Property consultant Colliers said the expansion of residential developers into areas outside Metro Manila will primarily be anchored on improved infrastructure.
“Major property firms are expanding their options as they see a strong revival of the country’s property market post-COVID. Undeniably, Metro Manila remains a major investment destination, but developers are setting their sights on other urban areas,” Colliers said in a report.
It said this decentralization thrust is likely to be supported by the continued implementation of public projects outside Metro Manila. These include airports, bus rapid transits, as well as cargo and passenger railways.
“Overall, the country’s infrastructure push should guide the expansion plans of developers across the country,” Colliers added.
Colliers also said the implementation of key infrastructure projects nationwide has provided access to properties that could be redeveloped into mixed commercial, residential, hotel/leisure and industrial estates.
“These projects also helped the government bring economic opportunities in areas outside the country’s capital,” Colliers said in the report.
Business opportunities have spilled over to nearby areas such as Cavite, Laguna, Bulacan, Tarlac, and Pampanga in Luzon due to road projects, the report said.
Colliers said in the Visayas, Cebu remains the primary property investment hub, but other locations are starting to catch up with the likes of Iloilo and Bacolod cornering substantial investments from national and homegrown developers. In Mindanao, Davao remains the most attractive property investment destination.
“Overall, Colliers believes that developers will continue to venture into residential projects in second-tier, third-tier cities and municipalities all over the country, where demand comes from local end-users, as well as those based in Manila, but are looking to buy in their home provinces as second homes. The markets may be smaller compared to Metro Manila but more stable in terms of end user housing demand,” Colliers said.
Bulacan
Colliers believes Bulacan will remain a viable residential investment option given its proximity to Metro Manila.
It said the completion of the Metro Rail Transit-7 (MRT-7) and New Manila International Airport will strengthen Bulacan’s position as a “major” residential hub outside the National Capital Region and in Central Luzon.
Colliers said it expects more aggressive landbanking initiatives in Bulacan as developers take advantage of the locale’s major public projects due to be completed over the next two to four years, which “should set the stage for greater acquisition of parcels of developable land in the province and the eventual launch and development of more masterplanned communities.”
Pampanga
Right beside Bulacan, Pampanga is ripe for more luxury projects specially for the affluent market based in Angeles City and San Fernando, Colliers said.
The development of more large mixed-use communities and infrastructure projects will raise the attractiveness of luxury developments in Pampanga further, it noted.
“The completion of big-ticket infrastructure projects in the next 12-36 months such as NLEX-SLEX connector, Cnterl Luzon Link Expressway (CLLEX), and Manila Clark Railway should also partly lift land values and property prices in the province,” it said.
“Colliers believe Pampanga is ready for more industrial park developments given the presence of the newly-modernized and expanded Clark Airport. This should further be supported by a cargo rail project in the province. Pampanga is part of Central Luzon which remains an attractive hub for manufacturers and other industrial locators. In our view, the expansion of industrial space in Central Luzon specially in Pampanga will only result in a more active industrial sector in the region,” it added.
Colliers said Pampanga will continue to be one of the most competitive and attractive property development sites in North and Central Luzon.
Colliers said that sees more aggressive development outside of key areas such as Angeles, San Fernando, Mabalacat, and Porac.
“The province also continues to attract foreign firms planning to develop horizontal residential projects catering to a growing end-user market. Some of these foreign companies have express interest to firm up joint ventures with local players in Pampanga,” it added.
Tarlac
Further up north, Colliers said Tarlac is poised to benefit from the development of New Clark City in Capas, Tarlac, with the development’s potential to attract businesses.
“The NCC is being primed as one of the major business districts north of Metro Manila.
Tarlac will remain a major option for firms that are aggressively landbanking and developing integrated communities north of Metro Manila,” Colliers said.
Colliers said Tarlac’s property landscape should also benefit from the completion of the Cental Luzon Link Expressway which will connect Tarlac City to San Jose Nueva Ecija, the first phase of which is scheduled to be completed in 2023.
Cavite
Cavite’s improving connectivity to Metro Manila as well as the aggressive launch of mixed-use communities should raise land and property values in the province, likely to compel developers to launch more upscale and luxury residential units in the province, according to Colliers.
“In our view, continued regional economic expansion, improving infrastructure network and residents’ rising purchasing power should help stoke the appetite for upscale and luxury condominium units in Cavite,” it said.
Colliers said the completion of the LRT-1 Cavite Extension, which will cut travel time between Baclaran and Bacoor to 25 minutes form the current 1 hour and 10 minutes, will boost residential developments in the province.
Colliers said residential demand in Cavite should also be supported by the further expansion of industrial activities in the province.
“Industrial take-up in Cavite is heavily driven by manufacturing companies particularly engaged in automotive, semi-conductors and packaging. The continued development of infrastructure projects around Cavite and stable inflow of industrial investments should raise residential and and property values in the province,” it said.
