The property sector is enjoying its most prolific cycle in recent history. The cityscape is enjoying a major facelift. Old districts are transforming into new buildings featuring state-of the-art construction and even green designs. Vertical villages have emerged as the practical and value-for-money address for urban dwellers. Building means growth; investments convey progress; good business leads to an upsurge in economic activity; and domestic growth always spells good news for the country.
The Philippines’ diaspora of Global Filipinos continues to fuel a boom in the real estate market back home. Estimated at close to 12 million or a tenth of the total Philippine population, the magnitude of their contribution have long been a major force in the national economy in terms of remittances, property acquisition and creating businesses.
It is estimated that Pinoy expatriate workers send back home about US$ 15 billion in foreign remittances which is continuously growing every year. Reports from the banking sector even states that this figure is an understatement since an average of 30% is sent to their local beneficiaries through other means outside the banking system. The global community is likewise appreciating more and more the best in Filipinos on all fronts: from entertainment, business and architecture, to tourism and BPO.
Since five years ago, US$ 5 billion of OFW funds were spent in real estate, and this is expected to increase some more as remittances grow. It is also observed that their wants have changed too from low cost housing units to midrange homes, house and lot packages, town houses, or condominiums units with cost ranging from 3 to 7 million pesos. The Pinoy expatriates are now aware of the benefits these properties could give them, its higher resale or lease value− not to mention the location, which is almost always on prime sites.
More and more property developers are now enjoying a “booming market.” Most are claiming that more than 60% of their sales went to OFWs, and are opening more new projects eyeing OFW clienteles. The unprecedented growth has even sent big property developers abroad for sales stints targeting the Pinoy overseas worker.
With the revenue in the real estate industry growing by almost 50% annually since the last five years, there is no doubt that the property sector shall have the crown of having the fastest growth rate among various industries in the country.
With the increasing spending power of the middle class, a strong and conservative banking sector, a stable homebuyers market that is free from speculators, plus billions in remittances from abroad, we see no end in sight for the industry’s flourishing growth.
This is the centerpiece of the upcoming 21st Annual National Convention of the Chamber of Real Estate & Builders’ Associations, Inc. or CREBA – the largest Philippine umbrella organization of the real estate and housing industry composed of property developers, builders, contractors, suppliers and manufacturers of construction materials, real estate service practitioners and other professionals and entities engaged in 68 allied fields.
The Convention will be held from October 18-20, 2012 at the Legend Hotel, Puerto Princesa City, Palawan with the theme “Global Filipino: Key to Conserving Growth Through Sustainable and Strategic Real Estate Development and Practices.”
The 21st Annual CREBA National Convention hopes to unlock and link together sustainable and strategic approaches to keep the impressive growth path, and in the process, reinforce the commitment of industry stakeholders to advance land and housing as a primary catalyst for economic and social progress.
Set on a tropical paradise such as Puerto Princesa, the “City in a Forest” that is home to the world wonder Subterranean River, the Convention shall provide the needed perspectives on global concepts and tap into the unlimited opportunities on emerging and fast-expanding markets.
Published in the Manila Bulletin June 2012