October has just started and we have two more months before the 2013 starts. This month and the coming months would be busier for businesses and people alike- people shopping for Christmas gifts, increased arrivals because of OFWs going home for Christmas, families travelling to provinces to visit relatives, etc
Because of these, infrastructure in the Philippines is a vital tool for real estate, business, economy, and tourism sectors. A good infrastructure will attract real estate investors. We have witnessed good news on infrastructure improvement this year. This speaks well that the economy of the country is on the progress.
Philippine Airlines President, Ramon Ang, recently disclosed the news that PAL will start planning for a new international airport located near Metro Manila that will have four runaways. They are expected to start building the airport in 2013 as soon as President Aquino approves the project and finish it in three years time.
PAL’s new airport is welcome news because the International Air Transport Association still preferred that the country should build a new international airport than making the Clark International Airport as the country’s future international gateway because of Clark’s distance to Manila. Most tourists and businessmen won’t prefer that kind of distance.
Aside from airport, PAL, which is co-owned by San Miguel Corporation, is investing in acquiring 10 new wide-bodied jets and 35 more airplanes. This will be in line with the company’s plan to have 100 new airplanes by the next 5-7 years. Another good news from our country’s flag carrier as it will have more passenger seats. And also, PAL is now planning to open up other international destinations soon.
DOTC also started the bidding for the development of various airports and seaports in the provinces. One of the most important is the construction of Bicol International Airport in Daraga, Albay. According to Albay Governor, Joey Salceda, this airport is very important to the economy of Bicol, particularly its tourist destinations. More and more tourists and investors are now going to Bicol so having a new international airport will help ease their air travel by going straight to this airport than to have a stopover in NAIA.
Aside from aviation, land infrastructure has also been improving. Recently, the Manuel Pangilinan-led Metro Pacific Tollways Development Corporation has secured a green light from DOTC and Toll Regulatory Board to start their project- North Luzon Expressway and South Luzon Expressway connector by next year. It is expected to be operational by the late-2015 or early 2016. This project will connect the NLEX and SLEX, thus creating faster time transportation for motorists coming from the 2 expressway.
The major rail systems will get a big boost as plans to extend the route of LRT 1 and LRT 2 are on the way. LRT 1 is being planned to be extended to Dasmarinas City in Cavite while LRT 2 is being planned to be extended to Rizal province. Bidding for LRT 1 has now started and 32 companies are interested in the bidding. Like the NLEX-SLEX connector, the LRT 1 extension is expected to be completed by 2015.
Another new rail system is also being planned- MRT 7. This line will run from North Edsa in Quezon City up to San Jose Del Monte in Bulacan and will pass through Commonwealth Avenue. Because of the project, San Jose Del Monte is now booming in real estate as more and more homes and communities are now being constructed in the city.
Manufacturing also plays a vital role in the Philippine economy and real estate industry. The good news is that more Japanese manufacturers are considering to relocate in the Philippines because if its young English-speaking labor force.
Furukawa Electric Co. Ltd is the latest Japanese company to invest in the country, with 1.016 billion yen in capitalization alone. With their entry, the total investment of Japan in the Philippines is now at 16.51 billion yen.
Other Japanese companies that are considering relocating in the country are Fujifilm, Bandai, and Murata Manufacturing Co. Ltd. while Canon Inc. and Brother Industries Ltd. are planning to expand their business
Infrastructure is very important local and foreign real estate investors who are attracted to invest in the country because of property boom amid the rising cost of housing.
This housing trend is expected continue due to a significant rise in housing stock with 8,253 houses expected to be supplied in Metro Manila and that the prices of high-end residential projects to surge by another 9.9% this year, according to Colliers International.
Real estate investors should take advantage of the improving infrastructures and invest in the Philippines, as what foreign investors said recently that “doing business is now more fun in the Philippines.”
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