Construction & Real Estate
From The Report: The Philippines 2012
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The construction sector looks set to benefit from a major PPP initiative that should see its first big projects go to tender in 2012. Meanwhile, Manila is seeing robust growth, and the BPO boom is driving office development in Cebu City and beyond. There is demand for housing at all incomes levels, and while developers have typically focused on the high-margin luxury housing, affordable housing could yet be an attractive business. Furthermore, the Philippines’ underdeveloped tourist market gives developers and construction firms an opportunity to construct resorts and other infrastructure for visitors.
This section features interviews with David Consunji, Chairman, DMCI Holdings; Joseph M Yap, CEO, Filinvest Land; and Jacques Dupasquier, Chairman, The Net Group.

Articles from this Chapter

Overview

Unlocking potential: Projects in housing, tourism and infrastructure provide a boost while the government prepares to tender PPPs
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A significant driver of growth and an indicator of economic health, construction has long been a key engine of the Philippine economy. Historically led by the private sector, the administration of President Benigno Aquino III has pledged major investment in infrastructure to unleash the potential in tourism, agriculture and industry, address housing needs and increase direct jobs in the sector. The government has stated it will deliver these projects through public-private partnerships (PPPs),…

Analysis

Partnership potential: The government is preparing to team up with the private sector on a range of new projects
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Upon election the administration of President Benigno Aquino III announced it would invite bids worth up to $16.8bn for public-private partnership (PPP) projects over a two-year period, giving a boost to the construction sector. The government sees PPPs as the way to finance infrastructure improvements, providing value for money and efficient deployment of resources. NEW PROJECTS: In March 2011 the PPP Centre was launched and the first set of projects announced. Large-scale works include airports…

Interview

OBG talks to David Consunji, Chairman, DMCI Holdings
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Interview:David Consunji Which real estate market segments are likely to receive the most attention in the next 18 months? DAVID CONSUNJI: Construction activity is expected to be strong in the near and medium term across all market segments. The tourism sector presents a significant opportunity to developers, as it remains a relatively untapped market in the Philippines. Certain areas, including Palawan and Bohol, are especially primed for growth, though firms must adapt their development…

Interview

OBG talks to Joseph Yap, CEO, Filinvest Land
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Interview:Joseph Yap What is the outlook for demand in the residential real estate sector in the coming years? JOSEPH YAP: In general, the residential real estate market will continue to be very strong given the demographics, population growth and housing backlog of the Philippines. The continued flow of remittances from overseas Filipino workers (OFWs), along with historically low interest rates, are key drivers for the residential real estate sector. The banking system is also very liquid,…

Overview

Poised for growth: More supply is coming on-line and investment is increasing
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Underpinned by healthy economic growth, political stability and a growing population, confidence in the Philippine real estate industry is high. Supply is increasing across all sectors: residential, office, retail and hotel. Prices continue to rise fuelled by the growing outsourcing sector, overseas workers using remittances to fund purchases and strong retail demand. Foreign investment is also increasing, particularly in office space and tourism. Foreign firms looking to reduce costs are…

Analysis

Offices to order: Demand for space remains strong as more BPO operations set up shop
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Though the majority of office stock is currently concentrated across Metro Manila, new growth centres such as Cebu City to the south are becoming increasingly attractive destinations for clients looking for lower rents combined with modern facilities. While the growth in residential properties is being driven by remittances from overseas Filipino workers and access to low-interest loans, demand for office space is supported by the boom in business process outsourcing (BPO) firms. Demand is strong,…

Interview

OBG talks to Jacques Dupasquier, Chairman, The Net Group
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Interview:Jacques Dupasquier As Metro Manila becomes saturated, which areas present the most promising growth potential? JACQUES DUPASQUIER: There are a few key cities that have the infrastructure to support growth, such as Cebu and Davao, as well as other up and coming locations. Planning is key to managing efficient design development. For instance, Bonifacio Global City (BGC), which is a planned city designed like Minneapolis in terms of its traffic uptake system, is roughly the size…