Property industry to gain more momentum in 2015

CEBU, Philippines - The upbeat momentum of the real estate industry is expected to continue in 2015 and will in fact usher in vast opportunities for both developers and buyers as industry players foresee lower downpayment schemes and rent-to-own offers, among other options.

"A lot of developers will expand or build more residential properties in Cebu in 2015. Local developers are likely to get hold of the market compared to national players," said Philippine Allied Chamber of Real Estate Brokers and Licensed Salesmen (PhilAcre) president Anthony Leuterio.

The market will see a more intense competition and while the availability of land within the metropolis is shrinking, developers will be prompted to build pocket condominiums and pocket subdivisions.      

"Condominiums will still be the top priority of local developers. They can offer attractive payment schemes faster. The advantage of local developers is they can easily negotiate and make decisions faster," added Leuterio.

Likewise, Philippine Association of Real Estate Board-Cebu Real Estate Board (Pareb-Cereb) president Samuel O. Lao said that local developers have more advantages compared to national players, although giant real estate companies are now starting to make their presence here.

Lao added that good Feng Shui forecast for the Year of the Sheep is seen to encourage capitalists to invest more on real estate projects with Cebu and other key areas in the southern Philippines on top of the priority list.    

Leuterio said a more buoyant real estate market in 2015 will provide better prospects for both buyers and developers.

Furthermore, the much anticipated ASEAN integration will also make a more profound presence in the sector, sensing that interest for real estate development will only come from local and national developers, but real estate companies from the ASEAN countries are counting the Philippines as their number one priority for regional expansion.

In 2015, Leuterio said real estate brokers are bracing for a more competitive environment as an integrated economy allows the free-flow of international players in the property development market.

PAREB members are already preparing to penetrate the ASEAN region with its move to open up chapters in the bloc especially in Thailand, Vietnam and Malaysia.

PAREB past president Dr. Tomasito Z. Academia in an interview said that Filipinos working and residing within the ASEAN will be able to get their licenses without having to go home, and promote and sell properties abroad.

Academia said that although the government to government agreement on this matter has yet to be formalized, the private sector players in the real estate brokerage sector in the Philippines is getting ahead and establishing its foundation within the ASEAN bloc.

This move he said will provide at least two advantages for Filipinos to promote and market properties in the Philippines, specifically condominiums, in preparation also for the free-flow of real estate marketers exchanges once the integration is fully implemented, including the reciprocity and mutuality agreements between governments in the region is in place.

Once a chapter will be formed abroad, Academia said the Professional Regulations Commission  will set up an offshore licensing examination.

The Philippines, specifically Cebu is even ahead in the curb in terms of providing pool of professionals in the real estate management, as major universities are now offering a full course on real estate management, the B.S. Real Estate Management, which will have its first graduates in 2016.

The real estate management expert added that the robust growth of real estate sector in the Philippines, which is seen to hold a longer stretch, would also provide real estate management professionals brighter and bigger opportunities ahead, significantly with the integration.

Currently, PAREB has over 4,000 members across the country, with 62 member boards including the CEREB.

Overseas Filipino Workers will still lead the buyers' profile, although foreigners are also getting more active in acquiring condominium properties in Cebu, either for investment or second home units.

While the market is irresistibly active, Leuterio warned that brokers and agents should also be more creative in promoting properties and introduce innovative marketing strategies specifically to the dollar earning market.

The threat of an active and opportunity-filled property sector is also spotted and buyers should be clever enough to only deal with licensed brokers and agents so as not to be victimized by "fly-by-night" brokers.

Meanwhile, demand for property rental in both commercial and residential project will also get more exciting in 2015, Said Leuterio.

"Rental will be a great enterprise in 2015. More offices will be opening in Cebu, and more will be needing housing units," Leuterio said.

The fast movement of property development which posses a downturn effect on slow moving infrastructure should be taken very seriously specifically in 2015.

On the other hand, the real estate developer expressed confidence that Cebu will be able to catch up with the robust growth in property development, as the local government unit (LGU) is addressing this concern.