In Fairness to Infrastructure: How New Developments Affect the Real Estate Landscape in Luzon

by PRIME Philippines Marketing and Communications Department  May 23, 2018

The terrible ordeal that everyday commuters must go through to get to their destinations is enough to make anyone sigh helplessly. The current traffic situation causing great inconveniences to commuters is not even the biggest problem it brings. This stalls not only vehicles and passengers; it stalls businesses and profit that may have been gained during those precious moments devoted to the slow advance of bumper to bumper traffic. This forced opportunity cost will definitely be too steep a price in the long run.

Fortunately, past and present administrations have taken notice of this predicament and have taken steps to improve the current situation. These are exciting times as several major developments in infrastructure are well underway and each promises to bring with it a new level of comfort and ease of travel for Filipinos. The MRT Line 7 and the NLEX-SLEX Connector Road projects are currently under construction and envision more seamless and efficient ways of travel in Luzon.

The MRT Line 7 will be a 22.8km long railway line serving 14 stations from Quezon City’s North Avenue’s joint station all the way to San Jose Del Monte in Bulacan. This new railway which is set to operate by August 2019 will shorten travel time from 3.5 hours to 1 hour and accommodate 800,000 passengers a day at its optimum.

Eight kilometers of a 4-lane toll expressway is set to connect the North Luzon Expressway southward from where it ends in C3 Road Caloocan to Polytechnic University of the Philippines in Sta. Mesa. The NLEX-SLEX Connector Road, set to be completed by 2020, will reduce travel time from NLEX to SLEX from two hours to just 20 minutes. It will also improve connectivity between NAIA and Clark airports so an opportunity for greater airline travel connectivity also arises.

While the most obvious benefit that these developments will bring is to commuters because of the significant cutting down of travel time, these will also have lasting effects to the real estate landscape in Luzon. Land values in close proximity to the MRT 7 specifically North EDSA, Fairview, University Avenue, and San Jose Del Monte are expected to grow. In the same manner, the connection of NLEX with SLEX paired with government infrastructure plans such as the upcoming Clark New City will stimulate development in the northern provinces of Pampanga and Bulacan all while decongesting traffic in Metro Manila. This project also makes the Bay Area and the multitude of developments there more accessible.

In fairness to infrastructure, key developments such as these two big projects instill hope in everyday commuters that all is not lost when it comes to the situation on Metro Manila roads. Once these projects are up and running, maybe the three hours that everyone has come to expect on the road will just be a breezy 30 minutes.

PRIME Philippines offers comprehensive and in-depth market studies as well as highest and best use analysis to aid you in deciding the most ideal direction for your properties. To know more about how these developments can affect your property, contact our Research & Advisory Division at (+632) 442 8888 or (+63) 917 555 8222 or you may send us an email at inquiry@primephilippines.com.

 

 

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