Government braces for effects of real estate boom

CEBU, Philippines - In line with the boom of the real estate business in Cebu, the Department of Public Works and Highways (DPWH) is preparing for the effects on the cost of government infrastructure projects.

DPWH-7 Director Ador Canlas made the statement in reaction to the forecast of realtor Ricardo “Ric” Inting, CIPS, president and chairman of Land Asia Realty and Development Corporation, that the real estate industry will sustain its boom until 2020.

“We are already encountering it because of the real estate boom. Definitely, there is corresponding increase in the cost of real estate which is supposed to be acquired by the government,” said Canlas at the 888 New`

Canlas said they are more concerned on structures built along the national roads, particularly those which would require set backing.

Right now, he said that all over the country, they are looking at increasing the road capacity by actually widening the national roads.

Canlas pointed out that due to the vibrant real estate industry, there will be an increase in the cost of buying and acquiring land for the right of way.

“That would be inputted now on how we estimate our project costs,” he said.

He stressed that if there is a widening project, they will include in the estimate the cost of acquiring the right of way. Although that would be easier said than done, he said there is a very tedious process in acquiring the right of way particularly in urban areas.

Canlas also noted that while they keep on increasing road capacities, the roads cannot be used because these are being used as parking spaces by some establishments and car owners.

At the same forum, Inting said that Cebu is growing to be a hub of opportunities now that it has been eyed as an investment destination for real estate developments, business process outsourcing, tourism, as well as medical, creative industries and small and medium enterprises.

Inting said Cebu captured the attention of many foreign companies looking for investment.

Local developers who started to pour investments that dramatically changed Cebu’s real estate landscape are now providing affordable and quality homes for end-user buyers.

Foreigners, on the other hand, are more engaged in buying condominium units in Cebu for convenience and practicality. —Gregg M. Rubio/ATO (FREEMAN)