Land prices in Metro Manila are expected to increase by a little more than five percent this year according to recent research from Colliers International. The rise is due in large part to growing demand from homebuilders who are starting to launch new projects after two years of limited activity.
The consultancy noted that land prices in Metro Manila had fallen by 1.7 to 9.8 percent during the COVID-19 pandemic. Colliers Senior Director and Valuation Services Head Paul Vincent Ramirez attributed this decline to developers opting against acquiring new plots as they waited for the situation to improve.
“(We) are starting to see a spike in interest for developable land, and this bodes well for the property market,” Ramirez told Philstar Global. “Acquiring parcels of land within and outside Metro Manila will be crucial in developers’ plans to line up new projects beyond 2022 as they capture demand in the market post-pandemic.”
He noted that Colliers predicts land prices to rise by 5.1 percent in 2022. This is still less than 2019, although not by much. Additionally, a lack of supply in central areas means developers will need to scoop up plots quickly or risk being frozen out.
“All property indicators – from office, residential condo, retail to hotels – are still correcting, but due to the scarcity of developable land in these major business districts, land values, while slightly down from 2019 peak, remain relatively stable and is expected to pick up starting this year barring any severe COVID-19 outbreaks,” Ramirez explained.
Megaworld buys key Metro Manila land plot
Megaworld has reached a deal with the Manila Jockey Club to purchase PHP1.8 billion of land in Sta. Cruz, Manila. The horse racing organization purchased the land all the way back in 1912, although the racetrack was moved to Cavite in 2003 with the area having been since developed into the San Lazaro Tourism and Business Park.
The land was highly coveted by Megaworld who will leverage the site to grow its footprint in Metro Manila. The developer is active in nearby Binondo where it built the Lucky Chinatown complex. The acquisition will be used to expand this into a township.
Keep Reading: Megaworld purchases properties from Manila Jockey Club to develop township expansion
