Nation at a Glance — (01/18/19)
News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.
Asian Cup campaign ends for PHL Azkals
By Michael Angelo S. Murillo
Senior Reporter
THE Philippine men’s national football team saw its AFC Asian Cup 2019 bid come to an end on Wednesday night in Dubai, United Arab Emirates, after losing to Kyrgyz Republic, 3-1; their third straight defeat in the quadrennial continental football spectacle.
Needing to win over Kyrgyzstan in their Group C match to at least have a shot at moving into the next round of the tournament, the Philippine Azkals instead saw themselves at the raw end of the match, in the process kissing their knockout round hopes goodbye.
Vitalij Lux proved to be the biggest thorn for the Azkals as the forward scored a hat-trick that propelled Kyrgyzstan to the victory.
The German-based forward first connected in the 24th minute and followed up on it in the 51st minute.
Mr. Lux further buried the Philippines when he completed his hat trick in the 77th minute.
The Azkals got some consolation when captain Stephan Shrock scored for the Philippines in the 80th minute.
The goal was the first for the Azkals in the tournament in three matches, giving their first-ever Asian Cup campaign another silver lining as it ended.
Despite failing to go through, the Azkals were still grateful for the chance to test themselves and compete in a tournament like the Asian Cup while vowing to work harder and come back stronger.
“Our #AsianCup2019 campaign may have ended, but the dream will always be alive … We’ll be back stronger than ever to #DoTheImpossible,” the team wrote on its Twitter account.
“Thy will be done Lord. Thank you for the privilege of representing the Philippines in this Asian Cup. It’s our first but certainly not going to be our last. Salamat sa suporta mga kababayan!” Azkals team manager Dan Palami, for his part, wrote on his Twitter post following their defeat.
Coached by World Cup campaigner Sven-Goran Eriksson, the Azkals were hoping to make waves in its debut Asian Cup campaign despite being lumped in Group C, hailed as the Group of Death, along with Korea Republic and China People’s Republic, apart from Kyrgyzstan.
The Philippine team showed spirited effort against Korea, losing, 1-0, and challenged China before bowing down, 3-0.
With the loss to Kyrgyzstan, the Azkals finished last in their grouping with a 0-0-3 record and no points to show for.
In the Asian Cup, tournament format calls for the top two teams from each grouping after group play advancing to the next round, to be joined by the four best third-placed teams among the six groups.
Pacquiao has much to fight for against Broner
By Michael Angelo S. Murillo
Senior Reporter
ON Sunday Filipino boxing superstar Manny “Pacman” Pacquiao returns to the ring, staking his World Boxing Association welterweight title against American challenger Adrien “The Problem” Broner in a headlining fight at the MGM Grand Garden Arena in Las Vegas.
It is a fight that is being hailed a lot riding on, with one local combat sports analyst even looking at it as having a “much to lose” setup for eight-division world champion Pacquiao at this stage of his storied career.
Mr. Pacquiao (60-7-2, 39 KOs) enters the contest on Sunday (Manila time) off a convincing victory over Lucas Matthysse of Argentina in July, where he seized the WBA title in a convincing seventh-round technical knockout victory.
It was a successful bounce back for the Filipino boxing superstar after losing to Australian Jeff Horn by unanimous decision in July 2017 while also reasserting his claim of not being done in boxing even at the age of 40.
It is this precise scenario, as well as the kind of challenge that Mr. Broner is expected to present, that fight analyst Nissi Icasiano is viewing the about-to-unfold bout.
“Manny Pacquiao puts his WBA welterweight championship at stake against the man who was once the self-appointed heir to Floyd Mayweather Jr.’s throne. It’s a no-brainer that Broner will try to put an effort to shift a reputation of being a career underachiever,” said Mr. Icasiano in an online correspondence with BusinessWorld as he set up the significance of the title fight.
“After somehow breathing a new life into his career in July of last year, Manny has everything to lose in this bout against Broner if he will not get the favorable result that he wants. The momentum he built in Kuala Lumpur could go into waste. Everybody loves a winner, but it’s a different story if you’re on the losing end,” he added.
