Friday, September 26, 2008 Keep costs down, Villar says By Elias O. Baquero Sun.Star Staff Reporter
SEN. Manuel Villar, a real estate developer, yesterday urged members of the Subdivision and Housing Developers Association Inc. (SHDA) to minimize costs and try not to be too aggressive for now.
Unchecked expansion will hurt the real estate industry, he said.
“Even the Americans do not know how to solve their (economic) problems. They are planning a bailout but there is no assurance that it will work. That is how huge the problem is. We must avoid that kind of problem,” Villar said.
In his speech before the National Developers’ Convention at Marco Polo Plaza, Villar cited that bad loans in the US property market now run up to US$14 trillion.
Even the $700-billion bailout package being pushed by the Bush administration isn’t a guaranteed solution to the financial crisis, he added.
“While we watch and observe America, we at home should look at the fundamentals in real estate development such as minimizing cost,” Villar said.
“I have to warn you that in case of a crisis, the banks will not even entertain you. I’m afraid that the banks where you borrowed from to finance your projects will not even give you an appointment,” the senator added.
Villar made his fortune in real estate before venturing into politics.
The SHDA, a nationwide organization of private subdivisions and housing developers, focused on the theme “Housing Amidst Challenging Times” for its convention.
The convention topics include the effects of the global financial crisis on the housing sector, wastewater treatment, the National Structural Code, Board of Investment tax incentives and the Anti-Red Tape Act.
SHDA leaders led by chairman Roy Calleja acknowledged that there is a great backlog for housing in the country and to meet it, they are seeking ways to broaden liquidity sources.
At present, the real estate industry depends on traditional funding sources such as the Home Mutual Development Fund and some government and commercial banks.
