On the radar of real estate investors

In recent years, we have seen developers build condominium towers on the fringes of major business centers. Lack of developable land in business districts, skyrocketing land values, and growing demand for residential units have contributed to aggressive planning and project development in Metro Manila. Among the areas that have seen aggressive development in recent years is Quezon City, particularly the Katipunan region.

Colliers Philippines believes the Katipunan region will remain an attractive residential area for investors and end users, including those who are raising their own families. In our opinion, the area has become an extension of the satellite communities located along the C-5 and other parts of Quezon City and surrounding areas. The demand for residential units is also being fueled by a growing student population in the region, which we saw before the pandemic. Student demand will likely recover after the pandemic, as we are already seeing the resumption of face-to-face classes.

Growing interest in Katipunan

In the medium term, Colliers sees Katipunan’s residential market become even more competitive as developers compete for greater market share and come up with good-value residential units that can offer adequate facilities and equipment for families. The market includes households from Quezon City and surrounding areas moving to condominium living.

Colliers Philippines believes the region is attractive to both home buyers and investors because of the convenience it can offer amid increasing traffic in Metro Manila. The government has already said traffic in the capital region is returning to pre-pandemic levels. The Katipunan area is also convenient for home buyers given its proximity to shopping malls and other lifestyle destinations.

In the medium term, we are seeing more lifestyle-oriented residential developments in the area, especially with the launch of the Rockwell residential project. Previously, most projects in the area were stand-alone residential developments. But new projects in the area incorporate a large open space for families as well as a wide range of amenities and facilities. The Rockwell Project has redefined and will continue to redefine the residential landscape of the Katipunan region.

Infrastructure to support the value of land and property

At Colliers Philippines, we always identify the factors that help make a location more attractive for residential investment. The Katipunan region is likely to benefit, directly or indirectly, from some infrastructure projects aligned by the government. These include:

  • LRT-2 East Extension, a 9.5 billion peso project and 3.8 km extension of the existing 13.8 km LRT-2 system from Santolan to Pasig City in Masinag, Antipolo. The project is also expected to improve connectivity between Rizal province and Metro Manila;
  • Skyway C6 Expressway, a 34 km highway connecting Skyway / FTI to the Batasan complex in Quezon City. The project is expected to reduce congestion at Edsa, C-5, Ortigas Avenue and Extension. Construction of the project started in 2018 and completion is scheduled for 2022;
  • Katipunan Avenue Extension Project, a 3.38 km bypass road between Katipunan Avenue and the hills of Barangay Batasan, Marikina City and San Mateo in Rizal. The project is expected to facilitate traffic along Katipunan and Commonwealth Avenues in Quezon City. Construction of the project started in 2019 with expected completion by the end of 2021; and
  • The MRT-7, which is already 56% complete and is expected to begin testing in 2022. The line begins at San Jose del Monte, Bulacan, to North Triangle Common station on North Avenue, Quezon City.

Colliers believes that the completion of these projects will help boost the value of land and property in the region. It should also support our expected recovery in residential demand after the pandemic.

Exciting times ahead for the Katipunan region, which is definitely on the radar of developers and investors planning to seize the recovery in the real estate market.

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