Megaworld launches 20-story Pearl Global Residences
Megaworld launched its 11th condominium tower within its 30-hectare (74 acres) Mactan Newtown township in Lapu-Lapu City, Cebu. The 20-story Pearl Global Residences consists of 222 units with sizes ranging from 40 to 116 sq metres (430 to 1,250 sq feet). It is also located within the developers’ integrated community that houses both office and residential developments and the 547-room Savoy Hotel Mactan. The project is expected to raise PHP2.3 billion (USD45.1 million) in sales upon its completion in 2025.
Colliers believes that there is sustained demand for condominium projects located within townships. Residential projects such as the One Astra Place, Mandani Bay Suites and Mandani Bay Quay Towers are located within integrated communities and have recorded an average take-up of 79% as of the end of 2019. In our opinion, the convenience of being near office and retail establishments partly contributes to strong take-up. To take advantage of this demand, Colliers recommends that property firms continue developing integrated communities outside Metro Manila. This should be facilitated by strategic landbanking in property investment hubs outside the capital region such as Cebu.
Covid-19 stops Mindanao Railway in its tracks
The implementation of the enhanced community quarantine in Luzon has caused the postponement of the groundbreaking of the Mindanao Railway Project (MRP). The Department of Transportation (DOTr) has initially scheduled the groundbreaking of the project in December 2019 after the approval of the National Economic and Development Authority (NEDA) in November 2019. Meanwhile, proposals to allow the entry of construction materials for the government’s Build Build, Build, Build program amid the lockdown are in the process in a number of areas in the Davao region.
The postponement of the MRP and other infrastructure projects is likely to dampen the region’s economic growth. However, once completed, we believe that this project will likely disperse economic activities and benefit the property sector. The improved access between cities and provinces in Mindanao should help unlock property values in the region. Colliers recommends that developers closely monitor the implementation of public infrastructure projects such as the MRP as these are likely to influence their property development strategies.
Felcris to build hotel, convention center
Property developer Felcris Hotels and Resorts Corp. (FHRC) plans to build a hotel and convention center inside the Felcris Centrale compound in the next three years. The 16-floor hotel and convention center shall consist of 280 rooms. Aside from this project, the PHP10 billion (USD500 million) Felcris Centrale township also includes restaurants, specialty shops, and office spaces that house a business process outsourcing company. FHRC plans to complete the project by April 2022.
In our opinion, the construction of a hotel and convention center inside Felcris Centrale and the upcoming infrastructure projects will likely contribute to positioning Davao city as a hub for Meetings, Incentives, Conferences and Exhibitions (MICE). Data from the City Tourism Office (CTO) show that the city recorded 2.5 million arrivals (Gumba Jr., 2020)1 in 2019, up 7.5% from the 2.3 million arrivals in 2018. The CTO attributed the increase in tourist arrivals to the hosting of MICE activities such as the Davao Investment Conference and the Philippine Medical Association’s Annual Convention. Tourist arrivals are likely to drop due to COVID-19. Colliers encourages hotel operators to start lining up marketing efforts to re-capture demand from domestic and foreign tourists once the COVID-19 health scare passes.