Cavite’s gargantuan growth prospects
Property developers are actively diversifying their projects and locations.
In Metro Manila, they are recalibrating their plans and implementing innovative measures to drive substantial take-up of ready-for-occupancy (RFO) units. At the same time, major firms are expanding beyond the capital with new project launches in key growth areas.
Outside Metro Manila, developers are aggressively landbanking in high growth areas in North and South Luzon.
Cavite, in particular, remains an attractive and competitive property investment hub. Once seen as a suburban support to Metro Manila, its property market has rapidly evolved from industrial to commercial and residential. Its strategic location and the infrastructure developments that enhanced its connectivity to the capital further fueled its growth.
Infra to stoke property demand
As we always say at Colliers Philippines, big-ticket public projects will play an important role in boosting take-up for masterplanned communities outside Metro Manila.
With residential yields in the capital easing, investors are increasingly turning to high growth areas that continue to record price appreciation, particularly in the Cavite-Laguna-Batangas corridor, with Cavite emerging as a key market to watch.
In our opinion, the completion of the LRT-1 Cavite Extension should boost residential and leisure-related developments in the province. Once operational, it is expected to cut travel time between Baclaran and Bacoor to 25 minutes from the current 1 hour and 10 minutes.
Other infrastructure projects in the pipeline include the 45-km Cavite-Laguna Expressway (Calax) which aims to reduce travel time between Cavite and Laguna to 45 minutes from 2 hours. The P219 billion Bataan-Cavite Interlink bridge will span 32 kilometers and reduce travel time between Bataan and Cavite to just 30 minutes from five hours.
Bustling hub for House-and-lot
Take-up for house-and-lot (H&L) units in Cavite is driven by the economic to affordable segments (P750,000 to P3.2 million), particularly for projects located in General Trias, Imus, Tanza and Dasmariñas.
Average take-up of H&L projects in Cavite is 95 percent, at an average price of P5 million per unit. From 2016 to 2024, Colliers recorded an average annual price increase of 7 percent for H&L units in Cavite.
Gargantuan prospects for lot-only market
For Cavite’s lot-only market, upscale projects (P4 million to P10 million) are well-received among end-users. Overall take-up of lot-only projects is at 92 percent, priced at an average of P20,000 per sqm per unit.
Cavite’s residential lot-only projects also posted an 8 percent annual price growth from 2016 to 2024. It is this sustained price appreciation that has been enticing investors to acquire lot only units.
In Cavite, the most expensive lot-only projects have average sizes of between 126 sqm and 832 sqm, with average price per lot ranging between P30,000 and P66,000 per sqm.
Differentiation a crucial step towards recalibration
With more developers ramping up presence outside Metro Manila, differentiation is definitely the name of the game.
Colliers encourages developers to differentiate in the market and complement their masterplanned communities with projects aligned with expanding business activities.
Beyond office and residential offerings, developers should also assess the viability of launching commercial lots. In our view, the continued growth of the industrial, retail, and hospitality sectors outside Metro Manila will drive demand for these commercial investments.
Wellness and active lifestyle amenities are also now being integrated into masterplanned projects. Colliers believes that now is an opportune time for property firms to highlight their townships that feature greener and more open spaces as well as recreational offerings such as a sports hub, jogging trails, tree-lined roads, and bike lanes.
