Property firms urged to hitch on Manila Subway project
Property firms should explore tie-ups with other companies or with the government to develop land near the Manila Subway project, real estate services firm Colliers International Philippines said.
In a report titled “Riding the Gravy Train: The Impact of Manila’s Subway on the Strategies of Property Developers,” Colliers said the implementation of the Manila Subway provides opportunities to redevelop nearby properties into mixed-commercial, residential, hotel and institutional projects.
“Colliers sees the project raising the prices of land and properties within a kilometer from the subway’s stations,” the real estate services firm said.
To take advantage of the opportunities, Colliers recommends that property developers enter into partnerships with other property firms for a unique development mix.
If not with other property firms, Colliers said partnering with government which owns developable parcels of land or buying back properties previously donated to government must be considered, amid lack of available land in the country’s capital.
“In our opinion, this option is something that the government should seriously consider given its goal of raising additional revenues to fund its massive social and infrastructure programs especially now that the remaining tax reform measures have yet to be passed in Congress. This way, the government gets additional revenues crucial for its Build Build Build program and spurs more business activities in the newly-established business districts, which should eventually generate more jobs and tax revenues,” Colliers said.
The Manila Subway, which will link Quezon City to Taguig City, is proposed to have another station near the Ninoy Aquino International Airport.
Colliers said Quezon City is expected to benefit from the planned subway with seven of the stations to be developed located within the city, particularly Mindanao Avenue, Tandang Sora, North Avenue, Quezon Avenue, East Avenue, Anonas and Katipunan.
Among the stations well suited for townships is North Avenue given its interconnection with other mass transportation systems such as the Metro Rail Transit Lines 3 and 7, and the Light Rail Transit Line 1.
Quirino and Tandang Sora stations, meanwhile, are seen to provide residential support to offices in the North Avenue station.
Colliers sees Anonas station as suitable for low to mid-rise residential condominiums and shophouse retail projects, while the East Avenue station would be a good location for more institutional projects such as schools and hospitals, and the Quezon Avenue station should serve as an extension of commercial activities along North Avenue.
Meanwhile, the Katipunan area is seen to have the least potential for redevelopment due to limited developable land.
As for stations outside Quezon City, Colliers said the Ortigas North and South stations are potential areas for high-rise office and residential towers that should benefit from the redevelopment of Ortigas Center from 2019 to 2021.
Kalayaan and BGC stations, meanwhile, could have smaller township projects, as well as dormitories for professionals.
Colliers said government-owned properties near Cayetano Avenue station could also be transformed into smaller townships featuring residential towers and offices with retail, while the Food Terminal Inc. or Arca South station could be positioned as the next major central business district in the southern part of Metro Manila, with health, education and hotel and leisure projects.