ASEAN integration 'to boost real estate industry'

MANILA, Philippines - The Association of Southeast Asian Nations (ASEAN) Integration in 2015 will change the economic landscape of the whole region, particularly the real estate industry.

 

From a single market within each country, the ASEAN Economic Community will produce an adjoined market of 600 million people. 

 

Lamudi, an online property portal, identified three key changes that the real estate industry should expect from the ASEAN Integration.

 

Stronger demand for space

 

The elimination of tariffs on goods and services brought about by a unified economy would drive consumer spending higher. Demand for malls, retail complexes and other lifestyle-centric shopping developments would go up.

 

Local businesses that will open to the international market would expand operations and acquire office space and industrial properties outside the Philippines. Like their Filipino counterparts, foreign investors will look for residential spaces for a place to stay.

 

Freer flow of capital

 

The influx of investment and elimination of trade barriers will bring free movement of goods, services, skilled labor and capital. A growing economy would require more commercial and residential infrastructure.

 

Pressure of foreign ownership

 

"Asia has more restrictions on foreign direct investment than any other region," a researcher from a multinational company said.

 

It is stated in the 1987 Constitution that non-FIlipinos are forbidden from acquiring or holding titles to private lands. The ASEAN Integration may possibly pressure lawmakers to introduce reforms that would allow foreign ownership in the country.