Last September, the Department of Transportation (DOTr) announced that the Mega Manila Subway Project was 26% complete. Set to be fully operational by 2027, the project will be the country’s first-ever underground rail, connecting Valenzuela to Paranaque.
Upon completion, travel time from Quezon City to the Ninoy Aquino International Airport (NAIA) will be cut from an hour to around 30 minutes. The much-anticipated development will feature 17 stations, spanning 35 kilometers. It will be expected to carry roughly 600,000 people per day in another move to alleviate congestion and commuter woes. With its construction also comes a projected increase in land value and residential and commercial property demand around the areas the project encompasses.
Transit-oriented locations are both a priority for the national government and investors these days, as well. The Department of Human Settlements and Urban Development (DHSUD) and groups like the Chamber of Real Estate and Builders’ Associations (CREBA) see transit-oriented communities as a way to address our current housing deficit.
The numbers speak for themselves, too, in terms of potential appreciation and rental yields. According to some notes from the “Creating Livable Asian Cities” book by the Asian Development Bank (ADB), land value within a kilometer from MRT-3 stations has only increased since 1995. It is also telling that the average value per square meter of rental lots nearer these stations has increased by roughly 220%, from P4,972 per sqm in 1995 to P16,036 per sqm in 2015.
Data from the Census and Economic Information Center also shows that the Philippines recorded a year-on-year property price growth of 3.3% from March 2015 to June 2021. Of course, that figure would be relatively higher if it weren’t for geopolitical turmoil (US-China trade war) and the country’s economic contraction during the pandemic (property prices fell to as low as -9.4% in June 2021).
Mobility also translates into increased productivity. For residents around these areas such as Pasig, Quezon City, Makati, and Paranaque, the Mega Manila Subway allows them to have properties with direct access to these lines. Not only will these stations be providing convenience to all their healthcare, retail, and employment needs, these offer them the perks of travel efficiency and accessibility.
Where to Invest
There is expected to be a total of 13 stations that will be located in the aforementioned cities. And with firms like Colliers International Philippines saying that property prices will be increasing by 1.5% and rental rates by 1.7% in the coming years. A condo around these parts is ideal for property investment, especially in the middle-income segment.
Some ready-for-occupancy (RFO) condominiums that deserve some consideration in Quezon City are Trees Residences and Amadea. These developments from SMDC and Suntrust Properties offer amenities that today’s home seekers value, like ones for recreation, fitness, and security.
They are also just a few minutes away from the future Mindanao Avenue station. Property prices here range from roughly ₱2,100,000 to ₱6,800,000. A standard 18-sqm. studio unit at Trees Residences, for instance, only costs ₱2,081, 000. Own a space here for only ₱8,600 a month.
Meanwhile, Makati and Paranaque RFO condos such as SMDC’s Air Residences and Field Residences offer residential developments near the NAIA Terminal 3 station, Bicutan, and leading business districts in the southern Metro Manila area. A preselling unit at a condo like Red Residences should appeal to end-users, as well.
Investors should also look at properties in key cities like Pasig and Taguig, as they also stand to benefit from one of the most ambitious infrastructure projects we’ve had in recent years. Here, prices for units range from about ₱5,000,000 to ₱9,000,000. For example, a standard 24-sqm. one-bedroom unit at Field Residences only costs ₱4,489,000 and is available for just ₱16,000 a month.
The Mega Manila Subway is set to bring Filipinos into a more accessible, less congested Metro Manila. Once finished, it also offers property seekers and investors more flexibility in their investment options. With good growth potential and pent-up property demand for metro condos expected in 2022 and beyond, these locations are good start-off points to invest in.
Ohmyhome was launched in the Philippines in September 2020, following the company’s establishment of a tech team in the country in 2017. Ohmyhome was originally founded in 2016, and subsequently rose in Singapore as a leading PropTech solution and licensed real estate agency.
Ohmyhome expanded into the Philippines so that Filipino home seekers can have a real estate partner that they can trust to have their best interests at heart and can be relied upon to provide exceptional services throughout the entire property journey.
Featuring thousands of properties across many of the Philippines’ major real estate brands, Ohmyhome differs from other local platforms by going the extra mile and extensively helping buyers narrow down their choices and find the property that best suits their budgets, home needs, and lifestyle preferences.
The company’s Real Estate Agents not only help in the shortlisting of options but also provide professional services through the entire purchasing process. These include assistance in property inspections, negotiations, the finalization of the Conditions of Sale, deposit collection, the submission of property documents, as well as providing buyers regular updates.
Ohmyhome helps Filipinos find their dream homes, all while making sure each real estate transaction is complete and is an efficient and enjoyable experience.