RECENT SCENARIOS have been hinting of gloomy days for the housing market, as developers have been struggling to cushion the impact of rising construction material costs. Where is the bright side of all this? Read on.
1. Think Green. Oil price and power crisis issues are pushing environmental thinking among developers.
These issues are providing organizations like the Green Architecture Movement an opportunity to urge homebuyers—and developers—to support sustainable and environment-friendly development.
Edgar V. Reformado, chair of the Green Architecture Movement, said a better home design means less consumption of power, thus less maintenance and utility costs. He is also encouraging developers towards areas that would not contribute to congested communities in the future.
Alejandro S. Mañalac, president of the National Real Estate Association, cited a trend for transport-oriented developments which may not necessarily be inside the central business districts but are near mass transit lines of MRT and LRT.
“Developing green is also the call of the day with developers considering buildings at par with LEED (Leadership in Energy and Environmental Design) standards,” Mañalac said.
Edgardo M. Alunan, president of Subdivision and Housing Developers Association said his group wants to promote the integration of wastewater treatment facilities.
“I, for one, am interested in installing the nanosolar, a 3G solar power system, in every home. But it’s so new and there’s lack of supply,” Alunan said.
2. The market is no longer limited to the rich Chinese. More Filipinos, even from lower management positions, can already afford to buy properties, according to some developers.
The reason? The availability of long-term financing, low-monthly amortizations, the concept of middle-cost housing near central business districts, the smaller configurations have provided the opportunity to more buyers to own their units. More young professionals have invested in condo units before buying cars,” Mañalac quipped.
3. Sales to successful foreign-based Filipinos continue to pour.
Another major contributor to this boom is the maturity of the foreign-based Filipino workers: those who left 20 years ago have fully settled abroad and paid their debts; their kids have finished college and are working; and the parents are ready to enjoy their pension and savings.
4. Developers’ open communications with “the very active overseas Filipino workers.” Mañalac said it is also only now that the developers are reaching out to these markets abroad by doing regular international road shows, advertising in Filipino broadcast channels as well as online. Property developers noted that it was already common for overseas buyers to purchase properties here, sight unseen, agent unknown personally, and payment wired.
5. Technology makes it easier for Filipinos all over the world to communicate. They can inquire, purchase properties or report positive or negative feedback through Internet websites, webcams, VoIP (Voice-over-Internet protocol), and mobile 3G phones. Scanners make online transactions possible.
6. Although prices are edging higher, the present low-interest rates of Pag-Ibig fund and commercial banks still provide a warm respite for low amortizations. Pag-Ibig’s Abot-Kamay Pabahay program has reduced interest rates to 6 percent and extended amortization payments up to 30 years.
7. Increased interest in housing loans. Pag-Ibig reported that in 2007 the number of attendees in housing loan counseling session increased by 207 percent while the number of calls received at the agency’s call center (724-4244 or PAGIBIG) posted a 400 percent increase from 4,304 in 2006 to 21,000 in 2007. Similarly, the number of Membership Status Verification Slips (MSVS), a good way of measuring members’ interest to avail of housing loans, soared to 128 percent.
8. Demand for subdivision and housing units has continued to increase in and out of Metro Manila, according to Pag-Ibig. This was likewise observed by Alunan.
He added that if the trend continues, total takeouts this year could hit P35 billion versus Pag-Ibig’s budget of P26 billion.
The either-good-or-bad news for developers has been “the availability of a sustained home financing program. We hardly created a dent resolving our 3.8-million housing backlog in the post-Asian crisis, yet Pag-Ibig’s money supply is beginning to strain,” Alunan lamented. He added that GSIS and SSS should cast a line instead of relying on Pag-Ibig-financed housing for their members.
9. Some developers were able to soften the impact of construction supplies. The SHDA group was able to bag an agreement last January with Holcim Philippines that provides SHDA members a steady supply of cement at locked-in prices for the entire year. Without the lock-in, prices would have inflated further, according to Alunan.
On the downside, “the lock-in helped, but all in all, costs still increased because of steel,” he added.
10. Investing in physical property remains a better alternative. Inquirer Property’s previous interview with Bobby Disini, vice president of PS Bank’s mortgage banking division, yielded the conclusion that property is still a wise investment.
Copyright INQUIRER.net and content partners.
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