named Best Green Hotel Development and Best Hotel Architectural Design at the 16th PropertyGuru Asia Property Awards Grand Final, Pan Pacific Orchard is a crowning achievement in sustainable building for Pan Pacific Hotels Group. The Orchard Road development is making waves
ADVERTORIAL
PARKROYAL COLLECTION Marina Bay, Singapore
as Singapore’s first zero-waste hotel, utilising a bio-waste digester that converts food waste into plant fertiliser. In a bold move, water dispensers are installed in all its guest rooms, saving 360,000 plastic bottles a year.
Pan Pacific Orchard draws energy from renewable sources such as solar panel installations and actively reduces power consumption through double-glazed low-emissivity glass. In addition, the hotel operates recyclable water systems, complemented by rainwater harvesting systems.
Offering 350 eco-friendly rooms, Pan Pacific Orchard features four levels of self-sustaining sky gardens, with forest, beach, garden, and cloud themes. Approximately 30% of the hotel spaces are dedicated to foliage and greenery. Highlights include waterfalls, a lagoon, and outdoor event lawns, in addition to views of Orchard Road and the city.
Winner of the Best Hotel Interior Design award at the 11th PropertyGuru Asia Property Awards (Singapore), PARKROYAL COLLECTION Marina Bay impresses as another beacon of sustainable hospitality. The development, designed by the late architect John Portman and renovated by FDAT Architects, is a triumph of green and biophilic design, bringing a “garden-in-a-hotel” concept to life with over 2,400 trees, shrubs, and groundcover, punctuated by illuminated sculptural pavilions and glass greenhouses. The hotel even boasts an urban farm where more than 60 varieties of greens are grown and sent to its restaurants and bars where they make up 20% of fresh produce. A 13-metre-high green wall also greets guests upon arrival, immediately acquainting them with the project’s green credentials.
Similarly, travellers can experience the eco-friendly, garden-in-a-hotel experience near the CBD, Clarke Quay, and Chinatown at the PARKROYAL COLLECTION Pickering, Singapore. Guests can admire the Singapore skyline from the outdoor infinity pool and cabanas at the hotel’s dedicated Wellness Floor or simply relax at the celebrated St. Gregory Spa. Designed by Singapore-based sustainable design practice WOHA, the property boasts lush landscaping that blends with the sweeping greenery of nearby Hong Lim Park.
Pan Pacific Hotels Group will advance its sustainability agenda further afield this year with the May opening of PARKROYAL COLLECTION Kuala Lumpur, the company’s new green icon in Malaysia. Pan Pacific Orchard is slated to open not long after in March 2023.
As the world continues to change, green building advocates will surely watch Pan Pacific Hotels Group’s pioneering, revolutionary sustainable ideas with keen interest.
Bogor and better
BY JONATHAN EVANS
One of the most appealing locations in West Java, Bogor combines scenic splendour and a host of lifestyle perks with easy access to Jakarta
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The Sanctuary Collection JP (Jasmine Park) Apartment Bumi Aki Puncak
An under-construction township in Sentul City, this joint project by Perennial Holdings, Harita Group, and Qingjian Realty Group sprawls across the verdant mountainous terrain synonymous with Bogor. The lush result is a 1,750-unit retreat in perfect harmony with its surrounding nature. Its minimalist design optimises natural light as its location gifts swoonworthy views. Sanctuary Collection is also surprisingly close to modern amenities including transport (the upcoming Light Rail Transit links Sentul to central Jakarta), educational facilities, shopping and F&B outlets, hospitals, and golf clubs. But its substantial grounds also encompass a raft of leisure facilities that maximise the fresh mountain air. With its first units ready for habitation later this year, this might be as close as home-seekers can get to a dream lifestyle within the megalopolis. Location is key to appreciating Jasmine Park: a metropolitan triple-tower project from developer Greenwood Group designed with mobility in mind. Situated in the heart of Bogor, it lies only minutes from the university campus; rail, road and bus links; shopping malls; and hospitals. The project’s 12-storey towers are divided between one- and two-bedroom units, making it ideal for students attending the nearby Institut Pertanian Bogor (IPB) agricultural university. The complex encompasses a food court, commercial area, gym, supermarket, and swimming pool. Bumi Aki operates a string of acclaimed restaurants around Bogor. But the dreamy vistas of its Puncak outlet—north of Mount Gede in a lofty location favoured by cool-airseeking Jakarta weekenders—is the pick of the bunch. Kitted out with sturdy wooden interiors and looking out onto the scenic tea plantations, the semi-alfresco, familyoriented space conjures a cosy atmosphere enhanced by a kids’ playground and live entertainment. The heavily carnivorous menu features perennially popular Sundanese traditional dishes including goat satay and oxtail soup. But the fish dishes (including carp, prawns with pepper sauce, and fried tilapia) receive the most ecstatic plaudits from customers who rate Bumi Aki Puncak as one of the best eateries in Bogor.
