Property market bullish in 2012, say experts
By: Tessa R. SalazarPhilippine Daily Inquirer
(First in a series)
How do property analysts see 2012? What trends will emerge, what will continue, and what will we see less of? Inquirer Property picked the brains of property analysts and real estate brokers.
They have been unanimous in predicting that the property sector will continue to lead the economy, more residential developments, as well as more tourism-oriented projects, will take shape, and that green advocates in the real estate sector will intensify their presence even more. But there are also words of caution: Mid-income developers should “explore more” if they want to stay in the game in 2012.
Wish list
Competition in the mid-income segment will heat up. Enrique Soriano, professor at the Ateneo Graduate School of Business and senior adviser at Wong+Bernstein Business Advisory, estimated that in 2012 and 2013 more than 48,000 residential units would have been completed, with an additional 56,000 units due for completion end of 2015. Condo buyers will have a field day choosing from among the following value propositions:
Developer reputation and brand equity;
Location for convenience to and from schools, hospitals, workplace;
Architect and product concept;
Affordability
Soriano adds new items to the “wish list”:
Homeowner expenses and maintenance charges;
Crime levels and security;
Parking space;
Pollution levels;
Supply of water; and
Future area prospects
There would be more affordable residential units built in 2012.
“My sense is that the market would remain upbeat with residential offerings, I see more low-cost and affordable buildings outside the main CBDs and houses and lots would continue to be the bread and butter in the provincial cities. With the minimum VAT threshold for residential units being adjusted for inflation in 2011, for condominium/house and lots—from P2.5 million to P3.19 million and lots only—from P1.5 million to P1.91 million, residential units will be more affordable next year,” says Paul Vincent Chua, global real estate services Colliers International’s associate director for valuation and advisory services and head of consultancy and research.
Enhancing beauty of PH
Chua added that the country “will see a lot more tourism-oriented developments as we strive to enhance the beauty of the Philippines on the international scene and get more tourists to visit us.”
There will also be more mixed-use developments as a key strategy for developers as this will maximize the returns on large plots of land.
“The office sector remains to be the largest growing segment of the real estate industry, and we expect this to continue next year,” Chua added.
There’ll be more informed, ethical brokers in 2012. Engineer Enrico Cruz, broker and real estate educator, said that “As we are now seriously professionalizing the real estate service (real estate brokers and salespersons) we will soon be having more educated, well informed and more ethical real estate brokers. This will result in well-guided happy buyers and small investors, resulting further to more real estate demands and faster buying or investing decisions, resulting further to more development projects, resulting further to more employment of local construction workers and other people for related work,” he said.
Tap new markets
“A word of caution to mid-income vertical developers,” Soriano said. “Tap new markets and explore new product offerings.”
“If they want to stay in the game they must differentiate. Their products must be innovative and compelling. Their service delivery process must be exceptional. Brand equity will be a competitive advantage,” Soriano said.
He also advised developers to target specific developments with a lot of customization, pocket developments in new CBDs. Competition will shift to the homebuying experience, he added, and Internet marketing will play a major role.
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Tags: Business , property , residential , trends
