CEBU, Philippines – The continuous upturn of the real estate sector will open a wider door of opportunity to both developers and buyers in 2015, as players predict lower downpayment schemes, rent-to-own offers and more choices.
“A lot of developers will expand or build more residential properties in Cebu in 2015. Local developers are likely to get hold of the market compared to national players,” said Philippine Allied Chamber of Real Estate Brokers and Licensed Salesmen (PhilAcre) President Anthony Leuterio.
The market will see a much heightened competition, while availability of land is shrinking within the metropolis, developers will be forced to build pocket condominiums and pocket subdivisions.
“Condominiums will still be the top priority of local developers. They can offer attractive payment schemes faster. The advantage of local developers is they can easily be negotiated and make decisions faster,” added Leuterio.
Likewise, Philippine Association of Real Estate Board-Cebu Real Estate Board (PAREB-CEREB) president Samuel Lao said that local developers have more advantages compared to national players, although giant real estate companies are now starting to make their presence felt here.
Lao said that the good Feng Shui forecast for the 2015 year of the sheep, is seen to push capitalists to invest more on real estate projects, and Cebu, and other key areas in the Southern Philippines are on top of the list.
A much buoyant real estate market is seen in 2015, this environment will provide better, if not best opportunities for both buyers and developers, said Leuterio.
The ASEAN Integration will also make a more profound presence in the sector, sensing that interest for real estate development will only come from local and national developers, but real estate companies from the ASEAN countries are counting the Philippines as their number one priority for regional expansion.
In 2015, Leuterio said the real estate brokers are anticipating the entry of international players in the property development, this will put more pressure to the already competitive environment, but on the other hand this will also give a good break to buyers.
PAREB members are already preparing to penetrate the ASEAN region with its move to open up chapters in the region especially in Thailand, Vietnam and Malaysia.
PAREB past president Tomasito Academia said that Filipinos working and residing within the ASEAN region will be able to get their license without having to go home, and can promote and sell properties abroad.
Academia said that although the government-to-government agreement on this matter has yet to be formalized, the private sector players in the real estate brokerage sector in the Philippines are getting ahead and establishing their foundations within the ASEAN bloc.
This move, he said, will provide at least two advantages for Filipinos to promote and market properties in the Philippines, specifically condominiums, in preparation also for the free-flow of real estate market exchanges once the integration is fully implemented.
Once a chapter will be formed abroad, Academia said the Professional Regulations Commission will set up an offshore licensing examination.
The Philippines, specifically Cebu, is even ahead in the curb in terms of providing a pool of professionals in the real estate management, as major universities are now offering a full course on real estate management, the B.S. Real Estate Management, which will have its first graduates in 2016.
The real estate management expert added that the robust growth of the real estate sector in the Philippines, which is seen to hold a longer stretch, will also provide real estate management professionals bigger and brighter opportunities ahead, significantly with the integration.
Currently, PAREB has over four thousand members across the country, with 62 member boards including CEREB.
Overseas Filipino Workers will still lead in the buyers’ profile, although foreigners are also getting more active in acquiring condominium properties in Cebu, either for investment or second home units.
While the market is irresistibly active, Leuterio warned that brokers and agents should also be more creative in promoting properties, and innovative marketing strategies will be introduced specifically to the dollar-earning market.
The threat of an active and opportunity-filled property sector, is also spotted and buyers should be clever enough to only deal with licensed brokers and agents, as the presence of “fly-by-night” real estate product sellers cannot also be avoided.
Meanwhile, demand for property rental in both commercial and residential project will also get more exciting in 2015, said Leuterio.
“Rental will be a great enterprise in 2015. More offices will be opening in Cebu, and more will be needing housing units,” Leuterio said.
The fast movement of property development which poses a downturn effect on slow moving infrastructure should be taken very seriously specifically in 2015.
On the other hand, a real estate developer expressed confidence that Cebu will be able to catch up with the robust growth in property development, as the local government unit is addressing this concern.
Cebu Landmasters Inc., (CLM) President Jose Soberano III said the problem of infrastructure, and the cause of flooding in the metropolis is the normal reaction of a booming city like Cebu, and that developments to fix this concern will follow suit.
Soberano, whose company is one of the most active in terms of expansion, said that what is good about Cebu is the private sector and the government are coordinating.
“We see how the government/authorities are exerting efforts in solving the infrastructure problem,” said Soberano, reiterating his belief that Cebu will be saved from overdevelopment issues, while the real estate development sector will continue to enjoy brisk business. —/BRP (FREEMAN)