From its medieval beginnings as the Sunda Kingdom’s capital to the administrative centre of the Dutch East Indies, Bogor has played an essential role in Indonesia’s historical evolution. These days, the greenest constituent city of modern-day Greater Jakarta is best known as the summer home of President Joko Widodo. Bogor is also regarded as a hub for culture and education. Its higher elevation between Mount Salak and Mount Gede, scenic terrain, mild climate, and expansive parkland, as well as its location close to Jakarta, all work in its favour. Therefore, it’s no surprise that it has become a fertile environment for premium housing initiatives in West Java, as the latest developments in the area underline.
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AEON Mall, Sentul City Grand Garden Cafe and Resto
Another spectacular example of AEON’s expanding footprint in Southeast Asia, Bogor’s big retail hitter is one of the city’s most talked-about openings of recent years after debuting in October 2020. With towering residential buildings surrounding the mall and offering direct access to it, the overall vision is more akin to Singapore’s skyline than suburban Jakarta—an impression only reinforced by the Opus Park condo, directly behind it, which bears more than a passing resemblance to the Marina Bay skyline. AEON’s drive towards “life design” and sustainability are on full display throughout, as is the emphasis on high-quality tenants and Japanese brands. Among the top names on offer across the mall’s six levels are H&M, Uniqlo, Miniso, The Body Shop, Samsonite, and BMW, along with a vast range of Indonesian and Japanese F&B outlets, while a Cinema XXI also keeps patrons entertained. Formerly known as Cafe Dedaunan, the Grand Garden will be familiar to not only visitors at Kebun Raya Bogor (see next) but also to select overseas dignitaries, including Barack Obama, a guest of Joko Widodo on his home turf in 2017. With its panorama across the lawn, its lily ponds, and its fountains, it’s unlikely you’ll find a more regal setting in Bogor. Prices tend to reflect the venue’s stateliness. Indeed, an extra entry fee also applies to visitors before 4pm. But the experience is worth the splurge. Menus, created in collaboration with the Istana Bogor kitchen, draw deep on local culinary delights such as ayam goreng (deep-fried chicken), surabi (pancake), fried rice, satay, and es kelapa (coconut ice cream). Bogor Botanical Gardens
One of Indonesia’s most enduring attractions, Kebun Raya Bogor (“Great Garden”) has for two centuries drawn scientists, wildlife, and nature lovers to its 87-hectare expanse, which today contains almost 14,000 tree and plant specimens. Founded in 1817 by Dutch colonialists who discovered that the area’s rainy climate and volcanic soil were conducive to cultivating tropical plants, and re-landscaped by thengovernor Stamford Raffles during the brief British occupation, the Gardens have since served as an agricultural and horticultural research centre. Several outstanding features distinguish Kebun Raya’s eclectic grounds, notably a Mexican garden; a Dutch cemetery; a vast orchid collection; the 1894 Zoology Museum, with its thousands of insect and animal species; and the beautiful Gunting Pond, next to another major visitor draw, the Presidential Palace (Istana Bogor), which was originally built in 1744.
