Central Luzon is definitely one region that we see benefiting from the recovery of the property market. The region has been recording sustained demand for horizontal residential projects, an indicator of the growing shift to suburbia and further geographic diversification of national developers. In fact, from 2016 to 2023, house and lot projects in the region posted an annual price increase of nearly 4% while Lot Only units recorded 9% price acceleration per year during the period.
The growing attractiveness of the region as a property hotspot is of course facilitated by the completion of crucial infrastructure. As we always highlight at Colliers, these projects do not just help dictate the strategies of developers but also play a crucial role in stoking the appetite for masterplanned developments that offer office, residential, retail, hotel, and industrial components.
Game-changing, property landscape redefining infrastructure
Among the public projects likely to raise Central Luzon’s competitiveness is the NLEX-SLEX connector road. The 8-kilometre expressway connects C3 Road in Caloocan to PUP Manila and Skyway Stage 3. The project is worth PHP23.3 billion and is projected to be completed by the end of 2024.
Another major infrastructure that should excite businessmen and commuters is the North Commuter Railway, a 90-kilometre project that will connect Clark International Airport in Pampanga and Tutuban in Manila. About 300,000 people are expected to be served daily by the railway. The railway project is due to be completed in June 2025.
Another massive infrastructure lined up is the Bulacan International Airport, a 2,500-hectare, PHP736 billion (USD 15.3 billion) aviation hub with 3 modern passenger terminals, 4 runways, and 8 taxiways which will serve as an alternative airport to help decongest the Ninoy Aquino International Airport (NAIA). The airport project is expected to be completed by end-2028.
Pampanga’s sizzling residential market
Colliers sees a more aggressive launch of new residential projects in Pampanga. Both national and local property development firms will continue to capture demand in one of the most exciting and competitive residential markets in the Philippines. In our view, residential demand in Pampanga will likely be supported by the development of integrated communities in the province. Massive infrastructure implementation and decentralization efforts should further raise Pampanga’s viability as a preferred property investment destination outside Metro Manila.
Among the property firms with masterplanned communities in Pampanga include Ayala Land, Rockwell Land, Megaworld, Filinvest Land, and Robinsons Land.
Aside from the usual office, residential, retail, and hotel projects, Colliers believes that Pampanga is ready for more industrial park developments given the presence of the newly modernized and expanded Clark Airport. This industrial competitiveness should further be supported by a cargo rail project in the province and its environs. 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 active industrial sector in the region. This will also make central Luzon an attractive and competitive alternative to southern Luzon. Existing locators such as Texas Instruments (TI) already announced expansion plans while logistics firms have pledged to open facilities in Clark Freeport.
Moving forward, Colliers sees more aggressive development outside of major growth areas such as Angeles, San Fernando, Mabalacat, and Porac.
Bulacan’s resplendent and ascending market
Residential developers and investors are starting to notice Bulacan’s potential as the next major property investment destination. Major infrastructure projects, including MRT-7 and the New Manila International Airport, are likely to redefine the Bulacan residential landscape, especially with national players actively scouting for properties to develop. The MRT-7 is expected to be operational by 2028. The railway project seeks to reduce travel time from San Jose del Monte, Bulacan to North Avenue, Quezon City from three hours to 35 minutes and can accommodate up to 800,000 commuters daily. MRT-7 should play a key role in raising land and property values, especially in the San Jose del Monte area.
Aside from Pampanga and Tarlac, Bulacan is indeed rising as another interesting and attractive property investment hub. The province’s property landscape is poised for further expansion.
Megaworld is one developer taking advantage of the projected completion of the New Manila International Airport. In fact, its Northwin Global City is being positioned as the ‘Next BGC in the North.’
Tarlac’s thriving attractiveness
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 masterplanned projects north of Metro Manila.
Among the developers that have sizable footprint in Tarlac include Ayala Land, Filinvest Land, and AboitizLand.
Exciting developments for the Central Luzon region that continues to sizzle and ascend. Expect more interesting property offerings in the years to come.
