Just like most of the Philippines’ economic sectors severely affected by the pandemic, the recovery process for the Real Estate Market has been sluggish, but has gained momentum ever since the economy fully opened.
The government’s decision to continue many of the programs initiated by the previous administration promoted stability, allayed uncertainties of economic stakeholders, and allowed the business of economic recovery to continue smoothly. One such program is Build, Build, Build (BBB).
In Metro Manila (MM) so far, the BBB program has been responsible for the rehabilitation of the MRT-3 which has greatly helped the public in their daily commute from the northern to the southern part of the metro. Repair and construction of roads and highways including the building of Skyway Stage-3 which has greatly improved travel time from MM going to the northern part of Luzon has been attributed to the BBB. These projects have decongested major roads, enabling faster exchange of products and services and increased the accessibility of Central Business Districts throughout MM thereby gaining newfound interest of real estate investors to open up businesses there.
According to LRG, continuing BBB is good for the Real Estate Market. Jericho Linao, Chief Operating Officer of LRG explains, “Accessibility is one of the key considerations in choosing a location for work or for one’s residence. Continuing the BBB will greatly improve ease of access to locations outside of MM which then makes these areas more attractive to potential locators. Improved accessibility to the nearby provinces helps to further widen the scope of real estate projects as developers begin to branch out and build in these locations.”
When asked if BBB projects help in increasing the value of properties in its covered locations, LRG Associate Director Steph Ng replied, “Yes, BBB changes the overall livability factor of the area thus contributing to the value appreciation of the property. If the locations are seen to be more livable or the environment is more fit for work and play, businessmen are more inclined to invest in those particular locations thus elevating market prices.”
BBB projects in MM also impact the Real Estate Market of nearby provinces. Linao explains: “The pandemic has made us realize the importance of residing or working in places which are not heavily congested and have access to fresh air. The BBB projects in MM impact the real estate market in nearby provinces since it helps make travel time much shorter to these areas. The improved roadways leading to nearby provinces make these areas more appealing to those who are from MM and who are considering either investing in a second home outside of the city or relocating outside of the city. Ng added: “Provinces or locations not directly covered by the BBB can also benefit given that they become more accessible to major business centers. Since their property values are not yet that high, they can become a second option for investors.”
Linao believes that BBB projects should continue to expand in areas where there are still vast amounts of land which are not yet developed: “The provinces in Central Luzon would be a good next area to cover so that real estate developers would start to build projects in them, thus spreading the growth of real estate developments in currently untapped locations.”
The Philippines’ Real Estate Industry needs all the help it can get as it continues to rebuild. With this scenario, LRG believes that continuing to Build, Build, Build is the key to a faster and more effective recovery not only for the Real Estate Market but for many other industries as well.