CHANGING OF THE GUARD
The Philippines’ real estate market is rebounding strongly from its pandemic slump. And with fresh leadership imminent, there’s a bullish mood among investors and developers
BY AL GERARD DE LA CRUZ
With a widow battling a Marcos dynasty scion for power, the 2022 Philippine elections are harking back to a transformative, revolutionary time in history.
But as political faultlines split and culture wars rage between front-running candidates VicePresident Leni Robredo and rival Ferdinand Marcos Jr., another divide emerges.
Property-seeking Filipinos are split between the haves and the have less. Careful investors eye affordable off-plan units in the big city while the rich seek more imeldific (the neologism is a nod to former first lady Imelda Marcos’ ostentatious displays of wealth) properties in suburbia.
The real estate market appears to have passed an inflection point. Despite Covid-19, the economy grew 5.6% in 2021, reversing course from the 9.6% contraction in 2020. Nationwide, residential prices increased 6.3% in Q3 2021, the first year-on-year uptrend in four consecutive quarters, central bank data show.
“The general residential market remained weak but improved relative to 2020’s performance,” says Michael McCullough, managing director of the consultancy KMC Savills. “The luxury segment was the most resilient while the midsegment showed recovery signs.”
The take-up of most condominium price segments resumed its ascent towards the end of the year, data from Leechiu Property Consultants show. Around 8,159 primary units were sold in Q4 2021 alone, a 12% quarterly increase. A total of 38,065 units ultimately moved last year, representing an annual sales decline of just 11%, compared to 21% in 2020. Metro Manila will, in fact, likely fall short on condominium inventory in the long term. Although nearly 165,000 units are pipelined for the next seven years—with 34,600 units for 2022 alone—around 76% of them are already sold.
“Developers should start introducing new supply,” says Roy Golez Jr., director of research at Leechiu Property Consultants. “The buyers are there, especially with the more optimistic environment. Money will be looser, freer.”
With the benchmark rate at an all-time low of 2%, developers would be better capitalised
COASTAL PROVINCES SUCH AS BATANGAS WHICH ARE WITHIN EASY STRIKING DISTANCE OF METRO MANILA HAVE BECOME INCREASINGLY POPULAR AMONG PROPERTY SEEKERS DURING THE PANDEMIC
THE PHILIPPINE RESIDENTIAL REAL ESTATE MARKET IS ATTRACTIVE BECAUSE IT CONTINUOUSLY EVOLVES BASED ON WHAT THE MARKET DICTATES. IT CAN BOUNCE BACK AND ADAPT WITH WHAT THE NEXT NORMAL WILL REQUIRE
ISLAND LIVES
The 7,640 islands of the Philippines are back in business. In February, the country reopened to fully vaccinated visitors from 157 countries who could test negative for the virus.
As foreign arrivals crashed to just 58,177 in the first half of 2021, domestic tourists rallied behind the archipelago’s ailing hospitality sector. Locals filled hotels and resorts to 44% occupancy in H2 2021, up from 20% the previous year, according to Colliers Philippines.
Metro Manila residents sought reprieve in tourist attractions within a five-hour driving distance, in such provinces as Bataan, Batangas, and Zambales. “We have so much to offer in terms of our destinations, and if the travel and tourism industry wakes up and becomes freer, that would be the next leg of our growth,” says Roy Golez Jr., director of research at Leechiu Property Consultants.
An estimated 84.8 million domestic trips will be taken in 2022, tourism authorities predict.
At this rate, domestic tourism will overlap even more with second home and resort markets, buoyed by the continued ascendancy of work-from-home arrangements. Recently, the middle market has taken to acquiring cheap property in beach towns such as Morong and Mariveles in Bataan and Nasugbo and Calatagan in Batangas.
“This feels like the 1990s when there was a boom in beach and mountain subdivisions that were resortthemed,” says Golez. “I think it’s a reaction to the pandemic. So many people saved on travel.”
to dust off stalled projects. “Developers, not necessarily the buyers, are more willing to borrow,” adds Golez. “If developers get funding, then there will be more units released to the market. I’m partial towards supply because the profits can be adjusted on the developer side to make it easier for buyers to absorb units.”
