Investment Appeal of the Metro Manila Subway
The Metro Manila Subway project, which has been dubbed as “project of the century” broke ground at Barangay Ugong, Valenzuela City last February. This PHP 350-billion (USD 6.5 billion) deal will be the county’s first underground mass rapid transit system.
This 36-km subway will include 15 stations from Quirino Highway in Quezon City to the Ninoy Aquino International Airport Terminal 3 in Pasay City and FTI complex in Taguig City. This route will be crossing over seven local governments as well as three of Metro Manila’s business districts.
This Filipino-Japanese joint project is set to be fully complete by the year 2025. The list of Japanese partners includes Shimizu Corp., Fujita Corp, Takenaka Civil Engineering Co. Ltd., and EEI Corp.
According to the Department of Transportation, the completion of this project would come with a transformation of the economic and social landscape of the National Capital Region.
Colliers International, a global real estate company, sees that this project would play an important role in dictating private developer strategies in Metro Manila. According to them, they see the project “raising the prices of land and properties within a kilometer from the subway’s stations.”
Colliers International advises private investors to work hand in hand with the government for the development of the buildings around the subway. They foresee this as a practical route for investment given the lack of developable land in Metro Manila.
Colliers reports, “In our opinion, this option is something that the government should seriously consider given its goal of raising additional revenues to fund its massive social and infrastructure programs especially now that the remaining tax reform measures have yet to be passed in Congress. This way, the government gets additional revenues crucial for its “Build, Build, Build” (BBB) program and spurs more business activities in the newly-established business districts, which should eventually generate more jobs and tax revenues.”
In the same commentary, Colliers believes that the Manila Subway will play a pivotal role in decongesting business hubs such as Makati and Ortigas, whilst directing more business activity towards Quezon City.
Quezon City will hugely benefit from this project as 7 stations will be placed within the city. They see Quezon City becoming “more attractive for mixed-use projects that feature office, residential, and retail projects.”