Property market zooming up

Businessmen who have invested in the property and real estate business for the past 10 years will definitely benefit from an upsurge in the industry. According to ATR Kim Eng Financial, the upswing in the property market could lead to more launches as a result. Various property segments posted remarkable growth last year. There was a registered 25-percent increase in licenses approved by the Housing and Land Use Regulatory Board (HLURB), with a 100-percent increase recorded in the third quarter of 2006. Further good news is the expected increase of land values by 10 percent. Even the stock of residential condominiums particularly in the Makati central business district rose by five percent last year, and this trend is expected to continue through 2007. Rents for luxury units escalated by nearly 12 percent in 2006, with an expected further escalation in 2007 by an average of 10 percent.

If specific developments for tourism-related and commercial purposes are opened up to foreign investors, then Manila can definitely compete with Hong Kong since a lot of expatriates are looking at other destinations because Hong Kong has become one of the most polluted cities in the world. The trend is so upbeat and positive that even El Kapitan, Don Lucio Tan has gone into the real estate business, big time – with plans to develop condominiums, office buildings, commercial centers and other projects through his Eton Properties Inc., a backdoor listed company.

One of the lucky players in the industry is Nuvoland Philippines, developer of The Infinity condominiums at Fort Bonifacio in Taguig. I went to the opening of the showrooms for The Infinity, a joint venture office and residential condominium project of Kevin Belmonte, President and Associate Publisher of People Asia and Nards Jimenez. Kevin used a Star Wars theme for the launch to highlight the beautiful and well-priced units, with a one-bedroom unit pegged at P4 million, while a two-bedroom unit goes for P7-P8 million. The units can come already well-furnished if the owner wishes.

The Infinity is definitely coming in at the right time in the property market. A lot of Filipinos abroad are looking at buying units that they can come home to every time they visit the country. A number of developers have geared some of their projects to target overseas Filipino workers, whose inflows last year hit an all-time high of P12.8 billion or an almost 20-percent increase from 2005 levels.

Another lucky player in the property market is Landco Pacific. Its president Alfred Xerez Burgos disclosed there are a lot of developments in the pipeline, and one of them is the joint venture project of Villa Escudero, where they plan to turn the 500-hectare area into an ecotourism spot complete with hotel, recreational facilities, and other amenities. If one were to ask me where to invest within the next five years, it would be in the property market – because the 10-year cycle of real estate ups and downs is now on the up.

* * *

Gore for broke

When Al Gore ran for US president in 2000, he gave it all he got. Technically, Gore won with the highest number of votes at 50 million, though he lost in the electoral college count. It was "agony in defeat" for Al Gore, but shortly thereafter, he went all out for something he passionately believed in – the dangers of global warming and climate change. And now, Gore’s "An Inconvenient Truth" won the best documentary feature award at the Oscars, bringing him back to center stage.

But the question is: will Al Gore "go for broke" and take another shot at the US presidency? There’s no doubt Gore has become a Hollywood celebrity, with the docu director inviting him onstage to give the acceptance speech for the award. "An Inconvenient Truth" recorded a box office take of $45 million, making it the third highest grossing documentary. At one point, even Hollywood actor Leonardo diCaprio hinted at a possible presidential run when he said, "So Mr. Gore, we’ve got a big crowd out here tonight and an even bigger one at home. Is there anything you want to announce?" Gore has become hugely popular and is being dubbed as a "modern day rock star," with his road shows selling tickets faster than a boy band concert. Up next: a possible Nobel Peace Prize. Or is it the presidency?

* * *

Email: [email protected]