GLOBAL real estate management firm Colliers said that several provincial locations, especially those with big investments in major infrastructure, are primed for township developments.
According to Research Associate Director Joey Bondoc, they have observed that developers have been actively land-banking in the provinces to take advantage of the government's infrastructure and decentralization program.
'We believe that the completion of infrastructure projects such as the MRT-7, the New Manila International Airport and the Central Luzon Link Expressway will boost Central Luzon's attractiveness for more property development and capital appreciation,' Bondoc said. 'Moreover, developers are likely to establish their footprint in provincial locations, including Bulacan, which are ripe for township developments.'
Colliers recommends developers assess the viability of launching more mixed-used communities which feature office towers, residential condominiums and retail establishments.
An example of this is Altaraza Development Corp., the joint venture between Ayala Land Inc. and the Araneta Group announcing its investment of P20 billion ($339 million) for the 600-hectare (1,480 acre) expansion of Altaraza estate in San Jose del Monte, Bulacan.
The expansion will include residential, commercial and leisure components. The estate is also near infrastructure projects such as the soon-to-be-completed MRT Line 7.
With the vast developments happening in Luzon, real estate developers should also look to expand their project portfolios in the Visayas as well because demand for these projects is likely to be supported by sustained regional economic growth and overseas Filipino workers' remittances.
'As of the second quarter of 2022, condominium stock in Cebu reached 57,900 units, the largest residential market outside Metro Manila. Cebu City accounted for 67 percent of total supply in the province, followed by Lapu-Lapu (19 percent) and Mandaue (13 percent),' Bondoc explained.
He added that in the first half of 2022, Colliers also recorded about 2,800 condominium units sold in Cebu, up 67 percent year on year, with the economic to mid-income segments (P750,000 to P6 million) accounting for 86 percent of total take-up.
'In addition, the share of upscale and luxury projects (P6 million and above) rose to 14 percent in the first half of 2022, from 8 percent a year ago,' Bondoc elaborated. 'In our view, the renewed demand for leisure-oriented properties with the easing of travel restrictions should support take-up of upscale and luxury projects in Cebu moving forward.'
Some have already started, such as Sta. Lucia Land. It stated it expects at least P8 billion in sales from its newly launched condominium project, 128 Nivel Hills in Lahug, Cebu City. The two-tower residential project is now in its early stage of construction.