How Will the ASEAN Integration Affect Philippine Real Estate?

Posted by Jane on

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This post originally appeared in Lamudi.com.ph as part of the #AskLamudi series. 

 

Q: How Will the ASEAN Integration Affect the Local Real Estate Market?

A: The ASEAN Economic Community (AEC)—the fusion of the economies of the 11 member-states of the Association of Southeast Asian Nations (ASEAN), to take place in 2015—is expected to bring four changes to the Philippines’ real estate sector.

1. Stronger demand for commercial, industrial, retail, and residential space.

Since the AEC envisions unimpeded movement of goods, services, and skilled labor, as well as a freer flow of capital among the ASEAN member-states, businesses from abroad are expected to expand their operations in the country. There would be more need for office, industrial, and residential space for these foreign investors.

The elimination of tariffs on goods and services is also foreseen to result in a wealthier Southeast Asia. With a higher disposable income, people would have more money to spend, thus the need for more malls, retail complexes, and other shopping developments.

2. Emergence of new growth areas.

Places other than Metro Manila and Cebu may need to be tapped to meet the demand for business and residential space, leading to the emergence of new economic hot spots. Among the possible growth areas are Iloilo, Cagayan de Oro, Angeles and San Fernando in Pampanga, and General Santos City.

3. More—and better—construction projects.

High demand plus a strong inflow of capital will make construction companies race to build the infrastructure, offices, retail complexes, and residential developments that a booming economy needs. The increased mobility of skilled labor would also allow the exchange of best practices in the ASEAN region, leading to better urban design and development.

4. Changes to the prohibition on foreigners from owning land.

With the influx of foreign investment that the AEC will bring about, the Philippines is almost certain to face pressure to amend the Constitution’s prohibition on non-Filipinos from owning land. With the lifting of the prohibition, many expect that the country’s foreign direct investment will soar to a new high.

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Lamudi is the Philippines’ fastest-growing online property portal and is currently available in 28 countries in Asia, the Middle East, Africa and Latin America, with more than 500,000 real estate listings across its global network. Primavera Residences, the first multi-awarded eco-friendly property in Cagayan de Oro, is one of the properties presently listed in Lamudi.

To know more about Primavera Residences, visit www.primaveraresidences.com or visit the listings at Lamudi.com.ph here.

 

ItalPinas Joins Biggest Building and Construction Exposition in Asia

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In the photo (L-R) Mr Alessandro Abbate, President of The Italian Chamber of Commerce in the Philippines, Inc. (ICCPI), Italian Ambassador Massimo Roscigno, Ms. Levy Han, co-founder of Worldbex, Arch. Romolo V. Nati, CEO of Italpinas Euroasian Design and Eco-Development Corporation (ITPI Corp.), and Mr. Gabriele Boccia, Board Member of the Wise Energy Group

 

ItalPinas, developer of Primavera Residences, joined the Philippine World Building and Construction Exposition (WORLDBEX) conducted on March 12-16 2014. Organized at the World Trade Center in Metro Manila, the exposition is renowned to be the biggest in Asia and is anticipated every year.

According to the site of Worldbex Services International, the events management company organizing the event, the exposition visitors go up to 150,000 per year. This draws in building and construction industry representatives and clients from 25 participating countries including Finland, Germany, Belgium and Australia from outside Asia.

“As an exhibitor, we again had a chance to showcase the uniqueness of Primavera Residences to an international audience,” said Architect Romolo V. Nati, CEO of Italpinas, the developer of Primavera Residences. Primavera prides itself as an eco-development corporation, specialized in green building designs and sustainable architecture.

Exhibitors included every kind of construction and home design-related companies including those who are catering to clients interested in building their homes for the first time. Local companies showcased are the country’s best developers and manufacturers. With around 500 exhibitors from around the world, ItalPinas stood its own ground, confident of its award-winning designs.

In 2010, it was awarded the “Most Promising Green Investment” by CTI PFAN Philippines, a partner of USAID and ADB. In 2011, it was awarded as “One of the Best Condo Developments in the Philippines: by the South East Asia Property Awards of Singapore. In 2013, it was dubbed the “Most Promising Clean Energy Investment Opportunities” during the CTI PFAN Investors’ Forum in Singapore. CTI PFAN (Climate Technology Initiative’s Private Financing Advisory Network) bridges investments and clean energy businesses.

Italian Ambassador Massimo Roscigno and Mr Alessandro Abbate, President of The Italian Chamber of Commerce in the Philippines, Inc. (ICCPI) honored ItalPinas with a visit. The Italian Chamber of Commerce also organized its own Italian Pavilion showing new products and projects with Italian builders.

 

Know more about the multi-awarded property Primavera Residences by visiting this page. 

Cagayan de Oro: Top Destination For Philippine Real Estate

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Primavera Residences in Cagayan de Oro

There is a movement of young aspiring professionals from the regions to the country’s capital. However, this trend is bound to make a turn-around with the developing regional urban centers.

Investors from around the country are realizing that instead of taking chances in the now-rising-now-falling investment climate in Metro Manila, holding their breath while it seesaws with the pressure of urban saturation, it is much more sustainable to bring the money home.

While the Urban Land Insitute survey and ULI-PwC annual reports show that Manila is a 2014 top real estate destination due to the rising economy of the Philippines in general (see story here), we should remember that this rising economy is still largely comprised of the regional investments.

Cagayan de Oro, a fast rising economy in the country, for example, is a busy hub servicing the vast agricultural lands of Northern Mindanao and the industries and aquatic resource developments along the Macajalar Bay.

As the jump-off point to many tourist destinations like Camiguin Island and the outdoor adventure centers in Bukidnon and Misamis Oriental, Cagayan de Oro is also growing its own community of tourism entrepreneurs. It is an investment destination for those engaging in the business of hotels, restaurants, and service providers.

As people – both national and international investors – are coming in, they see the ideal position of the city. While it is an active business hub, it is still a laid-back city, the beach only 15 minutes away from the city center, the mountains barely an hour’s drive. Urban comforts and rural charm define this city. Because of this, the city is also fast becoming a hotspot for Philippine real estate.

Proof of it is the active CdO real estate development scene – the city boasts of the first green building in Mindanao, the condominium towers of Primavera; it has the Pueblo de Oro subdivisions, micro centers themselves with restaurants, schools and even reforestation areas inside the communities.

So while Manila is attracting people who want to live life like it’s a rat race, this city down south is attracting people who dream big but want to enjoy every moment of getting to the realization of that dream.