Mr. Icasiano went on to say that he welcomes the return of veteran trainer Freddie Roach to the Pacquiao camp for the Broner fight, believing that the expertise of Mr. Roach would go a long way in crafting a fitting game plan for the kind of opponent that Pacman will be facing.
“Buboy Fernandez managed to jolt what was left in Manny Pacquiao’s relentless style six months ago. Will Freddie Roach still play a good part? Absolutely! He knows Manny so well. They’ve been together since 2001. I think a great mind like Freddie Roach will be handy in devising a game plan coming into the fight and also making some adjustments during the bout or in crucial scenarios,” Mr. Icasiano said.
As to Mr. Broner (33-3-1, 24 KOs), the analyst said he is expecting the American to pose problems to Mr. Pacquiao but sees some openings in his arsenal that the Filipino could take advantage of in trying to pick up the win.
“It’s no secret that Manny Pacquiao had difficulties with counterpunchers in the past, and Adrien Broner is a counterpuncher. Age is also very palpable variable,” said Mr. Icasiano.
Adding, “If there is an upside, there is also a downside (though). Pressure fighters like Marcos Maidana easily opened the defenses of Broner like a can of tuna. Sometimes, Broner can get carried away and go for exchanges, which leaves him vulnerable. Second, the advantage of age is not absolute. It is at most times relative. It is not accurate simply to say that a much older fighter will lose against a younger one. There are many older fighters who have won matches through craftiness and well-implemented strategies. Broner is also known for using the Philly Shell, otherwise called as shoulder roll. But he can’t use that against a southpaw like Pacquiao because it will leave him open. I expect it to be a cat-and-mouse affair for 12 rounds. Pacquiao will be relentless in attacks, while Broner will try to frustrate the Filipino boxing champion with his passive-but-technical approach.”
Kelly shoots for a more convincing win over Lee
WITH their first encounter ending prematurely and in controversial fashion, Filipino mixed martial arts fighter Edward “The Ferocious” Kelly is aiming for a more convincing victory when he reengages with Singaporean Christian “The Warrior” Lee in their ONE Championship featherweight clash in Indonesia on Saturday, Jan. 19.
The two fighters met last September in China but it was prematurely stopped and the victory handed to the Benguet native after Mr. Lee executed a suplex that was deemed illegal by the referee.
The Singaporean was then disqualified for the move a little over two minutes into the fight, and Mr. Kelly proclaimed the winner.
Mr. Kelly (11-5) in the lead-up to the fight vowed to do better against Mr. Lee (10-3) in their second encounter, part of the main card for “ONE: Eternal Glory” at Istora Senayan in Jakarta.
“I learned that I should never give my back to him and that he will come to attack every second. I think this fight could go to the judges if I am unable to catch him with a big shot. I feel he is well prepared for my style. We both do not want to lose to each other,” Mr. Kelly, 34, said.
He said he is not expecting anything less from Mr. Lee and that he will give his all as he tries to set some consistency in winning moving forward.
“His (Lee) relentlessness is his strength, but can also be his weakness. I need to pick my shots, maximize my striking, and be careful with his takedowns. Should the opening present itself. I am definitely going for a knockout,” Team Lakay’s Kelly said.
ONE: Eternal Glory is being headlined by the world strawweight title fight between reigning champion Joshua “The Passion” Pacio of the Philippines and Japanese challenger Yosuke Saruta.
Another Filipino competing in the event is strawweight Robin Catalan.
ONE: Eternal Glory can be seen over the ONE mobile app as well as live on S+A at 11 p.m. — Michael Angelo S. Murillo
Four more teams make 2019 Philippine Cup debut
THE young proceedings in the 2019 PBA Philippine Cup continue today with four more teams making their tournament debut.
Set to be played at the Cuneta Astrodome in Pasay City, action in the season-opening Philippine Basketball Association tournament today will have defending champions San Miguel Beermen, Columbian Dyip, Rain or Shine Elasto Painters, and NLEX Road Warriors taking the PBA hardwood for the just-started season for the first time.
