Over the past few years, we have seen developers building condominium towers in the fringes of major business hubs. The lack of developable land within business districts, soaring land values and rising demand for residential units contributed to an aggressive landbanking and development of projects within Metro Manila. Among the areas that have seen an aggressive development over the past few years is Quezon City, especially the Katipunan area.
Colliers Philippines believes that the Katipunan area will remain an attractive residential location for investors and end-users, including those who are starting their own families. In our view, the area has become an extension of satellite communities located along C-5 and other parts of Quezon City and nearby areas. The demand for residential units is also being driven by a growing student population in the area, which we saw pre-pandemic. The demand from students will likely recover postpandemic as we are already seeing the resumption of face-to-face classes.
Growing interest in Katipunan
Over the medium term, Colliers sees the residential market in Katipunan becoming even more competitive as developers vie for a larger market share and provide value-for-money residential units that can offer adequate facilities and amenities for families. The market includes households from Quezon City and nearby areas who are upgrading to condominium living.
Colliers Philippines believes that the area is interesting for both homebuyers and investors due to the convenience it can offer amid the worsening traffic in Metro Manila. The government already said that traffic across the capital region is reverting to pre-pandemic levels. The Katipunan area also provides convenience to homebuyers given its proximity to shopping malls and other lifestyle destinations.
Over the medium term, we see more lifestyle-oriented residential developments in the area especially with the launch of Rockwell’s residential project. Previously, most of the projects in the area are standalone residential developments. But new projects in the area are incorporating large open space for families as well as a wide array of amenities and facilities. The Rockwell project has and will continue to redefine the residential landscape in the Katipunan area.
Infrastructure to buoy land and property values
At Colliers Philippines, we always identify factors that help raise attractiveness of a location for residential investments. The Katipunan area is likely to benefit, whether directly or indirectly, from a couple of infrastructure projects lined up by the government. These include:
- LRT-2 East Extension, a P9.5 billion project and a 3.8-km extension of the existing 13.8-km LRT-2 system from Santolan in Pasig City to Masinag, Antipolo. The project is also expected to improve connectivity between the province of Rizal and Metro Manila;
- Skyway C6 Expressway, a 34-km expressway from Skyway/FTI to Batasan Complex in Quezon City. The project is expected to ease traffic congestion in Edsa, C-5, Ortigas Avenue and Extension. Project construction started in 2018 and completion is scheduled in 2022;
- Katipunan Avenue Extension Project, a 3.38-km bypass road from Katipunan Avenue to Barangay Batasan Hills, Marikina City and San Mateo in Rizal. The project should ease the traffic situation along Katipunan and Commonwealth Avenues in Quezon City. The construction of the project began in 2019 with completion targeted by the end of 2021; and
- MRT-7, which is already 56 percent completed and is projected to start test runs in 2022. The line begins in San Jose del Monte, Bulacan, up to the North Triangle Common Station in North Avenue, Quezon City.
Colliers believes that the completion of these projects will help propel land and property values in the area. This should also support our projected recovery in residential demand postpandemic.
Exciting times ahead for the Katipunan area, which is definitely on the radar of developers and investors planning to seize the property market’s recovery.