More and more property developers are venturing into building township projects in Metro Manila, and going by the reason that it is driven mainly by the bustling Business Process Outsourcing (BPO) industry, such trend might be here to stay.
Real estate consultancy firm KMC Mag Group said large-scale township projects remain the major trend, mainly due to the convenience that these developments offer to companies and their employees.
The presence of the IT-BPO industry in the country is expected to remain strong, KMC Mag Group Head of Research Antton Nordberg said.
He added that office demand would remain high due to the growing number of global firms choosing to invest in the country’s IT-BPO industry because of the reduced costs it offers in outsourcing their services.
“The development of these township projects are spreading the commercial focus away from the main CBDs,” Nordberg noted, “as tenants are looking for more convenient options for their employees.”
Nordberg said these townships typically consist of several office and residential towers with a retail component, which allow residents to live in a self-sustained community.
KMC Mag Group’s Fatima Makalintal enumerated some of the upcoming township projects in Metro Manila, the capital expenditure for which could hit a sum of P300 billion.:
• Arca South by Ayala Land (Php80 B)
• Circuit Makati by Ayala Land (Php42.5 B)
• Vertis North by Ayala Land (Php32 B)
• Alabang South Park District by Ayala Land (Php7 B)
• Uptown Bonifacio by Megaworld (Php65 B)
• Woodside City by Megaworld (Php 35B)
• McKinley West by Megaworld (Php22 B)
• Alabang West by Megaworld (Php10 B)
• Bridgetown Business Park by Robinsons Land (Php30 B)
• Veritown Fort by Federal Land (Php6.2 B)
• Metropolitan Park by Federal Land (Php1.8 B)
Makalintal said townships are good for the real estate sector and the economy in general.
First, she said, townships provide the needed structural facelift that can fuel local economic growth. Having a city built within a city, she said, can be the area’s major attraction and biggest pull as a high-potential investment destination.
Also, she added, integrated townships are designed to provide the quintessential aspects of modern living, with easy access to shopping, education, healthcare, retail, employment, leisure, and entertainment.
“With residential developments built in the same block as commercial spaces, such as office buildings and retail outlets, the project will most likely create high demands, especially from employees and their families, who wish to live closer to work, Makalintal stressed. “They will benefit from improved quality of life due to less stress and time consumed by traveling around the city, given the poor infrastructure of Metro Manila.”
She said developers could take advantage of government incentives and higher profitability in the area by bringing together office, residential, and retail developments there.
Likewise, she added, townships are developed with good master-planned arrangements, a benefit for both the developer and buyers.
“The areas are designed with sound building and structural layouts and a more sustainable environment,” she said. “Modern facilities are surrounded by green landscapes. Access to common amenities are provided as a complete package, with well-designed traffic circulations and transport routes as among the township’s numerous benefits.”