The Beermen collide with the Dyip in the 4:30 p.m. curtain-raiser while the Elasto Painters and Road Warriors battle in the 7 p.m. main game.
San Miguel will begin its title defense with added firepower with the arrival of three-time league scoring champion Terrence Romeo, who will join forces with the already-solid core of the Beermen led by five-time PBA most valuable player June Mar Fajardo.
Also part of the Beermen now are the do-it-all Paul Zamar and veteran Ronald Tubid, who the team acquired from various trades in the offseason.
Hailed by the field once again as the team to beat in the All-Filipino, San Miguel coach Leo Austria said they welcome such a challenge but underscored that they have to put in the needed work to succeed in it.
“We have a talented team but talent is not enough to win a championship. We need a lot of hard work and it is a challenge that we are now working on,” said Mr. Austria, whose team is gunning a fifth straight Philippine Cup title.
Columbian, for its part, is parading the top overall rookie pick in the 2018 draft in National Collegiate Athletic Association standout CJ Perez.
The Dyip hope that Mr. Perez, along with other rookie picks JP Calvo and Jeepy Faundo, could help turn things around for the franchise, which had an overall record of 6-27 for the entire 2018 PBA season.
E-PAINTERS
Meanwhile, Rain or Shine tries to kick off their campaign on the right foot, banking on a rejig system of more balanced attack with help from new bloods Jayvee Mocon and Jayjay Alejandro.
“The ball movement [this time around] is a lot different from the past. We rely so much on the two-man game, but this time, it will be different. We’ve been doing that for the last three or four weeks, and they just try to enjoy and understand the new system. Basically, everybody has a chance to score, get their touches and just enjoy,” said Elasto Painters coach Caloy Garcia in the lead-up to the new system.
Rain or Shine will no longer have the services of Chris Tiu, who has decided to retire, but will have its veteran core teaming up with young up-and-comers.
Also aiming to make a go at a good start is NLEX, which is being boosted with the addition of highly improved big man JP Erram and the return of guard Kevin Alas.
Mr. Erram is seen boosting the front court of the Road Warriors following a stellar season with the Blackwater Elite last year that earned for him a second mythical team selection while Mr. Alas is set to strengthen the team’s backcourt in the continued absence of FIBA-suspended Kiefer Ravena. — Michael Angelo S. Murillo
Spurs’ Son helps S. Korea to victory over China
AL AIN — South Korea beat China 2-0 to secure top spot in Group C at the Asian Cup on Wednesday as Tottenham Hotspur’s Son Heung-min made his first appearance in the tournament for Paulo Bento’s side.
The Spurs forward arrived from London on Monday following his club’s Premier League loss to Manchester United and was not expected to start South Korea’s final group encounter.
Yet with the Koreans needing a win to claim pole position, Bento selected the 26-year-old and goals from Hwang Ui-jo and Kim Min-jae secured all three points for the Taeguk Warriors.
China finished second in the group on six points, three adrift of the Koreans and three ahead of Kyrgyzstan, who also made the knockouts after a 3-1 win over Sven-Goran Eriksson’s Philippines.
Iran topped Group D after a 0-0 draw with second-placed Iraq while Vietnam beat Yemen 2-0 to finish third and retain their hopes of a place in the next round.
Hwang put Korea in front from the penalty spot after 14 minutes and the Gamba Osaka striker almost doubled his side’s lead in the 25th minute, only to see his curling shot from the left come back off the post.
Kim added the second six minutes into the second half with a powerful header from Son’s corner, and the Spurs man was substituted three minutes from fulltime.
“All teams become stronger when they have their best players, and Son is one of our best players,” said Bento.
“He gives us more options going forward, an area that we need strengthening.
“We made the decision to play Son because every coach wants to field the players who can influence games. Son is a player who can play in different positions which, in turn, allows the team to play in different ways.”
Kyrgyzstan advanced to the knockout rounds as a Vitalij Lux hat-trick helped them beat Sven-Goran Eriksson’s Philippines.
