Land values continue to experience robust growth
Metro Manila saw continuous growth in commercial land values in 2017. Main business districts underwent continuous development of residential, retail, and office buildings, while their land values continue to increase. Graded A and B office buildings, in particular, are on the rise and demand for land is high.
Bonifacio Global City (BGC) and Makati still bring in a demand close to PHP 1 million per square meter. Properties in these areas are seen as premium, as they house most corporate offices and are the main business districts.
Notably, the Bay Area has seen a surge in land values, with plans of becoming an entertainment capital. This trend is evident with the newly launched Okada Manila, and the online gaming industry’s rise and magnetization to office developments.
Quezon City maintains resilient, with pockets of growth around the North Triangle area and along Katipunan Avenue. More and more developers are beginning to capitalize on the large potential market of Quezon City, being the most populous city in the Philippines.
The opportunity in lots not fit for traditional developments
As supply lessens and demand is increasing within Metro Manila, lots unfit for large-scale developments are being sought out by developers for projects that complement its immediate vicinity. With the boom of office development and a growing labor force, demand for workplaces near residential spaces and residential spaces near offices is expected. 2018 appears to be the year of residential resurgence in the community living market.
While new condominium developments have slowed down, smaller or irregularly shaped lots that can be used for low to mid-rise residential structures are seen to be maximized to cater to the residential demand.
Trend Watch: Provincial property purchasing
As land values soar to new heights in Metro Manila, investors are now looking to purchase in nearby provinces. Given that infrastructure plans and top developers are already branching beyond NCR, there is vast potential for acquiring and developing nearby lands while prices are still low. Land values in these provinces have experienced modest growth in the past 3 years. With upcoming plans already in place, aggressive acquisition of land is expected, especially in Pampanga.
The northern provinces of Bulacan and Pampanga are set to gain interest following announcement of numerous infrastructure projects that will provide accessibility from Metro Manila to the upcoming New Clark City. New Clark City is an upcoming development being positioned as the future home for government offices. With its proximity from the Clark International Airport, investors are already on the lookout for new opportunities. While Pampanga is expected to experience the bulk of interest, Bulacan is expecting another type of growth. Its location serves as a transient between Metro Manila and New Clark City. With vast, unused agricultural lots, the province has high potential of converting certain areas into industrial parks and zones.
Cavite and Laguna continue to be areas of development for industrial parks, with pockets of development seen in strategic areas. These include Kawit, which is very accessible from the Bay Area, and Sta. Rosa, where top developers have already built communities and business centers.
The upheaval has also reached Batangas and Rizal, with upcoming residential and retail developments in the pipeline.