INFRASTRUCTURE development, peace and order, and the drive against corruption are going to benefit the property sector, according to Lamudi Philippines.
These are part of the Duterte administration’s agenda that could help the sector to keep on growing.
In a statement, Lamudi Philippines said infrastructure plays an important part in the real estate market, as accessibility influenced by infrastructure is a major factor property buyers to take into account.
With the traffic congestion in Metro Manila, property buyers are buying residential developments in business districts close to their place of work, Lamudi noted.
Despite selling at lower price ranges, properties outside of Metro Manila do not have the same attraction as properties within the city.
“Better implementation of traffic laws, improving thoroughfares, and building more roads that connect Metro Manila to its provincial neighbors can help alleviate road conditions, and will open up more options for buyers and encourage them to consider purchasing properties outside known key areas,” Lamudi said.
With the Duterte administration pushing for regional development, which could ease the traffic problem in nation’s capital, this could drive developers to put up more projects in the provinces.
“Also, bringing telecommunications and utilities to underserved areas of the Philippines should encourage developers to construct more homes in provinces, providing current and future residents with a safer and more comfortable lifestyle,” Lamudi said.
Lamudi noted that less crime would not only make Filipinos safe, but it also provide a better business environment to foreign investors.
“An uncorrupt and decriminalized socio-political landscape means a less risky investment to foreign companies who are considering bringing their business to the Philippines,” Lamudi said.
“More specifically, it would lead to the continuous growth of the business process outsourcing (BPO) sector, which is being seen as one of the main contributors to the country’s good economic standing.”
Lamudi noted other areas which the administration should look into are socialized housing and sustainable building.
A recent study by the National Economic and Development Authority(NEDA) noted a key aspiration of most Filipinos is owning a home.
However, buying a house is not as easy for a many Filipinos due to the lack of supply of affordable houses. At present, the country’s housing backlog is at 5.5 million.
“Even with the availability of home loans from government sectors and private lenders, saving up for a home is still a challenge once basic needs, children’s tuition fees, and emergency funds are taken into account,” Lamudi said.
A major factor is the low minimum wage. In Metro Manila, minimum wage ranges from P454 to P491 for non-agricultural workers, P454 for the agricultural sector, and even lower for workers outside the National Capital Region (NCR).
“If the new administration were to focus on meeting the demand for affordable housing, buying a home whether in Metro Manila or in provincial areas would be easier for the average Filipino family,” Lamudi said.
Another factor is the development of more green buildings to promote a more sustainable property development.
To achieve this, the administration could create more incentives for developers to go for eco-friendly developments.
“By incentivizing the creation of more sustainable residential, commercial, and retail structures, not only are developers able to do their part in lessening their carbon footprint, they’re also helping buyers and renters do the same thing,” Lamudi said.