MANILA, Philippines - Property developers should put up more industrial parks in the country to capitalize on the manufacturing deals forged by foreign investors, a real estate services firm said.
In a statement, Colliers International Philippines said it sees more manufacturing investments flowing into the country over the medium term given the investment pledges made by foreign businessmen during President Duterte’s visit to Japan and China in October last year.
Colliers cited commitments made by car manufacturers such as Toyota and Mitsubishi to expand their assembly operations in the Philippines as one of the anticipated investments that would generate demand for industrial spaces.
“More manufacturing investments should result in greater demand for industrial space and facilities particularly in the Cavite-Laguna-Batangas corridor, the country’s main industrial hub,” Colliers said.
The Cavite-Laguna-Batangas region accounted for 28 percent of the P93.3 billion total investment pledges in the first nine months of 2016, according to data from the Philippine Economic Zone Authority (PEZA).
Majority of these investments are intended for manufacturing projects.
“This indicates that the Cavite-Laguna-Batangas region should expect more manufacturing investments in the medium term,” Colliers said.
Colliers noted the rise in demand for industrial spaces in the Cavite- Laguna-Batangas corridor in the second half of 2016 as well as the decline in vacancy rates to 9.5 percent from the 10.1 percent recorded in the previous six months.
“The decline in vacancy is not surprising as major manufacturing investors continue to gravitate toward the Cavite-Laguna-Batangas area due to its proximity to the country’s capital, availability of adequately-skilled labor force, relatively cheaper wages, and improving infrastructure,” Colliers said.
The real estate services firm added the planned revival of a rail cargo between Manila port and an inland container terminal facility in Laguna is crucial in funneling more manufacturing investments to the Cavite-Laguna Batangas area.
Colliers said developers should take advantage of this opportunity by developing more industrial spaces.
In addition, the government should release concrete and consistent policies on the grant of incentives to industrial park developers and their locators, in order to entice more firms to develop these industrial spaces.
Colliers said interest for industrial park development in Central Luzon particularly in the Clark area has also been increasing.