This week, Colliers Research provides insights on Sta. Lucia Land’s newest project in Laguna and the residential property market of the Cavite–Laguna–Batangas corridor, one of the country’s most vibrant housing markets. Furthermore, listed IT solutions provider DFNN Inc. recently partnered with U.S.-based Nautilus Data Technologies to develop a green data center in Bataan. A recent Colliers report highlighted that the Philippines currently ranks second among Southeast Asian countries in terms of data center growth.
Marbella Lake Residences rises in Laguna
Sta. Lucia Land is developing a residential subdivision called Marbella Lake Residences in Victoria, Laguna. The project will feature a man-made lake and Sta. Lucia’s trademark lighthouse. Other amenities of Marbella include a community clubhouse, a basketball court, and a “paradise island” with a swimming pool. Sta. Lucia President Exequiel Robles highlighted the importance of open spaces and proximity to nature in their residential developments.
Based on our Q4 2021 Residential Survey, about 42% of respondents chose Laguna for their next horizontal residential unit investment, followed by Cavite (19%) and Batangas (13%). In our opinion, Southern Luzon remains an attractive option for investors eyeing to buy residential units outside Metro Manila. Despite the Covid-19 pandemic, we have observed a steady demand for horizontal residential projects specifically in the Cavite–Laguna–Batangas (CALABA) corridor. From 2020 to 2021, Colliers recorded the take-up of about 31,200 house-and-lot (H&L) and 7,700 lot-only units in these provinces. Colliers believes that the growing residential demand in Southern Luzon should be supported by the completion of big-ticket infrastructure projects such as the North–South Commuter Railway, NLEX–SLEX Connector Road, and Cavite–Laguna Expressway (CALAX). In our view, demand should also be sustained by investors’ growing preference for less dense locations which offer larger living spaces and more open areas.
DFNN, tech firm team up for data center in Bataan
DFNN Inc. partnered with U.S.-based company Nautilus Data Technologies for the development of a green data center in Bataan. Nautilus is known for building the world’s first water-based data center design. Nautilus’ data centers are also known for being energy efficient. DFNN is optimistic that demand for data centers in the country will continue to grow, partly driven by the need for e-learning and e-government.
Data from Arizton show that data center investments in the Philippines are expected to reach USD635 million (PHP33 billion) in 2027 from USD298 million (PHP15.5 billion) in 2021. Colliers believes that demand for data centers should be sustained by the growth of e-commerce and cloud computing, as well as the government’s push to digitize its processes. Colliers recommends that foreign data center operators enter joint venture agreements with local firms to take advantage of their real estate assets and familiarity with the domestic market. Stakeholders should also take advantage of fiscal incentives provided by the government. According to the Board of Investment, data centers are among the priority industries listed in the Strategic Investment Priority Plan (SIPP), which are eligible for tax incentives under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law.