THE United States-led Pax Silica initiative could open a new growth channel for the Philippines’ industrial property sector, but its payoff hinges on how the government tackles infrastructure, environmental and geopolitical hurdles, real estate consultancy Colliers Philippines said.
Pax Silica, which groups 24 countries including the Philippines, aims to secure global supply chains for critical minerals, semiconductors and AI infrastructure while cutting economic reliance on China.
It plants to build an industrial hub on a 1,619-hectare site in New Clark City, Tarlac.
President Ferdinand Marcos Jr., in his State of the Nation Address, said the project — its name blending the Latin “pax” (peace) with “silica” (the raw material for silicon chips) — would position the Philippines as an AI and digital infrastructure hub and lift industrial developments, particularly those tied to data centers.
Colliers head of research Joey Roi Bondoc told The Manila Times that Pax Silica could complement the Luzon Economic Corridor, boosting industrial activity across Clark, Subic, Batangas and Manila, and generating spillover demand for residential, office and hospitality projects.
“As investments expand, we see potential benefits extending beyond industrial estates to residential communities, office developments and hotels that support these emerging business hubs,” he said.
However, Bondoc flagged several risks that need addressing for the initiative to reach full potential: heavy electricity and water demand from data centers; environmental impacts of large-scale development; sourcing of critical minerals for advanced technologies; and geopolitical risks that could sway investment decisions.
“The government will need to address these issues to ensure the long-term sustainability of the initiative,” he said.
The outlook comes as developers keep shifting investment beyond Metro Manila, aided by infrastructure spending and the government’s decentralization push.
Colliers expects more residential launches in Southern Luzon, Central Luzon, Central Visayas, Western Visayas, Northern Mindanao and the Davao Region, where take-up and price appreciation remain healthy.
Office developers are also expanding into Cebu, Iloilo, and Pampanga as firms seek lower labor costs, a deeper talent pool, and improving infrastructure.
Still, Colliers warned that the property market faces headwinds in the second half of the year, including soft office leasing, elevated Metro Manila condominium inventory, and uncertainty from Middle East geopolitical conflict that could dent business confidence and overseas Filipino worker remittances.
