JLL acquires new investments from abroad as it broadens its property advisory and consultancy
official press release.
Providing superior investment advice to clients is a challenge that even the biggest property consultancy firm in the country faces each day.
The over-all market situation poses a big hurdle to JLL as they try to entice investors, especially foreigners, to put their money in the Philippines.
JLL's National Director and Head of Capital Markets P. Ryan Isip who was previously assigned in JLL's Beijing office, says that compared to China, whose rental runs as much as Php 7,000 per square meter, levels in Metro Manila are averaging only at Php1,000 per square meter. Isip explains: "Such a substantial differential makes it difficult for foreign investors to consider the Philippines as one of their destination of choice. A one billion peso transaction seems big, but when you translate it to dollars, that's just 20 million". He says that investment funds that need to enter RP will not consider anything below 50 million dollars because the amount of money they will generate from this investment is too small compared to the size of their operations. In other words, if the rental levels were to increase, this gap would reduce and make the return on investment (ROI) more attractive.
He explained that much of the prevailing market situation if compared with China has a lot do with the density of a nation. In the Philippines, the population is only at 100 million as compared to China which has 1.3 billion. This means that the investment multiplier in the Philippines is really small. He says that the market is so limited that when they walk in to make a pitch to potential clients, they usually find themselves in a room with just one or two business competitors compared to as much as seven in China.
Though the market is small, JLL says they are still bent on making it big and attractive in the country. Backed by a global network and solid reputation, they present only the best proposals to clients and commit to provide only the best representation. Isip says: "We treat employees and clients very important. We are clear in what we can deliver and what the results will look like." Isip adds: "JLL also takes pride in its global & regional strength and we are confident that no matter what happens locally, there will always be continuity of quality advisory service".
JLL's global reputation in the realm of property consultancy is so solid that it is more than capable to receive and handle incoming investments. While many of the foreign investors who have stirred the property industry still hails from the west, much interest has also been shown by mainland China in the Philippines, particularly in the fields of New Industries Cities, on-line gaming and information technology. Then there is the increased demand for space in the Philippines, as well, by the automotive industry. Isip explains that such diversity is reflective of the need of investors to look for more than just one source of income or wealth.
With so much growth foreseen to happen in the Philippines, JLL is positioned as the best investment advisory company that can cater to any type of requests from prospective property clients and guide them towards making the right investment decision to make their businesses more viable.