Philippine Real Estate Forcast in 2012

Trends, threats, challenges….

Yes, we say Thank You & Good Bye to another successful year in Real  Estate!

Growing for an average of 5 percent nationwide!

A first in my 38 years in the service and practice. We have seen real estate values increase at beyond one’s imagination since 2005.

With healthy and strong monetary policies; we survived the 2008 US residential and financial meltdown…

By year 2009, 2010 and 2011 the property sector in the Philippines proved to be a good profitable and wise investment. However, economic laws and the real estate cycle will show an inevitable slowdown in real estate particularly in the mid to high end condominium market.

This I believe is now saturated especially in central business districts of Metro Manila. The obstacles, dangers, and factors to the growth of these condominiums are: oversupply, competition, taxation, high maintenance cost, and monthly dues.

A consequence to these negative factors will lead to rentals of the residential condo units to go down.

Investors who bought units with the objectives of paying installment amortization with rental income are now forced to take less rent or give bigger discounts.

Fortunately, the Philippines has more real estate investment opportunities.

In a nutshell, these are the housing sector. We need to supply a 3 million backlog, homes with affordable levels of 500k to 3M.

Location of these homes must have easy access to work and business centers, education, health, health, and community facilities and utilities.

For the year 2012, creativity and innovation is a must for survival.

Real estate should look into new, dynamic, and integrated developments.

To name a few: tourism oriented hotels, clubs, resorts, health, wellness and care facilities  for the elders, PWD’s and retirees.

Urban renewal developments in downtown Manila, Pasay, QC, and other area in Metro Manila.

Finally I see the growing demand for commercial/retail town/neighborhood centers.

These are convenient, efficient, good location, ample easy parking with prime and core tenants.

The Dragon year of 2012 will separate the big boys from the old traditional real estate companies. Gone will be the family “haciendero” real estate firms who have aged without leaving a successor, leader or professional management.

These family corporations will eventually be taken over by the big boys. The winners will be successful groups like SMDC, DMCI, AYALA, etc as well as the new and upcoming winners like ProFriends, Antel, Alfaland, Robinson Greenfields, Eton, Megaworld etc.

Therefore, I would put my 2012 bet to developers who are creative, innovative,  and think out of the traditional box.

May God Bless Us with a Happy, Healthy, Peaceful and Prosperous New Year! Mabuhay!

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