MANILA, PHILIPPINES – The Philippine real estate industry is expected to grow further next year as the upcoming Association of South East Asian Nations (ASEAN) economic integration continues to attract foreign investors and with the region’s increasing role in the global economy.
The ASEAN integration in 2015 will change the economic landscape of the whole region, particularly the real estate market, Noel Cariño, president of Chamber of Real Estate and Builders Association (CREBA) said in a statement.
“The demand for residential spaces adjacent to malls, retail complexes, and other recreational spaces would go up and will likely increase the already healthy real estate market,” Cariño explains.
More commercial and residential infrastructure for highly urbanized cities within the region including key cities of the Philippines would be needed as the integration sets in.
“Residential, commercial, and retail developers, which will be exposed to international market, will expand their operations and acquire properties inside and outside the country, while foreign investors and corporate executives with local operations in the country will look for residential spaces for a place to stay,” Cariño added.
To reap the benefits of the ASEAN integration, the country must continue to pursue relevant market reforms in order to remain competitive.
“Foreign ownership restrictions enshrined in the Philippine constitution will hinder the growth of foreign direct investments, so we need to continue to improve the business environment in the country in order to attract more investors,” Charlie Gorayeb, national chairman of CREBA pointed out.
CREBA is pushing for the passage of a bill that will consolidate the function and powers of major housing and urban agencies of the government to address effectively the needs of both consumers and developers.
CREBA also aims to sustain a centralized home financing program for the country to address the current housing backlog and supply the housing demand of the growing middle class within the next 20 years.
With the upcoming ASEAN integration, property players “should work together to unlock strategic approaches to keep the domestic property sector afloat” as multinational players enter the already stiff competition in the country’s real estate market, according to the organizers of the convention, CREBA said in a statement.
Meanwhile, Iloilo will host host CREBA’s 23rd National Convention on October 15 to 18. Senator JV Ejercito, who chairs the senate committee on urban development, housing and resettlement, is set to deliver a keynote speech on the legislative agenda of the real estate industry in the 16th congress. – Rappler.com
Makati City image via ShutterStock