Colliers Philippines held its first South Luzon Property Market Briefing on Aug. 27, in partnership with Brittany and Villar City.
Key economic hub
At the briefing, we noted how the property market in South Luzon is poised for sustained growth. This region continues to develop into a key economic hub, supported by infrastructure developments, proliferation of local and foreign manufacturing companies, and a favorable investment climate.
The Cavite-Laguna-Batangas (CALABA) corridor, in particular, continues to thrive as shown by the massive launches of masterplanned communities by major property firms. Colliers is optimistic that the region’s growth trajectory in terms of economic expansion and property price appreciation will be sustained in the near to medium term.
Immense growth potential
The region enjoys bright economic prospects given its young workforce, which continues to contribute vastly to the region’s robust personal consumption expenditures.
The demographic sweet spot is evident in the region, with about 65 percent of the population aged 15 to 64 years old contributing to the regional economy.
Southern Luzon is also among the major sources of Filipinos being deployed for overseas employment. It accounted for 15 percent of total OFWs deployed in 2022, higher than Central Luzon’s 13 percent and the National Capital Region’s (NCR) 11 percent.
This is one of the major reasons why developers continue to look for developable parcels of land in the region to seize demand from Filipinos that acquire residential units primarily for end-use.
For Filipinos working abroad, the most attractive price band ranges from P2.5 million to P7 million per unit. The strong appetite from investors and end-users is among the reasons why the region covered a third of total residential real estate loans granted by Philippine banks in 2023.
Appetite for horizontal
As Colliers Philippines previously reported, horizontal projects (house-and-lot, and lot-only) continue to record sustained price increases.
From 2016 to 2023, house-and-lot projects in the CALABA area posted a 7.2 percent average price increase yearly. Prices for lot only projects recorded an annual price growth of 6.7 percent in the same period.
Strong impetus for growth
Major infrastructure projects such as North-South Commuter Railway (NSCR), Cavite-Laguna Expressway (Calax), and LRT-1 Cavite Extension have been compelling developers to aggressively landbank in Southern Luzon.
Recent township projects that were launched include Federal Land’s Meadowcrest and Riverpark in Laguna and Cavite respectively. Also launched last year was the 3,500 ha Villar City, encompassing 15 municipalities and cities from Cavite to Las Piñas. These massive projects support two major thrusts of the government: infrastructure implementation and decentralization.
Townships are also incorporating unique elements to differentiate in the market. Examples are Vermosa with a sports and recreational facility; Nuvali with bike lanes; as well as Sevina Park and Arden Botanical Estate with sustainable features.
Golf communities are also gaining traction among massive township projects like Golden MV Holdings’ Villar City and Megaworld’s Lialto Beach and Golf Estates in Batangas. Golf communities are examples of great differentiators, especially now that launching masterplanned communities in South Luzon is becoming the norm.
Crucial to property recovery
We are seeing great upside potential for South Luzon. We project Cavite to remain among the ranks of Philippine property royalties especially with the improved connectivity provided by Daang Hari Road.
Developers definitely want a greater slice of Laguna’s property investment pie, that’s why it is no longer surprising to see firms aggressively landbanking and developing here. With a thriving property landscape, we only see this investment pie being sweeter and bigger than the famous buko (coconut) pie of Laguna.
Finally, Batangas should continue to attract greater interest from Philippine developers as well as foreign firms looking to partner with local players.
For feedback, please email joey.bondoc@colliers.com