Beyond Metro Manila: The 4 best-buy cities for property

It’s safe to say living in Metro Manila is not the best thing one could aspire for in this day and age. Traffic is awful. The MRT is overcrowded and sometimes goes off the rails. Pollution is terrible. And property is no doubt expensive. 

 

“If you ask a resident of Metro Manila living [along] the main thoroughfares, they will tell you that it's really bad,” Jess Nicdao, president of the Pampanga Chamber of Commerce and Industry, says in an interview with iMoney Philippines.

 

But far more serious reasons are there for people to consider moving out of Manila. According to the Pamapanga business leader, “there is a danger of catastrophe if Manila is hit by a typhoon or an earthquake. When Metro Manila stops, the whole country stops.”

 

The Pampanga Chamber of Commerce and Industry is advocating for businesses to take a look at the countryside and set up offices outside the Metropolis. “Our advocacy right now is ‘decongest Metro Manila for our country’s sake,” Nicdao says.

 

Yves Luethi, vice president of KMC MAG Group, a real estate brokerage firm, agrees. “If Metro Manila remains this way, it would be more difficult to attract investors, encourage talented labor force to continue working in the city, and sustain the level of growth the Philippines needs to prosper.”

 

The space shortage in Manila has led to the growth of “next wave” cities, which can be the new business districts. With the increasing number of businesses and developers setting up shop in these cities, you should also consider properties in these up and coming cities and provinces.

 

Because there’s more to Metro Manila or Cebu or Davao (or the Philippines) for that matter, here four cities to consider when the urge to move out of the Metropolis bites:
 

Porac, Pampanga

 

Pampanga’s economy is on the up and up. It may not be one of the biggest provinces, but it has several major developments in place that include three SM malls, three Robinsons malls, and one Ayala mall. For those looking to relocate out of Manila but don’t want to go too far Pampanga is an attractive option.

 

Developers like Ayala Land Inc. (ALI) have seen the potential of Pampanga. ALI is prepared to invest P75 billion in the town of Porac to develop Alviera, an integrated mixed-use development which the company hopes to be “the growth center of Central Luzon.” This 1,125-hectare development will feature an industrial park, residential areas, and universities, making the area a mixed-use community that will serve as the region’s commercial hub.

 

Pampanga is conveniently located right in the middle of Central Luzon.  Via NLEX and SCTEX, Metro Manila is just over an hour away from Porac. Pampanga also has an international airport in Clark – “with better runways and less congested than Manila,” Nicdao says – that makes travel comparatively easy.

 

These new developments are still in their early stages, so seize the opportunity and buy property while prices are still low.

Based on Avida listing of Alviera prices the range for a house and lot (single home, 125-313 sqm) is P3.1M-P5M.


 

 

 

Legazpi City, Bicol

 

The hub of Bicol region not only features the picturesque Mayon Volcano, but a rapidly developing economy with a bustling BPO industry and large-scale infrastructure developments. It was named as one of the most competitive cities in the Philippines by the Asian Institute of Management — an impressive feat considering Super Typhoon Reming caused havoc in Legazpi just eight years ago.

 

“Our city ranks fifth as fast-rising city in the Philippines in terms of infrastructure and business development and in peace and order situation,” then-Mayor Geraldine Rosal said in a 2013 interview.

 

And that growth has continued. Property developers are hopping in on the Legazpi growth bandwagon, with SM Prime Holdings, Robinsons Group, and Ayala Corporation pouring in billions of pesos to put up malls and residential developments in the city – the process generating jobs and additional income for Legazpi.

 

If you’re looking to get away from Metro Manila but still enjoy the benefits of a fast-growing city, Legazpi has a lot to offer at much lower prices. Its massive infrastructure development, business growth, and growing influx of foreign and domestic tourists – according to incumbent Mayor Noel Rosal – make it the next investment hub in the Philippines.
 

Based on OLX listing the price range for a house and lot is P1.7M-P7M for a 2-storey, 3 bedroom house from Camella Homes.
 

