Property values in the southern Metro Manila west growth area (WGA)—comprising part of the cities of Las Piñas and Muntinlupa on the west section of the South Luzon Expressway—are likely to double in the next five years, according to property consulting firm Cuervo Far East Inc.
In a new research, Cuervo cited some of the factors that bode well for WGA: Accessibility, existing road infrastructure, presence of support services and facilities, and low risk from geohazards. It also noted that current land prices were still “favorable” for investments.
The Cuervo study revealed that the Southern Manila WGA remained to be “one of the safe areas in Metro Manila as far as floods and landslides are concerned.”
Demand for property in this area is also seen buoyed by the decentralization of businesses from traditional central business districts such as Makati, Ortigas and Fort Bonifacio alongside various developments and infrastructure projects.
Cuervo projected that land values in this area would rise by about 10 to 15 percent a year for the high-end residential segment.
“The Southern Manila WGA was identified based on an active increase in historical market values posting an average of 20 percent per year since 2009. While for the next five years, we made a conservative projection of a 10 to 15 percent rise but could definitely go further,” said Cuervo Far East president and CEO Jose Maria C. Fernandez-Cuervo.
For the high-end residential segment, land values are seen breaching P100,000 a square meter by 2019 or double the levels this year based on a 15-percent annual increase in values.
“Due to the lack of available supply in this sector, we believe that demand forces in the market will greatly affect capital values in the next five years,” the Cuervo research said.
Even for the upper mid-end property market, land values are seen rising to P60,000 to P80,000 by 2019 or likewise doubling from levels this year based on a 15-percent annual growth rate in land values.
At present, Cuervo noted the market values of various villages in the area per square meter: P57,000 to P62,000 for Ayala Alabang; P38,000 to P40,000 for Alabang Hills; P38,000 to P42,000 for Hillsborough Subdivision and P30,000 to P35,000 for Ayala Southvale.
“An expected increase in zonal values in the near term will affect the cost of sales for land, which will result in higher asking prices,” Cuervo adds.
Other factors cited for the steady appreciation in Southern Metro Manila WGA were the effective road networks and new developments brought by some of the biggest real estate developers in the Philippines such as Ayala Land Inc., Megaworld Corp. and Filinvest Land Inc.
The study also highlighted the major infrastructure projects that are either existing or will open next year: The Manila-Cavite Expressway (Cavitex); SLEx-Daang Hari Road; Muntinlupa-Cavite Expressway (MCX), and the Cavite-Laguna Expressway (Calax). These new road networks are seen offering new routes to motorists that, in turn, can minimize the traveling time going to Manila, various Philippine ports, airports and nearby central business districts by almost half of their current time.
“The accessibility, geohazards and new developments or facilities brought about by some of the biggest real estate developers also create a deep impact on the land values in Southern Manila WGA. These are some of the biggest factors that attract investments,” said Cuervo.