Rental rates for retail spaces in Metro Manila continued to rise in the first half with strong consumer spending supporting its growth, property services firm Jones Lang LaSalle said.

In its ‘Asia-Pacific Property Digest’ for the second quarter, Jones Lang LaSalle Research said that rent in Metro Manila malls averaged P16,219 per square meter per annum, up 7.7% for the second quarter of 2006 versus the same period last year.

On a quarter-on-quarter comparison, rent was 0.4% higher in the second quarter versus the first quarter’s P16,150 per square meter per annum, the property services firm said.

‘Retailers remained upbeat as personal consumption is expected to sustain its growth despite high oil prices,’ Jones Lang LaSalle said.

The firm noted that vacancy in retail spaces rose to 7.1% in the second quarter from 6.2% the previous quarter due to the opening of the 386,000-square meter SM Mall of Asia in Pasay City.

The vacancy rate, however, only slightly increased as the mall was already 70.5% leased out by mall operator SM Prime Holdings, Inc., it added.

‘Capital values almost remained unchanged at P136,719 per square meter, posting a 0.9% quarter-on-quarter expansion. Investment yield remained at 11.5% during the second quarter of 2006.’

Meanwhile, the luxury residential market in the Makati central business district (CBD) and its fringes also rose while vacancy rate went down.

The Makati CBD is bounded by Epifanio de los Santos Ave., Amorsolo St. and Senator Gil Puyat and Arnaiz avenues, while the ‘fringe’ refers to developments in Rockwell Center and Fort Bonifacio Global City.

‘Vacancy rate remained at double digits at 10.3% during 2006 from 11.9% in the previous quarter,’ Jones Lang LaSalle said.

The firm noted that vacancy went down even as 284 units were added following the completion of Tower 1 of Community Innovations, Inc.’s The Columns at Ayala.