Still More Positive Philippine Real Estate Outlooks…
Another new weekend article about the resilient and still robust Philippine Real Estate sector came out in the Philippine Inquirer last Saturday (http://showbizandstyle.inquirer.net/lifestyle/lifestyle/view/20090117-183843/RP_property_sector_optimistic). In an interview with Alejandro Manalac, president of the National Real Estate Association, we found out very positive statements from him to support the claim that our property sector is still in good shape.
Mr. Manalac said that the recent movements of more experienced Philippine Real Estate developers, which he described as those who have been in the property business for at least 20 years and have experienced at least 3 economic “cycles” and worse crises, suggest that the latest financial situation is still “almost business as usual”. In other words, developers are still continuing to sell, construct, and finish on-going projects that have been sold in the recent years. This is good news for the investors who have recently bought pre-selling projects from these reputable Filipino developers.
The big difference this time is that they have learned the lessons of the past, and therefore they are re-strategizing by putting on temporary hold some of the future projects that have not been released to the public (and therefore unsold to anyone).
Also, because of the Philippines’ relatively rapid population growth (check my previous related blogpost at http://www.realestatephilippinesblog.com/philippine-properties-still-good-bargains/), Mr. Manalac said that the main driver for demand in Philippine Properties is still based on their basic housing needs. This is very important because unlike what happened in the U.S. where Americans bought houses based on pure speculation, we Filipinos actually have a REAL NEED for real estate. Hence, a housing bubble here is not as likely to happen.
Also, foreign investors may find Philippine Real Estate also attractive since according to Mr. Manalac, “even Fitch’s ratings show a positive and stable outlook for the Philippine economy and real estate has always been proven as the safest investment. In fact, real estate is the only investment where there are no mistakes which cannot be corrected by time because of appreciation.” So, he advises players to “go for the end-user market”, where the real demand lies.
The second part of the article describes an interview with Jose Razon Puyat III, president of EDGE Properties and Kawayan Cove, a high-end seaside residential community comprising 68 hectares, only 30 of which will be sold, the rest being left as wide open spaces and common areas. This time, Mr. Puyat shows his concern about our local property sector since Overseas Filipino Workers still comprise a huge portion of the market. He says that most OFWs were affected by the global crisis because many of them invested also in stocks and sub-prime investments, which turned out to be losing investments. Now, they will have difficulty to buy Philippine Properties here since they are also struggling for money or even debt-ridden.
This very interesting article has continuations, and we will be eager to find out what other experts say about our Philippine Real Estate sector. For now, from part 1 alone, we can say that the Philippine Properties market sentiment is mixed in opinion. The succeeding articles will come out this Saturday probably, so let’s see what they have to say…
