By Juliana Chloe A. Gonzales, Reporter
PROPERTY DEVELOPERS are pursuing land acquisitions near planned transport corridors outside Metro Manila despite infrastructure delays, while holding back project launches until construction progresses, according to property consultants.
Cushman & Wakefield Philippines Director for Research Claro dG. Cordero, Jr. said developers are becoming more selective in acquiring land, particularly in areas where infrastructure construction is underway and demand can be supported even before transport projects are completed.
“The market is deferring launches but not land positions. Selectivity separates strategy from speculation. The sophisticated buyers are targeting parcels where construction is visibly underway, right-of-way is substantially resolved, and the catchment supports demand even without rail,” he said in an e-mailed response to BusinessWorld on Oct. 13.
Colliers Philippines Research Director Joey Roi Bondoc said delays in infrastructure development could give property companies more time to evaluate potential land acquisitions, particularly outside Metro Manila.
“If there is a positive that these delays have given them, they now see an opportunity to be more strategic and selective in the parcels of developable land that they will acquire,” he said in a phone interview.
Mr. Bondoc said property companies were pursuing land acquisitions near planned transport corridors, citing SM Prime Holdings, Inc.’s expansion in Clark, Pampanga, near a station of the North-South Commuter Railway.
He said developers could use the period before infrastructure projects are completed to identify potential sites and negotiate land acquisitions.
“A strategic pause is crucial and is needed at this point, especially in Metro Manila. Outside of Metro Manila, what would be ideal to implement is to start land banking,” he said.
Mr. Bondoc also said acquiring land during the early stages of infrastructure construction could allow developers to secure properties at lower prices than those that might prevail once the projects are completed.
Meanwhile, Mr. Cordero said developers should consider the progress of infrastructure construction and the existing demand in surrounding communities before committing to new projects.
He said development plans that depend heavily on the scheduled completion of railway projects could expose property companies to delays.
“A transit-oriented masterplan sequenced around an official rail opening date is built on an assumption, not a schedule. Early phases must stand on current road access and existing catchment demand, while the rail-dependent density premium is held in reserve until station construction reaches a verifiable milestone,” he said.
He described the approach as a transition toward a “build for today, entitle for tomorrow” strategy, in which developers proceed with projects supported by existing infrastructure while preserving opportunities for future expansion.
JOINT VENTURES
Property consultants also cited joint ventures and phased development as ways for developers to manage financing requirements and risks associated with large-scale projects.
Mr. Bondoc cited the partnership between Federal Land, Inc. and Japan’s Nomura Real Estate Development Co., Ltd. for the 600-hectare Riverpark estate in General Trias, Cavite.
The mixed-use development is being undertaken through Federal Land NRE Global, Inc., the companies’ joint venture.
Mr. Bondoc said foreign property companies continued to show interest in horizontal residential developments outside Metro Manila, citing take-up rates averaging 90% to 95%.
Savills Philippines Head of Research Dino G. Palanca said joint ventures could help developers reduce their individual capital requirements while distributing financial risks among project partners.
“Joint ventures are particularly useful because they allow developers to share the financial commitment and risk with partners. They can also bring in landowners, institutional investors, or other parties that contribute land or capital, reducing the amount of funding that a single developer needs to provide,” he said in a Viber message.
Mr. Palanca said developers were prioritizing cash flow preservation and financial flexibility amid elevated financing costs and uncertainty over the economic outlook.
Mr. Cordero said joint ventures, phased construction, preselling of initial residential components, and the reinvestment of proceeds from stabilized assets were among the strategies being adopted to reduce the capital requirements of property developments.
He said developers were increasingly seeking to align project phases with existing demand rather than relying solely on the expected completion of transport infrastructure.
The consultants’ observations come amid a challenging investment environment.
The World Bank projected that net foreign direct investment would account for 1.7% of the Philippines’ gross domestic product this year, compared with 1.6% in 2025.
Mr. Cordero said investors considering infrastructure-linked property developments should evaluate whether projects could generate demand independently of future transport connections.
“The pitch that resonates is not that the Philippines is a high-growth market. It is that the country is a structurally under-served market where the infrastructure gap is finally being closed through credible frameworks, and early, well-structured entry captures the value that follows,” he said.