(First of two parts)
The Philippine property market continues to evolve. Within the capital region, we have seen an aggressive development of satellite communities that serve the residential, office space, and retail requirements of an immediate or captured market. These integrated communities are found not just in central business districts (CBDs) but also in fringe locations.
Colliers believes that the pronounced development of such townships in the peripheries of CBDs is being driven largely by the lack of developable land in primary business hubs and the continued surge in land values.
What’s interesting is that this massive development of township projects is prevalent not just in Metro Manila. Over the past couple of decades, we have seen a ramped-up development of integrated townships in key areas outside of the capital region. From central to southern Luzon, real estate firms are aggressively looking for new regions viable for property development.
From the development of massive townships in the Cavite-Laguna-Batangas corridor that support the region’s bustling industrial operations, Colliers has also seen a remarkable development of integrated communities offering offices, residential towers, hotels, and industrial parks in the high-growth region of central Luzon, composed primarily of Pampanga, Bulacan, and Tarlac.
But developers have also been diversifying, and this is a major plank of their growth strategy over the past few years. This expansion hinges on decentralization and infrastructure implementation, programs that require strong coordination between public (government) and private (property firms) players.
Improving connectivity up north
As I mentioned in my previous columns, infrastructure plays a crucial role in developers’ diversification and expansion strategies. With property developers now looking at viable destinations north of Luzon, it is important that public projects lined up by the national administration are completed on time.
Among the big-ticket items in the pipeline is the Laoag International Airport Expansion due to be completed beyond 2028. Other infrastructure projects that are likely to improve connectivity between Metro Manila and North-Central Luzon include the Manila-Clark Railway (2028), Subic-Clark-Manila-Batangas Railway (beyond 2028), and the North Long Haul Railway (beyond 2028).
These projects’ timely completion is important not just in attracting local and foreign tourists but also in creating more jobs and livelihoods in the region.
Ilocos’ economic viability
Colliers believes that more businesses are likely to be generated in Ilocos moving forward, given the region’s improving connectivity and economic expansion. Government data show that the region is one of the fastest-growing regions in the Philippines, while the Department of Information and Communications Technology (DICT) identified Laoag city as a ‘viable business center capable of strengthening the countryside’s economic development.’
With an expanding economy, greater potential for growth, and improving business competitiveness, we see more firms adding the Ilocos region to their radar, and this should entice more firms to put up operations in Ilocos Norte and its environs. This should result in a greater need for office buildings, malls, residential projects (both vertical and horizontal), hotels, and institutional facilities such as schools and hospitals.
This should result in an aggressive expansion and evolution of Ilocos’ property market to cater to office tenants, as well as residential end-users and investors. The latter is important as Ilocos’ economy is partly fueled by remittances from Ilocanos working abroad.
To be continued.
#PropertyReportFeature
#FeaturedStory
