Infrastructure projects to boost Central Luzon property market
CENTRAL LUZON, particularly Clark in Pampanga, is emerging as a real estate hotspot, with the numerous infrastructure projects and industrial development in the region.
“The usual suspect outside of Metro Manila is Central Luzon,” Michael R. Mabutol, president and managing director of Pinnacle Real Estate Consulting Services, Inc. told reporters after the company’s media briefing on Jan. 23.
In particular, Clark is expected to reap the benefits of the infrastructure that will improve connectivity among the provinces in the area and beyond.
For instance, Clark International Airport is undergoing an expansion which will increase its capacity to eight million passengers a year, while the Subic-Clark Cargo Railway which will provide freight service between the two economic zones.
Pinnacle also noted the proposed New Manila International Airport in Bulacan. Once completed, the airport will be able to accommodate 100 million passengers a year.
With increased connectivity in Central Luzon, Pinnacle noted the area will be more attractive for developers given the possible price appreciation as a result of these projects.
“It improves physical connectivity, thereby, stimulating economic activities and opening up new opportunities… Another benefit… is capital appreciation. As we may know, maraminginfrastructure projects sa Central Luzon [there are many infrastructure projects], and most… ngland doon [of the land there] is agricultural, so can just imagine ‘yung [the] price appreciation which can happen in the short term because of the infrastructure projects,” Leo C. Doplito, director for research and consulting of Pinnacle said during the briefing.
A major project that is being developed is Clark Global City. The 177-hectare development is being undertaken by businessman Dennis A. Uy’s Global Gateway Development Corp. (GGDC). Mr. Uy’s group secured the government’s approval for the lease rights of Clark Global City for a total of 75 years. This came after the group’s $1-billion acquisition of the growing logistics hub in 2017.
GGDC’s parent, Udenna Development Corp., earlier said it plans to invest $6 billion for the development of Clark Global City. This includes the construction of more office buildings, residential developments, hotels, hospitals, schools, transport terminal, sports center, and a casino and entertainment complex.
With the public and private projects being rolled out in the region, Pinnacle said the benefits will be felt not just in Central Luzon but nearby areas.
“When we say Central Luzon, it does not only focus on Pampanga alone. Development in Bulacan, in Clark. It will spill over to other areas such as Tarlac, Pangasinan, and La Union,” Mr. Mabutol said.
Source: Business World Online