Santos Knight Frank believes that 2018 will be a brighter year for the Philippine real estate industry, due to a better business environment supported by the government’s infrastructure plans.
Some of the projects include a bill for land expropriation for mass housing, which cleared the House of Representatives. Chair and CEO Rick Santos also said that sentiment among investors has been higher following the conclusion of the recent ASEAN event.
Part of the reason for a stronger industry next year stems from broader ties with China and Japan among other Asian countries, according to Santos.
Since the Philippine government has pledged to invest more in infrastructure development, institutional and private investors will find it reasonable to do business in real estate particularly in secondary cities.
In 2017 alone, the information technology and BPO sectors have mostly driven demand for more than 600,000 square meters of space absorption. Aside from offices, the residential segment will be a bright spot. Santos expects an estimated turnover of 52,000 residential properties in 2018.
As early as now, property agents should conduct due diligence and real estate review on pricing or marketing projects. Websites such as Real Estate Hub provide in-depth insights on developers and their respective development projects in areas such as lifestyle, business, and education.
House Bill 159 inched closer to reality after receiving unanimous approval from congressional representatives. The proposal aims to hasten the process of expropriating properties for mass housing, which will solve a backlog of homes in the country.
This process will take place even if the subject of ownership remains under court litigation. The current law only allows land expropriation as the last option to acquire private land, according to Negros Occidental Rep. Alfredo Benitez.
The bill may expropriate vacant lots and “alienable lands of the public domain” among other properties.
The Philippine government’s regulatory and investment initiatives will likely help the real estate industry in 2018, but do you think more should be done?