News: The Philippines division of US property services firm CBRE has reported that prime office rental rates in the Philippines remain the lowest in Asia, according to GMA News. The most expensive office rental rate in the country is US$26 per sq m in Makati, which compares to US$32 in Bangkok, US$65 in Jakarta and, at the top end of the scale, US$207 in Hong Kong and US$182 in Beijing. Prices in the Philippines are likely to continue to increase, however, as the office occupancy rate remains high and demand is strong.
BMI View: The Philippine office market is not in as good a shape as it was in early 2011, when strong levels of demand and high rental rates were seen in all the cities we cover. This is due to a market contraction, whereby the slow-balanced rate of supply, low levels of vacancy and the fact that much of the supply coming to the market is of a premium/grade A standard, and has become unbalanced.