Putting golf communities in the right spot
Residential enclaves in golf communities provide the right mix of luxury, amenity, authenticity, security, natural beauty, sustainability, and tranquility. (HTTPS://WWW.MANSIONGLOBAL.COM)
Colliers believes that townships offer a better value proposition than standalone projects since they offer mixed-use developments.
These masterplanned projects enable residents to live, work, play, and shop within a community. Essential items and services are within reach.
As these communities offer a better living and working environment, we see more Filipinos choosing such developments.
Today, we have begun seeing more masterplanned projects being launched and completed, and the challenge now is how to stand out in a fiercely competitive property market that is starting to rebound postpandemic.
One key highlight we are seeing is how developers try to mix business with leisure, offering amenities and services that will entice investors to eventually acquire properties within integrated developments.
Interest in golf communities
Improving the infrastructure backbone will be an important consideration for developers, especially those planning to launch residential properties located within or near a golf community. Even enthusiasts will be enticed by the availability of upcoming game-changing infrastructure.
A golf community is not just a crowd-drawer but also something the property firms can leverage to showcase future residential projects. In our view, property firms can command premium pricing for their residential projects not just within masterplanned projects but also those built near or within golf communities.
Over the near to medium term, Colliers sees more industrial-related developments as part of townships being pursued by developers nationwide, especially in areas where adequate infrastructure support is available. Foreign manufacturers will also be enticed to locate in masterplanned projects that offer not just industrial land and warehouses but also golf courses, as these are ideal locations for expats who want to enjoy and unwind after a series of business meetings.
Golf estates as differentiators
Given an increasingly competitive environment, developers need to distinguish their projects from others.
Apart from the typical land uses such as office, residential, retail, and hotel, developers should also incorporate institutional uses.
Other developers have been more aggressive in “differentiating” their communities by integrating entertainment and recreational facilities and spaces for outdoor sports such as football and wakeboarding.
Some are further ramping up their differentiation strategies by developing leisure or resort-themed masterplanned projects. A number of property firms are even launching residential enclaves near or within golf communities. This approach will lead the strategies of developers planning to tap the discerning and affluent residential market.
Placemaking approach
What’s evident is that property firms are infusing the “placemaking” approach into their differentiation strategies.
Placemaking refers to the multi-pronged approach that developers and urban planners employ in planning, designing, and managing public space in a masterplanned community. We believe a well thought-out placemaking strategy will keep people interested to stay and live in an integrated township.
Placemaking should help transform places into destinations where people can converge. This is one of the major reasons why property developers integrate golf courses into their massive residential enclaves or launch new ones near golf communities.
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Enhanced rental yields and property prices
At Colliers, one key recommendation we have for investors is to choose projects in townships due to possible yield and price enhancements.
We project strong rental and price increase potential for residential projects near or within golf communities, especially with the growing demand for green spaces.
We also see greater opportunities for similar residential projects given the strong rebound prospects for the country’s travel and tourism sector.
Leisure-centric projects
Developers have also been taking advantage of the rising demand for resort or leisure-oriented properties outside Metro Manila.
Colliers data showed that these projects were already popular then, but the pandemic only highlighted the need for leisure-themed enclaves.
These projects have take-up rates of between 40 percent and 100 percent, with average price per sqm ranging from P214,000 to as much as P590,000 as of end 2023. These are among the most expensive in the market but are doing very well.
These encouraging figures should entice firms to further test these leisure-led developments, including those that offer golf courses.
Tourism recovery
Data from the Philippine Statistics Authority (PSA) showed that the tourism industry’s share in the country’s economy reached 8.6 percent in 2023, up from 6.4 percent a year ago, due to postpandemic reopening. Domestic tourism also rebounded significantly, with the Department of Tourism (DOT) recording 102 million domestic trips in 2022 from 37.3 million the previous year.
Aside from Metro Manila, key cities in southern Luzon are among the most popular destinations.
In our view, golf communities with vertical residential developments are likely to garner interest from local and foreign travelers (including retirees), while horizontal projects within these estates are likely to corner take up from domestic travelers and investors.
‘Differentiating’ features
Colliers Philippines believes in the importance of open, green spaces in residential enclaves. The pandemic changed the way people live, work, play, and shop, resulting in developers integrating new features in their projects to satisfy residents’ evolving preferences.
In a poll conducted by Colliers that covered property analysts, brokers, investors, and end-users as respondents, more than 90 percent believe that having green and sustainable features is important in purchasing a residential unit.
And these green spaces are among the key features of thriving golf communities.
We believe developers should continue innovating with their condominium projects by offering new features and services and by aggressively differentiating.
Over the past year, several developers have integrated more healthy and sustainable amenities into their new projects. Some have also incorporated unique features such as glamping nook, garden gazebo, and sky promenades. Some developers are planning to further raise the bar by launching more residential projects that are located near or within golf communities.
Right mix
Residential enclaves in golf communities provide the right mix of luxury, amenity, authenticity, security, natural beauty, sustainability, and tranquility. So expect similar projects from major national developers as they navigate through the constantly changing preferences of affluent, cash-rich, and discerning property investors and as they race to score a hole-in-one in the property scene.
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