Real estate-related ventures to do well this year: official-A A +A
Tuesday, January 14, 2014
BUSINESSES anchored on the growing real estate sector are expected to flourish this year, said the Philippine Allied Chamber of Real Estate Brokers and Licensed Salesmen, Inc. (PhilAcre).
PhilAcre president Anthony Leuterio said in a statement that 2014 will be an “exciting business” year for rental management and consultancy. Rent inventories are also expected to decline this year for both commercial and residential segments.
“Rental will be the best business for 2014 considering that a lot of migration is going on in Cebu,” he said.
Real estate brokers also anticipate a much better year in 2014 as real estate sales continue to be dynamic and the birth of additional businesses that provide rental expertise for various projects.
“This is going to be an exciting year for all segments—real estate developers, consumers and brokers,” said Leuterio.
Leuterio cited condominiums as a “great investment driver” for this year, while the house and lot market is still a priority for end-users.
But despite the rosy outlook in Cebu’s real estate this year, players also foresee a challenging year ahead particularly for new players. That, as big and established players diversify their product to include pocket-developments in their portfolio.
Given this scenario, Leuterio said there is now a need for new and small players to forge stronger linkages with licensed brokers, improve and invest on new marketing strategies to stay competitive and advanced their footing in the real estate
“Small time developers must consider for much extensive marketing strategy because big players are also entering other segments in the market,” said Leuterio.
Growth in the property sector in the last five years, is attributed to the growth in construction, business process outsourcing for the office or commercial sub-sector, and the high rate of overseas Filipino workers’ (OFW) remittances for residential and retail sub-sectors, said Francis Monera, president of Cebu Holdings Inc., an affiliate of AyalaLand Inc.
Leuterio said brokers, specifically, are banking on the high appetite of OFWs on real estate products.
Cash remittances from Filipinos overseas grew 5.3 percent to $1.94 billion, bringing the nine-month figure to $16.5 billion. The figure also 5.8 percent higher than last year’s level.
Published in the Sun.Star Cebu newspaper on January 15, 2014.