Newport City continues to fuel growth
March 4, 2017
A significant consideration for anyone on the hunt for a property to invest in would normally be the possible returns that can be had from that development.
Simply put: would the value of this land or project appreciate in the long run? Will it give me tangible and intangible returns well worth my hard earned savings? Will I be able to sell it for a profit in the future?
And there are a lot of key elements to consider.
Prof. Enrique Soriano, executive director at W+B Advisory and program director for real estate at the Ateneo Graduate School of Business, cited a number of factors that one should consider when buying property.
These include the location of the project; the current and future plans for that development; the economic health; interest rates; and demographics.
“Real estate property value is a function of supply and demand. Land values primarily refer to key variables—the exact place or proximity to areas of interest, within markets with higher population growths, connectivity to other points of major destination, (and) more developed infrastructure. (These) are just some of the important elements that will not just enhance, but provoke real estate appreciation in the future,” Soriano explained.
“A compelling concept and the functionality of the place are key contributors to land appreciation. To complete the formula, it would be important to highlight the brand and reputation of the developer,” he said.
Measure of success
By a measure, the appreciation of land prices where a development is being put up can be considered an indication of a successful project.
Soriano noted that there are two forms of property value appreciation. One would be due to inflation, while a second form would be when the market value increases due to supply and demand factors.
“Property value appreciation is also inextricably linked to a project’s development features. This is where (Megaworld Corp.’s) Newport City packs a lot of advantages. The location is grade A, very strategic as it’s literally right cross the airport. It also offers development features not found in other city-center projects,” Soriano said.
And thus was the case with Megaworld Corp.’s Newport City, which has long driven up property prices and land values not only within the development itself, but in surrounding communities as well.
Add to that the fact that it’s right across NAIA Terminal 3 and that there are ongoing infrastructure projects such as the 11.6-kilometer NAIA Expressway, which are seen to further boost land values in the area. And within the year, a new bridge linking one of Manila’s busiest airport terminals to Resorts World Manila is expected to be completed.
According to Soriano, the 25-hectare Newport City has all the right elements that could boost the value of land and property. For one, it is a “fully functional and integrated residential and commercial development complemented with world class anchor locators.”
These include “office complexes, international hotel brands, gaming facilities, a boutique mall with high end specialty retailers, top-of-the-line restaurants and even a dedicated structure housing a grand ballroom.”
Among the more notable projects there include Resorts World Manila, the entertainment capital of the township; the Newport Performing Arts Theater; hotels such as the all-suite Maxims Hotel, as well as the Marriott Hotel and the 3,000-sqm Marriott Grand Ballroom; and a number of luxury residences like The PalmTree and Newport Boulevard.
Sustained rise in land values
Soriano further opined that he expects land values and property prices at Newport City to continue appreciating over the long term.
“You can expect property land values continuing to appreciate, as well as the investor preference. You can also expect a sustained, vibrant tenant or rental market for Newport,” he disclosed.
“Let me highlight four global dimensions that make up for a great place. I believe Newport (City) was able to address these dimensions. These include sociability; activities and image; access and linkages; as well as comfort and convenience,” Soriano concluded.