Eriksson’s side finished bottom of Group C while Kyrgyzstan were guaranteed one of the four places available in the last 16 for the third-placed sides with the best records.
Iran and Iraq played out a goalless draw in Dubai to ensure Iran topped Group D on goal difference from the Iraqis after both finished with seven points, four ahead of third-placed Vietnam.
Nguyen Quang Hai curled a free kick into the top corner to give Vietnam the lead against Yemen after 38 minutes and Que Ngoc Hai’s penalty sealed the win for Park Hang-seo’s side, who will have to wait for Thursday’s results to discover if they will remain in the competition.
Saudi Arabia and Qatar meet to determine the Group E winner with Lebanon due to face North Korea in the same group. Japan take on Uzbekistan to decide top spot in Group F where Oman play Turkmenistan. — Reuters
Australian Open: Rampaging Sharapova sets up mouth-watering Wozniacki clash
MELBOURNE — Former Australian Open winner Maria Sharapova continued her marauding form by handing out a 6-2 6-1 thrashing to Sweden’s Rebecca Peterson on Wednesday to set up a blockbuster third-round showdown with holder Caroline Wozniacki.
In a clash of former world number one players, the five-times Grand Slam winner will next meet Dane Wozniacki, who eased past Johanna Larsson 6-1 6-3 earlier in the day.
“It’s always a physical match,” Sharapova told reporters of her third-seeded opponent looming in the next round, with Wozniacki having won her first Grand Slam here last year.
“She gets a lot of balls back. A great retriever of the game. Just incredibly solid. Does a lot of things well. You kind of have to, to be number one in the world, to be a Grand Slam champion. I expect her to do all those things on Friday.
“I think the Grand Slam was the one trophy she was looking for. With determination she got there last year. She loves playing here, loves everything about this tournament. I certainly have a tough match ahead of me.”
The Russian 30th seed, who was suspended for 15 months for taking banned drug meldonium in 2016, broke 23-year-old Peterson twice in the opening set and peppered the court with powerful groundstrokes in a superb display of hitting.
Sharapova, who also thrashed Britain’s Harriet Dart 6-0 6-0 in her opening round match, won seven consecutive games against the Swede to take a 4-0 lead in the second set before world number 64 Peterson could get on the board in the set.
LATE FINISH
With the previous match between local hope Alex de Minaur and qualifier Henri Laaksonen lasting five sets at the Margaret Court Arena, Sharapova’s match ended long after midnight and the Russian was in a hurry to finish as it was way past her bedtime.
Asked what her bedtime was, Sharapova said: “10:30. Like in bed at 10:00, sleep by 10:30. My boyfriend challenges it quite a lot, but 10:30 is my time.
“It was definitely a different type of match. Took a lot of warming up for this one. Bit of uncertainty going into a match quite late. But, yeah, despite all those changes, I thought I played well.”
The 31-year-old Sharapova, who last won a Grand Slam at the 2014 French Open, only struggled against the Swede briefly in the second set during a lengthy hold of serve to go up 5-1.
But such was her dominance that the Russian, who won in Melbourne in 2008, did not face a break point in the match and sealed the contest in 71 minutes with a third break in the second set.
“I think there’s certainly things I want to improve. I’ve been happy with the way I focused throughout the match, kept my concentration,” she added.
“It’s not easy to start one match at 11 am, then 48 hours later, a little bit more, to start one that’s just before midnight. Just all those things, they’re about adjustments. I have that experience.
“So I’m happy that I’m able to come out into a match like this and say, ‘I’ve done this before, I know the drill, I know how this goes, I’m ready, and I need to step it up. No matter what my opponent brings today, I have to get it done.’”
Nadal spins way into third round with near flawless display
Rafa Nadal picked apart second round opponent Matthew Ebden 6-3 6-2 6-2 at the Australian Open on Wednesday, in a near flawless display of top-spinning artistry.
The second seed overcame an early first set challenge from the Australian, who should have secured a break-of-serve with the scores locked at 3-3.
Ebden missed a backhand volley off an unexceptional passing shot — and it proved costly.