The Manila Bay Area and Greater Ortigas will likely account for 47% of condominiums set to complete through 2026, according to analysts from Colliers Philippines and KMC Savills. Around 4,130 hectares of land are being reclaimed across the bay, formerly a hedonist’s hub peopled by Philippine offshore gaming operators (POGOs).
Recent POGO levies like Republic Act 11590—plus onerous pandemic restrictions—destroyed goodwill with operators, lured to the country by outgoing President Rodrigo Duterte’s détente with Beijing. Around 28 POGO licensees have ceased operation since March 2020. On cue, rents dropped by up to 40% across Metro Manila as gamblers moved on to places such as Cambodia and Dubai. “There had been a parabolic increase in rents in 2019 before the pandemic so they just somehow went back to what they should have been pre-POGO growth,” says Golez. “The POGO market had just wanted to get whatever was available for their employees.”
Marcos is expected to woo POGOs back to the Philippines if he wins power. Shortly after declaring his run for office last year, he met with Huang Xilian, the top Chinese diplomat to the country.
Around 677,000 sqm in committed POGO spaces remain today in Metro Manila. “POGOs may return to play but not as ferociously as before, considering the issues related to tax regulations,” says McCullough. “There will be a positive spillover effect to residential demand, but the magnitude will also be contingent on what the new administration dictates.”
Flexing their purchasing muscle in the absence of POGOs, affluent locals and OFWs (overseas Filipino workers) looked at good buys in horizontal Metro Manila developments,
including elite communities such as Ayala Alabang, Forbes Park, and Dasmariñas Village.
No longer siloed to offices due to more flexible work arrangements, cash-rich property seekers also decamped to beaches and scenic locations just outside the capital. House-and-lot and lot-only projects in nearby provinces such as Batangas, Bulacan, Cavite, Laguna, Pampanga, and Tarlac were 86% to 97% sold in 2021, according to data from Colliers. Horizontal projects further afield in Cagayan de Oro and Iloilo also recorded positive take-up.
“Despite the pandemic, the wealth of the high-end market has been parked in real estate because we can believe that it’s a preservation of asset,” says Golez. “They are moving from their large condos to these large houses for open-air and perceived health benefits.” Vertical developments nonetheless also prospered outside Metro Manila, with condominiums in Cebu and Davao
DEPARTING PRESIDENT RODRIGO DUTERTE LEAVES BEHIND A MIXED LEGACY THAT ENCOMPASSES NEGATIVES AND POSITIVES
LEGACY MOMENT
President Rodrigo Duterte leaves behind a divisive legacy. He is infamous for his brutal crackdown on drug traffickers, but policies such as his infrastructure program enjoy multi-pronged support.
A champion of decentralisation, Duterte helped design Administrative Order 18 that kept the Philippine Economic Zone Authority (PEZA) from accrediting additional ecozones in Metro Manila.
“At least for this administration, the direction is very clear, which is to decentralise and open more avenues for investments,” said Dom Fredrick Andaya, senior director for office services at Colliers Philippines, in a recent media briefing. “But once the market recovers, say over the next two to three years, there may be a need for more PEZA spaces in Metro Manila.”
While some developers in the metropolis resented the moratorium, others welcomed the passage last year of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act. The law effectively lowers corporate income taxes every year until 2027, among other fiscal incentives, to stimulate the pandemic-ravaged economy.
With financing from the Japan International Cooperation Agency (JICA), Duterte’s Build, Build, Build program is partially opening this year the country’s first underground transit system: the Mega Manila Subway. The program has also partnered with conglomerate San Miguel to build a massive air hub, the Bulacan International Airport, by 2026.
“The priority to boost additional infrastructure will not only spill over directly to the real estate market through unlocking property values but will also address longtime issues related to traffic congestion and unemployment through additional transit systems,” says Michael McCullough, managing director of the consultancy KMC Savills.
