January 23, 2022
  • January 23, 2022

Unlock residential opportunities in Laguna

By on July 2, 2021 0


In my previous columns, I have highlighted how southern Luzon has always been a major growth engine for the Philippine economy.

Being the main industrial center of the Philippines, the region is one of the main contributors to the country’s annual economic output, accounting for around 14.5% of the gross domestic product (GDP).

Region IV-A (Calabarzon), however, attracts not only high-value manufacturers but also real estate developers, who have been aggressive in acquiring plots of land here to capture investor and end-user demand. . Colliers Philippines believes that residential demand in Calabarzon will continue to thrive and that the following macroeconomic indicators only strengthen the region’s growth prospects.

On the one hand, the region has seen its economy grow by an average of 6.5% per year from 2017 to 2019. Besides industrial and commercial activities, the corridor is also a major recipient of remittances from Filipino workers to the foreign (OFW). These continue to keep the region’s economy afloat, fueling demand for real estate segments such as office, residential, leisure and industry.

The infrastructure projects further strengthen the competitiveness of Calabarzon as an industrial hub. These public projects also encourage real estate developers to develop their land holdings here and to set up integrated communities as well as stand-alone residential projects that can meet the growing demand for such spaces in the region.

Industry stimulates demand for housing

Data from the Philippine Economic Zone Authority (Peza) revealed that among the companies considering expanding their existing operations in Laguna’s industrial parks are manufacturers of safety switches, semiconductors, and industrial materials. ‘packaging. Several Japanese companies have also committed to building warehouses. A number of industrial locators have gained first-mover advantage in Laguna, contributing to greater residential demand in the province.

Improve connectivity

Several infrastructure projects are in the works and we see these further unleashing Laguna’s industrial and residential values. These include the Cavite-Laguna (Calax) motorway.

According to the Department of Public Works and Highways (DPWH), the road project is likely to reduce congestion in Cavite and Laguna and provide efficient transport facilities to industrial areas in both provinces. Among the areas likely to benefit from the project are Governor’s Drive, Aguinaldo Highway, Tagaytay and Sta. Rosa. The project also aims to reduce the travel time between the Cavite Expressway (Cavitex) and the South Luzon Expressway (SLEx) by approximately 45 minutes.

Another major road project in Metro Manila that benefits Laguna and neighboring areas of southern Luzon is the NLEx-SLEx connecting road. The project aims to reduce the travel time between the North Luzon Freeway (NLEx) and the South Luzon Freeway (SLEx) to just 20 minutes. This road, which is expected to be completed this year, is also expected to reduce travel time between two major industrial hubs: the CALABA region in southern Luzon and Clark, Pampanga, in northern Luzon. When completed, we see the project fueling demand for industrial space and residential projects in CALABA and Pampanga.

The construction of the Luzon South Line (PNR Batangas City Station) of the North-South Rail Project and the planned relaunch of a rail freight line from Manila to Laguna are expected to play a critical role in channeling major manufacturing investments to the CALABA region.

Strong growth prospects

Colliers believes that Laguna’s residential market will also benefit from the expansion of manufacturing businesses outside of China. In the short to medium term, we are optimistic that the region will continue to monopolize the bulk of foreign investment pledges and this should translate into a robust regional economy even beyond the pandemic.

In our view, these developments, along with the government’s infrastructure and decentralization effort, should ensure Laguna’s long-term growth and further enhance the region’s viability for real estate investments.

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