Calamities to spur spending real estate slowdown temporary

CEBU, Philippines -  Although real estate players noted a slowdown in inquiries from potential buyers immediately after a series of calamities hit most parts of the Visayas region, the International Monetary Fund (IMF) on the other hand, says otherwise.

IMF  resident manager Shanaka Jayanath Peiris said that the recent calamities in the country is seen to spur private and public spending in the construction and real estate sectors.

He mentioned that the country's 7.6 percent Gross Domestic Product (GDP) growth in the first semester of the year is largely fueled by private and public spending particularly in construction activities like government infrastructure projects, and private sector's commercial and residential developments.

In a separate interview yesterday, Worldwide Central Properties Inc., president Kent Ong said that while the company has noticed a slight "halt" in the market interest for condominium buying, this is considered as a normal initial reaction.

Ong said high interest is still there, but there are potential buyers who have opted to move their buying dates.

Worldwide Central Properties Inc., is the developer of over 200 residential condo units called Sundance Residences located in Banawa, Cebu City.

Filinvest Land Inc. (FLI) area general manager for Visayas Lyds Eco meanwhile admitted that buyers’ interest has slowed down after the calamities, however expressed optimism that it will immediately rebound in the next few days after the temporary setback.

FLI recently held its ceremonial units turnover of its One Oasis condominium project at the Mabolo area.

"Traditionally, we always see spikes in sales towards the end of the year but when the earthquake happened, we were really expecting a setback. That is not what happened," said Eco.

Megaworld first Vice President Jericho Go, said that the market jitters do not mean a threatening setback for real estate developers, but rather just a gesture sensitivity.

In fact, the active sales turnout of the Mactan Newtown's condominium projects, he said has prompted the company to launch new projects early next year. /JOB (FREEMAN)

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