The dearth of developable land in major business districts in Metro Manila has resulted in more aggressive residential development in peripheral areas, including the northern and southern portions of Manila, the CAMANAVA corridor, Makati Fringe, and Alabang–Las Piñas.
Over the past few years, the need to develop additional projects has compelled developers to consider land in fringe areas. The dearth of developable land in major business districts in Metro Manila has resulted in more aggressive residential development in peripheral areas. The development of these master-planned communities complemented by the completion of road projects raised the attractiveness of condominium projects in fringe areas. Over the past 24 months, Colliers has observed strong take-up in the northern and southern portions of the City of Manila (Manila North and South), the Caloocan–Malabon–Navotas–Valenzuela area (CAMANAVA), and the Makati Fringe, indicative of the growing appetite for condominium units in these up-and-coming locations. Colliers data show that submarkets that have shown strong pre-sales include the CAMANAVA corridor, Alabang–Las Piñas, and Manila North. These areas accounted for 82% of aggregate take-up for affordable-to-mid-income projects in 2021.
Colliers recommends that real estate developers continue acquiring developable parcels of land in the peripheries of business hubs like the Makati CBD, Bonifacio Global City, and Ortigas Center. We recommend property firms tailor their land-banking and development strategies to take advantage of the completion of new railways, subways, and the New Manila International Airport over the next 12 to 36 months.
Developers should also closely observe factors that influence demand, including changes in mortgage rates and major sources of remittances, which continue to fuel a portion of condominium demand in Metro Manila. Meanwhile, investors and end-users should closely monitor tweaks to payment schemes and discounts being offered by developers and how these compare to pre-pandemic terms.
Colliers is optimistic that the completion of infrastructure projects over the next three to six years will be crucial in reviving condominium demand post-Covid-19. In our view, these projects will be particularly important in raising residential take-up outside of core locations. This should result in further diversification of residential projects within Metro Manila.