 

 

Iloilo City, Iloilo

 

Once the most prominent Philippine city after Manila, Iloilo was eclipsed by neighboring Cebu. 

But over the last two decades, Iloilo has shown signs of a reawakening. With roads and airports being rebuilt, infrastructure development is reshaping the landscape. Iloilo is now an attractive destination for businesses and potential homeowners alike.

 

"The economy in Iloilo is very vibrant right now… Iloilo has been like a sleeping city before. We are very lucky and blessed that some of the big names in the industry here in the Philippines came to Iloilo," Felix Tiu, head of the Iloilo City Trade and Investment Board, told a news site in November 2014. Tiu also noted Iloilo’s economy has been increasing 10 percent yearly since 2010, making it a huge draw for investors. It’s also No. 91 in Tholon’s Top 100 Outsourcing Destinations 2015.

 

Developers have noticed Iloilo City’s resurgence with Megaworld developing the Iloilo Business Park, a 72-hectare township designed to become the next central business district in Iloilo City. The Iloilo-AyalaLand TechnoHub is also being built, attracting more BPO investments in the city. SM mall, which used to be in an isolated part of town, has developed its vicinity into a commercial hotspot as part of its expansion strategy.

 

Despite these new developments, the city retains an old-world charm with its historic churches, heritage houses, and cultural districts.

 

For would-be homeowners, several developments both in and just a few minutes outside the city are available. The prices dependd on the developer.

Based on Avida VIllage prices the range for a house and lot (single home style, 30 – 110 sqm) is P1.7M - P2.5M
 

 

Bacolod City, Negros Occidental

 

Home to the colorful MassKara festival, Bacolod is another up-and-coming city poised to become even bigger. It’s now No. 86 in Tholon’s Top 100 Outsourcing Destinations 2015, up 7 notches from 2014.

 

Major property developers are now in Bacolod, reflecting its growth potential. Like Iloilo City, Bacolod’s proximity to Cebu makes it an attractive location for BPO companies and foreign investments, according to Luethi.

 

Megaworld is investing P35 billion over the next 10 years to develop two townships in the city. The projects are expected to generate around 250,000 jobs. 

 

Ayala Land is in the process of constructing houses in its North Point development, with some units already available for turnover. 

 

Last March, the property developer broke ground for Amaia Steps Capitol Center which will feature a hotel, a residential condominium and a shopping mall. 

 

SM group plans to build a Park Inn by Radisson next to the existing SM mall.

 

“Their presence speaks about quality and class. Once they are present in the city, we can say that our city is now made,” Mayor Monico Puentevella said at the Amaia groundbreaking.

 

Get in on Bacolod’s rapid growth by buying property before prices skyrocket.

Based on Amaia Scapes North Point prices the range for a house and lot (bungalow pod, twin pod, carriage pod, single home styles 25-75 sqm.) is P798,000-P1.25M.
 

 

 

What to look for...
 

Looking to buy property outside Metro Manila? Keep these things in mind!

Check out the nearby infrastructure. Knowing when and where roads and other transportation infrastructure will be built is invaluable as property prices tend to skyrocket once roads are complete.

 

Look at developers’ projects. These are signs that a city is on the verge of development and modernization. “We believe that with the ongoing construction boom, all next-wave cities stand a chance at being the new place preferred by buyers,” says Angela Manese, Residential Division Manager of KMC MAG Group.

 

Opt for developments from top-tier developers. Ayala, Megaworld and other developers tend to build integrated, mixed-use developments that allow for a work-live-play setup. Buying from a top-tier developer also ensures that the property is safe and accessible with the necessary infrastructure – power, water and communication – in place.

 

Be cautious in dealing with fly-by-night brokers. Before investing money in a property make sure the land is titled and the paperwork checks out.

If you’re ready to move out of Metro Manila, one of the cities we’ve checked out may be the perfect destination for you. Get more for less money when you invest in the countryside.

Want to take the property plunge? Find the best home loan with our comparison tool.