Ayala Land unveils P30B urban hub project in Taguig

All you have to do is search the internet and you will be surprise. I just can’t believe that we Filipinos thinks that living in a condominium unit equates to luxurious living. They are just bunch of boxes put on top of each other and since it is in Manila – your luxurious view is the dark cloud of pollution rising from the earth and once you come out of your place – quality of the area goes down. This is definitely a bubble.

Did you know that high rise housing has more carbon pollution than a normal house. Also most condominiums are made of cement which is full of materials that are unsustainable and contributes to pollution so do not say that you do not contribute to carbon pollution.
That is not crab mentality – it is called being objective in relation to the countries fundamental and looking at sustainability. And if there is a bubble forming, it is only proper to speak up to ensure that Philippines will not experience the same bubble that Western countries experienced.
Also, increase in housing price doesn’t mean there is economic growth – that is called inflation as housing is a consumable not an investment. And you should always remember that any capital tied in housing means that money is not use in productive endeavors thus creating an imbalance on the economy.
People who buys in this kind or prices are gambler/speculators that hopes that the property will continue rising not realising that this growth is only fueled by debt. This is proven, just read what happened to US and the European countries. And do not say that Philippines is a different market because it is not.

Using construction as a barometer is an old paradigm. If you look up the top companies now, the biggest part of their asset are not physical assets but intellectual property and intangibles. This is an evidence that more construction does not mean progress. This same paradigm somehow caused the west to be in a hole right now. What the real test of progress of a nation is that the improvement of the quality of life. And I do not think you can classify living in condominiums in an overly crowded and polluted part of the Philippines can be considered as high end comparable to the first world countries because the location says it all. You may have beautiful passage with quality building but the oveall environment cannot be classified as high end because once you step out of the compound the quality of your lifestyle already diminished. All I am saying is that bubbles like this does not help the economy in the long run.

I would understand if you do not see my point yet but if you read more about what brought the GFC in 2008 and the current Euro crisis that may shed more light and you might see how this type of developments vis a vis property pricing affects the economy as a whole. And what happened to those condominium units built during the height of the bubble (look up Spain as an example). Also, I would suggest you try searching for sustainability. That will also open a whole new way of thinking.

Yeah you are right! Even if the design is good but is it worth it? Look at the place – air quality, transport etc. There are many things you consider in buying a place. Please note that this are depreciating asset. This sounds like a housing bubble in the making.

Whether or not I can afford is not the point but the pricing on these property have a wider economic implication closer to your wallet than you think.
Let me expand your brain how this will have implication on you. The target market of this kind of development will be mostly property speculator. A percentage of these market will apply for a mortgage on these type of property. Should a financing institution approves such loans, this would mean that productive activities like manufacturing will be competing on those funds. Now when property prices goes down, this means that bank loans will be under collateralised and banks may need to either provide provisions or get more equity from the borrower. Particularly with the Basel III coming. If this becomes systemic, banks needs to be bailed out by the government.
And guess where the government gets the money. From taxes. And who pays taxes? Oh yeah! you and me!
And during economic turmoil, who do you think gets the money first. The rich people represented by the banks and whatever leftovers are thrown to normal citizens like throwing foods to the dogs.