MAKATI IN METRO MANILA IS ONE OF THE AREAS IN THE PHILIPPINES SUFFERING FROM CONDOMINIUM UNDERSUPPLY AS DEMAND REBOUNDS IN THE COUNTRY
commanding prices in the echelons of PHP370,000 (USD7,200) and PHP318,000 (USD6,200) per sqm, respectively, according to Leechiu. Appetite for studios and other small-cut condominiums dropped while that for twobedroom units or larger surged, the consultancy Santos Knight Frank reports.
“Demand for bigger cuts is driven by HNWIs from abroad providing support for their families in the Philippines, and OFWs or OFW families who are upgrading or resettling,” explains Marievie Gimena-Villanueva, associate director for residential services at Santos Knight Frank.
Duterte’s signature Build, Build, Build infrastructure program has unlocked land values in and out of Metro Manila. Land prices in the country’s financial centres, Bonifacio Global City (BGC) and the Makati CBD, have already hit up to PHP846,800 per sqm, according to Colliers.
The firebrand leader exits the presidency with 162 kilometres of transport infrastructure projects set to complete across the capital by 2025. These include the 25-kilometre, Japanese-funded Mega Manila Subway, the country’s first underground rapid transit system. The program also realises the 2,500-hectare Bulacan international airport, a long-awaited alternative to the capital’s increasingly obsolescent gateway. Several presidential candidates vowed to continue Duterte’s infrastructural legacy, chief among them Marcos and his running mate, Sara Duterte, the daughter of the current president, as well as international boxing champion Manny Pacquiao.
“We need the infrastructure program to get us out of this economic crisis where we are right now,” says Golez. “We should continue with the infrastructure projects because those are the only ways we can keep providing additional employment, especially to those who have lost jobs in the service industry.”
To uplift cash-strapped property seekers, some developers have stretched monthly amortisations of pre-selling units to a previously unheard-of five years or long after the building is completed.
“These developers are doing all these buyers a big favour by allowing them to pay for so long,” says Golez. “But then, of course, it’s also to the developers’ survival, lest they can’t sell anything.”
On the same grounds, the presidentiables blazed the campaign trail with populist promises of shelter. Robredo, the former housing secretary, pledged to allocate PHP50 billion annually to an in-city subsidised housing program
ECONOMIC RECOVERY IN THE PHILIPPINES IS SET TO GATHER PACE AS THE NATION REOPENS TO INTERNATIONAL TRAVEL
as opposed to far-flung resettlement schemes where employment prospects are scarce.
Manila Mayor Isko Moreno planned to roll out a nationwide version of his housing projects for the underprivileged in the old city. Pacquiao aimed to emulate Singapore’s public housing board projects while Marcos—whose family’s controversial real estate holdings are legion—wanted to recapitulate a housing program pioneered by his father.
The private sector could also jump into the altruistic fray. Developers are currently required to build socialised housing projects equivalent to 15% of their development costs, but this compliance rate could be raised back to 20%, analysts suggest.
“The Filipino in me tells me that what’s needed is to support the lowest market segment,” says Golez. “So we need new legislation to provide bigger budgets and funding to the lowend market because there’s no profit there for developers.” Salaried renters could be looking at a return to their urban pieds-a-terre sooner than expected. With more than half of the country’s population vaccinated, the Philippine Economic Zone Authority (PEZA) has begun issuing onsite capacity requirements for landlords’ compliance. Propelled by such return-to-work initiatives, residential rents and prices in the secondary Metro Manila market could see a growth of 1.7% and 1.5%, respectively, in 2022, following a slump in both metrics last year, Colliers projections show. Despite headwinds from POGO vacancies, capital values of both primary and secondary homes in major business districts across Metro Manila have held stable, reports Golez.
“The pricing for primary units is increasing, but the secondary market is where we see the impact of the pandemic.”
Most analysts envision a slow upward movement along the recovery curve for residential property. With consumer and business sentiment improving, the market could be firing all cylinders in the second half of the year, just in time for a new premier.
“The Philippine residential real estate market is attractive because it continuously evolves based on what the market dictates,” says McCullough. “While it’s experiencing a general slowdown amid the pandemic, it can bounce back and adapt with what the next normal will require. The real growing demand has led to long-term price appreciation which has rewarded residential investors in recent years.”
