FOLLOWING the success of helping developers sell their properties in the Visayas and Mindanao, a homegrown real estate solutions company is now setting its sights on Luzon where there is a huge working population and housing backlog.
Filipino Homes founder and president Anthony Gerard Leuterio said the move to penetrate Luzon was buoyed by the immense opportunities and the huge market potential of the island being a host to more information technology-business process management companies and a big presence of overseas Filipino workers (OFWs).
“It’s a big market that we are excited to serve,” said Leuterio, adding that there are no more projects to sell in Mindanao.
“The next thing to do is go up and help more developers become successful in Luzon,” he added.
Filipino Homes is set to open more offices in Luzon this year.
According to Alejandro Mañalac, chairman and co-founder of Havitas Developments Corp., there are three demand drivers in real estate — population, IT-BPM and OFWs.
“Luzon carries 57 percent of the population of the Philippines or roughly 63 million. Of the over 700 IT- BPMs in the country with around 1.3 million workers, most of them are also based in Luzon; for the OFWs 66 percent are from Luzon. Just with these three factors, you can already see the great potential of real estate for Luzon,” he said.
The housing backlog in Luzon also presents big opportunities in the property sector.
RJ Ledesma, board governor of Subdivision and Housing Developers Association, said 70 percent of the 5.7 million housing backlog in the country is in Luzon.
“This is one of the many factors which make Luzon an attractive destination for developers to put their money into and build more affordable residential projects,” he said.
Since the Covid-19 pandemic hit the Philippines early this year, industries of all sizes have been affected. Many shifted gears from being traditional to digital to stay afloat in the market. The market also shifted its focus towards sustainable endeavors.
But real estate is one of those that continued to post gains.
“Surprisingly, with the turns and shifts of events brought about by the Covid-19 people are thinking to invest in buying homes in the countryside or the bedroom communities,” said Ledesma.
“Pre-pandemic people splurged their money maybe in expensive, non-essential investments like cars, gadgets, and others. Now, the pandemic has brought the shift of priorities, buying a property (a house) is now on their top priority list,” he added.
Mañalac reinforced that real estate is the best investment during these tough times.
“Right now, people have already realized that the best investment that they could really count on in good and in bad times is real estate. In fact, those who can afford now are still investing in properties. When the economy recovers and more people can already afford to buy properties for their own use or to invest for passive income, real estate will definitely be on the top of the people’s priority list,” he said.
The government’s massive infrastructure program is also seen to boost real estate. The proposed Bulacan International Airport by the San Miguel Aerocity Inc., for example, is set to open up more opportunities in residential and commercial real estate.
To be dubbed the “New Manila International Airport,” the Bulacan airport is expected to decongest the Ninoy Aquino International Airport, which is now crowded. It aims to support growth and development in Central Luzon.
Meanwhile, Leuterio said this pandemic has opened opportunities for real estate developers.
He said more developers will now invest in building sustainable homes and building sustainable communities as people look for properties in a place that offers a good lifestyle and a high-quality healthcare system. (KOC)