South Luzon is quickly becoming a major economic center in the Philippines. Recent findings from Colliers Philippines indicate that this trend is expected to persist. With substantial infrastructure improvements, an increase in local and foreign manufacturing companies, and a favorable investment environment, the region is garnering interest from global investors.
During a recent briefing, Colliers emphasized the potential for ongoing growth in South Luzon’s property market. The region’s economic strength is not only transforming the local area but also offering profitable opportunities for individuals interested in Philippine real estate, whether for investment purposes or as a vacation home.
The rise of the CALABA corridor
One of the standout areas in South Luzon is the Cavite-Laguna-Batangas (CALABA) corridor. This region is experiencing unprecedented growth, evidenced by the massive launches of master-planned communities by major property firms. Colliers is optimistic that the CALABA corridor’s economic expansion and property price appreciation will be sustained in the near to medium term.
Developers are investing heavily in this region, acknowledging its potential as a hub of economic growth. The increasing number of these carefully planned communities is not only changing the real estate environment but also improving the residents’ quality of life by providing integrated amenities and services.
South Luzon’s young workforce drives demand
One of the main reasons for this growth is the young and dynamic workforce in South Luzon. Around 65% of the region’s population is between the ages of 15 and 64, which leads to strong personal consumption and economic activity. This advantage in demographics is drawing businesses and increasing the demand for residential properties.
Furthermore, in 2022, Southern Luzon accounted for 15% of the total Overseas Filipino Workers (OFWs) deployed, surpassing other key regions. These OFWs frequently invest in property back home, particularly in the ₱ 2.5 million ($44,625) to ₱ 7 million ($124,950) price range. Developers are eager to meet this demand and are actively seeking land to build residential units that cater to both local residents and Filipinos working abroad.
Steady price increases in horizontal projects
Investors have good reason to be excited about the consistent price increases in horizontal residential projects, such as house-and-lot and lot-only offerings. Between 2016 and 2023, house-and-lot projects in the CALABARZON area experienced an average annual price increase of 7.2%, while lot-only projects saw a 6.7% annual growth.
These consistent increases in property values indicate a robust and steady market. For international investors, this trend suggests potential for substantial returns on investment, especially in areas where demand continues to exceed supply.
Infrastructure and unique townships fueling expansion
The development of infrastructure is crucial for the growth of South Luzon. Major projects such as the North-South Commuter Railway (NSCR), Cavite-Laguna Expressway (CALAX), and LRT-1 Cavite Extension are greatly enhancing connectivity and accessibility. These advancements are prompting developers to actively acquire land and invest in the region.
New township projects are no longer just about providing housing; they now incorporate unique features to stand out in a competitive market. These developments include sports facilities, bike lanes, sustainable elements, and even golf communities. Examples include Vermosa, which boasts a state-of-the-art sports complex, Nuvali with its extensive bike lanes, and the eco-friendly designs of Sevina Park and Arden Botanical Estate.
These innovative projects align with government initiatives on infrastructure and decentralization, further enhancing the appeal of South Luzon as a prime investment destination. They are attracting both local and foreign investors eager to capitalize on the region’s upward trajectory.
How South Luzon offers potential for foreign real estate investors
The insights shared during the Colliers Philippines briefing highlight the significant potential of South Luzon’s property market. The region offers a compelling case for investment with strong economic indicators, consistent property value appreciation, and groundbreaking developments.
For those interested in Philippine real estate, now is a great time to consider opportunities in South Luzon. The region’s sustained growth, strategic infrastructure projects, and innovative township developments make it an attractive hotspot for both investment and lifestyle.
