THE country’s real estate industry is expected to grow further next year with the upcoming Association of South East Asian Nations (Asean) Economic Integration in 2015, which is expected to attract foreign investors, and with the region’s increasing role in global economy.
Noel Cariño, president of Chamber of Real Estate and Builders Association, said the country’s largest organization of key players in the domestic real estate industry, the Asean integration in 2015 will change the economic landscape of the whole region, particularly the real estate market.
The elimination of tariffs on goods and services by a single Asean economy would drive consumer spending higher.
“The demand for residential spaces adjacent to malls, retail complexes and other recreational spaces would go up and will likely increase the already healthy real estate market,” Cariño explains.
The influx of investment and elimination of trade barriers will allow each country in Asean to enjoy unimpeded and free flow of goods, services, labor and capital.
The potential impact of the integration would require more commercial and residential infrastructure for highly urbanized cities within the region including key cities of the Philippines.
“Residential, commercial and retail developers, which will be exposed to international market will expand their operations and acquire properties inside and outside the country. While foreign investors and corporate executives with local operations in the country will look for residential spaces for a place to stay,” Cariño added.
Creba, however, reiterated the country must continue to pursue relevant market reforms in order to remain competitive.
Charlie Gorayeb, national chair of Creba said, “Foreign ownership restrictions enshrined in the Philippine constitution will hinder the growth of foreign direct investments, so we need to continue to improve the business environment in the country in order to attract more investors.”
Creba has been pushing for the passage of a bill that will consolidate the function and powers of major housing and urban agencies of the government to address effectively the needs of both consumers and developers.
Meanwhile, Iloilo is set to host Creba’s 23rd National Convention on October 15-18.
Senator JV Ejercito, who chairs the senate committee on urban development, housing and resettlement, is expected to address a separate keynote speech on the legislative agenda of the real industry in the 16th congress.
Professor Enrique Soriano of Ateneo Graduate School of Business is also expected to speak at the convention along with Atty.
Antonio Bernardo, Commissioner of Housing and Land Use Regulatory Board (HULRB); Atty. Christine Antonio, Director IV of the Public Private Partnership Center; Minister Tetsuro Amano, Deputy Chief of Mission and Consul, Japan Embassy; Nelson Aspe, Deputy Commissioner of Bureau of Internal Revenue; and Undersecretary Cecilia Alba of Housing and Urban Coordination Council (HUDCC).
The convention serves as the venue for real estate developers, suppliers and consultancies to discuss different issues that affect the industry.
The group aims to permanently sustain a centralized home financing program for the country to eliminate the current 5.5 housing backlog and supply the housing demand of the growing middle class within the next 20 years.
With the upcoming Asean integration, property players “should work together to unlock strategic approaches to keep the domestic property sector afloat” as multinational players enter the already stiff competition in the country’s real estate market, according to the organizers of the convention.
Published in the Sun.Star Davao newspaper on October 09, 2014.
