Central Luzon is a popular region for national developers expanding outside of Metro Manila. Pampanga has always been a preferred hub with major developers such as Ayala Land, Vista Land, Rockwell Land, Megaworld, SMDC, and Sta. Lucia developing masterplanned communities complemented by a mix of vertical and horizontal residential projects. But outside of Pampanga, another province is slowly carving out its own mark as an ideal property investment hub in central Luzon.
Much of the transformation of Tarlac’s property sector is driven by the development of New Clark City (NCC), a project by the Bases Conversion and Development Authority (BCDA). Located within NCC is the 288-hectare Filinvest New Clark City. The first phase of Filinvest New Clark City is an industrial project called Filinvest Innovation Park (FIP). Launched in Q4 2023, FIP caters to logistics, e-commerce, and light manufacturing firms that will contribute to Tarlac’s local economy. But growth in Tarlac extends beyond NCC. National developers, including Ayala Land, Inc. and Aboitiz InfraCapital, launched massive integrated communities in the locale, namely Cresendo and the TARI Estate, respectively.
Colliers believes that Tarlac is primed for more property developments. While a thriving industrial sector is a centerpiece of Tarlac’s progress as a property hub, we believe that Tarlac is ready to welcome more property investments, from office to residential to retail to hospitality segments.
Tarlac joins the development bandwagon
Long recognized as one of the country’s major agricultural centers, Tarlac, like its Central Luzon neighbors, is now emerging as a vital investment and industrial hub. Its strategic location right at the heartland of Luzon helps this historic province grow into one of the thriving locales in the country today, and its very location puts Tarlac right along the path of major expressways and national highways, most notably the Subic–Clark–Tarlac Expressway (SCTEX), the Tarlac–Pangasinan–La Union Expressway (TPLEX), and the Central Luzon Link Expressway (CLLEX). These major roads bring in business traffic, tourists, and potential investors to the province while providing it with easy access to international airports and seaports.
In our opinion, the development of New Clark City (NCC) in Capas will likely spur business opportunities in Tarlac. 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.
Compared to its neighbors in Central Luzon, such as Pampanga and Bulacan, condominium developments are still limited in Tarlac. Currently, the only condominium projects in Tarlac are Amandea by Vista Manors and The Residences within New Clark City. Average take-up of condominium projects in Tarlac is 44 percent, with an average price of PHP125,000 per sq meter.
For Tarlac’s house-and-lot (H&L) market, economic projects (PHP580,000 to PHP2.5 million) are well-received among local end-users, especially for projects located in the municipalities of Concepcion, Capas, and Tarlac City. Property firms with existing H&L projects are Ayala Land, Vista Land, Filinvest Land, Aboitiz Land, SMDC, and Hauslands. Average take-up of H&L projects in Tarlac is 87 percent, with an average price of PHP1.7 million per unit.
Meanwhile, take-up for lot-only units in Tarlac is driven by the affordable segment (PHP960,000 and below), particularly for projects in Tarlac City, Gerona, Concepcion, Capas, and Paniqui. Among the national developers with existing lot-only projects in the province include Robinsons Land and Sta. Lucia Realty. Their projects are about 86 percent sold, priced at an average of PHP8,600 per sq meter.
Infra to help redefine Tarlac property
Tarlac’s dominance in the Central Luzon property landscape should be facilitated by the completion of crucial infrastructure. Tarlac benefits from major expressways, including the 66.4-kilometer CLLEX. The first 18 kilometers of the project were opened to the public in Q3 2021, while the segment leading to Cabanatuan, Nueva Ecija is likely to be completed by end-2025. Meanwhile, the Northern Access Link Expressway (NALEX) is a 136.4-kilometer expressway that will connect Metro Manila, the New Manila International Airport (NMIA), and TPLEX.
The improving infrastructure connectivity should further raise Tarlac’s attractiveness as a property investment destination. Expect more developers that will landbank and eventually launch massive townships in Tarlac moving forward.
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