The Department of Public Works and Highways (DPWH) recently unveiled priority projects under public-private partnerships (PPP), Business World reported. The majority of the developments are expressways.
These include the Central Luzon Link Expressway (CLLEX) Phase 11, which connects Cabanatuan City to San Jose City in Nueva Ecija. The project’s cost is P12.6 billion. Another priority project is Metro Cebu Expressway worth P56.9 billion.
All in all, there were 10 projects identified under the new administration’s PPP initiative.
A PPP project, according to the agency, is a service or business venture that is funded, constructed, and operated through a partnership between the government and the private sector. The government seeks funding when it has limited resources to build infrastructure.
More PPP Expressway Projects
Other than the ones mentioned above, the DPWH will prioritize more expressway projects in key areas in the country.
In Luzon, the agency will focus on constructing the P44.6-billion North Luzon Expressway East Phase II, a 91.10-kilometer (km) expressway spanning from Norzagaray in Bulacan to Palayan City in Nueva Ecija, and the 226.5-km Pacific-Eastern Seaboard Expressway, which extends from Atimonan in Quezon to Dinagalan, Aurora.
The DPWH will likewise prioritize Pangasinan-Nueva Ecija Expressway, a 180-km road stretching from Bolinao in Pangasinan to San Jose City in Nueva Ecija, and the 190-km Dingalan-Capas-Botolan Expressway.
In the Visayas region, the government will work on building an expressway that links the provinces of Iloilo, Capiz, and Aklan. Meanwhile, in Mindanao, they will prioritize Naawan-Opol-Cagayan de Oro City-Villanueva Expressway.
Aside from expressways, the DPWH includes other infrastructure projects in the PPP priorities. These include the 15-km Floating Bridge connecting Mindoro Island to Batangas, an east-west toll road designed to facilitate faster travel from Botolan in Zambales via Capas, Tarlac to Dingalan, Aurora, and vice versa, and the improvement, operation, and maintenance of the two-lane roadway in Benguet, Kennon Road.
Unlocking Property Values
Infrastructure projects are seen to increase property values and demand in the location they are in. In this Inquirer report published in April, property consultancy firm Colliers projected that the condominium market in Cebu will be more attractive with the rise of Metro Cebu Expressway, along with the recently completed Cebu-Cordova Link Expressway. Specifically, condos in mixed-use developments will benefit from the increased property interest in Metro Cebu, as they provide better rental prospects and price appreciation potential.
The consultancy agency further highlighted that the residential demand in Cebu will be supported by increased office leasing activities. The property hotspot recorded the highest provincial deals in 2021 with 38,600 square meters of transactions or 35 percent of total provincial office deals.
Aside from infrastructure projects and the rebound in office leasing, Cebu’s property market is set to get promising gains from the recovering tourism industry.
Overall, Colliers forecasted a “healthy demand from residential investors and end-users beyond 2022.”
Meanwhile, real estate advisor Cushman & Wakefield also sees a positive outlook for Central and North Luzon’s property market, as mentioned in this Business World report. The major infrastructure projects in the area will contribute to increased housing market values and home prices. In particular, the agency identified Bulacan Airport or the New Manila International Airport and MRT-7 propping up Bulacan to be an “appealing residential investment location.”
During the pandemic, provinces outside Metro Manila have seen great real estate demand. Cebu City remained the most in-demand real estate location on Lamudi in 2020. Meanwhile, Baguio City emerged as one of the top-searched locations.
Residential and Office Trends in PH
In the business networking night arranged by Lamudi last June, property consultancy firm JLL Philippines identified other trends shaping the property sector. One is the new government taking office. It may have prompted short-term subdued performance but it may provide legs for future growth, according to JLL. Greater prominence of sustainability and technology adoption will likewise influence the property industry as it continues to recover from the pandemic.
The trends shaping the real estate sector, including infrastructure developments, will be among the key topics to be highlighted in the upcoming The Outlook 2022: Philippine Real Estate Conference. Organized by top property platform Lamudi, the in-person event will be attended by various thought leaders coming from different real estate companies and related industries.
To know more about the upcoming conference, visit this page.
Sources: Business World, Inquirer