Alabang’s promising property values reveal untapped investment opportunities
Urban master planning, along with proper land use regulation, plays a pivotal role in shaping a city’s landscape.
As we have seen in Makati and Bonifacio Global City (BGC), cities that are thoughtfully planned can entice reputable developers to construct residential and commercial projects in the area. Yet, as these central districts experience growing demand and rising prices, combined with the economic aftermath of the pandemic, investors may find themselves exploring alternative options.
That said, many might be wondering whether core Metro Manila markets still present competitive value for real estate investment.
The solution may lie further south, where Alabang quietly solidifies its position as a thriving business district. With its recent reputation as a top investment destination, the question arises: does Alabang continue to present opportunities for expansion? Key factors, such as its strategic location, well-established infrastructure, and promising property values offer a glimpse into its growth trajectory.
Strategic location
Alabang’s strategic location at the southern tip of the capital region serves as a gateway to the southern regions of the greater Metro Manila area. This positioning allows businesses to tap into the extensive labor pool of Cavite and Laguna provinces, which boast a workforce population of 3.5 million.
Such advantages, coupled with stable rental rates and the availability of Grade A office buildings, have enticed numerous business process outsourcing (BPO) companies to set up operations in Alabang.
Road infrastructure
The development of Alabang’s road infrastructure has been instrumental in driving its growth.
Thanks to projects like the South Luzon Expressway (SLEX) and Skyway, accessibility has greatly improved, with travel times reduced to just 30 minutes to the Star Tollway Batangas and 55 minutes to Balintawak in Quezon City. Further, Alabang is conveniently located less than 30 minutes away from the Ninoy Aquino International Airport (NAIA). These roads make Alabang an enticing option for investors seeking opportunities outside central Metro Manila, while still maintaining connections to key CBDs and growth cities.
Presence of mixed-use estates
Careful urban planning and the implementation of proper land use regulations have been pivotal in shaping Alabang into the thriving business district that it is today. These factors have spurred impressive growth in the establishment of masterplanned estates, which have grown by a remarkable 658 percent in land size.
In the past decade alone, a new wave of mixed-use estates has emerged, including Ayala Land’s 6.6-ha South Park District, launched in 2014; Megaworld’s 62-ha Alabang West, also launched in 2014; and Alveo Land’s Cerca Alabang, covering 6.6 ha and launched in 2017. Additionally, the expansive 244-ha Filinvest City, established in 1993, is experiencing rapid development, with new premium residential condominiums and modern Grade A office buildings transforming the Alabang skyline.
The presence of these masterplanned townships by reputable developers not only underscores Alabang’s transformation but also signals an encouraging economic landscape.
Promising property values
In tandem with the growing real estate market and road infrastructure, property values have witnessed remarkable growth.
In the residential sector, Ayala Alabang Village demonstrated a notable 16 percent compound annual growth rate (CAGR), with land values soaring from P49,000 per sqm in 2013 to P220,000 per sqm in 2023. Land values in other prime villages meanwhile stood at P279,000 per sqm in Greenmeadows, P567,000 per sqm in Forbes Park, and P571,000 per sqm in Dasmariñas Village.
Notably, the value of commercial lots in Filinvest City has surged from P16,667 per sqm in 2017 to P54,000 per sqm in 2023, reflecting a CAGR of 22 percent. Leechiu Property Consultants also recorded accommodation values of P55,000 per sqm in Arca South, P66,000 in the Bay Area, P100,000 per sqm in Makati CBD, and P113,000 per sqm in BGC. These figures underscore Alabang’s untapped investment potential in the residential and commercial sectors.
Alabang stands as the premier central business district in southern Metro Manila. Despite having all the foundational elements in place, the city still boasts a significant inventory of commercial land available for development.
With its strategic location, essential infrastructure, skilled labor pool, and promising property values, Alabang offers plenty of investment opportunities for discerning investors looking to capitalize on its potential. However, its true investment potential has yet to be fully realized.
