What’s in store for the country’s real estate industry in 2016?
Given the positive trend the Philippine real estate sector experienced in 2015, industry experts and observers are optimistic that the growth will continue in 2016. According to auditing and advisory firm BDO’s “Asian Real Estate” report, the capital of the Philippines, Metro Manila, saw major investment from global capitalists, which pushed the city to be in the same league with its neighbor Bangkok, the capital of Thailand, a city that has long attracted the attention of foreign investors.
Although there are a number of uncertainties in horizon—chief of which is the economic slowdown in China that may or may not pose a threat to the real estate sectors in emerging Southeast Asian markets—optimism seems to be the overall theme for the Philippine real estate sector this year, thanks to these three golden opportunities.
1. BPO Sector Creates a New Breed of Condo Dwellers
According to the Thomson Reuters Foundation, real estate loans hit a record high of Php1.23 trillion ($25.69 billion) in the third quarter of 2015, data from the Bangko Sentral ng Pilipinas (BSP) shows. It reflects a growing confidence in the sector, as well as the tremendous support given by the banking and lending industries in the Philippines.
Many first-time buyers or renters would require real estate loans, but the big change now is that young workers in the business process outsourcing (BPO) sector are qualifying for such loans.
According to Rick Santos, chairman and CEO of CBRE Philippines, the new breed of condo dwellers are not confined in Metro Manila. “From Clark up north to Davao City down south, the playing field is becoming more exciting especially for the BPO sector, which will sustain the momentum and drive for the coming years.”
2. Low-cost Housing Segment Helps Drive the Industry
Andy Mañalac, chairman of the National Real Estate Association (NREA), told local newspaper The Standard that major developers are now dabbling in the low-cost and socialized housing segment. More projects should be expected in this segment in 2016, according to Mañalac, and some developers might even cut back on high-end and luxury developments.
“The demand is so big and still growing that it will be very difficult for them to catch up even with their combined production. However, buyers’ financing for these will be another story,” he commented.
3. Change Is Good
With the ASEAN Economic Community now in effect, the Philippines will be in a much better position to lead in the region’s growth by allowing certain changes, beginning with infrastructure. National Economic and Development Authority (NEDA) chief Arsenio Balicasan told The Standard: “There is a constant need for the infrastructure system to keep up with rising demands in the fast-growing economy, especially these days as new property investments flood the market.”
Balicasan noted that the weak infrastructure squanders the full potential of Philippine real estate and continues to hound the industry. He added that more transparency in the market and possible ownership policy changes could help increase investments in the country.
As a stamp of approval of the country’s thriving real estate market, the Philippines Property Awards 2016, presented by PropertyGuru, was recently launched in Manila.
The black-tie ceremony, which is also a fantastic networking event for industry professionals, will take place on Thursday, April 7, at the Fairmont Makati, to reward the best current developments in the Philippines and expose them to a wider international audience, with the top winners competing with other developers in ASEAN for the grand finals at the South East Asia Property Awards 2016 in Singapore this November.
“The Philippines Property Awards is a showcase of our commitment to one of the most exciting real estate markets in the world,” Terry Blackburn, managing director of PropertyGuru International, awards organizer and publisher of Asia’s industry-leading Property Report magazine.
More than 25 awards will be given away to honor the best projects, designers and developers, covering residential, commercial, office, hospitality, villa and green developments across the archipelago, plus a special recognition in corporate social responsibility.
The Real Estate Personality of the Year—selected by Property Report editors and is the only award not chosen by the judging panel—will also become a highlight for the evening. The prestigious award’s previous recipients were: Jose E. B. Antonio, chairman of Century Properties Group; Ramon F. D. Rufino, executive vice-president of The Net Group; and Dr. Andrew L. Tan, chairman and CEO of Megaworld Corporation.
Supported by platinum sponsor Hansgrohe, the fourth annual Philippines Property Awards 2016—which is free to enter—is being supervised by BDO, one of the world’s biggest auditing firms and long-time awards supervisor.
Early bird tickets for the Philippines Property Awards 2016 are offered until March 4 only. To book tables, email firstname.lastname@example.org or visit the official website.
Main image via Shutterstock
This article was sponsored by the Philippines Property Awards 2016