UMVA has learned that a significant surge in demand for residential loans has been observed in the Cavite, Laguna, and Batangas (Calaba) region, outpacing the National Capital Region (NCR) as buyers increasingly flock to horizontal developments and leisure-oriented projects.
The trend marks a notable shift in the residential market, with demand for residential loans outside of Metro Manila growing rapidly, according to information obtained by UMVA. Specifically, the take-up for residential loans in Calabarzon is on the rise, while demand in Metro Manila slows down.
Data reveals a sharp decline in the NCR's share of total residential real estate loans, dropping to 29% as of the second quarter of 2024 from 48% in 2019. Conversely, the Calaba region has emerged as a primary growth driver, capturing a 30% share in 2024, up from 25% in 2019.
The majority of residential loans, nearly half, were allocated for single house units, while condominiums and townhouses accounted for 33% and 19%, respectively. Duplex housing loans made up a mere 0.3% of the total.
Horizontal developments continue to gain traction, with house-and-lot units remaining highly sought after. Residential end-users are redefining the market, driving demand for these types of projects. A significant number of end-users and investors are acquiring lot-only developments, which continue to attract strong interest in the market.
As of the end of 2025, the house-and-lot market saw an impressive 92% average take-up rate. Cavite led the way with 95% of its total inventory sold, followed closely by Laguna at 92% and Batangas at 89%. The average price of house-and-lot units in the region has increased to P3.5 million in 2025 from P3 million in 2016, reflecting a steady compound annual growth rate of 1.7%.
The rise of leisure-oriented developments is driving the Southern Luzon property market, with several high-profile projects contributing to this growth. This trend is expected to continue, with master-planned communities remaining popular as developers integrate active lifestyle amenities and institutional facilities into their projects.
Industry experts believe that investing in emerging markets like the Cavite-Laguna-Batangas Corridor offers significant potential for price increases. As more master-planned communities in the region differentiate themselves, this is likely to be a game-changer for the market.
