Housing developments, infra projects to drive land prices in southwest Metro Manila  – study

The new mid- to upscale housing developments and the completion of infrastructure projects will be the main drivers for the real estate sector of the western portion of southern Metro Manila in the next five years, according to a study by local research firm Cuervo Far East. 

 

The "Southern Manila West Growth Area (WGA)," which comprises portions of the cities of Las Piñas and Muntinlupa on the west section of the South Luzon Expressway (SLEX), will see 10 to 15 percent increase in land value annually until 2019, the firm said. 

 

"The Southern Manila WGA was identified based on an active increase in historical market values posting an average of 20 percent per year since 2009," Cuervo Far East president and CEO Jose Maria Fernandez-Cuervo said.

 

"While for the next five years, we made a conservative projection of a 10 to 15 percent rise – but could definitely go further,” he added. 

 

Based on zonal values conducted by the Bureau of Internal Revenue (BIR), the villages under Southern Manila WGA such as Ayala Alabang, Alabang Hills Subdivision, Hillsborough Subdivision, and Southvale have risen from P14,000 per square meter in 2009 to P62,000 per square meter in 2014.

 

“An expected increase in zonal values in the near term will affect the cost of sales for land which will result in higher asking prices,” Cuervo noted.

 

He explained that the current residential land valuation for selected residential developments now reached a minimum of P30,000 to P80,000 per square meter but due to new developments and infrastructure projects, the market value of land could go as high as P100,000 per square meter by 2019.

 

The study pointed to effective road networks and new developments brought about by some of the biggest real estate developers in the Philippines were mainly responsible for raising land prices.

 

The study highlighted the major infrastructure projects that are existing and ongoing projects in this area, like the Manila-Cavite Expressway (CAVITEX), SLEX-Daang Hari Road, Muntinlupa-Cavite Expressway (MCX), and the Cavite-Laguna Expressway (CALAX).

 

These new road networks will offer new routes to motorists and can minimize the traveling time going to Manila, various Philippine ports, airports, and nearby central business districts by almost half of their current time.

 

“The accessibility, geohazards, and new developments or facilities brought about by some of the biggest real estate developers also create a deep impact on the land values in Southern Manila WGA. These are some of the biggest factors that attract investments," Cuervo said. – Danessa O. Rivera/VS, GMA News