Developers set sights on horizontal housing in regional growth areas

Property developers are targeting regional growth areas and pacing the rollout of horizontal residential projects this year, amid economic uncertainties and cautious buyer sentiment.

“We expect the horizontal segment to perform better, supported by steady end-user demand and a preference for larger living spaces,” SM Prime Holdings, Inc. President Jeffrey C. Lim said in an e-mailed reply to questions.

He added that demand for horizontal developments outside Metro Manila remains steady, supported by continued growth in overseas Filipino workers’ remittances, low inflation, and buyers’ increasing preference for larger homes.

Federal Land, Inc. President Jose Mari H. Banzon said the horizontal market remains a “safe investment,” but noted that external factors such as political concerns and geopolitical tensions could affect market sentiment.

“The current political and geopolitical noise have distracted the market from the fundamental soundness of horizontal residential investments,” he said in a Viber message.

Mr. Lim described SM Prime’s outlook for the horizontal residential segment as “cautiously optimistic,” citing potential risks from slower economic growth and weaker buyer confidence.

“As a result, we will remain selective in our 2026 project launches, focusing on locations where our developments have a clear market advantage and sound demand fundamentals,” he said.

The developer is also keeping its development phasing flexible depending on demand conditions while enhancing design and infrastructure to appeal to buyers.

Pueblo de Oro Development Corp. (PDO), known for its ‘live-work-play-learn’ communities, said more families and first-time buyers are seeking township-style living.

“PDO has a positive outlook for the horizontal residential sector in 2026, especially in regional growth corridors,” PDO President and Chief Operating Officer Prim B. Nolido said.

The company expects strong demand for horizontal residential projects in areas with robust economic growth, such as Batangas, Pampanga, Cebu, and Cagayan de Oro.

Mr. Nolido added that the segment could face challenges from rising construction and material costs, as well as competition from affordable housing.

For this year, SM Prime is set to launch a premium residential development within the Susana Heights village in Muntinlupa City and continue its Symphony Homes rollout in Pampanga.

Meanwhile, Federal Land plans to launch another residential subdivision in Biñan, Laguna, and General Trias, Cavite.

“We will also launch residential condominiums to replenish the depleting inventory of our successful projects in Pasig and Bonifacio Global City, catering to the high-end and luxury markets,” Mr. Banzon said.

Source: Business World

Approved building permits fall 8.5% in July

Approved building permits declined 8.5% year on year in July as residential construction projects slumped, the Philippine Statistics Authority (PSA) reported.

Preliminary data showed building projects covered by the permits numbered 15, 395 in July from 16,821 a year earlier.

This was a turnaround from the 12.3% growth in July 2024 and the revised 14.9% expansion in June.

For that month, constructions projects covered 3.47 million square meters (sq.m) of floor area, slipping 2.1% year on year from 3.54 million sq.m.

These building projects that received approval were valued at P44.54 billion, 7.5% lower than a year earlier when it reached P48.16 billion.

Permits for residential projects, which accounted for 66% of the total, declined 8.5% to 10,157 in July.

These projects were valued at P19.77 billion, against the P19.74 billion a year earlier.

Single homes made up 79.1% of the residential category with approved permits declining 10.9% to 8,034.

Applications for apartment buildings rose by 2.5% to 1,957 while applications for duplex or quadruplex homes contracted by 3.1% at 155.

On the other hand, nonresidential projects tallied 3,205 approvals in July, decreasing 8.8% from a year earlier.

Nonresidential permits were valued at P19.84 billion, down 16.6% from P23.78 billion a year earlier.

Approved commercial construction permits numbered 2,150, down 11.3%.

Permits for additions — construction that increases the height or area of an existing building — dropped 16% to 429 in July, while alteration and repair permits totaled 1,133, down 15%.

Industrial permits rose 27.4% to 302, while institutional projects fell 12.1% to 582 approvals.

Agricultural projects totaled 89 approvals, down 19.1%, while other nonresidential works reached 82 building permit approvals, down 2.4%.

Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) had the most approved construction projects for that month accounting for 21.8% of the total with 3,350 permits.

This was followed by Central Luzon (17.5% share with 2,697 permits), and Central Visayas (7.9% share with 1,210 permits).

By value, Calabarzon cornered P8.96 billion worth of construction projects, followed by the National Capital Region (P7.82 billion), and Central Luzon (P6.61 billion).

The PSA said construction statistics are compiled from the copies of original application forms of approved building permits as well as from demolition and fencing permits collected monthly by the agency’s field personnel from the offices of local building officials nationwide.

Source: Business World

Developers urged to grow industrial segment to attract foreign expansion

Property developers must consider expanding their presence in the industrial segment to attract foreign companies diversifying their supply chains, property consultancy Colliers Philippines said.

In its first half Metro Manila Industrial Report, Colliers said China and Taiwan companies that have shown interest in expanding here.

“The Philippines needs an efficient supply chain system to capture investments amid Trump’s new tariff impositions,” Colliers said.

“This is also crucial in future-proofing the industrial sector, enabling the Philippines to attract foreign direct investment amid challenges posed by elevated tariffs.”

US President Donald J. Trump in July imposed a 19% tariff on exports from the Philippines, Cambodia, Malaysia, Thailand and Indonesia.

According to Colliers, property firms must consider developing industrial parks and facilities to cater to more locators. It also cited opportunities to expand in Central Luzon, which hosts high-value manufacturers in industries like pharmaceuticals, fiber cement products, tire, and semiconductor segments. 

In Central Luzon, Colliers projects 900 hectares of new industrial space to be delivered between 2025 through 2028.

“The development of new industrial parks and facilities in central and southern Luzon should provide potential locators with more options and opportunities to haggle for more attractive land leasehold and warehouse lease rates,” Colliers said.

For the second half of the year, semiconductors, consumer goods, cosmetics, and automotive firms are expected to drive demand in the industrial segment.

“Industrial space absorption should partly be supported by Chinese and Taiwanese firms expanding in the Philippines. Colliers sees the Philippines likely benefiting from the China+1 strategy,” according to the report.

The China+1 strategy refers to China-based companies diversifying their production operations to add more sites.

Colliers also cited the potential of ‘sunrise industries’ such as electric vehicles (EVs), as it expects more interest from EV firms looking for an industrial base in the region.

“Over the near to medium term, the Philippine government should entice other thriving sectors such as pharmaceutical firms and encourage them to manufacture in the Philippines,” it said.

Source: Business World