Promoting the next property sweet spot

(First of two parts)

Colliers has identified major localities that we believe are primed for more property investments.

The shift to suburbia continues and this, complemented by infrastructure implementation and aggressive decentralization, has been resulting in the creation of high-growth areas that have been capturing billions of property investments from national and homegrown players.

This two-part piece looks at macroeconomic factors driving property growth in these regions, where localities are recording brisk take-up for vertical and horizontal properties and where specific property sub-segments are standing out in terms of price appreciation.

Central Luzon takes center stage

Central Luzon remains a major economic center outside of Metro Manila, posting a 6.5 percent growth in 2024, the fastest in Luzon during the period.

The growing attractiveness of the region as a property hotspot is of course facilitated by the completion of crucial infrastructure. Among the major projects in the pipeline include Bataan-Cavite Interlink Bridge, Bulacan International Airport, and Central Luzon Link Expressway.

In our view, Pampanga is ripe for more property development projects. This is already evident given the entry of national developers launching massive vertical and horizontal projects in the province.

Average take-up of condominium projects in Pampanga stood at 86 percent, with an average price of P151,000 per sqm. For Pampanga’s house-and-lot (H&L) segment, average take-up rate is at 91 percent with an average price of P2.5 million per unit. Meanwhile, lot-only market in Pampanga is 92 percent sold, priced at an average of P12,000 per sqm.

Although Bulacan had previously been bypassed by office and vertical residential developers expanding outside Metro Manila, its property landscape is likely to change once the new Manila International Airport becomes operational.

In our view, this project should raise land and property prices in the province and further unlock the potential of its underutilized areas for more property development.

Average take-up of condominium projects in Bulacan is at 86 percent, with an average price of P126,000 per sqm. Average take-up rate in the H&L segment is at 94 percent with an average price of P2.6 million per unit. Meanwhile, lot-only units in Bulacan are about 91 percent sold, priced at an average of P11,000 per sqm.

Long recognized as one the country’s major agricultural centers, Tarlac, like its Central Luzon neighbors, is now emerging as a vital investment hub. Its strategic location right at the heartland of Luzon helps this historic province grow into one of the thriving locales in the country.

It’s also seeing its real estate sector gradually accelerating. Average take-up of condominium projects in Tarlac is at 44 percent, with an average price of P125,000 per sqm. For its H&L segment, average take-up rate is at 87 percent with an average price of PHP1.7 million per unit. Meanwhile, lot-only units in Tarlac are about 50 percent sold, priced at an average of P5,000 per sqm.

Greater upside for South Luzon

The Calabarzon Region continues to be a major economic hub, supported by infrastructure developments, proliferation of local and foreign manufacturing companies, and a favorable investment climate

Data from the Philippine Statistics Authority (PSA) showed that the region’s economy grew by 5.6 percent in 2024, almost at par with the national growth of 5.7 percent. It is also the second largest contributor to the national economic output, next to the National Capital Region (NCR).

Among the infrastructure projects likely to benefit the region include the North-South Commuter Railway, LRT-1 Cavite Extension, NLEx-SLEx Connector Road, and Cavite-Laguna Expressway (CALAx), Bataan-Cavite Interlink Bridge, Cavite Bus Rapid Transit, Cavite-Batangas Expressway (CBEX) and the Nasugbu-Bauan Expressway (NBEX).

Just like Central Luzon, the Southern Luzon region is a major beneficiary of the national government’s infrastructure push.

In our view, Cavite’s improving connectivity to Metro Manila as well as the aggressive launch of mixed-use communities should raise land and property values in the province.

Average take-up of condominium projects in Cavite is at 87 percent, with an average price of P123,000 per sqm. For Cavite’s H&L segment, the average take-up rate is at 95 percent with an average price of P3.2 million per unit. Meanwhile, lot-only units in Cavite are about 92 percent sold, priced at an average of P20,000 per sqm.

Laguna remains an attractive option among investors and end-users who plan to live and invest in less dense communities, especially given its proximity to Metro Manila.

Colliers sees the entry of national players further raising average condominium and lot prices in Laguna.

Average take-up of condominium projects in Laguna is at 88 percent, with an average price of P122,000 per sqm. For Laguna’s H&L segment, the average take-up rate is at 94 percent with an average price of P3.7 million per unit. Meanwhile, lot-only units in Laguna are about 94 percent sold, priced at an average of P18,000 per sqm.

In Batangas, residential demand should be supported by the further expansion of industrial activities.

The continued development of infrastructure projects around Southern Luzon especially Batangas and stable inflow of industrial investments should raise residential land and property values in the province.

Average take-up of condominium projects in Batangas is at 85 percent, with an average price of P138,000 per sqm. For Batangas’ H&L segment, the average take-up rate is at 88 percent with an average price of P3 million per unit. Meanwhile, lot-only units in Batangas are about 89 percent sold, priced at an average of P14,000 per sqm.