A winning property investment up north

Over the past few years Colliers Philippines has observed the private developers’ aggressive acquisition of idle private properties that can be redeveloped into masterplanned communities.

We have seen a more pronounced development of integrated communities or townships north of the metro and we attribute this brisk demand to the aggressive construction of infrastructure projects that will benefit key areas in Central Luzon such as Pampanga, Bulacan and Tarlac.

PROPERTY INVESTMENT DESTINATION

Colliers Philippines believes that residential developers and investors should keep an eye on Bulacan as we see the province becoming an important property investment destination in the near to medium term.

The province holds a lot of promise. Hence, it won’t be surprising to see Bulacan playing a pivotal role in raising Central Luzon’s office, residential and industrial stock. Bulacan’s stature as a key investment destination is rising and developers and investors will definitely cash in on this.

In our opinion, infrastructure projects in the pipeline such as the New Manila International Airport, MRT-7, and the North-South Commuter Railway Project should stoke residential demand in the province. Developers should maximize the opportunities brought by these projects and align their plans for future developments as it has the potential to raise property prices and unlock land values. These infrastructure projects should also attract developers in acquiring parcels of land around these projects.

TAPPING OPPORTUNITIES

How should developers take advantage of opportunities in Bulacan?

Colliers Philippines believes that developers should continue with their landbanking initiatives especially outside of emerging business districts in Bulacan. National players should also engage in partnerships with Bulacan-based players and landowners that have a massive landbank.

We further see opportunities for developers to build more four- and five-star hotels as well as meetings, incentives, conferences and exhibitions (MICE) facilities especially now that the tourism segment is starting to recover. Bulacan is a perfect location for these facilities especially with the construction of a massive airport in the province.

In our view, developers should likewise expand transit-oriented and tourist-centric retail projects. Colliers believes that developers should build retail outlets near the infrastructure projects to capture a larger share of the commuting public. Transit-oriented retail developments are likely to become popular once again as consumer confidence is starting to pick up, resulting in vast improvement of consumer traffic in brick and mortar retail outlets.

Moreover, the development of industrial parks should also be looked at as these projects will support the development of the new international airport.

PRICE APPRECIATION POTENTIAL

For the residential sector, Colliers sees sustained demand beyond 2022 and this should buoy the price appreciation potential of vertical and horizontal projects in Bulacan.

Colliers Philippines believes that developers should remain aggressive in marketing their projects in Bulacan, taking into consideration the vastly improving connectivity between the province and Metro Manila. Developers should also highlight Bulacan as an alternative business district that offers horizontal and vertical projects.

As of end 2021, Bulacan’s condominium stock reached 2,231 units, up 129 percent from the 973 units recorded in 2020. Bulacan’s condominium market saw a record high sale of 804 units in 2021, led by the affordable segment which accounted for 85 percent of the total take-up from only 69 percent in 2020.

Take-up for residential projects in the province is expected to be buoyed by overseas Filipino workers (OFWs), timely delivery of infrastructure projects and rebound in national and regional economic growth.

Upscale and luxury condominium projects meanwhile are seen to become popular, especially with Bulacan residents and investors becoming more discerning.

Bulacan is definitely catching up as an attractive property investment site in Central Luzon. It will be a major beneficiary of the government’s massive infrastructure program and we see more national developers maximizing this opportunity. Given the development of new townships, improving purchasing power and the rise of a more discerning consumer base, it’s definitely a great time to invest in Bulacan.

Given the development of new townships, improving purchasing power and the rise of a more discerning consumer base, it’s definitely a great time to invest in Bulacan