Trade opportunities-A A +A
Wednesday, March 20, 2013
RIGHT now, money makers in the business community, as indicated by developers with an eye on basic investment opportunities, are the property market.
A real estate expert said that “some specific locations in Metro Manila will continue to experience robust (market) growth anchored on the country’s broadening middle class, strong inflow of remittances and overall optimism and business confidence in the market of such cities as Cebu and Davao.”
Of course, there are risks involved. Cebu, according to a director of the Ateneo Graduate School of Business, remains an ideal location for real estate development given its strong portfolio.
In Monday’s economic briefing hosted by a Cebu-based new player in the real estate industry, the director of the Ateneo Graduate School of Business said that “a bubble occurs when land prices significantly go up and outstrips the collective income of home buyers. A bubble may potentially burst when there is an imbalance lending, spending and employment. A real estate bubble may have a huge impact if there would be multiple buyers borrowing money for the property sector.”
There is no doubting the fact that right now we are in the midst of a real property industry investment boom. Just move around Metro Cebu’s sparsely populated places, like those in the Lahug, Apas, Guadalupe and Busay areas. There is positive indication that the real estate market is attracting many investors--buyers with borrowing capabilities as well buying strength due to their incomes from foreign employment.
It is said that the building industry in the Philippines has a 39-million housing backlog. At the current rate of production, developers cannot even afford to meet the 50,000 housing requirement per quarter.
Demands in various housing segments remain robust, particularly in the socialized and low-cost housing at 72 percent; and middle and high-end segments at seven percent and one percent respectively.” In Cebu, the skyline is filling with tall edifices.
I believe, though, that with more of our middle income-level buyers and a growing number of high-end capable buyers, the opportunities for sustained investment in housing would remain for quite some time.
As it is, business observers in the Metro Cebu area have expressed strong confidence, in Metro Cebu’s growth, observing investments in the Ayala area and the IT Park, with the accompanying high rise condos in other parts of Cebu City. Our constantly changing skyline in Metro Cebu area, indeed, gives us positive hope of a sustained investment future in our part of this developing republic.
Published in the Sun.Star Cebu newspaper on March 21, 2013.