The Australian was broken the next game, succumbing with a double-fault, and the Spaniard went through the broken line of defence, securing the set and an early break in the second.
Sensing an early end to the proceedings, the crowd tried to lift one of its few remaining local hopes, while at the same time being dazzled by the Spaniard’s control of the court.
The 17-times Grand Slam winner was never seriously challenged again, and the third set became an exhibition match.
At one stage, Ebden simply shrugged after Nadal unleashed a wild forehand winner that was yet completely under control.
Nadal, who showed no signs of discomfort from a thigh strain that troubled him ahead of the first major of the year, will play Alex de Minaur in the third round, marking his third consecutive match against an Australian. — Reuters
Brooklyn Nets shock Harden, Houston Rockets in overtime
LOS ANGELES — Spencer Dinwiddie converted a three-point play with 28 seconds remaining in overtime, and the Brooklyn Nets erased a seven-point deficit in the extra session for a 145-142 victory over the host Houston Rockets on Wednesday.
Dinwiddie scored 25 of his 33 points in the fourth period and overtime, including three 3-pointers in the final 27 seconds of regulation, allowing Brooklyn to overcome a season-high 58 points from Houston’s James Harden.
Harden recorded his second consecutive 50-point game, and he added 10 rebounds and six assists. The Rockets set an NBA record with 70 3-point attempts, with PJ Tucker hitting a 3-pointer with 1:09 left in regulation to bypass the old mark of 61.
Brooklyn’s Treveon Graham added 21 points while Jarrett Allen piled up 20 points and 24 rebounds.
CELTICS 117, RAPTORS 108
Kyrie Irving made a go-ahead jumper and added a 3-pointer during an 11-0 run late in the fourth quarter as Boston defeated visiting Toronto.
Irving finished with 27 points and a career-best 18 assists as the Celtics ended a three-game losing streak and snapped Toronto’s five-game winning streak. Al Horford contributed some big points down the stretch in a 24-point game for the Celtics, and Gordon Hayward added 18.
Kawhi Leonard scored 33 points to top Toronto, which led by four in the middle of the fourth quarter and was tied 106-106 with 2 1/2 minutes to go. Serge Ibaka added 22 points and 10 rebounds for the Raptors.
SPURS 105, MAVERICKS 101
San Antonio relied on its bench to rally from a 19-point deficit and win at Dallas.
Marco Belinelli led the bench charge in the second half, and he topped the Spurs in scoring with 17 points. Patty Mills had 14 and Davis Bertans added 12 points, including a dagger 3-pointer with 1:42 to play.
Rookie Luka Doncic led Dallas with 25 points, eight assists and eight rebounds.
BUCKS 111, GRIZZLIES 101
Giannis Antetokounmpo recorded 27 points and 11 rebounds as Milwaukee posted a victory at Memphis.
Eric Bledsoe added 16 points as the Bucks won for the 14th time in the past 17 games. D.J. Wilson scored a career-best 13 points for Milwaukee, which led by as many as 31 points.
Omri Casspi scored 17 points for Memphis, which has dropped nine of its past 10 games and 16 of 20. JaMychal Green had 14 points and 10 rebounds. — Reuters
Bataan, Makati firm up MPBL playoff chances in separate wins
BALANGA — Bataan and Makati subdued their respective rivals on Wednesday night here at the People’s Center and put themselves in good position to secure the home court advantage heading to the playoffs of the MPBL Datu Cup.
Facing an equally formidable foe in Navotas, the Risers of Bataan showed composure down the stretch in outlasting the Clutch, 84-78, to firm up their hold of the solo lead in the tournament put up by Senator Manny Pacquiao with Kenneth Duremdes serving as commissioner.
The Risers now carry a 17-2 win-loss card, which put them a game and a half ahead of their closest pursuers — the San Juan Knights, the Manila Stars and the Makati Super Crunch, all bunched up in second to fourth spots carrying a 16-4 mark.
The Risers, backed by F2 Logistics, held their rivals scoreless in the last 3:03 mark of the match to finally put away the Clutch, who absorbed their 11th loss in 19 games but remained in seven spot of the tough northern division of the tournament.
