MANILA, 30 June 2016: As former long-time Davao mayor Rodrigo Duterte officially takes his seat as president of the Philippines, many are still speculating as to the new administration’s impact on the country, especially on the local economy. The real estate industry in particular has been enjoying its ride for a few years now, as seen in the rise of new developments both in Metro Manila and beyond, leaving people wondering if the property business will be able to maintain its momentum under a new government. Lamudi Philippines lists some of the things that the Duterte administration can do to ensure the continuous boom of real estate in the country.
Decrease Crime and Corruption
During his campaign, President Duterte’s platform has always been to eradicate crime in the country to improve the level of safety. But decreasing the crime rate will actually do more than just allow people to move around freely with no fear of imminent threat to their well-being. An uncorrupt and decriminalized socio-political landscape means a less risky investment to foreign companies who are considering bringing their business to the Philippines. More specifically, it would lead to the continuous growth of the business process outsourcing (BPO) sector, which is being seen as one of the main contributors to the country’s good economic standing.
Make Socialized Housing a Top Priority
Home ownership is probably the biggest dream of all hardworking Filipinos, yet the current property market lacks the supply to make this a reality. In Metro Manila, the current minimum wage ranges from Php454 to Php491 for non-agricultural workers, and Php454 for those in the agricultural sector, and even lower for those working outside the National Capital Region (NCR). Even with the availability of home loans from government sectors and private lenders, saving up for a home is still a challenge once basic needs, children’s tuition fees, and emergency funds are taken into account. If the new administration were to focus on meeting the demand for affordable housing, buying a home whether in Metro Manila or in provincial areas would be easier for the average Filipino family.
Accessibility is one of the factors that buyers take into account when purchasing a property, which is why condos and houses close to Metro Manila’s business districts cost more. But if one’s workplace and potential new home are separated by bad traffic congestion and even worse road conditions, what chance do farther-off properties have, even with a slightly lower price tag than those found in prime real estate areas? Better implementation of traffic laws, improving thoroughfares, and building more roads that connect Metro Manila to its provincial neighbors can help alleviate road conditions, and will open up more options for buyers and encourage them to consider purchasing properties outside known (and more congested) key areas. Also, bringing telecommunications and utilities to underserved areas of the Philippines should encourage developers to construct more homes in provinces, providing current and future residents with a safer and more comfortable lifestyle.
Promote Sustainable Building
Green building is steadily gaining momentum in the real estate industry, but not all have adjusted their developments and construction practices to accommodate sustainable elements. By incentivizing the creation of more sustainable residential, commercial, and retail structures, not only are developers able to do their part in lessening their carbon footprint, they’re also helping buyers and renters do the same thing. Not only that, green designs that allow the entry of natural light and improve air circulation help residents and tenants economize and save money in the long run.