We are pleased to share with you our latest Provincial Property Market reports.
In this release, we have identified key issues and opportunities in the province of Bacolod particularly in the office, residential and retail sectors.
View all provincial reports
BACOLOD OFFICE SECTOR
Bacolod City is a key destination for outsourcing operations in the country. It is among the pioneering provincial locations that managed to entice global outsourcing companies. The city is slowly being recognized as a major health information management (HIM) hub outside of Metro Manila. This is primarily attributed to the nursing and allied medical graduates that the city produces annually. But like other BPO hubs across the Philippines, Bacolod City faces the daunting task of retaining its rank in the Tholons annual survey for the most competitive global outsourcing locations. Colliers encourages local and national developers to construct office buildings suited for call centres, health information management (HIM) providers, and online English tutorial centres as these are among the major outsourcing investments that Bacolod City is projected to attract over the near to medium term.
BACOLOD RESIDENTIAL SECTOR
The Bacolod residential market remains locally-driven. Understandably, the provincial residential market is almost purely a horizontal development (houses and lots) play. The business sector is similarly still in the early stages as traditional companies and business process outsourcers (BPO) are concentrated along Lacson Street. Both launches and take-up reflected strong growth for the first half of 2017 from a year ago. Notable projects include two phases from Proxima Centauri Realty and Development Corporation's One Communities, as well as Vista Land's Camella Bacolod. Bacolod is showing signs of promise as strong take-up is seen in newly launched projects, particularly below the PHP2.0 million (USD40,000) and below threshold. Colliers recommends that developers take advantage of the opportunity in the budding provincial market which was recently named a Top Model City in the Philippines. We encourage developers to build more projects to cater to the demand from Negrenses who are starting new families and the growing BPO employee-base.
BACOLOD RETAIL SECTOR
Smaller retail formats such as neighbourhood and district malls continue to dominate the Bacolod retail landscape. SM City Bacolod is the lone super-regional mall in the city. Overall vacancy remains below 2% but we expect this to increase once the retail outlets located within the townships of Ayala and Megaworld are completed. The predominantly-millennial workforce coupled with local and foreign tourists continue to drive Bacolod's retail sector. Given this trend, we recommend that retailers tap into the city's thriving food and beverage (F&B) and fast fashion segments. Mall operators should curate their retail concepts and tenant mixes. We believe that operators should adopt a more lifestyle-centric tenant mix. Property firms should also consider constructing retail outlets in neighbouring municipalities which are slowly becoming viable areas for mall development. Colliers encourages developers to look at potential sites for transit-oriented retail. Among the most viable are locations near the Magsaysay-Araneta corridor where Bacolod's economic highway is being developed and the Bacolod-Silay airport that is up for expansion and modernization.
Download the full reports by clicking the links below.
2Q 2017 Bacolod Office Report
2Q 2017 Bacolod Residential Report
2Q 2017 Bacolod Retail Report
RELATED NEWS COVERAGE
Philippine News Agency
The Visayan Daily Star