The shift in property development to areas outside Metro Manila may improve property values in the country’s capital, a real estate analyst said.
In a media briefing on Tuesday, Jones Lang Lasalle Philippines Head of Research, Consultancy and Valuation Claro Cordero Jr. said a shift in development toward the countryside could actually be an advantage for the Metro Manila property market.
“Development in the countryside will benefit the property sector in general because it will open up new markets,” Cordero said “As we can see right now, we are heavily concentrated in Metro Manila and if we open up new markets outside then you tend t o infuse the level of growth in the countryside.”
Cordero noted that as developers tap new markets outside of Metro Manila for development, this would influence growth and potential growth in those areas, which would eventually lead to the creation of more jobs, and improved income levels.
Cordero emphasized that this would actually benefit the Metro Manila property sector.
“What will happen to Metro Manila in the process is that, property values will most likely be preserved if not increase further because you would have a less traffic in Metro Manila, where people can invest more. And the right type of business will be located where the center is,” Cordero expressed.
Signs of growth in the provincial residential market were seen in the first quarter of the year, as faster residential property price growth was recorded outside Metro Manila.
This was based on the Residential Real Estate Price Index (RREPI) compiled by the Bangko Sentral ng Pilipinas (BSP).
“Year-on-year growth of property prices in areas outside of NCR, Metro Manila increased at a faster rate,” Cordero said. He noted that this was driven by the higher growth rates in the prices of townhouses and condominium units.
“The reason why they grew faster than the residential condominium prices in Metro Manila is because they started from a low base,” Cordero emphasized.
Aside from mall developments, Cordero also noted the rising trend of community mall development outside Metro Manila, which is being followed by a number of major property developers.
Some of these developers are DoubleDragon Properties Corporation with its CityMalls format, Robinsons Land with its Robinsons Townville Development, and Vista Land and Lifescapes Inc. with its Vista Malls format.
Furthermore, the tourism sector outside of Metro Manila has also been receiving attention from property developments, with a number of hotel developments slated to rise in the coming years.
JLL Philippines Country Manager Lindsay Orr noted the branded hotels trend, which is currently being seen outside Metro Manila.
“Branded hotels are becoming ever more popular here,” Orr said.
Orr noted that more branded hotel developments are anticipated in the coming years, as developers are building hotels in urban centers mostly outside of Luzon.
Some of the upcoming hotel developments include Boracay Savoy, Boracay Belmont, Richmonde Iloilo and Courtyard by Mariott, all by Megaworld Corporation; Seda Lio El Nido, Seda Atria Iloilo, and Sicogon Island and Tourism Estate all by Ayala Land Inc.; Dusit Princess Hotel and Dusit Thani Davao by Dusit International; and Sheraton Mactan by Sheraton hotels.