Rp Real Estate Poised To Profit From Crisis: Consultant

[Mr Lee]

http://www.abs-cbnnews.com/business/12/24/...isis-consultantRP real estate poised to profit from crisis: consultantAgence France-Presse | 12/24/2008 2:48 PMThe Philippine real estate market could be a safe haven and even a source of profit in the world financial crisis, a global property consultant said Wednesday.After many financial instruments proved unstable this year, investors will shift in 2009 to more traditional investments such as real estate, CB Richard Ellis said in a statement."Previously, the diversity of portfolio investments lured most equity funds to invest in high-risk, high-yielding liquid assets and financial instruments. Now real estate remains a safe bet for investment," the statement said.Investors could look to opportunities in "companies which have a physical presence that offers face-to-face customer experiences," Rick Santos, CB Richard Ellis chairman for the Philippines, was quoted as saying.The Philippines also has a large population and is not overly dependent on export revenues, allowing the country to rely on its human resources and large domestic market to tide it over in the face of falling export demand.The global crisis has caused values of properties to fall to "more realistic levels," while both the local real estate and banking industries were capable of financing and developing projects, the consultant said.Tourism, the outsourcing industry and the millions of Filipinos working overseas will be the main sources of growth for the real estate sector, CB Richard Ellis said."Investments into these real estate segments will see the Philippine real estate sector through this global financial crisis."as of 12/24/2008 2:48 PM

[Dave Hounddriver]

The global crisis has caused values of properties to fall to "more realistic levels,"

My 'on location in Cebu' point of view is that the properties in Cebu have NOT fallen in price to match the "more realistic levels" achieved in other parts of the world. The Philippines will, IMO, see a drop in real estate prices in 2009.Worldwide investors would find better opportunities to buy reduced value properties in developed nations at this time. Of course I'm no expert, I just want to be able to point to this post in September of next year and say "I told you so" Hee Hee

[Mr Lee]

The global crisis has caused values of properties to fall to "more realistic levels,"

My 'on location in Cebu' point of view is that the properties in Cebu have NOT fallen in price to match the "more realistic levels" achieved in other parts of the world. The Philippines will, IMO, see a drop in real estate prices in 2009.Worldwide investors would find better opportunities to buy reduced value properties in developed nations at this time. Of course I'm no expert, I just want to be able to point to this post in September of next year and say "I told you so" Hee Hee

Dave, I think you got that right. There is nothing better than an on location person checking to see what is really happening. :th_thanx: I think Cebu will not be hit as hard as many other pasts of the Philippines IMHO because of all the foreigners who live there and spend their monthly incomes from their home countries there. :thumbsup: Heck some people we know probably keep the whole island afloat just on what they drink a month. :AddEmoticons04230:

[TheMason]

A Filipino real estate agent that says the Filipino real estate market is THE place to put your money next year. My broker tells me stocks are the place to be, real estate agents tell me the property market is hot, and my banker is trying to sell me the safety of time deposits. I wonder which self-serving adviser will be right this time.

My 'on location in Cebu' point of view is that the properties in Cebu have NOT fallen in price to match the "more realistic levels" achieved in other parts of the world. The Philippines will, IMO, see a drop in real estate prices in 2009.

I haven't been here very long, but I don't see any screaming deals on real estate in Baguio either. There's a house across the street been on the market for almost a year now and the seller is not budging from his asking price of 7 million php. There was a death on the premises during contruction and he's still got a high asking price. A worker was having a tryst with his GF on the building site and scaffolding fell on them and killed her. If fear of a ghost won't make him drop the price, neither will a global recession.

[BobNChe]

"A Global Property Consultant" hither to unnamed nor the firm they work for. Hence typical Filipino journalism (cough cough) with rah rah, we can beat the global economic downturn because we are invincible!The problem is that some people will believe it. Oh well!

[tom_shor]

Except that the people with money to invest. (Foreigners) Can't own property. So it wouldn't be a very good investment for them for sure.

[retired]

"A Global Property Consultant" hither to unnamed nor the firm they work for. Hence typical Filipino journalism (cough cough) with rah rah, we can beat the global economic downturn because we are invincible!The problem is that some people will believe it. Oh well!

The article mentioned was probably " paid for " by someone within the Philippine gov . :th_thsmilies-29057: I have been researching properities lately here in Cagayan De Oro and as for declining prices , not . Philippine real estate is still over valued in my mind . And where this consultant gets his info from is beyond me . Last time i looked every news article regarding the Philippines states it IS an export economy .If anyone is looking there is a property next door to us up for sale at 1.9m . The owner owns a chicken franchise here in CDO and used to house his workers there so maybe like a boarding house . The house two doors up the street the other way just sold to a german married to a Filipina for 800,000. So , at least there will be two foreigners in the neighborhood . Three would be nicer . :welcome:

[johnrxx99]

While CB Richard Ellis is a very repsected firm in the US and Europe (I used to work for Richard Ellis many years ago before CB bought them), the observations made in that report are dire. He is certainly not a researcher and appears to know very little about the RP. He is an agent and wouldn't trust one as far as I could throw one.No country on earth will not be affected during 2009. Talk to local businessmen and you find factories are closing, people laid off and exports down. Cebu survives on exports. Only today I read of 600 laid off with a zinc mine being shut down. Property agents report things very quiet but this is a quiet time of year so we'll need to wait and see how it picks up next year.Expats spending? The peso is strong at the moment because of the money inflows from overseas workers - human trafficing effectively but of the good type. The

[Dave Hounddriver]

The world is not going to come to an end but we are going to have a few years of austerity while global economies get debt under control

But on the bright side, putting a dent in manufacturing, automobile use and other polluting businesses will cool the global warming. :th_thsmilies-29057:

[johnrxx99]

The world is not going to come to an end but we are going to have a few years of austerity while global economies get debt under control

But on the bright side, putting a dent in manufacturing, automobile use and other polluting businesses will cool the global warming. :714_full_of_crap:

Umm, sorry Lee, a nice thought but I'm afraid quite the reverse. Coal is cheap and all the expensive clean alternatives are already being thrown out the window. Thus, pollution will accelerate. While consumption in the west may decrease, in the east, with treble the poulation who want what the west had but with no social responsibilty, will speed up the process. 2 years ago they said we had 10 years to change or it's too late. Make that what now? Edited December 28, 2008 by johnrxx99