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6 things you should know about real estate in 2012

Will real estate boom or bust in 2012?
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One of the basic assets that a number of Filipinos value is real estate – whether it’s an ancestral house in the heart of the business district, an underutilized building, an empty property, or a farm lot in the province.

[related|post]With 2012 less than a few months away, asked Victor Asuncion, Executive Director for Global Research & Consultancy of CBRE Philippines about what he sees in the future of real estate in the country.

In this Q&A, we discuss what sectors will boom in 2012, which ones to avoid, and what you can do with your property to turn it into an asset in the coming year.

1. What is your forecast for the growth of real estate in Metro Manila for 2012?

The macroeconomic indicator of the real estate industry is the gross value added of real estate renting and business activities (i.e. sales transaction/ revenues/ earnings of real estate businesses) which registered a year-on-year growth of 6.8 percent  (i.e. 2009 vs. 2010). However, for the last 10 years, the compounded annual growth rate is at a low 4 percent given the fluctuations of the property cycle.  For 2012, given the Public-Private Partnership trust of the government and the continued growth by the drivers of the real estate industry i.e. OFWs, BPOs, Tourism and also Mining in selected area, we expect a growth of between 5 to 10 percent.

2. How about in the other major cities in the country?

The drivers of real estate for the Philippines in 2012 will still be OFWs, BPOs, Tourism and also Mining in selected areas. This will be mainly felt in key locations such as the Subic-Clark Economic Corridor, Metro Manila particularly the business districts namely Fort Bonifacio, Quezon City, Ortigas and its fringes, Bay Area and Alabang.  For the South, we continue to see growth in Metro Cebu, Metro Davao, Iloilo and Bacolod City plus the major tourist destination such as Boracay and Palawan.


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