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AN air
of bullishness pervaded Thursday’s opening of the
Philippine Real-Estate Festival at the SMX Convention
Center, billed by organizers as the biggest such event
of the year. All the big guns of the property and
construction sector were there, ready to tackle pressing
issues on shelter: government policy for housing
finance, incentives for developers, concerns over rising
cost of construction and weakened consumer power, issues
of energy and the environment, among other concerns.
One
would have thought, given the relentless mention in
daily news reports of the travails of the US housing
industry and the general slowdown in the Philippines’
top trading partner—not to mention the economic
lifesaver of many Filipino households relying on
remittances from North America-based migrant
workers—that the same gloom would spill over into the
local market.
No such
thing is happening—at least, or fortunately, not yet—and
it would be presumptuous to say that the sector’s top
players are just putting up a brave front when they know
very well the real threats. What we see instead is a
picture of an industry with a good grasp of both the
serious threats and the opportunities it faces, given
what’s happening here and abroad; and with a coherent
view of how it is to go forward—together, as private
business, and in tandem with the state that sets policy
and its other stakeholders.
The
factors behind their optimism, despite a time eerily
reminiscent of the hardships of the Asian crisis a
decade ago, are easy to understand:
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First,
the demand for housing continues to rise, especially
among the migrant workers who have definitely matured in
their spending priorities and would mostly opt to save
for the most durable investment possible—a house—rather
than eternally splurging on consumer goods;
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Second,
the still-robust performance of tourism, notwithstanding
the problems of airlines and others affected by high oil
costs; hence, the corresponding rise in demand for more
hotels, resorts, wellness centers, malls and other
infrastructure; and
§
Third,
demographics: Whether we like it or not, notes House
panel chairman for housing and urban development Rep.
Rodolfo Valencia, “we will always have retirees in our
midst, and increasingly, the word has gone around that
the Philippines is one of the best places to retire in.”
The boom in retirement-related industries is a key
driver to the real-estate sector.
The
sector, however, concedes the serious threats posed by
inflation. In fact, at the afternoon session of
Thursday’s real-estate festival, industry groups lobbied
the government to tweak policy in order to ease the
impact of rising costs of key construction materials,
mainly cement and steel. Some quarters in the industry
had had the foresight early this year to forge an accord
with some cement groups to lock in, for one year, the
prices of what they buy from these at P148 per bag; a
smart move, considering some orders are now in the
regime of P190 a bag. Steel is a problem, though, and
the property sector is still looking for ways to hedge
their prices.
Still,
overall, the major industry associations in the sector
know what they have and what they need, and how to go
forward in a world reeling from the food and fuel
crises. They know the value of pursuing technology: to
make construction systems more efficient, the design of
homes and enclaves more environment-friendly and
energy-efficient, as well as make the remittance of
funds for home-loan payments quicker and at competitive
rates. They know the value of marketing, casting nets
beyond traditional markets here and abroad; and they
have absorbed the lessons of the past, especially in
sustaining collection systems and ensuring the health of
housing funds.
To be
sure, the sector isn’t without its shortcomings, and is
in fact aware of its grave responsibility toward the
environment and food security, while eschewing
tendencies to make it a scapegoat in the food (read:
rice) crisis. It’s at a most interesting crossroads,
and, one hopes, for the sake of millions of hard-working
Filipinos, it can help make their dreams come true. |
