Developers press on with land buys near delayed transport corridors in Philippines, defer launches

Property consultants say Philippine developers are acquiring land near planned transport corridors outside Metro Manila despite infrastructure delays, while holding back project launches until construction advances. Joint ventures and phased development are being used to manage risk.

Property developers are pursuing land acquisitions near planned transport corridors outside Metro Manila despite infrastructure delays, while holding back project launches until construction progresses, according to property consultants.

Cushman & Wakefield Philippines Director for Research Claro dG. Cordero, Jr. said developers are becoming more selective in acquiring land, particularly in areas where infrastructure construction is underway and demand can be supported even before transport projects are completed. “The market is deferring launches but not land positions. Selectivity separates strategy from speculation,” he said.

Colliers Philippines Research Director Joey Roi Bondoc said delays in infrastructure development could give property companies more time to evaluate potential land acquisitions, particularly outside Metro Manila. He cited SM Prime Holdings, Inc.’s expansion in Clark, Pampanga, near a station of the North-South Commuter Railway as an example of developers pursuing land near planned transport corridors.

Mr. Bondoc said acquiring land during the early stages of infrastructure construction could allow developers to secure properties at lower prices than those that might prevail once the projects are completed. He also said foreign property companies continued to show interest in horizontal residential developments outside Metro Manila, citing take-up rates averaging 90 to 95 per cent.

Property consultants cited joint ventures and phased development as ways for developers to manage financing requirements and risks associated with large-scale projects. Mr. Bondoc cited the partnership between Federal Land, Inc. and Japan’s Nomura Real Estate Development Co., Ltd. for the 600-hectare Riverpark estate in General Trias, Cavite, being undertaken through their joint venture Federal Land NRE Global, Inc.

Savills Philippines Head of Research Dino G. Palanca said joint ventures could help developers reduce their individual capital requirements while distributing financial risks among project partners. Mr. Cordero said developers were increasingly seeking to align project phases with existing demand rather than relying solely on the expected completion of transport infrastructure.