Bay City Central Business Park (CBP) emerged in 2018 as one of Metro Manila’s most dynamic growth corridors, driven by its strategic proximity to NAIA, strong developer participation, and rapidly expanding offshore demand. Comprising SM Business Park (CBP I-A), Aseana City (CBP I-B), and Entertainment City, the district benefits from prime reclaimed land, accelerating land values, and a highly integrated commercial ecosystem.
Land values in Bay City CBP posted a strong 20% to 25% year-on-year increase, translating to an estimated compound annual growth rate (CAGR) of 18% from 2015 to 2018, the fastest among major Metro Manila CBDs. Upper-tier commercial lots now command PHP 300,000 to PHP 380,000 per sqm, with expectations of breaching PHP 400,000 per sqm in the near term. This surge is supported by limited land supply, sustained foreign capital inflows, particularly from mainland China, and the district’s positioning as a gateway for tourism, gaming, and BPO expansion.
Office Sector: Near-Full Occupancy Driven by Offshore Demand
Office demand in Bay City CBP reached record levels in 2018, led by Philippine Offshore Gaming Operators (POGOs) and FinTech firms. Existing Grade A and B office assets recorded approximately 98% occupancy, while upcoming supply was already 85% pre-committed.
Rental rates for new office space rose to PHP 900 to PHP 1,400 per sqm, approaching levels in Makati and Bonifacio Global City. POGOs remain the dominant demand driver, typically leasing 5,000 to 30,000 sqm per transaction due to proximity to NAIA and available large floor plates. Even with regulatory limitations on POGO tenancy, new supply is rapidly absorbed, maintaining a low vacancy environment of around 6%.
Retail Sector: High Occupancy and Expansion Pipeline
Bay City CBP hosts over 450,000 sqm of retail gross leasable area (GLA), anchored by SM Mall of Asia and supported by Aseana Power Station, Blue Bay Walk, DoubleDragon Plaza, and S Maison. Retail occupancy remains strong at approximately 90%, with rental rates ranging from PHP 1,000 to PHP 2,000 per sqm.
Expansion continues with Ayala Land’s upcoming mall development in Aseana City, expected to add approximately 200,000 sqm of retail space. Demand is further supported by the growing presence of mainland Chinese tenants and tourists, particularly in food and lifestyle segments.
Hotel Sector: Gaming-Led Hospitality Strength
Entertainment City anchors the hospitality sector, with integrated resorts such as City of Dreams, Solaire, and Okada achieving approximately 95% occupancy in 2017. The district’s 5,046-room inventory benefits from strong gaming-related demand, with room rates ranging from PHP 2,637 to PHP 12,216 depending on category.
Gaming revenues grew 25.6% to PHP 109.38 billion in 2017, reinforcing Bay City CBP as a regional tourism and entertainment hub.
Residential Sector: Strong Pre-Sales Absorption
Approximately 10,000 condominium units are in the development pipeline through 2023. Ready-for-occupancy (RFO) units totaling 7,443 are fully absorbed, while 18,089 pre-selling units are approximately 88% sold. Average pricing stands at PHP 6.12 million for studios, PHP 10.98 million for one-bedroom units, and PHP 15.46 million for two-bedroom units, or around PHP 263,360 per sqm. Rental yields for POGO-driven demand range from 4.9% to 6.6%.
Outlook
Bay City CBP is positioned for sustained expansion, though future growth is constrained by limited available land. With most vacant lots in SM Business Park fully utilized and key Aseana City parcels on hold, new office and mixed-use supply will be critical to sustaining momentum.
Developments from Megaworld in Entertainment City and upcoming Aseana projects are expected to partially address demand. However, the market remains firmly in a seller’s position, supporting continued price appreciation.
Driven by POGO activity, tourism, and institutional developer interest, Bay City CBP is steadily evolving into a waterfront CBD that rivals Makati and BGC, reinforcing its status as Metro Manila’s premier coastal investment corridor.
