I attended a symposium for licensed brokers conducted by the Quezon City Realtors Board, Inc. on the occasion of its 50th Founding Anniversary, last September 9, 2008 at the Sulo Hotel in Quezon City --- Symposium '08 THE REAL ESTATE BOOM... IT'S HERE. This is part of my 'Continuing Education Program' required of brokers in order for us to renew our license for 2009.
The guest speakers were Hon. Feliciano Belmonte, Jr. (represented by Councilor RJ Belmonte), Mr. Rex Mendoza (SVP of Ayala Land, Inc.,), Prof. Cielito Habito (former Secretary General, NEDA), Hon. Dennis Miralles (Director, Domestic Mkt'g. Dept. DTI) and Hon. Manuel Villar (represented by Atty. Gilbert Remulla).
According to Rex Mendoza, 'the real estate boom is just starting!' He stated that 2004 to 2007 displays the classic "Early Cycle" Symptoms - meaning the real estate industry boom is just beginning to show. One sign is that the 'loans to GDP this year is only 27% as compared to 59% in 1997 when our country experienced an economic crisis. Another sign is that nowadays, bank LOANS are so attractive --- low rates fixed up to 20 years. According to Mr. Mendoza, we are very far from the 1997 situation. The credit environment is still strong. Furthermore, OFW deployment and remittance is still high. He further sees that 2008 to 2010 will be stable. He also said that investing in real estate for the long term is one of the best investments one can make. As a proof, he showed us that the price per square meter of all Ayala Land properties appreciated at an average of 18% compounded annually since 1962.
Meanwhile, according to Prof. Cielito Habito, the real estate sector and finance sector continue to lead which means that both sectors are experiencing positive growth. To quote, he said "real estate continues to be zooming". This is mainly because of these three factors:
1) the 'UNMET NEED' (millions of housing units backlog) for housing by Filipinos,
2) strong demand for office spaces of BPO's and
3) the increasing 'purchasing power' of our people specially the OFW's.
As a final note he said 'the real estate industry is defying the overall trend in the economy'.
2) strong demand for office spaces of BPO's and
3) the increasing 'purchasing power' of our people specially the OFW's.
As a final note he said 'the real estate industry is defying the overall trend in the economy'.
According to Dir. Dennis Miralles of the Bureau of Trade and Industry, the biggest growth in mass housing projects happened last 2007, with more than 200% increase compared to 2006. Good news is that as of this time, the mass housing sector has already reached their target for this year.
Now that's good news for us all. :)
Happy selling!
