New growth area emerging in south MM
By Richmond S. Mercurio (The Philippine Star) | Updated December 16, 2014 - 12:00am MANILA, Philippines
A new growth area in the property sector is seen emerging in Metro Manila next year to follow in the footsteps of Makati, Ortigas and Fort Bonifacio, independent research firm Cuervo Far East Inc. said in a recent study. The study revealed that the western portion of southern Metro Manila known as the “Southern Manila West Growth Area” is fast emerging as a major area of growth in the real estate sector. Southern Manila West Growth Area is composed of portions of the cities of Las Piñas and Muntinlupa on the west section of the South Luzon Expressway (SLEX). Cuervo Far East said this area would experience robust growth in property prices within five years, with land value expected to increase 10 to 15 percent annually until 2019.
“The Southern Manila West Growth Area 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 Cuervo Far East president and chief executive officer Jose Maria C. Fernandez-Cuervo. Based on zonal values conducted by the Bureau of Internal Revenue, the study showed that villages in the Southern Manila West Growth Area such as Ayala Alabang, Alabang Hills Subdivision, Hillsborough Subdivision and Southvale have soared from P14,000 per square meter in 2009 to P62,000 per sqm in 2014. “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 said. With new developments and major infrastructure projects currently being developed in this area, the study indicated that the market value of land could go as high as P100,000 per sqm by 2019 from the current residential land valuation for selected residential developments at P30,000 to P80,000 per sqm.
Another factor of the steady appreciation in Southern Manila West Growth Area is due to the effective road networks and new developments brought about by some of the biggest real estate developers in the Philippines,” the study added. Among the new road networks seen to offer new routes to motorists and minimize traveling time are the Manila-Cavite Expressway (CAVITEX), SLEX-Daang Hari Road, Muntinlupa-Cavite Expressway (MCX), and the Cavite-Laguna Expressway (CALAX).
