With major infrastructure projects and a dynamic workforce, Central Luzon will continue attracting more property developments in the region, Colliers Philippines Senior Researcher Joey Bondoc mentioned. At the recent business forum titled "Talakad: Central Luzon's Economic Rise" held at the Clark Marriott hotel on April 23, Bondoc further discussed the progress and prospects of the region’s property sector.

Bondoc cited key infrastructure developments such as the Skyway Stage 3, Central Luzon Link Expressway Phase 1, New Clark International Airport, and NLEX-SLEX Connector, as well as the MRT-7 scheduled to be completed in 2027, the Manila-Clark Railway in 2028, and the New Manila International Airport in 2029

He also acknowledged that the talent and quality of manpower capable of handling outsourcing services in the region continue to entice BPO companies to locate in Bulacan and Pampanga. According to Bondoc, “About 60 percent of the population in Pampanga is from the 15 to 64 age group, which is gainfully employed and definitely contributing to the total economic output of Central Luzon.”

“Clark is a preferred destination of all these outsourcing companies,” added Bondoc. “We see a healthy supply of office space that will be completed in Pampanga beyond 2025. An average of 50,500 sqm of office space is set to be completed annually from 2025 to 2027.”

Projects in the pipeline at Clark Freeport Zone include Global Gateway Development's Four West Aeropark Campus and Five West Aeropark Campus projects and Filinvest Land's 5 Workplus office building. In San Fernando, Megaworld Corporation will put up the Pasudeco Tower 1.

In 2024, Pampanga recorded 529,000 total office stock with 130,000 total vacant stock, registering 24.6 percent vacancy. Notable transactions with BPO locators such as Ventra Health, Asurion, Infosys, KMC Solutions in Pampanga, and TaskUs in Bulacan were recorded in the same year.

In the residential market, Bondoc noted major developers who located condominium towers in Pampanga, including Rockwell Land, SMDC, Filigree, Megaworld Corporation, and Vista Land, with good take-up rates from 45 to 100 percent.

Similar developments were also seen in the vertical projects of key players such as Avida Land, Fiesta Communities Porac, Hausland Development Corporation, Century Properties, Vista Land, Amaia Land, PA Properties & Hankyu Hanshin, and Filinvest Land. They also recorded good take-up rates from 66 to 100 percent, with a 3.1 percent average price increase of house and lot units from 2016 to 2024.

The lot-only projects of Avida Land, Filinvest Land, Rockwell Land, Ayala Land Premier, and New Tarlac Realty also gained good take-up rates from 82 to 100 percent, with an average price increase of 7.7 percent in the same period.

Bondoc shared that while the 3.1 percent price acceleration in the house and lot segment is relatively slower compared to other regions, he sees the potential for faster price increases, given the connectivity and projects lined up for the region. In particular, he mentioned that these projects feature golf courses, an added value intended to capture the young market. As an example, Bondoc cited the PGA-accredited golf course of Hann Reserve, the upcoming project of Hann Development Corporation.

In 2023, the boom in domestic tourism attracted 1.8 million overnight travelers to Pampanga. In 2024, the hotel performance in Clark registered a 70 to 80 percent occupancy, an improvement from 20 to 30 percent in 2020-2021.

With the influx of tourists in Clark Freeport Zone and New Clark City, Bondoc forecasted the entry of local and foreign players in the hospitality industry. “So you have the likes of Sofitel Luxury Hotels, Wyndham Garden, Crimson Hotel, Novotel Hotels and Resorts, Banyan Tree, Intercontinental, The Luxury Collection, and Westin Hotels and Resorts that will be expanding their leisure hospitality footprint here in Central Luzon.”

In the industrial sector, Bondoc noted that “the (warehouse) vacancy in Central Luzon is manageable at 15 percent. While major companies are already located in Clark Freeport Zone, such as Texas Instruments and Yokohama, the Clark Development Corporation has been very aggressive in attracting new locators, providing new employment opportunities for residents of Central Luzon, and raising the profile of manufacturing locators in this region.”

The region’s list of locators includes manufacturers of electric vehicle batteries, safe and steel, semiconductors, tires, fiber cement products, and agro-industrial companies. In 2024, Central Luzon garnered P62 billion of the approved foreign investments. 

Bondoc also forecasted almost 1,000 hectares of new industry supply this year to 2027, coming from major players such as Filinvest Land, Robinson Land Corporation, Aboitiz Infracapital Corporation, among others.