Real estate values in Tagaytay City and adjacent municipalities might initially plummet this year amid the uncertainty over Taal Volcano’s activities, according to a real estate consultancy firm.
JLL Philippines head of research consultancy Janlo de los Reyes said the properties affected by Taal Volcano eruption could experience a sudden drop in demand that would affect the current land values in areas surrounding the volcano.
“We may see prices plateau or even take a temporary dive for the short term,” he said Thursday during JLL Real Estate Market 2020 Outlook briefing.
De los Reyes, however, said prices might easily recover within the next 12 months once the volcano’s unrest was over.
He said the Filipinos’ high regard for family and home would make them hold on to their homes instead of selling their properties within the 14-kilometer radius of Taal Volcano.
“Even if they’re located in these risky areas, a lot of Filipinos will retain their homes. Even those living within the heavily affected area would still want to hold on to their properties, not caring whether values go down,” de los Reyes said.
He said the affinity of the victims of volcanic eruption to their properties and the gradual economic recovery of affected areas would contribute to the rise of land values in these areas soon.
JLL said that in terms of investments, there might be a spill-over of investments initially intended for the affected areas to locations within the provinces of Batangas and Cavite not affected by the volcanic eruption.
”For Southern Luzon, in terms of broader view, it is a well-positioned area. A lot of infrastructure projects are coming up. We expect continued growth for the property sector in these areas,” de los Reyes said.
He said another factor that would drive up land values in Cavite is the completion of Cavite-Laguna Expressway that would drive mobility in the area.
De los Reyes said Ayala Land already started investing in areas near or alongside Calax. “It will prop up property values once the access is fully opened,” he said.