Although Cebu’s property market has been noted to have taken a different path from the natural economic cycle, real estate players are however encouraged not to be complacent, instead brace themselves by diversifying their businesses.
Real estate consultant and property specialist Dr. Tomasito Z. Academia said in an interview yesterday with The Freeman, that the brisk real estate sector in Cebu may experience a slow down if the natural economic cycle were to follow.
Regardless if Cebu will take the hit of the natural economic flow, wherein a slump is expected to hit by 2017, it is good for property capitalists, and even real estate brokers and marketers to cushion the impact by diversifying into other industries.
The real estate sector is the first and more profound segment in the economy that will suffer the brunt of a cyclic economic movement. From the upswing which kicked off in 2007, the cycle is seen to spiral down in 2017. "That's the natural cycle."
Academia, who is also a professor for Real Estate Management course in both graduate and under-graduate studies, related that the cycle's footprint can be freshly recalled since in the last two decades. From the regional economic crisis happened in 1997 and the subprime-fueled economic crunch which hit the United States in 2007.
Experts and economic analysts therefore are expecting a economic hiccup in 2017, which may affect the speeding growth of real estate sector in the Philippines, including Cebu.
"Cebu is the last to fall, and first to rise," said Academia giving hope that although this cycle may hit Cebu, its strength is seen to withstand external interventions.
Nevertheless, he said it is wiser to anticipate any downward movement in the real estate, and developers are encouraged to look for diversifications, as well as brokers and property agents.
"We still have two years to enjoy. Real estate sector is growing in its peak, opportunities are generous. It is time to build, and it is also good and best to buy properties," said Academia.