Cuervo Far East, Inc. (CFEI) is a comprehensive real estate service company that caters to all property-related requirements for over 30 years. It is an established local company in the Philippines that applies globally accepted methodologies, work procedures and systems.
While the year 2014 was coming to an end, CFEI made valuations that property values in the southern Metro Manila west growth area (WGA) are likely to double in the next five years. The identified WGA comprises part of the cities of Las Piñas and Muntinlupa, and the west section of the South Luzon Expressway, including parts of Nuvali.
In CFEI’s research, they cited some of the factors that affected the mentioned valuation. These factors are accessibility, existing road infrastructure, presence of support services and facilities and low risk from geohazards. The study that the consulting firm conducted revealed that the Southern Manila WGA remained to be one of the safe areas in Metro Manila as far as floods and landslides are concerned.CFEI also added that the current land prices are still favourable for investments.
CFEI projected that land values in the mentioned areas would rise by about 10 to 15 percent a year for the high-end residential segments such as those in AyalaLand Premiere and Alveo Land in Nuvali. “The Southern Manila WGA was identified based on an active increase in historical market values posting an average of 20 percent per year since 2009. While for the next five years, we made a conservative projection of a 10 to 15 percent rise but could definitely go further,” said CFEI president and CEO Jose Maria C. Fernandez-Cuervo.
For the high-end residential segments, land values are seen breaching 100,000Php/square meter by 2019 or double the levels this year based on a 15-percent annual increase in values. For the upper mid-end property market on the other hand, land values are seen rising to 60,000Php to 80,000Php by the year 2019 or likewise doubling from levels this year based on a 15-percent annual growth rate in land values. This increase in value is significant especially that the market values of various villages in the area per square meter are as follows: 57,000Php to 62,000Php for Ayala Alabang, 38,00Php to 40,000Php for Alabang Hills, 38,000Php to 42,000Php for Hillsborough Subdivision and 30,000Php to 35,000Php for Ayala Southvale.
“An expected increase in zonal values in the near term will affect the cost of sales for land, which will result in higher asking prices,” Cuervo adds. Other factors cited for the steady appreciation in Southern Metro Manila WGA were the effective road networks and new development brought by some of the biggest real estate developers in the country such as Ayala Land Inc., Megaworld Corp. and Filinvest Land Inc. The study also highlighted the major infrastructure projects that are either existing or will open on or before 2018: The Manila-Cavite Expressway (Cavitex), SLex-DaangHari Road, Muntinlupa-Cavite Expressway (MCX) and the Cavite-Laguna Expressway (Calax). These new road networks are seen offering new routes to motorists that, in turn, can minimize the traveling time going to Manila, various Philippine ports, airports and nearby central business districts by almost half of their current time. The study has not even considered the ongoing construction of The Skyway Stage Three, better known as the NLEX-SLEX Connector, which is a joint venture of the Philippine National Construction Corporation (PNCC) and San Miguel Corporation. When considered, the valuation may grow even higher. “The accessibility, geohazards and new developments or facilities brought about by some of the biggest real estate developers also create a deep impact on the land values in Southern Manila WGA. These are some of the biggest factors that attract investments,” said Cuervo.
Demand for property in this area is also seen buoyed by the decentralization of businesses from traditional central business districts such as Makati, Ortigas and Fort Bonifacio alongside various developments and infrastructure projects.
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