Real estate industry profits from inter-island migration

CEBU, Philippines - With Cebu’s strategic location for inter-island migration, local real estate players remain positive with their operations this year despite the negative prospects of the economy.

Realtor Nicolas A. Pimentel said that yearly, Cebu’s population continue to increase with the influx of migrants coming from different nearby provinces which has been good for real estate players because these migrants become markets for residential projects in the area.

“The demand for residential dwelling continues to increase with the influx of these migrants from different provinces and from foreigners that have inter-married with Filipinas. But since Cebu has limited prime areas, real estate practitioners should realize countryside developments so that those areas will also get more opportunities,” said Pimentel.

He said that at this point, slowdown will be a matter of perception because so far, they continue to receive inquiries and consumers continue to look for good investment ventures in real estate developments.

“Real estate remains to be a hedge over inflation and this type of investment appreciates over time so at this time of economic uncertainty, it is still the best investment option,” he said.

Meanwhile, real estate developer Abelardo Cañedo, the chief executive officer of Paramount Property Venture remains bullish with their on-going projects despite the economic recession because they continue to attract consumers to invest in their projects.

He said that the crisis even gives them an opportunity to fast-track their developments because construction materials have become more affordable at these times.

“Now is certainly the best time to construct and develop properties since the prices are at its lowest and since it’s the best time, it’s also good for us to fast-track our developments before prices will definitely shoot up once the economy swings back,” he said.

Currently, the company’s on-going Fonte di Versailles beach community project in Minlanilla is now 30 percent sold and its South phase, which will be the high-end area is going to start construction this May.

Meanwhile, Shanna Louise T. Lopez vice president for operations of Nexus Real Estate Corporation said that as an area for development, Cebu still have more rooms for growth because its real estate market is still far from congestion.

She said that the viability of Cebu as an area for development is the reason why they continue to be positive in their projections.

Since housing remains as a basic necessity, they continue to be bullish with Cebu’s real estate industry because so far they have not yet noticed a major decline of their sales despite the on-going global recession.

Lopez said that they will be further pursuing the middle-cost housing segment with a P1.5 million to three million pesos range because they see immense growth potential in this market considering that not a lot of players are concentrating on this market.

With their continued bullishness in Cebu, Lopez revealed future plans to do a resort development in island of Bantayan as well as expansion of their Pacific Pension to other areas within the city or to other provinces.

She said that the company is also eyeing to venture into developing retirement homes in the countryside in the future as well as do more middle-cost housing projects in Minglanilla and in other areas in the South and the North of the province.