Construction & Real Estate
From The Report: Philippines 2019
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The Philippines’ construction industry is entering a period of strong growth, supported by government spending led by President Rodrigo Duterte’s signature Build, Build, Build (BBB) infrastructure programme. BBB is leading to ancillary construction and development around airports and seaports, especially residential and retail projects, providing the momentum stakeholders need to confidently plan for the future. The Philippines’ real estate sector has enjoyed robust growth in recent years, fuelled by remittances, rapid economic expansion and a comprehensive public infrastructure programme that has opened up new opportunities beyond Metro Manila and the affluent business districts of the capital. Actions set to further strengthen activity in the sector include reforms to the tax system and the establishment of a new regulator. This chapter also contains interviews with Jose Leviste Jr, Chairman, Atlantic, Gulf & Pacific; and Robbie Antonio, Founder, Revolution Precrafted Properties.

Articles from this Chapter

Overview

More in store: The government’s infrastructure programme is well under way, spurring additional builds around key projects
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The Philippines’ construction industry is entering a period of strong growth, supported by government spending led by President Rodrigo Duterte’s signature Build, Build, Build (BBB) infrastructure programme. Primarily a transport initiative, BBB is also leading to ancillary construction and development around airports and seaports, especially residential and retail projects. On the back of solid economic growth and enabling policies, as well as robust domestic compounded by Chinese demand…

Analysis

Brains and brawn: A shortage of labour across the skills spectrum hinders government-led infrastructure development initiatives
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In April 2019 the Department of Labour and Employment (DOLE) reported that the construction sector’s share of total employment rose to 9.5% in October 2018, up from 8.5% a year earlier. This figure accounted for 328,000 additional jobs with the total employed in the sector reaching 3.9m. The Construction Industry Authority of the Philippines aims to increase this to 7m under the Construction Industry Roadmap 2020-30. However, the number of people in technical positions is not keeping up…

Interview

New cornerstones: Jose Leviste Jr, Chairman, Atlantic, Gulf & Pacific Company, on energy and infrastructure as new growth drivers
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Interview:Jose Leviste Jr. How much progress has been made on the modernisation of transport infrastructure under the Build, Build, Build (BBB) programme? JOSE LEVISTE JR: The implementation of the BBB programme shows the political vision of the president and the government. Its big-ticket projects will take time to accomplish, but it is important that initial steps have already been taken. The targeted end-date for BBB will extend beyond 2022, but as many projects as possible will be executed…

Overview

Over land and sea: China’s implementation of a new trade network is energising the global construction industry
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From 206 BCE to 220 CE, China’s Han dynasty fostered a booming trade industry in silk, a precious commodity in high demand among the elites of the Mediterranean. The Silk Road was the name given to the network of trade routes connecting the East and West at the time. Later, spices and other precious cargo would be traded using the system, fostering not only economic, but also cultural links between Asia and its contiguous continents. As such, the network became the information superhighway of its time, transmitting knowledge across distance and cultures. Extremely rapid economic expansion in China in the four decades since former leader…

Overview

Bring it home: Supported by tax reforms, a robust economy and a raft of transport projects, the sector is set to secure long-term growth
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The Philippines’ real estate sector has enjoyed robust growth in recent years, fuelled by remittances, rapid economic expansion and a comprehensive public infrastructure programme that has opened up new opportunities beyond Metro Manila and the affluent business districts of the capital. Actions set to further strengthen activity in the sector include reforms to the tax system and the establishment of a new regulator. While stark income inequality and a chronic shortage of affordable housing…

Analysis

Getting the ball rolling: Revisions to legislation are giving rise to the country’s inaugural real estate investment trust
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While real estate investment trusts (REITs), or publicly listed stock corporations that own income-generating real estate assets, have been notionally possible since the REIT Act of 2009, no asset of this type has been established. However, this is set to change as local real estate firm Ayala Land announced in April 2019 that it will raise funds for the country’s first-ever REIT, paving the way for others to follow suit. Requirements Under the law REITs must list on the Philippine Stock…

Interview

New mode of living: Robbie Antonio, Founder, Revolution Precrafted Properties, on technological innovations to help ease affordable housing deficit
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Interview:Robbie Antonio How do you expect the production of housing to evolve in the near future? ROBBIE ANTONIO: The pressing need for easy-to-build, affordable housing and increased competition in the real estate industry will continue to incentivise companies to improve their systems and operations. They will most likely centre their innovation on streamlining production. In the future I think the development of prefabricated housing will focus on the reduction of cost and manpower. The…