Fostering a pro-business and pro-property environment is instrumental in reviving the Philippine property market. Earlier, Colliers Philippines highlighted that raising capital gains tax might be detrimental to the recovery of the property market, as we see the measure’s enactment derailing and slowing real estate transactions, including purchases. It might also hamper the revival of the Metro Manila pre-selling and secondary condominium markets, especially the mid-income condominium segment (PHP 3.2 million to PHP 12 million per unit), where we continue to see cancellations due to high mortgage rates and mismatch between what the end-users and investors prefer and what is actually supplied by the market.
What’s positive for the real estate market is the fact that the government has been passing reform bills that we see playing an important role in improving the overall condition of the property market.
Right-of-way getting in the way of infrastructure completion
Among the measures approved by the previous Congress is the Accelerated and Reformed Right-of-Way (ARROW) Act. The measure streamlines procedures to expedite the acquisition of right-of-way, reducing bottlenecks that delay the construction of pivotal public projects. It also calls for collaboration among various government agencies to address cross-sectoral challenges such as electrification, connectivity, and environmental safeguards. It amends Republic Act No. 10752 or the Right-of-Way Act, which was signed into law in 2016, a few months before President Benigno Aquino III stepped down from the presidency. The Bicameral Committee-approved version seeks to align with Republic Act No. 12001, otherwise known as the Real Property Valuation and Assessment Reform Act, which mandates the establishment of uniformity in taxing real property. The bill has been transmitted to the Office of the President.
Metro Manila Subway: A property game-changer
The Metro Manila Subway is a 33-kilometer, PHP 489 billion (USD 8.4 billion) subway rail line that aims to improve connectivity between business hubs in Metro Manila. The subway line will have 17 stations from Valenzuela City to NAIA Terminal 3 and the Food Terminal Inc. Laguna. The Metro Manila Subway is projected to be completed by 2032. According to various reports, the subway’s implementation has been delayed by right-of-way issues.
Hopefully, the enactment of ARROW will finally pave the way, literally and figuratively, for a more aggressive implementation of this big-ticket infrastructure project.
Linking commuters from north to south
The 106-kilometer Manila-Clark Railway aims to improve connectivity between Manila and Clark’s business districts. The project will cut travel time from Tutuban, Manila to Clark, Pampanga for 55 minutes from the current 2-3 hours. The first phase is the 37.6-kilometer Tutuban to Malolos leg of the North-South Commuter Railway, while Phase 2 will connect passengers from Manila to Clark International Airport. According to various reports, the railway will begin partial operations in Q3 2026.
Meanwhile, the South Commuter Railway is a 55-kilometer project connecting Metro Manila to Laguna. The project involves three civil contract packages consisting of railway viaduct structures and elevated stations in Alabang and Muntinlupa; San Pedro, Pacita, Biñan, and Santa Rosa; and Cabuyao, Banlic, and Calamba. About 600,000 passengers are expected to be served by the railway per day, and it will provide two hours of end-to-end travel time. It is expected to be completed in 2029.
The 22-kilometer Metro Rail Transit Line 7 (MRT-7) is already 83% complete as of H1 2025 and is targeted to be fully operational by 2028. The project has a budget of PHP 68.2 billion. The line begins at San Jose del Monte, Bulacan up to the North Triangle Common Station in North Avenue, Quezon City. Through the Quezon North Avenue Joint Station, the MRT-7 will link with MRT-3 and LRT-1.
Gargantuan Bulacan Airport: Challenging Changi
The Bulacan International Airport is a 2,500-hectare, PHP 736 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 is expected to have a capacity of 100 million passengers upon full completion. Singapore’s Changi Airport, meanwhile, has an operational capacity of 90 million passengers per year. Construction of the passenger terminal is expected to begin in 2026. The airport project is expected to be completed by 2028.
Let’s hope that all the above-mentioned projects (and more) are completed on time so they can provide tremendous benefits to Filipino businesses and commuters. Businessmen and commuters are looking forward to these pivotal public projects’ implementation, from conception to fruition!
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