More office, residential dev’t seen in Clark, Subic

MANILA, Philippines - Development of more office spaces and residential properties are seen in Clark and Subic with the upcoming investments and expansion of manufacturing and business process outsourcing (BPO) firms in these areas which in turn would drive higher demand, property consultancy firm CBRE Philippines said.

CBRE Philippines said that due to infrastructure developments, businesses have started to expand from Metro Manila to peripheries, making Central Luzon a major investment destination.

With increased economic activity seen in the areas of Clark in Pampanga and Subic in Zambales, in particular, more office spaces and residential properties are also expected to be developed there.

The firm noted that new areas of investments for the manufacturing sector have been opened in the two areas due to the tensions between Japan, Taiwan and China amid territorial disputes, as well as the continuous development of infrastructure between the freeport zones there.

It said renewed growth in the manufacturing industry was seen with foreign firms choosing to locate in the Clark and Subic Freeport zones.

Apart from manufacturing, growth in the BPO industry in the two areas has also been observed.

With the Philippine Economic Zone Authority (PEZA) removing the fiscal incentives for new developers of information technology (IT) parks in Metro Manila and in Cebu, CBRE Philippines said Metro Clark remains an attractive area for new IT facilities.

“The PEZA resolution has emphasized Metro Clark as a high potential investment destination,” it said.

As new locators and existing BPO firms expand in these areas, more developments are likewise expected.

“With the entrance of new locators and expansion of previous tenants in the BPO industry, the real estate office segment is seen to expand in the coming years,” CBRE Philippines said.

As more investments are made in these areas, expatriates would also demand for quality residential developments.

“Residential demand is seen to grow with the upcoming investments and expansion,” it said.

“Vertical residential developments are now seen rising in the area as developers try to maximize their investment on land,” it said further.