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News Real Estate Midrange, low-cost houses are in
News Real Estate Midrange, low-cost houses are in
| Midrange, low-cost houses are in |
| Friday, 29 August 2008 00:00 | ||
 Property buyers' appetites are changing, particularly those of overseas Filipino workers (OFWs), who make up the biggest market for real estate.Officials of the Chamber of Real Estate and Builders' Associations, Inc., told the Philippine Daily Inquirer that buyers were now going for either socialized (cheaper than low-cost) or, more significantly, midrange properties. "More people are buying for investment, especially OFWs. They (OFWs) are no longer made up of domestic helpers or carpenters. They are mostly nurses, doctors, IT people, even lawyers, managers. They get better pay and are more likely to think about investing," CREBA national president Reghis M. Romero II told the Inquirer. Real estate as investmentApparently, low-cost properties used to be the best sellers. These were house and lot properties or condominium units priced from P750,000 to around P2 million."Overseas workers now snub properties worth 'only' P2 million and below!" Romero quipped. He said the trend may be surprising amid the global economic slowdown. But it makes sense considering that midrange residences are in better condition than low-cost and thus have better rental and re-selling value--an ace in tough times. "The hot sellers now are the properties priced between P3 million and P7 million. These are mostly townhouses ... there are a few condo units," Romero said. Seeing sales opportunities, CREBA is thus adding fuel to the midrange frenzy via road shows in foreign markets with large OFW communities, according to Purita Soliven, who spearheads such events for CREBA. "We went to Qatar early this year, to Singapore in April and to Milan and London around late June to early July. During road shows we create a fiesta atmosphere and show the range of properties in the Philippines to the OFW communities," Soliven said. The other road shows for 2008 will be in other parts of the Middle East and the United States. Romero said that if the current trend for midrange buying continues, the real estate industry could match its 6-percent revenue growth in 2007 despite inflationary pressures. This would then help prop up other industries and the overall economy. Other trend: Ultra-cheap While not as strong as the midrange segment in terms of growth, socialized housing is still a major driver of the real estate industry, said Romero. Socialized housing developments offer house and lot packages worth around P300,000. "There is still strong growth in socialized housing, especially in areas around economic zones and industrial estates. The buyers are workers and their families," Romero said. To support socialized housing for business growth and as an advocacy, CREBA has sought government assistance for developers' and buyers' incentives. On the developers' side, CREBA obtained government permission to import raw materials for steel in bulk. The materials, called steel billets, are processed by steel-making members of CREBA for the needs of other members. Developers and contractors also get some income tax rebates. On the buyers' side, value-added tax exemptions are often included in their payment packages. The packages are tied up with government institutions such as Pag-Ibig and the Development Bank of the Philippines and there are no down payments demanded. As for the inevitable question about demand from the outsourcing industry, Romero said it's consistently growing, especially outside Metro Manila. But the midrange buys for OFWs are still the hottest of the lot.
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