Monday, February 8, 2021

A Look Back on 2020 and Beyond: The Philippine Real Estate Sector (Part 2)

 


Residential Real Estate Prices Declines

In the recent BSP Residential Real Estate Index Q3 2020 report, there is a sharp decline of properties particularly residential condominiums by -23% with many investors affected with the pandemic and the decline of foreign workers of various Philippine Offshore Gaming Operators in Metro Manila which have become the renters of these properties. With high vacancies and non-payments of loans. Majority of owners have decided to sell off their condominiums for other interested buyers particularly real estate speculators due to possible circumstances such as non-availability of credit from financial institutions because of stringent requirements against risks and defaults with a slow economy in recession.


Political Will and Policies versus Medical Science

Opening up the economy to children below ages 14, has been requested by businessmen in the past months but with the spike of this disease in Cordillera Autonomous Region (CAR) which affected three children below 14 years who contracted COVID-19 recently. The IATF had intends to relax the implementation but later retracted because of the possible rising cases of transmission of the Covid-19 UK variant (B117) the following day. This was refuted by health experts from Philippine Pediatric Society with  recommendations coming from Department of Health and other non-governmental organization because of the risks of transmission of this disease  as children are considered possible super spreaders.   

Infrastructure Developments Continues

Build, Build Build and Private-Public Partnership programs on infrastructure development remains in progress with new projects underway. Although, there were setbacks in 2020 because of the pandemic, the opening of the NLEx and SLEx connector is one example of the projects completed. Others than that were recently other developments that shelved or removed from the list. One example, is the Sangley International Airport in Cavite because of non-compliance of the winning bidder / contractors and other reasons above economic growth is the national security of Metro Manila as Sangley Naval Base in Cavite City run by the Armed Forces of the Philippines.

High Hopes and Expectations

Recently, the government and the private sector  to make the economic recovery and movement of trade forecast on the second half of 2021 with the positive outlook on the roll-out if a national vaccination plan for the 55% of the Philippines' population (between the ages of 18 to 60) after a long lock down brought about by this pandemic that investors' confidence can surge again. Maintaining a safe population and keeping the economy alive is a hard balancing act to perform.

In the meantime, there are too many unknowns and what's next for the Philippines and the entire world?
 
Sources: 

About the Writer

CRB Benedict Baluyut is a professional real estate broker, real estate appraiser and associate of C. F. Baluyut Realty. He is currently the Vice President for External Affairs, Real Estate Brokers Association of the Philippines, Inc. (REBAP) - Pampanga Chapter. You can get in touch with him at https://www.cfbaluyutrealty.com.
 

 

 

 

Copyright 2004 - 2021 C. F. Baluyut Realty | Real Estate in Pampanga, Philippines. All Rights Reserved.