In between making stops, the Risers made some key baskets as Yvan Ludovice’s jumper started it all in the 2:26 mark that put his team on top, 80-78.
Both teams had a two-minute dry spell, but in the crucial seconds of the game, Ludovice, Byron Villarias, Pamboy Raymundo and Richard Escoto made the big plays.
Ludovice fed off Villarias for a short stab that gave the Risers an 82-78 lead with 24 seconds left.
The Clutch had several chances along the way but they couldn’t come up with a better execution, seeing veteran Jojo Duncil committing two crucial turnovers, while missing their next offensive thrusts.
Earlier, Makati extended its winning streak to 10 after adding lowly Rizal to its list of victims, 66-55. — Rey Joble
Beast in the East
There was a decided buzz in the air at the TD Garden long before opening tip yesterday, and not simply because the East-leading Raptors were on tap. In recent memory, the Celtics had been plagued by inconsistent play that led to off-court concerns on the unity, or lack thereof, of their stalwarts. Considering all that was said — and not said — on record, the 18,624-strong crowd was on edge and hoping that the prospect of doing well, if not winning, against highly regarded opponents would goad the hosts into performing to potential.
Optimism ran high, but so did wariness. Five-time All-Star Kyrie Irving minced no words in wondering, after three straight disappointing losses, whether the younger set among the Celtics would learn to play with the passion required for them to go all the way. Would his biting opinions, aired publicly no less, galvanize the targets, or would they be received negatively given the seeming hypocrisy underlining them? After all, the very players underfire did manage to extend the LeBron James-led Cavaliers to Game Seven in the 2018 Conference Finals even as he was himself sidelined due to injury.
As things turned out, the fans were proven right. The game was tight and could well have ended up with the Raptors securing victory and, in the process, further planting questions inside the Celtics’ minds. Instead, the green and white stayed steady under pressure, ultimately prevailing pulling away. And, in retrospect, it was, perhaps, only fitting that Irving led them with decided force; in the last six minutes, he either scored or assisted in every single one of the 25 points they scored. Indeed, they put up a whopping quarter century on the board in the last half of the payoff period riding on his coattails. His stats during the fateful timeframe told the story; he had 10 markers on four-of-six shooting from the field, six dimes, one rebound, and one block in turning a single-basket deficit into a three-possession triumph.
The message is clear, to be sure: At prime, the Celtics deserve their preseason status as the beasts in the East, the rise of the Bucks and the Raptors notwithstanding. They’re just too good, too complete, and too well coached not to stay solid in the crunch. Then again, they’ve found themselves going pitter-patter with the schedule precisely because they’ve been at odds with expectations. Perhaps Irving’s talking the talk, and then walking the walk, will finally get them to be at their level best every time out. They certainly need to if they want to maintain their relevancy in the Era of the Mighty Warriors.
Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994.
Cement supply will remain sufficient for Build, Build, Build programs
Local cement manufacturers are bullish and fully supportive of government’s Build, Build, Build programs. In a recent letter, CeMAP informed DTI that the domestic cement industry currently has an installed and operating capacity of 34.5 million tons or about 862 million bags of cement annually. On top of the current installed running capacity, there are also a number of cement capacity expansion projects by various players that will be completed this year and in the next few years.
“In addressing the supply needs in the event that Safeguard Measures are implemented, the local cement industry shall ensure that there will be adequate cement supply in the country”, according to Cirilo Pestano, Executive Director of CeMAP.
The cement industry has also been dealing with challenges brought about by the recent surge of imported cement viewed as injurious to the local industry, prompting DTI to intervene and investigate.
In the past five years, the volume of cement imports entering the Philippines grew exponentially, soaring from just 3,558 metric tons in 2013, to as much as 4.8 million metric tons for the first three quarters of 2018. This is owed to an overcapacity of cement in the region. And this despite the Philippine cement industry’s capability to fully serve supply demands.
In spite of the challenging business environment, CeMAP remains bullish on the growth prospects of the industry and expects the employment of some 400,000 Filipinos, directly or indirectly, by 2030 as a result of the projected labor requirement coming from various capacity expansion programs of both existing and new cement manufacturers.
