2013 Real Estate Forecasts

In the Philippines, when one looks around, buildings continue to be erected, malls and practically every corner where there is foot traffic, booths and sales agents of property developers can be found giving out sales brochures and flyers, vacant and idle lots are diminishing to pave for high rise projects, infrastructure developments are expanding to the countryside, and people are curiously looking, intensely listening and enthusiastically appearing to be interested in what is being offered.

 Obviously, a Filipino dream is to have a house and lot, a condominium unit, or a property either as a practical source of regular income or as an investment. While some are selling, many are buying. Those who are buying comprise the aggregate market composed mostly of OFWs, nouveau riche, yuppies, call center agents, middle income families, among others, such as expatriates or companies.

For 2013, these are some of the fearless forecasts (culled from personal encounters with property hunters) :

1)      Socialized housing will be intensified and demand will definitely substantially increase, particularly so when government action on informal settlers is expected to likewise intensify;

2)      There will be an increase demand for old residential houses and lots which boast of spacious rooms and lawns, particularly so when these are sold at a price lower than brand new ones;

3)      Demands for housing or residential units would not diminish, and thus, more condominium projects will be undertaken in as much as raw lands for subdivision projects have become scarce within the Metropolitan Manila area;

4)      The right time to sell and the right time to buy is now until April of 2013. Prices are stable due to the economic performance of the Philippines and high approval rating of those in government. Expect changes after the mid-term elections on May of 2013;

5)      With the implementation of RESA law, more buyers and sellers will rely on licensed real estate brokers. It is admittedly the best way to deal in real estate, particularly so when it is, in the long run, cheaper and would generate higher returns;

6)      There will be an increased interest in foreclosed properties, and obviously on account of the fact that few are selling their own, hoping to get higher prices or better offers in the future. On this point, one must consider the trend surrounding the area affected;

7)      Parties will rely more on objective and honest appraisal of the property done by a licensed professional rather than relying on speculations and one's instinct – which in the end is definitely unreliable;

8)      Transactions will be more contract-dominated rather than parties relying on verbal arrangements. Every nook and cranny of the deal including the process and procedures must be looked into;

9)      Agritourism will become more attractive and farm lots may be offered as an alternative to a dull retirement, investment or subdivision living; and

10)   Agricultural development will play  a vital role in lieu of industrialization or mining development, or housing projects which do not give due regard to the protection of the environment.