Differentiation remains a key in stoking property demand across the Philippines. This strategy is being complemented by proactive infrastructure implementation and decentralization. Colliers believes that given the stifled demand for condominium units in Metro Manila, several developers have started to differentiate and diversify outside the capital region.
From north Luzon to north Mindanao, Colliers sees property developers aggressively land banking outside of Metro Manila and building not just the typical office and residential towers but also retail, hotel, and institutional components such as schools and hospitals. Some developers are taking a more aggressive stance with their differentiation strategies and are also building massive conference halls, active lifestyle amenities, and outdoor/recreational facilities. These features further highlight the property firms’ decentralization and differentiation strategies.
Maximizing Central and Southern Luzon’s competitive landscape
Central and Southern Luzon remain as the Philippines’ major industrial hubs, attracting local and foreign manufacturing locators.
This is the reason why several developers have taken an aggressive stance in offering industrial and commercial lots in these regions. These offerings are complemented by expansive office and residential (both vertical and horizontal) projects. Within these townships, we also see the development of large retail centers offering regional and super-regional malls as well as hotels built alongside humongous convention centers.
In Central Luzon, provinces such as Pampanga, Bulacan, and Tarlac continue to gain interest from several national players. Aside from office and residential developments (condominium, house and lot, and lot-only projects), massive industrial parks have become evident in the region. That’s why it is no longer surprising to see the region capturing interest from local and foreign investors.
Among the major developers with massive townships in the region include Ayala Land, Megaworld, Rockwell Land, Vista Land, and SM Prime. Their existing and upcoming projects are dispersed across Bulacan, Pampanga, and Tarlac.
Bustling property markets in the Visayas
Among the developers that have townships in Visayas include Megaworld, Ayala Land, Rockwell, SM Prime, Cebu Landmasters, Sta. Lucia Land Inc., Pueblo de Panay, Vista Land, among others. These property firms have been maximizing companies’ and individual investors’ demand for mixed-use communities. Prime locations for these developments include Cebu, Bacolod, and Iloilo.
Major property developers are ramping up their differentiation strategies in Visayas by building resort and leisure-themed developments primarily focused on beach-front residential properties and golf communities.
Capturing thriving opportunities in Mindanao
Masterplanned projects are also thriving in Mindanao. Cagayan de Oro and Davao are among the preferred sites by major property firms. Among the firms with massive presence in Mindanao are Megaworld, Pueblo de Oro, Vista Land, Ayala Land, Torre Lorenzo, Cebu Landmasters, and Double Dragon, among others.
Similar to Visayas, developers in Mindanao are taking advantage of residents’ rising purchasing power and improving infrastructure connectivity.
Moving forward, we encourage major property players to start landbanking in Mindanao and explore thriving destinations outside of Cagayan de Oro and Davao.
Convenience, accessibility, and connectivity
Residential investors and end-users continue to put a premium on accessibility and convenience. The 15-minute community concept appeals to them, especially now that everything is fast-paced. Residential projects’ proximity to offices, malls, and other institutional facilities such as schools and hospitals is highly important, especially to a new breed of residential investors, including millennials.
Colliers recommends that developers continue highlighting the advantages of living within CBDs and integrated communities, and consider improving amenities and facilities in their projects to meet constantly changing buyer preferences.
Why ‘differentiated’ townships will remain popular
There’s actual strong demand for masterplanned and integrated communities that’s why we see developers proactively employing the township mindset in their projects. This concept is popular within and outside Metro Manila.
Whether developing their own landbank or partnering with foreign firms to build these massive projects, there’s no denying that developing integrated townships is the way to go. This should be strengthened further by the national government’s commitment to developing crucial public projects and spurring economic growth in other regions.
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