Real estate investments

march 2, 2009

TO keep the local real estate industry going amid the global financial crisis, a newly formed group of real estate professionals is urging Filipinos who are based here, as well as those living overseas, to invest in the Philippines.

“Rather than rushing to invest in the US where land values are currently cheap, why not invest in the Philippines and help (raise) the level of confidence in the local real estate industry?” said Chris Malazarte of the Philippine Allied Chamber of Real Estate Brokers and Licensed Salesmen (Philacre).

He reminded the public that the present dismal state of the global economy began with the crisis that affected the US subprime mortgage market, a segment made up of borrowers that have questionable credit history.

“What can the industry do when it is already down? How can it bring itself back to where it was before? Philacre’s vision is to create that push for the industry to be revived,” he said in a press conference last Friday.

Philacre president Antonio Leuterio said the gloomy Philippine economy and “hesitant investors” are prompting some real estate professionals to resort to “dirty tactics” to achieve sales targets. He cited incidents where some agents would give “discounts” or discourage potential buyers from approaching other brokers or licensed salesmen.

“If we don’t change that old system, how can we protect the industry? We are here to provide a venue for collaboration,” he said.

Leuterio said that Philacre, formed in October last year, will serve as a watchdog against sale of anomalous properties and transactions.

It will partner with Creba (Cebu Real Estate Brokers Association)that, he said, has the facility to check if the property is indeed for sale.

He encouraged real estate practitioners to share inventories of products and help rebuild the public’s trust in the industry to attract more buyers.

The group will also organize a Real Estate Expo in June and plans to attend a road show in the US in August.

Philacre—with its more than 300 members, including developers—is also planning to establish chapters in the US, Manila, Tacloban, Dumaguete, Bacolod and in key areas in Mindanao in the next few years. (NRC)