If the main criterion for a successful business is location supplemented by sound business support policies and excellent peace and order situation, Mandaluyong City is rated competitively with other prime areas in Metro Manila.

For instance, there is a good potential in local market as indicated by the rising urban productivity despite increasing population projection. A comparative analysis of the number of households and household incomes at the city and national levels and the GNP yielded a city product per capita increasing by over 30% in 1997 from 1994 figures as shown in Table 4.05.

One consequence is the rising demand for commercial space resulting to rising unit cost of prime commercial land in the city. Similarly, the trend is increasing for unit cost of prime rental per month, while operating costs and statutory charges are dependent on capitalization and floor area occupied by each activity. By 1999, for a 36 sq. meter of rented space, the average cost of doing business in the city is as low as P 39,000.00 per month.

Moreover, as can be seen in Table 4.06, investment performances of the five major sectors per capita continuously increase based on five-year intervals while housing sector decreases due to limitation of vacant lands for housing development. Investments in the manufacturing industry show a modest but steady increase despite the shift in the economy to more service-oriented activities. Consequently, there are significant increases in the service industry and other activities ranging from 65% to 144%.

Table 4.06
Comparative Annual Investment by Sector: 1989, 1994, 1999

To further illustrate the growing confidence of investors in the city’s economy, Mandaluyong is now host to two (2) major corporate headquarters with annual turnovers of over $100 M (P 5.15 B) and another eight (8) top establishments with annual turnovers ranging from $26 M (P 1.34 B) to close to $100M.

It is worth noting, that in conjunction to the influx of investments is the overwhelming increase in assessed values of real property in the city. Despite having constant land area coverage and minimal land tax rate increases, real property assessment values skyrocketed to as high as 451.29% in a span of ten years from 1988 to 1998 and another 55.02% five years hence in year 2003 (see Table 4.07). These can be attributed to the magnitude of structural improvements not only on prime lots but also at random parts of the city where mixed developments of residential and office/commercial condominium up to seven (7) storeys in height are allowable.

New investments that will soon redefine the city skyline are listed in Table 4.08.