List Sotheby’s International Philippines organised an exclusive event to our clients last October 3, 2019.
This is to give a glimpse of the real estate market, that is why the topic was A Taste of the Philippines: An Overview of the Philippine Market, which took place at Sofitel Philippine Plaza Manila
During the talk, invited speakers spoke hand in hand not only about the current economic state of the Philippines but also climate change & sustainability. Former Finance Secretary Margarito Teves and Financial Inclusion Advocate & Specialist Griselda Santos were our honoured speakers.
Mr. Teves started his presentation by showing the GDP growth with an average of 6.3% since 2010. In comparison with Asia’s emerging markets, the Philippines remains one of the better performing economies. Thus, inflation and poverty continuously decelerate and drop.
In terms of the real estate sector there has been 68.8% of new establishments within NCR. Several factors are driving the real estate, and one of them is the Build, Build, Build. There were 75 flagship infra projects worth P2.4T, 33 region-specific outside Metro Manila and 19 multi-regional projects. Namely Airports in Clark, Davao, Bacolod, etc., Mindanao Railway Project and 8 inter-island bridges.
Then Rapid Urbanization, with 4.1% increase in urban population and five other highly organised regions Central Luzon 61.6%, Calabarzon, 66.4%, Central Visayas 49.4%, Davao 63.5% and SOCCKSARGEN- 51.6%.
In addition, increasing foreign tourist arrivals and influx of foreign retirees. And top retirees in PH: Chinese 36.8%, Korean 20.8%, Indians 8.32% and Americans 8.10%. One more component is the Philippine Offshore Gaming Operators (POGOs) seen within NCR. As of August 2019, 60 POGOS has emerged and giving a P12B revenue for PAGCOR.
And for Mrs. Santos she stated “ Resiliency as it relates to climate change is not just about physical infrastructure resiliency. It is also about financial resiliency. The real sector should also play a role in educating the Filipinos on good financial management and the importance of insurance. Otherwise, when climate change disaster strikes there is minimal to no recovery at all. It will leave the real estate sector and market at risk and the remaining 100 million Filipinos permanently financially excluded.”
A vibrant economic health of the country bodes well for real estate is seen. And we should be more aware of our environment and how we can contribute to its preservation. There are simple steps that can be taken: increase thermal efficiencies in buildings, better urban planning and use of green spaces, and set temperature limits in buildings. Addressing climate change is addressing the overall sustainability of the real estate market- not contribute more to financial exclusion.