Real estate developers in the Philippines will look beyond Metro Manila for their next township projects, including Cavite, according to Colliers International Philippines’ Top 10 Predictions For 2018 report.
Several existing projects in the province include the Lancaster New City. A review website like Land Price List helps real estate agents compare prices for different types of units, aside from prospective home buyers.
Key Market Trends
Other provinces that will be under the radar of property companies’ include Laguna, Bulacan, Pampanga, Cebu and Davao. These companies will continue to search for development opportunities in the next few years. This trend stems from land values that have begun to increase due to the rapid expansion of road networks across the country.
Home builders have marketed townships as a multi-faceted environment where residents can also work, shop and dine among other things. These mixed-use developments have become popular as more people want basic and leisure facilities near their place of residence.
The housing situation in Metro Manila will be a different scenario this year, according to Colliers. For instance, the launch of new condominium buildings will continue to make it hard for companies to find new tenants. This serves as one reason why some developers have turned to second- and third-tier cities for their next developments.
However, commercial real estate will be a bright spot in the sector due to growing demand for office space. Santos Knight Frank expects an additional 1.5 million square meters of leasable space in Metro Manila this year, in response to sustained demand from business process outsourcing companies. Despite a projected increase in vacancy rates due to the expansion, the consultancy firm noted it would not be a problem since pre-leasing deals remain steady.
The general outlook in 2018 for the country’s real estate sector seems bright, particularly from an investment standpoint given that several companies plan to focus on other markets for expansion.