Property sector momentum sustained even after elections
With a little over two weeks to go before the national and local elections, property analysts have weighed in on how each of the Presidential candidates will affect the real estate sector.
“I was very disappointed with the candidates as they neglected the housing sector in their policy platforms. Not one of the presidential candidates highlighted the importance of the housing sector in their platforms. Most of the rhetoric focused on public infrastructure, technology, peace and order and employment but there were no specific mention of an integrated, compelling and institutional housing plan that can change the industry for the better,” lamented Enrique M. Soriano III, Ateneo program director for real estate and senior adviser for Wong+Bernstein Business Advisory.
Monique Cornelio-Pronove, CEO of Pronove Tai International Property Consultants, asserted: “Regardless who among them wins, the real estate market will continue its upward trajectory as the economic fundamentals of the country remain strong. The current administration leaves behind a healthy fiscal reserve that the new administration must now spend to build more roads, rail and improve as well as add more airports and ports around the country. We have a robust young population with a median age of 25 years that has the capacity to spend, and this drives the retail market. The services sector continues to expand, thus providing employment to our graduates. We have the confidence of the international community and the challenges we face on infrastructure provides a lot of opportunity for investments. Whoever wins the election, the real estate market will continue to be in good stead.”
Claro dG. Cordero Jr., Jones Lang LaSalle Philippines associate director and head of research, consulting and valuation, said: “Our view is that real estate will continue to project an upward growth trajectory regardless of who will sit in office after the elections. The property indicators and demand drivers, specifically, the BPO industry and the remittances coming from overseas Filipinos, will continue to flow and pump prime the consumer industries and positively influence the growth of new investments in the country. While the general direction will be the same, the rate of growth might just be different as each candidate will need to deal with their respective issues that might sidetrack the prioritization of urgent laws and policies to create a more favorable real estate investment environment.”
World’s top economies
“If the next President and the new set of leaders address more effectively corruption, criminality, climate change, poverty, pollution, too much politics, the police, housing, healthcare, agriculture, armed forces, transportation, traffic, infrastructure and incompetence, the Philippines will be in the top 20 economies of the world by 2021 when we celebrate 500 years as a Christian nation, adopting western civilization with our Asian Filipino culture,” enumerated architect and urban planner Felino Palafox Jr., National Real Estate Association chair and Palafox Architecture Group Inc. president.
Palafox added: “We hope and pray the next President will have visionary leadership, strong political will, will listen and apply good planning, good design, and good governance. He or she must not be intellectually and integrity challenged. He or she must have the skills and the heart to lead and manage the Philippines well into the 21st century.”
“Grace Poe and Rodrigo Duterte both requested us advice on urban planning. Jejomar Binay and Mar Roxas asked for my support. All of the four have good platforms. I will vote for the one who has the heart and the skills to address (national) issues,” said Palafox.
“Clearly, the property sector has been on a long and sustained momentum. It has always been a pillar and a major contributor to the country’s economic growth. It also directly benefits 52 major industries. On top of that it has services as a major component. Every house constructed has a direct contribution to the growth of steel, wood, labor and financing. But no one highlighted the importance of the sector. And it’s not a good sign,” said Soriano.
Soriano shared his observations on the five candidates.
“A solid accomplishment initiated by Roxas was the creation of the IT and BPO industry. He authored RA 8756, encouraging multinational companies to establish headquarters in the Philippines through incentives. Clearly, a major segment that has contributed significantly to the sustained growth of the current real estate market. Roxas’ support for the BPO sector helped this industry become a key driver in the residential and commercial sector. Roxas proposes an adequate, affordable and accessible housing program, complete with basic necessities.”
No housing plan
Soriano said that Poe has no housing plan in her 20-point platforms. “She highlights infrastructure and technology as pathways to growth but no mention of a housing policy that can be the centerpiece of her administration,” said Soriano.
Soriano said that Duterte “is looking at the creation of business and economic hubs to host major industries and their factories, patterned after Singapore and Hong Kong to stem the tide of unemployment.”
“The closest connection to real estate was his avowed mission to revive the Philippine steel industry. Foreign investments: Infrastructure gaps, whether in the countryside or in key urban centers, shall be prioritized and substantially filled, or at least initiated, during his term. He has no specific program on housing and real estate,” said Soriano.
Soriano said that Miriam Defensor Santiago “highlights public infrastructure to help facilitate rapid economic growth.”
“Some of her plans would be to develop: Mixed-use government centers with adjacent residential, commercial, and entertainment facilities in the National Capital Region and in the 17 regions. One major project per region and per province. Still no mention of an institutional housing program,” said Soriano.
Soriano said that Binay’s plans include accelerating infrastructure development, and invest more in infrastructure.
“Under a Binay presidency, his goals are to strengthen substantially the sectors of agriculture, manufacturing, tourism, BPO, and exporting—which are the five biggest job generators. Again no specific housing initiatives despite his almost five years as chair of the HUDCC,” said Soriano.
