ARANETA TO EXPAND GATEWAY MALL
Araneta City Inc. recently topped off the expansion of its Gateway Mall in Quezon City named New Gateway. The 190,000 sq metres (2.05 million sq feet) project is expected to be completed by Q4 2020 and will likely feature 400 shops. The eight-storey mall also intends to house a 500-seat chapel atop the building and a 700 sq metres (7,500 sq feet) atrium for events. The developer plans to connect the New Gateway to other developments within Araneta City such as Smart Araneta Coliseum, Novotel Manila, and the upcoming Ibis Styles Hotel by building skybridges and footpaths.
We project retail space absorption of malls within townships, such as the New Gateway in Araneta City, to be buoyed by nearby residential and office towers. Retailers in the expanded mall are likely to benefit from existing office towers in the area such as the Araneta Cyberpark tower 1 and 2, and Gateway tower which house outsourcing companies due to the employees’ purchasing power. Being located within a transport hub and near one of the country’s largest indoor arenas should also help in sustaining footfall. We recommend tenants to take advantage of consumer footfall by taking up available space in malls built within townships and near transport hubs. Meanwhile, we encourage developers to integrate innovative and lifestyle-oriented features into their retail projects to attract more consumers.
ORTIGAS LAND ALLOTS P15-BILLION CAPEX FOR THREE RESIDENTIAL PROJECTS THIS YEAR
Ortigas Land is allotting P15 billion for its capital expenditures in 2020. In the medium term, the developer plans to set aside P15-P20 billion for annual spending. Among the residential projects recently launched by Ortigas Land are Residences at The Galleon, a 51-storey condominium that is expected to generate about P16 billion in sales. The property firm also announced its plan of redeveloping its current site into a property that will house office, hotel, and retail components.
Colliers has been seeing an aggressive launch of new residential projects in Metro Manila as developers respond to the market’s demand. In 2018, we recorded the take up of about 57,000 units in the pre-selling residential market, a record high. In 2019, this declined to 45,000 units due to slower launches in the capital region. Colliers has observed a strong demand in the market and this has been compelling developers to launch more projects in the fringes of major business districts. With the popularity of township development, we also see developers redeveloping their properties to maximize available land and integrate a live-work-play lifestyle in their projects.
LRT-1 CAVITE EXTENSION ON TRACK TO PARTLY OPERATE BY END-2021
The first phase of the Light Rail Transit Line 1 (LRT-1) Cavite extension is on track to be completed in Q4 2021. The PHP64.9 billion (USD1.3 billion) project by Light Rail Manila Corp. (LRMC) includes a 11.7 kilometre (7.3 miles) Baclaran-Bacoor, Cavite section which should expand the current 18.1 kilometre (11.2 miles) LRT-1. The project is scheduled to be developed in two phases. Phase one includes a seven kilometer railway with five stations from Baclaran to Dr. Santos Ave. in Parañaque. The second phase scheduled to be delivered in 2022, will feature three stations from Las Piñas to Niog. The Department of Tourism projects an increase in the number of passengers from 500,000 to 800,000 daily upon full completion of the extension project.
Upcoming infrastructure projects, like the LRT-1 Cavite extension, should open new opportunities for developers, occupants and their employees. Improved connectivity may appeal to people living south of Metro Manila and in turn may partially increase workforce coming from the area to the country’s Central Business Districts (CBDs). Living in residential areas in the South may also be feasible because of shorter travel time and lower prices. On the developers’ side, infrastructure projects help to further unlock land values and raise prices of neighboring properties. We believe developers should eye available land near infrastructure projects for future developments including integrated communities.