OFWs fuel growth in real estate market

CEBU, Philippines - The Overseas Filipino Workers remain to be the strongest market for housing developers considering the increasing remittance inflows from the sector, a real estate official said.

Joey Sison, general manager of Camella Cebu, said the investor demand for the housing market is mainly coming from OFWs who see the need to invest their hard-earned money. Camella is a subsidiary of Vista Land, Inc.

“For the housing market, still majority of our buyers are OFWs,” Sison said on the sidelines of the company’s inauguration of its Riverfront project in Talamban, Cebu City.

Aside from overseas workers, he said local investors in the property industry have also increased.

He particularly mentioned employed individuals who have interest in house and lot investment but are mostly concerned about the cost.

Potential real estate investors consider property leasing and value appreciation as ways to grow and expand in property investment.

“Because of the good economy, a lot of buyers are also into investment. Although they have existing properties, they are acquiring another for investment purposes,” the manager explained.

The rising economic activities in Cebu signal the construction boom in the property sector. This, as more people from neighboring provinces and regions are considering Cebu as place to invest in real property industry.

He said: “Definitely, di gyud ta mawad-an og end users and buyers because a lot of people are coming here to make Cebu a second home.”

The bank remains as top financial scheme for property purchases, he added.

According to Sison, OFWs are attractive to the mortgage market because of the high rate of approval they get from bank institutions. In-house financing and spot (single payment options trading) payment are two other financial schemes.

The rise in mortgage activity implies increase in house purchases.

For instance, Sison shared the Riverfront development has already sold 30 percent of the more than 400 inventories composed of house and lots and lots alone in the area.

The official also shared the Vista Company, owned by former senator and businessman Manny Villar, is targeting to increase its land banking as it plans to develop more properties in the future.  (FREEMAN)