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Market Intelligence | Philippines July 22, 2022

Bulacan real estate market, Northwin Global City, Megaworld, Cold chain solutions, Cold storage, ORCA

This week, Colliers Research provides insights on Bulacan’s property market, particularly its stature as a growing residential hub given the province’s rapidly improving transport infrastructure. Just recently, Megaworld Corp. started selling shophouse units and commercial lots in its Northwin Global City township located in Bocaue and Marilao. In addition, ORCA Cold Chain Solutions recently announced that it plans to double its capacity by 2027. The company currently has two facilities in Taguig and Caloocan and will soon open new facilities in Cagayan de Oro, Cebu, Tarlac, Pangasinan, and Davao starting 2023.

 

Megaworld starts selling lots in Northwin Bulacan

SUMMARY

Megaworld Corp. is now selling shophouse and commercial lots in its Northwin Global City township in Bulacan. Shophouse lots will range from 250 to 550 square meters (2,700 to 5,900 square feet) while commercial lots will have sizes of between 450 and 750 square meters (4,800 to 8,100 square feet). This will be part of the 15-hectare (37 acre) central business district (CBD) component of Northwin called Northwin Main Street. Due for turnover in 2026, the district will also feature corporate buildings, hotels, and commercial towers. Around 44% of the project will be allocated for green and open spaces. Meanwhile, Megaworld said that it will be spending PHP98 billion (USD1.9 billion) for the development of Northwin Global City over the next 15 to 20 years. Other components of the township include residential condominiums and educational institutions. One of the stations of the Manila–Clark Railway project will also be located inside Northwin Global City.

RESEARCH REVIEW

In 2021, we recorded the take-up of 800 condominium units in Bulacan, up from only 100 units in 2020; and about 1,900 house-and-lot and lots-only units sold, down 49% YOY. In our view, demand for vertical and horizontal residential projects in Bulacan should be partly driven by remittances from overseas Filipino workers (OFWs). Central Luzon accounted for about 209,000 OFWs deployed in 2020, or about 12% of the total OFWs. Colliers believes that the completion of the New Manila International Airport and Metro Rail Transit Line 7 (MRT-7) should also strengthen Bulacan’s stature as a residential hub outside Metro Manila. Colliers recommends that developers be more aggressive in their land-banking initiatives in the province. National players should explore partnering with local developers in Bulacan that have massive landbank which can be developed into integrated communities.

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ORCA Cold Chain plans to build 5 new facilities to double capacity

SUMMARY

ORCA Cold Chain Solutions Inc. aims to build five new cold-storage facilities to double its capacity to 69,300 pallets in 2027 from the current 34,300 pallets. The cold chain hubs will be located in Cagayan de Oro, Cebu, Tarlac, Pangasinan, and Davao. The Cagayan de Oro hub will have a capacity of about 8,450 pallets and will start operations in 2023. Meanwhile, the Cebu facility will house 10,000 pallets and will be operational by 2024. The Tarlac, Pangasinan, and Davao facilities will each have 5,500 pallets and are expected to open in 2025, 2026, and 2027, respectively. ORCA currently has two plants, which are located in Taguig and Caloocan.

RESEARCH REVIEW

Colliers believes that the demand for cold-storage facilities will likely be sustained by the need for specialized storage for Covid-19 vaccines and other pharmaceuticals, as well as growing preference for frozen food and perishable food item deliveries. According to the Board of Investments (BOI), the country currently has about 151 Department of Agriculture–accredited cold-storage warehouses and a storage capacity of 500,000 pallets. BOI aims to increase the country’s current cold-storage capacity by 10% to 15% per annum, or about 50,000 pallets annually. In our view, this will likely influence industrial space absorption beyond 2022. Colliers recommends that developers expand their warehousing portfolio to include cold-chain facilities or upgrade their existing warehouse assets with cold-storage features. Developers should also take advantage of the upcoming new supply in the Cavite–Laguna–Batangas corridor and Central Luzon. From 2022 to 2024, we expect the delivery of about 450 hectares (2.5 acres) of new industrial space particularly in Batangas, Tarlac, and Subic.

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View our previous market intelligence reports


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