LRT-1 CAVITE EXTENSION MAY BE DELAYED ANEW
Start of construction of the Light Rail Transit Line 1 (LRT-1) Cavite extension project is likely to be moved to the second quarter of 2019. According to Light Rail Manila Corp. (LRMC) president and chief executive officer Juan Alfonso, right of way issues have delayed construction as the original date for implementation was 4Q2018. The completion of the LRT-1 Cavite extension has been moved to 4Q2021 or early 2022.
The upcoming infrastructure projects connecting southern Metro Manila areas to the country’s capital should help disperse economic activities and this should benefit the property sector. These projects, including LRT-1 Cavite extension, should not only decongest Metro Manila but also improve connectivity and spur more economic opportunities in key cities in Southern Luzon. Colliers also sees land value appreciation potential around the LRT-1 extension area.
CATHAY LAND POURS P1B INTO 2 CONDO PROJECTS
To take advantage of the residential demand in Southern Metro Manila, Cathay Land Inc. is allotting P1 billion to develop two new low-rise condominium projects in South Forbes Golf city. Located within their 500-hectare township, Stanford Suites 3 and Fullerton Suites broke ground last August and September, respectively. Standford Suites 3, near Westborough Town Center, is targeting young families, retirees and investors and will deliver around 330 units. On the other hand, Fullerton Suites, near the upcoming Chiang Shek College and Silang East interchange of the Cavite-Laguna Expressway (CALAX), is targeting young families, teachers and businessmen and will offer 280 units. Both projects will offer studio and one-bedroom units starting at P1.5 million. Turn-over for both projects is scheduled in 2021.
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In 3Q18 Colliers observed a more aggressive development of residential properties in the peripheries of central business districts (CBD’s) due to the lack of developable land in major CBD’s. Colliers sees this trend spilling over to southern Metro Manila. This is due to relatively lower land values and availability of developable land. These properties will also benefit from the upcoming infrastructure projects that will improve connectivity between Metro Manila CBD’s and southern Metro Manila areas.
D&L INDUSTRIES TO SPEND P8B FOR NEW PRODUCTION FACILITY
As part of its initiative to expand its exports business and focus on higher value and higher margin products in the next 20 years, D&L Industries is allotting P8 billion to develop a new production hub in Batangas. The 26-hectare property in First Industrial Township, a special economic zone in Tanauan, will house two new plants that will generate about 700 new jobs. One of the upcoming plants will focus on food ingredients under D&L Premium Foods Corp. while the other will manufacture coconut oil fractions, coconut-based surfactants and downstream packaging under Natura Aeropack Corp. The first phase of the construction is currently on-going, both construction and commissioning are to be completed by 2021.
Manufacturing firms continue to operate within industrial parks in the Cavite-Laguna-Batangas area. Batangas, in particular, continues to attract firms due to limited industrial space in Laguna and Cavite. With new manufacturing and logistics firms setting up shop in Batangas, Colliers sees industrial vacancy declining over the next 12 months. We see Batangas cornering bulk of higher-value manufacturing investments during the period.