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The Duterte administration’s ambitious “Build, Build, Build” infrastructure program is providing the Philippine real estate market with a substantial boost, as property supply and values rise amid growing demand. The trend is expected to continue further with the list of flagship projects under the program expanded to 100 from 75 originally.

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Some earlier projects found to be unfeasible were removed from the list, while new projects that were added include some unsolicited proposals and others being considered for tender under public-private partnership programs. All the projects have undergone feasibility studies.

The revised list of flagship projects under the program, which was launched in 2017, now includes the New Manila International Airport, as well as the renovation of the Ninoy Aquino International Airport, Davao International Airport, and Sangley Airport in Cavite. Also listed are the construction of the MRT Line 7, the rehabilitation of MRT Line 3, and the first phase of Metro Manila’s first-ever subway.

Property stimulus

Lamudi, the country’s leading online property portal, said that the build-up plan serves as a stimulus to properties not only in Metro Manila but wherever new infra projects rose across the country.

“The program is creating greater demand for real estate properties, particularly in areas outside Metro Manila,” it noted in a study.

The online marketplace also added that businesses, families, and individuals are reaping the benefits amidst potential improvements in commercial expansion, job opportunities, and accessibility.

Suburban provinces that are already seeing the effects on the real estate sector are Pampanga, Batangas, Laguna, Cavite, and Bulacan. According to data generated by Lamudi, the number of leads in these provinces rose by 20% between Q4 2018 and Q1 2019.

The property site explained that the completed projects of the Parañaque Integrated Terminal Exchange and the NAIA Expressway Phase 2 had provided the public with a glimpse of the program’s potential.

“As the Build, Build, Build program charges over the next few years, it will drive the Philippine real estate industry to greater heights,” said Lamudi, while noting that developers are seeking to take advantage of the spurt demand.

A Colliers International report said that the success of President Rodrigo Duterte’s plan to boost the infrastructure backbone of the country would dictate the direction of the real estate sector beyond his term,

“Based on the government’s infrastructure plan, Colliers expects Metro Clark, Metro Cebu, Iloilo, Bacolod, Bulacan province and Davao City to benefit from the Duterte administration’s infrastructure push,” said Colliers Research Manager Joey Bondoc.