Jap investment recovery felt in real estate sector

CEBU, Philippines - Real estate brokers are now seeing a growing interest from the foreign market, specifically from Japanese nationals, to invest on condominium units in Cebu.

In an interview yesterday with real estate brokerage owner Anthony Leuterio, he said that some developers are now enjoying sales and increasing inquiries from the Japanese market, particularly those that are looking for alternative vacation locations or retirement haven.

While the Philippines has seen the recovery of Japanese investments across industries, this particular market are also buying condominium properties in the Philippines, and Cebu is one of the preferred locations, said Leuterio.

An earlier report obtained from the Cebu Investment Promotions Center (CIPC) it revealed that at least 500 Japanese firms have expressed interest in locating plants in the Philippines, including Cebu, about 200 of which are into manufacturing.

According to Leuterio, the renewed interest of Japanese investors to locate in the Philippines would also benefit the real estate sector.

Philippine Economic Zone Authority (PEZA) is now relaxing its requirements to encourage private developers venture into this kind of project.

Thus, aside from developing residential, commercial buildings and projects, it is also good for developers now to venture into other segment in the real estate sector, and investing into ecozone development.

In a separate interview, tourism consultant to Cebu Province Patria Aurora Roa said that the recovering interest of the Japanese market to consider Cebu as its vacation destination of choice could boost not only the tourism sector, but also real estate.

Known for its love in wellness and leisure, the Japanese market rebound is seen to further boost the wellness, healthcare, entertainment, retail and even real estate sectors in the province, Roa said.

Roa, who is the former Department of Tourism (DOT-7) regional director said that Cebu’s long term efforts to revive the Japanese market is now getting positive results, following reports of increasing number of Japanese young retirees buying off condominium units in Cebu.

“Japanese nationals are high spenders. They are wealthy. They spend more than any other nationalities. If they are going to consider Cebu as their second home, the more that other industries will be benefited especially the wellness, and retail,” Roa said.

While the influx of Japanese nationals to Cebu is good for the provincial economy in general, it will also help push the medical tourism sector here.

Earlier,  Megaworld Inc., which is building a township project on Mactan Island called “The Mactan Newtown,” reported that a bulk of Japanese young retirees are buying residential condominium units. So far, over 700 units are already sold to this particular market.

Another two residential towers will be constructed, and likewise eyed again by a group of young Japanese retirees.

Roa said Japanese also spends well on medical and other forms of therapeutic services. Thus, Cebu’s bid to take off in the medical tourism sector is expected to be realized with this development.

However, Roa said this early, hospital facilities in Cebu should get accreditations from Japanese HMOs to accommodate the Japanese market. /JOB (FREEMAN)