The country’s industrial property sector is seen surging this year in anticipation for more industrial parks that will be built across the country, especially in the Calabarzon (Region 4A).
In the top 10 predictions of international real estate services firm Colliers International Philippines for 2014, it was mentioned that the industrial property sector will continue to grow this year.
According to the company, more industrial park development is expected to rise in Calabarzon as well as in the Angeles-Clark, Pampanga area.
“The Philippine manufacturing sector saw resurgence in 2013 as some manufacturing outfits decided to locate in the country, reviving an industry that has been in the doldrums since the Asian financial crisis,” Colliers International noted.
“Rising labor costs as well as growing regional territorial disputes have prompted some manufacturers to move out of China and seek more hospitable locations in Southeast Asia,” it further said.
The company also cited that a weaker Philippine peso will benefit exporters and drive up manufacturing activity in the country even further.
It was previously reported that different economic zones in the country are expanding, as the Philippines has turned into a prime business and investment location, and continue to attract foreign investors.
Philippine Economic Zone Authority (PEZA) Director General Dr. Lilia de Lima previously said that a lot of economic zones in the country are being developed, because most of the existing ones are fully occupied.
She also said that the country will never run out of sites for economic zones, and if existing ones are not expanding, new ones are being developed.
De Lima identified some of the zones that are in the midst of expansion like the First Philippines Industrial Park and Laguna Techno Park. The Industrial Science Park will also open new site.
Private sector involvement
In a recent report in The Manila Times, it was mentioned that Federal Land Inc., the property arm of George Ty-led conglomerate GT Capital Holdings Inc., is mulling over a plan to establish more technoparks or industrial parks in the Philippines.
A top company official said in an earlier interview that Federal Land may pursue the development of its property in Biñan, Laguna. Federal Land has a 180-hectare lot located within the area.
“The reason why the Biñan property is taking so long is because there is a debate, Pinag-iisipan pa kung residential ba, commercial ba, or techno park ba [the group is still thinking what projects should be built there whether it’s residential, commercial, or techno park],” Carmelo Maria Luza Bautista, GT Capital president, said.
Another company, MRC Allied Inc. (MRC), also revealed in early 2013 that it is set to break ground for the construction of the first phase of the Cebu Technopark Project.
MRC previously took over management of the New Cebu Township One from the previous management, New Cebu Township One Association Inc., as mandated by the PEZA.
MRC explained to the local bourse that the management take-over means that the maintenance of the aforementioned PEZA zone, including improvements to the existing facilities and utilities, shall be undertaken by them.