MRT-7 on track to operate this year, DOTr says
The Department of Transportation (DOTr) said that San Miguel Corp. will start the partial operation of the Metro Rail Transit line 7 (MRT-7) by the end of 2021 as the project is currently 59.72% complete. The partial operation consists of nine stations namely North avenue, Quezon Memoral Circle, University avenue, Tandang Sora, Don Antonio, Batasan, Mangahan, Dona Carmen, and Regalado. Once fully completed in 2022, the 22 km (13.7 miles) railway will feature 14 stations from North avenue, Quezon City to San Jose Del Monte in Bulacan. The project aims to reduce travel time to 35 minutes from two to three hours. It will likely have a capacity of 300,000 to 850,000 passengers daily.
In our opinion, infrastructure projects such as the MRT-7 should improve access between key business districts in Metro Manila and raise the attractiveness of neighboring provinces for property development. Colliers believes that developers should explore the viability of land surrounding the project for the development of integrated communities which highlight office towers, residential buildings and other support establishments such as supermarkets and hospitals. In our view, infrastructure projects have the potential to raise property prices, unlock land values and spur business opportunities even beyond the pandemic. Other key projects likely to be completed in the next 12-24 months include the LRT-2 East Extension, NLEX-SLEX Connector, LRT-1 Cavite Extension, Estrella-Pantaleon Bridge and the BGC-Ortigas Link Bridge.
AyalaLand Logistics expanding industrial facilities in Naic, Cavite
AyalaLand Logistics Holdings Corporation (ALLHC) has started the construction of its Ready-Built Facilities in Cavite Technopark in Naic, Cavite. The 16,000 sq metre (172,200 sq feet) facility will add to the already existing 13,000 sq metre (139,900 sq feet) facility which is currently occupied by manufacturing and assembly firms. ALLHC said that the new facility is scheduled to be completed in December 2021 and will likely accommodate manufacturers of light to medium items. The new facility will also be located close to the Cavite Gateway Terminal and the Sangley Airport.
Data from the Philippine Statistics Authority show that approved foreign investments into the country declined by 73% to PHP75.6 billion (USD1.6 billion) in 9M 2020 from PHP278 billion (USD5.8 billion) in the same period of 2019. Despite the decline, the manufacturing sector contributed 36% of total foreign investments during the period, higher than its 16% share in 2019. We expect a boost in demand in the industrial sector once these investments materialize and take-up space. To take advantage of the potential rebound, we recommend that developers construct more ready-built facilities near Metro Manila that can cater to light and medium enterprises. Manufacturers of essential items such as food and beverage will likely lead the demand starting 2021. Aside from ready-built facilities, developers should also consider building cold storage warehouses to meet the demand from food, beverage, and pharmaceutical firms.
LRT Cavite extension on track
The Department of Transportation (DOTr) said that the Light Rail Transit line 1 (LRT-1) Cavite extension was at 51.6% completed as of the end of 2020. The first five stations scheduled for operation in 2021 include Redemptorist, MIA, Asiaworld, Ninoy Aquino, and Dr. Santos. The remaining stations will likely be completed in 2022. Once fully operational, the railway project will connect to the south of Baclaran station and will extend to Niog in Bacoor, Cavite. The project will likely be able to accommodate 500,000 to 800,000 passengers daily
Colliers previously noted that infrastructure projects have the potential to raise property prices, improve accessibility and unlock land values. We recommend that developers closely monitor the upcoming infrastructure projects outside of Metro Manila that are due to be completed within the next 12 to 24 months such as the Clark International Airport, Cavite-Laguna Expressway, Cebu Cordova Link Bridge, and the Davao City Bypass. In our opinion, the programmed infrastructure spending of the government of about PHP1.17 trillion (USD24.3 billion) in 2021 should provide impetus for developers to intensify development of projects, including townships. In our view, infrastructure spending also plays an important part in stoking demand in the property sector beyond 2021.