In the short- to medium-term, incumbent cement manufacturers are projecting up to 17 million tons in added capacity, which can translate to more than 110,000 jobs. Pestano says, “The figure does not include those of the new players yet. If everyone is accounted for and if all new plants materialize as announced, we will see more jobs created across the value chain.”
Looking for office space? Property consultancy shares their 2019 forecast
The spirit of entrepreneurship is growing stronger in the Philippines, with over 900,000 MSMEs recorded in 2017. With more and more businesses popping up, demand for suitable office spaces has never been higher.
The question of where to establish one’s headquarters is often top of mind for entrepreneurs. And rightly so, as setting up an office is more than just renting a vacant spot. Much like choosing a home, it’s a decision that is influenced by various internal and external factors.
In their annual report, real estate services company Pronove Tai International Property Consultants revealed how the office market fared in 2018 and what to expect in the new year.
Highs and lows for 2018
In terms of office stock, or accumulated completed buildings recorded from 1967 to Q4 2018, Makati remained the largest office district with 3.4 million square meters of office space. Taguig and Ortigas Center followed with 2.2 million square meters and 1.7 million square meters, respectively.
However, Taguig took the lead in terms of office supply, or annual completed supply of space. 280,000 square meters were constructed in 2018, followed by Makati with 121,000 square meters and Quezon City with 118,000 square meters.
However, more office supply doesn’t necessarily translate to more vacancies. Despite having the lowest office supply among the three districts, Quezon City recorded the highest vacancy rate at 13%. Mandaluyong’s 10% vacancy rate increased by 2% from 2017, while Taguig maintained its 7% rate.
Meanwhile, vacancy rates in Muntinlupa, Ortigas Center, Makati, and Bay Area slipped in 2018, dipping below the healthy 5% vacancy rate. Bay Area in particular is essentially at full capacity, hitting a tight 0.4%.
Different drivers, different needs
Different industries have different specialized needs that they need their office locations to satisfy.
Quezon City’s bad traffic and lack of competitive infrastructure projects repelled potential tenants who were looking for locations that were accessible and boasted complete amenities. The city’s average rent, which was significantly lower than other districts, wasn’t enough to convince businesses to set up shop in the area. Grade A buildings in Quezon City cost P850 per square meter per month to rent, much cheaper than Makati’s P1,570 or Taguig’s P1,310 for buildings of the same grade.
On the flip side, Bay Area and Makati’s issuance of Letters of No Objection (LONO) to Philippine offshore gaming operators (POGOs) drove up the demand for spaces under this sector. Their employees’ familiarity with the districts was also a consideration for POGOs. “Given that these are mostly foreign workers, they’re not as familiar just yet with Quezon City as compared to the two other districts [which issued LONOs],” said Monique Pronove, CEO of Pronove Tai.
Further growth for 2019
Overall, the office market is expected to grow in 2019, with office stock projected to hit 11.7 million square meters, with 1.04 million square meters coming from new office supply. Quezon City is expected to be the fastest-growing district with a 31% year-on-year growth rate. “We will be seeing competitive pricing within this area,” Pronove reported. “The top developers [SM, Eton, Robinsons, Ayala, and Araneta] are represented there with developments that will be completed in 2019.”
POGOs are also expected to increase their demand for space. The industry has already taken up 45% of pre-leased transactions for 2019, surpassing IT and business process management firms (IT-BPM) and traditional firms at 36% and 19%, respectively. Pronove expects these firms will also be expanding to different districts like Mandaluyong and Taguig, as well as cities like Clark, Davao, and Cebu.
To help support these developments, the government is called to fast-track proclamations of economic zones, vital for industries like IT-BPM when choosing their locations. In 2018, approval time for economic zone applications took up to 14 months, too slow to fully actualize the growth potential in the sector.
For landlords, Pronove Tai encourages them to acquire tenants from different sectors. “We always say that landlords should diversify their tenancy mix and should not be focused on just one demand driver,” said Pronove.