This week, Colliers Research provides insights on the Metro Manila Subway project and its impact on the property sector. Transport secretary Arthur Tugade ensures that this big-ticket Build, Build, Build project will continue under the new administration. Furthermore, Ayala Land unit Ayala Land Logistics Holdings Corp. acquires a 55-hectare property in Batangas, which will become the company’s fifth technopark. According to Colliers, there is healthy demand for warehousing and industrial space especially in the Cavite–Laguna–Batangas (CALABA) corridor, on the back of growing interest from international firms to expand in the Philippines.
Metro Manila subway construction to continue under next admin, says Tugade
Transportation chief Arthur Tugade assured the public that the construction of the Metro Manila Subway would continue in the incoming Marcos administration. According to Sec. Tugade, construction will start in the first or second week of June. The 17-station subway will be 34 kilometers long, running from Valenzuela to Bicutan in Taguig and the Ninoy Aquino International Airport (NAIA) Terminal 3 in Pasay. The project aims to reduce travel time between Quezon City and NAIA to at least 35 minutes. The subway’s objective is to serve at least 370,000 passengers daily.
Data from Department of Budget and Management (DBM) show that government infrastructure spending reached PHP895.1 billion (USD17.2 billion) in 2021, up 31% from PHP681.1 billion (USD13.1 billion) in 2020. According to DBM, this can be attributed to the increase in spending on roads, flood barriers, multipurpose buildings, railways, and airports. In our opinion, the implementation of infrastructure projects such as the Metro Manila Subway should decongest traffic along EDSA and other major thoroughfares. It should also improve accessibility in major business hubs and raise the attractiveness of fringe areas and underserved periphery locations in the capital region ripe for township development. Colliers also sees the project raising land and property values in locations near the subway’s stations. Colliers recommends that developers be more strategic in their land-banking strategies by maximizing their projects’ proximity to public infrastructure projects.
Ayala Land unit acquires 55-ha Batangas land for future technopark
AyalaLand Logistics Holdings Corp. (ALLHC) is shelling out nearly PHP677.7 million (USD13.0 million) to acquire 55 hectares of land in Padre Garcia, Batangas. The property would be the location of its future Batangas Technopark. Ayala Land said the properties to be acquired span 547,800 square meters. The lots were purchased from unnamed individual and corporate sellers. At present, the company has four other industrial technoparks located in Laguna, Cavite, Laguindingan in Misamis Oriental, and Pampanga. In February, ALLHC acquired an existing 64,000 square meters “ready-built facility” in Santo Tomas, Batangas. The listed property developer said the acquisitions were in line with the firm’s “broader expansion plans.”
In 2021, Colliers recorded the completion of 127 hectares of industrial supply in the Cavite–Laguna–Batangas (CALABA) corridor. From 2022 to 2024, Colliers sees the delivery of about 85 hectares of new industrial space in CALABA, with Batangas accounting for bulk of the new supply. Among the industrial parks likely to be completed include New-First Industrial Township, First Philippine Industrial Park 3, and Lima Technology Park Expansion. Colliers sees a healthy demand for warehousing and industrial space with the growing interest from international firms to expand in the Philippines. The Philippine Economic Zone Authority (PEZA) projects ecozone investments to grow by between 7% and 8% to about PHP74.7 billion (USD1.4 billion) in 2022 from PHP69.3 billion (USD1.3 billion) in 2021. According to PEZA, the manufacturing and information technology sectors will continue to lead ecozone investments. Some firms expanding operations include electronics companies Amkor, Murata, and Samsung. Pharmaceutical firms are also interested in locating in the country. Meanwhile, we see data centers as potential industrial space occupiers beyond 2022. YCO Cloud Centers, a cloud service provider, has announced that it will be building its data center in Light Industry and Science Park IV in Batangas.