Priming Philippine property hotspots
THIS is the conclusion of my piece on the ideal property investment destinations outside of Metro Manila and Metro Cebu.
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(Conclusion)
THIS is the conclusion of my piece on the ideal property investment destinations outside of Metro Manila and Metro Cebu.
PAMPANGA: A SIZZLING AND ASCENDING INVESTMENT DESTINATION
Colliers believes that Pampanga is ripe for more property development projects. This is already evident given the entry of national developers launching massive vertical and integrated communities. The development of more townships and infrastructure projects will likely further raise the attractiveness of new office, residential, and hotel projects in Pampanga. The completion of big-ticket infrastructure projects in the next 12 to 48 months such as the NLEX-SLEX connector, Central Luzon Link Expressway (CLLEX), and Manila Clark Railway should also partly lift land values and property prices in the province.
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 and nearby urban areas. 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 especially in Pampanga will only result in a more vibrant industrial sector in the region.
We see Pampanga retaining its stature as one of the most competitive and attractive property development sites in central Luzon. National developers have expansive projects in the province. Colliers 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 expressed interest to firm up joint ventures with homegrown property players in Pampanga.
LAGUNA ENJOYING A GENEROUS SLICE OF PROPERTY INVESTMENT PIE
Colliers believes that Laguna remains an attractive option among investors and end-users who plan to live and invest in less dense communities, especially given its proximity to Metro Manila. Colliers sees the entry of national players further raising average condominium prices in Laguna. We are likely to see more developers further testing Laguna’s market for more upscale and luxury projects.
The growing residential demand in the province should be supported by the completion of major infrastructure projects such as the North-South Commuter Railway, NLEX-SLEX Connector Road and Cavite-Laguna Expressway (CALAX).
BATANGAS’ SHARP AS A RAZOR ABILITY TO CAPTURE PROPERTY INVESTMENTS
Residential demand should be supported by the further expansion of industrial activities in Batangas. Industrial take-up in Batangas is heavily driven by manufacturing companies particularly engaged in electronics and packaging. The continued development of infrastructure projects around Southern Luzon especially Batangas and stable inflow of industrial investments should raise residential land and property values in the province.
In our view, Batangas is viable for more masterplanned projects. Several developers are looking at the province not just for horizontal but also for vertical residential projects. The expansion of industrial activities in the province should further stoke interest in Batangas’ property landscape. Developers should explore the viability of launching golf communities in the province.
BACOLOD: VISAYAS’ PROPERTY SWEETSPOT
Bacolod City is attracting national players and we see this resulting in the development of more township developments and a further expansion of the city’s residential stock. The entry of national developers is also raising the prices of vertical projects, indicative of property firms’ confidence in the purchasing power of Bacolod city’s investors and end users.
Developers should further assess Bacolod market’s reception for upscale projects, especially in light of newly launched residential towers by national developers. In our view, property firms are likely to further test the market by introducing new investment products (i.e., condotels, commercial lots, serviced apartments.)
Colliers believes that residential demand will also be supported by the development of integrated communities in the city. Bacolod should also benefit from the upcoming Panay-Guimaras-Negros Link Bridge. Construction will begin in 2025.
CAVITE: A PROPERTY DYNAMO
In our view, 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 and this is likely to compel developers to launch more upscale and luxury residential units.
Cavite is part of Region IV-A, one of the most progressive and dynamic regions in the Philippines. In our view, continued regional economic expansion, improving infrastructure network, and residents’ rising purchasing power should positively influence the appetite for upscale and luxury condominium units in Cavite.
In our opinion, the completion of the LRT-1 Cavite Extension should boost residential and leisure-related developments in the province. Once operational, the LRT-1 Cavite Extension is expected to cut travel time between Baclaran and Bacoor to 25 minutes from the current 1 hour and 10 minutes. The extension will also increase LRT-1’s capacity from 500,000 to 800,000 passengers daily.
ZAMBOANGA’S VIBRANT POTENTIAL
Colliers Philippines believes that the development of key cities outside of Metro Manila plays an important role in helping the government achieve inclusive growth. The development of vertical residential projects aside from the construction of the typical horizontal units also signifies a gradual shift in residential preferences, paving the way for a more diverse residential offerings in the market.
Zamboanga Peninsula’s economy grew by 7.8% in 2023, higher than the national growth. Meanwhile construction rose by 17.2% during the period, up from 13.1% in 2022 and after an 18.5% contraction in 2020. Given these indicators, developers should further explore Zamboanga’s viability for more residential projects. Zamboanga already features a condominium project. Property firms should be on the lookout for more development opportunities in the city beyond 2024.
Joey Roi Bondoc is the director and head of Research of Colliers Philippines.