Construction & Real Estate
From The Report: Philippines 2018
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Favourable government policies and a growing, increasingly urbanised population have created fertile ground for the expansion of the Philippines’ construction sector in recent years. Driven by major investments in transport networks, residential complexes and social housing, the construction industry grew at an average annual rate of 12% from 2012 to 2016. The annual growth rate more than halved in 2017, falling from 12.1% to 5.3%, but as of the first quarter of 2018 growth was registered at 9.3% year-on-year. A confluence of economic forces has also bolstered real estate demand in recent years, with an influx of outsourcing firms, rising incomes, cash-laden investors and the liberalisation of key sectors all playing a part. This chapter contains interviews with Edgar Injap Sia II, CEO and Chairman, DoubleDragon Properties; and Willie J Uy, President and CEO, 8990 Holdings.

Articles from this Chapter

Overview

Building boom: A flagship works programme is intent on closing the nation’s infrastructure gap
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Favourable government policies and a growing, increasingly urbanised population have created fertile ground for the expansion of the Philippines’ construction sector in recent years. Driven by major investments in transport networks, residential complexes and social housing, the construction industry grew at an average annual rate of 12% from 2012 until 2016. The annual growth rate more than halved in 2017, falling from 12.1% to 5.3%, but as of the first quarter of 2018, growth was registered…

Analysis

New heights: Demand for building materials looks set to continue after hitting a five-year price high
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With a number of previously stalled infrastructure projects kick-started under the administration of President Rodrigo Duterte, the demand for construction materials has reached new heights. Driven by the Build, Build, Build (BBB) programme, the wholesale price of construction materials reached a five-year high during the last quarter of 2017. According to data from the Philippine Statistics Authority (PSA), the construction materials wholesale price index (CMWPI) in the National Capital…

Overview

Securing shelter: Government policy focuses on addressing demand for office space and housing
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A confluence of economic forces has bolstered real estate demand in recent years, with an influx of outsourcing firms, rising incomes, cash-laden investors and the liberalisation of key sectors all playing a part. As a result, the real estate sector has exhibited strong growth, with a variety of new residential and mixeduse projects spread across the National Capital Region (NCR), as well as other fast-growing secondary cities. The property landscape of the NCR has significantly evolved…

Analysis

Affordable access: Efforts accelerate to address the housing backlog
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Insufficient levels of affordable housing across urban centres is one of the more complex issues facing the government, with the challenge compounded by the pace of urbanisation currently under way. Housing in the Philippines is categorised into five broad groups based on affordability: social housing, with a sales price of up to P450,000 ($8890); economic housing that sells between P450,000 ($8890) and P1.7m ($33,600); low-cost housing that ranges P1.7m ($33,600) to P3m ($59,300); mid-cost…

Interview

Evolving market: Edgar Injap Sia II, CEO and Chairman, DoubleDragon Properties, on the development of second- and third-tier cities
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Interview:Edgar Injap Sia II How do you see the supply and demand ratio evolving in the commercial, office and residential property markets over the coming years? EDGAR INJAP SIA: It is important to focus on four areas. The first is renting out office space to companies. The second is community development – building small community malls in third-tier cities. The third area is hospitality, especially hotels in promising regions, as we strongly believe that the tourism sector has yet to…

Interview

Anticipating returns: Willie J Uy, President and CEO, 8990 Holdings, on how the public and private sectors can collaborate in a changing market
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Interview:Willie J Uy To what extent has the land acquisition process improved in recent years, and what further challenges remain in this area? WILLIE UY: The number-one factor is the cost of investing in a land bank, which is a crucial component of a real estate company. As far as financing for land is concerned, it really depends on credit standing, but there are also limits set on real estate among the private banks. Historically, banks could not lend all of their assets to just one industry. There…