Colliers Insights

By Joey Roi Bondoc

Editor’s note: This is the second of Colliers’ two-part column on the Philippines’ competitive property landscape. The first column was published on July 4, 2023 .

Colliers believes that Bulacan will remain a viable residential investment option given its proximity to Metro Manila. In our view, the completion of the Metro Rail Transit-7 (MRT-7) and New Manila International Airport should strengthen Bulacan’s stature as a major residential hub outside the capital region and in Central Luzon. The MRT-7 is now 58% complete and is expected to be operational by 2025. The railway project seeks to reduce travel time from San Jose del Monte, Bulacan to North Avenue, Quezon City from three hours to 35 minutes and can accommodate up to 800,000 commuters daily. Meanwhile, the New Manila International Airport, which is due for completion in 2027, should help decongest the Ninoy Aquino International Airport (NAIA).

Moving forward, Colliers sees more aggressive landbanking initiatives in Bulacan as developers take advantage of the locale’s major public projects due to be completed over the next two to four years. This should set the stage for greater acquisition of parcels of developable land in the province and the eventual launch and development of more masterplanned communities.

Colliers believes that Pampanga is ripe for more luxury projects especially for the affluent market based in Angeles City and San Fernando. The development of more townships and infrastructure projects will likely further raise the attractiveness of luxury developments in Pampanga. The completion of big-ticket infrastructure projects in the next 12 to 36 months such as the NLEX-SLEX connector, Central Luzon Link Expressway (CLLEX), and Manila Clark Railway should also partly lift land values and property prices in the province.

Colliers believes that Pampanga is ripe for more industrial park developments given the presence of the newly-modernized and expanded Clark Airport.

We see Pampanga retaining its stature as one of the most competitive and attractive property development sites in north and central Luzon. National developers have expansive projects in the province. Colliers sees more aggressive development outside of key areas such as Angeles, San Fernando, Mabalacat, and Porac. The province also continues to attract foreign firms planning to develop horizontal residential projects catering to a growing end-user market.

In our opinion, the development of New Clark City (NCC) in Capas will likely spur business opportunities in Tarlac. The NCC is being primed as one of the major business districts north of Metro Manila.

Tarlac’s property landscape should also benefit from the completion of the CLLEX. The 35.7-kilometer (22.2-mi) road project will connect Tarlac City to San Jose, Nueva Ecija. The project is scheduled to be completed in 2023.

Colliers believes that Tarlac will remain a key hub for more integrated communities north of Metro Manila. Moving forward, we see more aggressive and strategic partnerships between national developers and homegrown firms.

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 and this is likely to compel developers to launch more upscale and luxury residential units. Cavite is part of Region IV-A, one of the most progressive and dynamic regions in the Philippines. In our view, continued regional economic expansion, improving infrastructure network, and residents’ rising purchasing power should help stoke the appetite for upscale and luxury condominium units in Cavite.

The completion of the LRT-1 Cavite Extension should boost residential developments in the province. Once fully operational, the LRT-1 Cavite Extension is expected to cut travel time between Baclaran and Bacoor to 25 minutes from the current 1 hour and 10 minutes. The extension will also increase LRT-1’s capacity from 500,000 to 800,000 passengers daily. The first phase of the project is now 75% complete.

Residential demand should also be supported by the further expansion of industrial activities in Cavite. Industrial take-up in Cavite is heavily driven by manufacturing companies that are particularly engaged in automotive, semi-conductors and packaging. The continued development of infrastructure projects around Cavite and stable inflow of industrial investments should raise residential land and property values in the province.

Colliers believes that 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 prices in Laguna. We are likely to see more developers further testing Laguna’s market for more upscale and luxury projects, especially with the presence of leisure-oriented estates in the province. The growing residential demand in the region should be supported by the completion of major infrastructure projects such as the North-South Commuter Railway, NLEX-SLEX Connector Road and Cavite-Laguna Expressway (CALAX).

Industrial players continue to gravitate towards Laguna due to the presence of expansive industrial parks and the presence of integrated communities and stand-alone residential projects, including an ample supply of house-and-lots. Laguna also continues to be preferred by e-commerce and logistics firms due to its convenience and accessibility as the majority of industrial parks in the province are located near the South Luzon Expressway.

Batangas already benefits from improved access to Metro Manila due to existing expressways that also pass through Cavite and Laguna. Interconnectivity should be further enhanced by the completion of South Luzon Expressway Toll Road 4 (SLEX-TR4), which is likely to ease movement of people and goods within the Southern Luzon region.

The proposed Southern Luzon line of the North-South Railway Project is expected to cover Calamba in Laguna and Batangas City in Batangas. Colliers believes that these projects are likely to further fuel the revival of industrial park development in the south, particularly in Sto. Tomas, Malvar and Tanauan in Batangas.

Colliers sees the development of more leisure-oriented masterplanned communities in Batangas once these infrastructure projects become online.  Developers are likely to tap into the demand by launching more house-and-lot and lot-only projects.


Joey Roi Bondoc is the research director at Colliers Philippines.