Local developers told to tap foreign partners

CEBU, Philippines — Local developers are urged to forge partnerships with foreign firms, particularly the Japanese, and build projects that target the high-end market.

Property consultancy and advisory firm Colliers International Philippines made this suggestion as the rest of the world is looking at the Philippines, as its fertile playground for real estate developments—in hotels, commercial buildings or high-rise residential projects.

Filipino developers could particularly take advantage of Japanese’ expertise in innovation and fill the vacuum in the development of luxury projects.

Colliers believes that developers should seize the opportunity provided by the growing popularity of joint ventures.

Although, other foreign partners could give value added to any real estate venture plans of Filipino builders, joining hands with Japanese developers on the other hand will pave the way for a better positioning and appeal.

“In our opinion, local players should highlight their partnerships with Japanese firms, known for their technological innovation,” Colliers suggested.

Emphasis on upscale amenities, integrated development, and potential for capital appreciation should be seriously considered as buyers take note of a property’s potential appreciation value.

The joint venture projects between foreign and Philippine firms are among the more expensive in the market today.

Despite being classified as upscale and luxury, these projects have an average take up rate of nearly 90 percent, as of second half of this year. (FREEMAN)