RE/MAX upbeat on Phl prospects in property sector for next 5 yrs

MANILA, Philippines - An economic bubble is unlikely in the local property sector within the next five years despite the notable slowdown in China, the world’s second largest economy.

International real estate franchising company Real Estate Maximum (RE/MAX) said yesterday it is upbeat the boom in the property sector would continue in the coming years.

“I don’t see any changes other than going up. All the financial indicators are saying that the economy and real estate sector will continue to go up,” RE/MAX Philippines president Leonard Campos said.

He added China’s unstable market can even help the Philippines in the short term since several companies have been pulling out their investments in China and might divert their attention to the country.

Furthermore, with the Philippines and the rest of Asia Pacific region hitting 60 percent of the world’s middle-income class population by 2030, demand for real estate is seen to gain more momentum.

“The future of RE/MAX is not in North America. It’s in Asia. Housing is booming now in the Philippines and it’s one of the fastest growing countries we’ve seen. I don’t see it swelling down anytime soon,” RE/MAX Global Development director Chip Brekken said.

RE/MAX is a global network of real estate agents that aims to raise the standard of the industry and create a more transparent real estate transactions. It deals with the purchase and rental of privately-owned residential and commercial properties.

It entered the Philippine market in 2012 and currently has 20 franchisees and 100 agents. RE/MAX Philippines targets 200 franchisees and 2,000 agents in the next two years. While all franchisees are located in Metro Manila and one in Iloilo, the brand is already looking into Metro Cebu and Metro Davao for expansion next year.

“Filipinos are very entrepreneurial and their eyes are set on the next new business. This is a very good option because the product is an industry that is booming and you don’t need to be a developer to be in real estate,” RE/MAX Philippines country manager Michelle Perlas said.

A full franchise of the RE/MAX brand in the Philippines costs P880,000 inclusive of 24/7 online and live training, technology suites, design centers and marketing templates while a fixed monthly fee of P40,000 will be paid by the franchisee.

On the other hand, RE/MAX also offers micro offices franchise, which targets those who want to start at a slower pace and prefers to do their business at home, worth P450, 000 and monthly fee of P20,000.

The Denver-based global brand was founded in 1973 by real estate visionaries Dave and Gail Liniger, and has a network of 100,000 agents in nearly 100 countries with more than 7,000 offices.