Construction & Real Estate
From The Report: The Philippines 2016
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The construction and real estate sectors make up around 20% of the Philippine economy, slightly ahead of manufacturing. Over the past few years, construction in the Philippines has been flourishing amid a climate of political stability and upbeat business sentiment, spurred by growth in overseas foreign worker remittances, inbound investments into business process outsourcing, rising numbers of tourist arrivals, and government spending on large- and small-scale infrastructure. Although growth rates for the sector are unlikely to maintain the exceptional levels of the past 24 months, the long-term prospects remain solid and balanced. Positive trading conditions for the residential, office, retail and hospitality segments point to robust demand for private-sector-led building. This chapter contains interviews with Chito Cruz, Chairman, Housing and Urban Development Coordinating Council; and J J Atencio, President and CEO, 8990 Holdings.

Articles from this Chapter

Overview

Building a modern economy: Strong economic activity leading to a series of new developments
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A flourishing outsourcing sector, fresh investments in infrastructure and the development of new housing will continue to fuel the Philippines’ swiftly growing economy. These factors are set to have a positive impact on the construction sector, despite significant structural bottlenecks. At 8.9% in 2015, growth in the Philippine construction sector outpaced GDP growth of 5.8%. After a stagnant three quarters, the private construction sector recovered in the fourth quarter of 2014 and grew 20.5%,…

Overview

Taking stock: After a half decade of rapid growth developers are looking to prevent oversupply
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Demand for office and outsourcing space in Manila’s most popular commercial areas managed to keep pace with a surge of new supply in 2015. That said, 2016 is expected to see a slight rise in vacancy rates. Foreseeing this trend, however, and wary of flooding the market, builders and developers have already pared down plans for future launches. Nearly 600,000 sq metres of office space was added to Metro Manila’s supply in 2015, about double the 2014 level, with more than half of this occupied…

Interview

Improved housing: OBG talks to Chito Cruz, Chairman, Housing and Urban Development Coordinating Council (HUDCC)
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Interview: Chito Cruz How can urban growth be sustained while addressing the country’s informal settlements? CHITO CRUZ: Unlike developed countries with well-planned communities that cater to the housing needs of the population, once you have rapid urbanisation in developing economies, informal settler communities form because people go to these urban areas for job opportunities and readily available social services. To address this, the government has started early, with urban planning in cities…

Interview

Affordable housing: OBG talks to J J Atencio, President and CEO, 8990 Holdings
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Interview:J J Atencio Would proper segmentation of the real estate market help address home buyer needs? J J ATENCIO: The housing market can be divided into three main categories: social housing, affordable housing and open market. In the social housing segment, products are P450,000 ($9990) or below, and developers are supported by many types of government subsidies or income tax breaks. To further encourage greater participation in the growth of the social housing sector, real estate developers…