Osmeña: Political and business cycles in Cebu

Wednesday, April 29, 2009

Antonio V. Osmeña
Estatements

AFTER a 35-year rule in Philippine national politics, then President Sergio Osmeña suffered his first defeat in 1946, in the hands of Manuel Roxas.

Politics in Cebu in the early 40s and 50s was ruled by Vicente del Rosario and Manuel Cuenco. It was only in the late 50s that the second generation Osmeña, Serging Jr, got involved in Cebu politics.

Meanwhile, the Gaisano clan ruled the merchandising business in Cebu, along with a few others that were the most popular establishments on Magallanes Street—Sen Hiap Heng and United Merchant.

In the real estate subdivision development, the Osmeñas, Gochan, Limkaking and Gonzales ruled the housing business for four decades until the declaration of martial law.

In shipping, entrepreneur William Chiongbian pushed others to make Cebu the center of the shipping industry. The shipping industry has made Cebu the center of trading in the Visayas and Mindanao.

SUPPLY-DEMAND. The greater intensity of real estate booms and depressions, as well as the longer life of the cycle span, are a direct effect of the inflexible and peculiar economic characteristics of real estate that influence its supply and demand.

Once an oversupply of housing saturates the real estate market, economic inability to adjust the supply to active demand creates abnormal vacancy ratios and competitive pricing conditions, upon which real estate depressions have fed in the past.

Basically, real estate cycle is, in fact, a composite of the general business and housing or construction. But obviously today, those who enter the real estate market have also to contend with forces that affect real estate as a commodity, such as political wrangling among local elected officials due to the absence of a comprehensive long-range real estate development planning and peace and order condition of the community.

CEBU POLITICS. The political cycle in Cebu started with Gov. Manuel Cuenco in the early 50s.

The political cycle of the Cuencos will end with Rep. Antonio V. Cuenco’s term next year. The political cycle of the Osmeñas will end with Mayor Tomas next year unless Rogelio, third generation of Sergio, runs for mayor. Councilor Richard, a fourth generation of Sergio is still too much of a neophyte for the mayorship.

What about Serge and Georgia, brother and sister of Mayor Tomas? During the term of Gov. Lito Osmeña, the 40-hectare of provincial lot occupied by the Club Filipino golf was bidded out to the Ayalas, triggering other real estate investments to come to Cebu.

Most of the residential subdivision developments in Cebu is no longer under the monopoly of true-blooded Cebuanos.
Real estate requires large capital outlays, a fact that edged out local players.