Is the Philippines' Property Market Shifting Beyond Metro Manila?
In recent years, the competitive landscape of the Philippine property market has undergone significant changes, with a notable shift away from the traditional focus on Metro Manila. This shift is driven by various factors, including infrastructure development, government initiatives, and changing investor preferences. In this blog post, we will explore how the property market in the Philippines is evolving and diversifying beyond the capital city.
Source: Vista Residences
Decentralization and Economic Growth
One of the key trends in the Philippine property market is the decentralization of economic activity. Major property firms are increasingly looking beyond Metro Manila for investment opportunities. This shift is indicative of a broader economic trend as more economic centers are emerging across the country.
The diversification of economic activity is seen as a positive development for the Philippine economy, as it ensures that growth is not solely concentrated in one location. This decentralization is being supported by improvements in infrastructure and the overall competitiveness of local governments. Factors such as economic dynamism, innovation, quality of manpower, and resiliency are contributing to the attractiveness of these emerging hubs.
Source: Infrastructure Magazine
The expansion of the property market beyond Metro Manila is closely linked to infrastructure development. Public projects, including airports, bus rapid transits, and railways, are creating new opportunities for property developers. These infrastructure investments not only enhance connectivity but also bring economic opportunities to previously underserved areas.
For example, road projects have facilitated business opportunities in regions such as Cavite, Laguna, Bulacan, Tarlac, and Pampanga in Luzon. In the Visayas region, Cebu remains a primary investment hub, with other locations like Iloilo and Bacolod also attracting substantial investments. In Mindanao, Davao stands out as a major property investment destination.
Residential Market in Emerging Cities
Source: BusinessWorld Online
While Metro Manila remains a significant investment destination, developers are increasingly venturing into second-tier and third-tier cities across the Philippines. These cities may have smaller markets compared to the capital but offer stability in terms of end-user housing demand.
Developers are not limited to residential projects; they are also expanding into office spaces, malls, hotels, and industrial parks outside of Metro Manila. This diversification reflects the growing confidence in the potential of emerging cities.
Cebu's Property Boom
Cebu, in particular, is experiencing a property boom. It is one of the most attractive residential hubs outside of Metro Manila. The launch of higher-priced condominium units in areas like Mandaue indicates developers' confidence in the purchasing power and rising affluence of Cebuano investors.
The improvement of infrastructure in Cebu, including projects like the Cebu–Cordova Link Expressway (CCLEX), is enhancing the attractiveness of fringe locations for residential developments. The recovery of the tourism sector is also expected to drive interest in leisure-oriented properties in the region.
Davao's Growing Appeal
In Mindanao, Davao remains a major property hub. National players entering the Davao market are contributing to the development of integrated communities. Infrastructure projects like the Davao Coastal Road, Davao City Bypass, and the expansion of the Davao Airport are set to solidify Davao's status as a residential investment hub.
Davao's competitiveness as an outsourcing hub in Mindanao, coupled with regional economic growth, further supports its attractiveness for residential projects.
Bacolod: An Emerging Sweet Spot
Source: Philippine News Agency
Bacolod City is another emerging property hotspot, attracting national developers. This influx is resulting in the development of township projects and an expansion of the city's residential stock. The entry of national developers is also driving up prices for vertical projects, reflecting confidence in the city's investors and end-users.
Luxury projects are also gaining traction in Bacolod, and property firms are likely to continue testing the upscale and luxury segments in the coming months. The upcoming Panay-Guimaras-Negros Link Bridge is expected to further boost Bacolod's appeal.
Iloilo's Thriving Business Landscape
Iloilo is experiencing a thriving business landscape, particularly in the outsourcing sector. This growth is attracting national developers to launch more residential projects in the city. While residential condominium developments are concentrated in Mandurriao, developers are exploring other districts for upscale and luxury residential projects.
Proximity to infrastructure, such as the Ungka II Flyover, is becoming a key consideration for developers. Iloilo's competitive advantages, including a skilled workforce and quality infrastructure, position it as an attractive destination for local and foreign investments.
The competitive landscape of the Philippine property market is undergoing a transformation, with developers expanding their horizons beyond Metro Manila. Infrastructure development, economic diversification, and changing market dynamics are driving this shift. Emerging cities like Cebu, Davao, Bacolod, and Iloilo are becoming key investment destinations, offering a range of opportunities for developers and investors. As the Philippine property market continues to evolve, these emerging hubs are likely to play a crucial role in the sector's growth and development.