by: Sun.Star Cagayan de Oro (Billboard Section)
30 September 2015
THE 24th Subdivision and Housing Developers Association Inc. (SHDA) National Developers’ Convention was held from September 17 to 18, 2015 at the Makati Shangri-La. With the theme: “Building a Million Dreams: Stronger in Synergy, Towards a Green & Sheltered Nation,” the convention gathered members of the association from all over the country to discuss challenges, issues, and opportunities facing the Philippine housing industry.
The theme is related to the SHDA milestone in 2016, as part of the Philippine Housing Industry Roadmap 2011-2030 that aims to eliminate the housing backlog in the country by building 1 million homes by next year. Ballesteros says: “In 2011, there was a call for us to come up with a roadmap, a challenged posed to us by the Board of Investments.” The study was conducted by the University of Asia and the Pacific. The SHDA Roadmap priorities are now part of a bigger process to develop a Housing Policy Framework.
Setting The Trajectory of Growth Among the many concerns of developers is whether it is prudent to invest and what are the potential growth areas?
Dr. Karl Kendrick Chua, senior country economist of the World Bank, speaking on the Long Term Prospects of the Philippine Economy, allayed fears, saying: “Now, more than ever, we are experiencing the strongest macroeconomy, so that instead of focusing on short-term stabilization, we can now focus on the long-term.”
He explained that the Philippines has a young population, and this means strong growth for 35 years. Add to that the strong remittances from OFWs—these almost guarantee 10 percent nominal growth per year. He did posit that it is important to solve the poverty by growing the middle class.
All in all, Chua gave an optimistic summation: “The Philippines has what it takes to eradicate extreme poverty and boost shared prosperity within one generation… if we work together by accelerating and implementing important reforms.”
Expanding with PPPs
Meanwhile, Eleazar Ricote, deputy executive director of the Public-Private Partnership Center said that there are many opportunities within the sphere of PPPs for real estate business. Among them, he
mentioned the following: Daang Hari-SLEX Link Road, LRT Line 1 Cavite Extension and O&M Project, the Mactan-Cebu Airport, the Cavite-Laguna Expressway, the Laguna Lakeshore Expressway Dike Project, and the North-South Railway Project (South Line). These open up opportunities for housing professionals to expand in the abovementioned areas.
Expanding into Tourism
Another exciting development and growth area is in tourism. Atty. Nino Ruperto Aquino, OIC of the Tourism Infrastructure and Enterprise Zone Authority (TIEZA) cited three ways through which developers can maximize partnerships with TIEZA: (1) Engaging in TIEZA assets that are up for privatization, (2) Finding potential areas for tourism development, and (3) Development tourism enterprise zones (TEZs).
Among the TIEZA properties available are: Banaue Hotel & Youth Hostel, Balicasag Island Dive Resort, Argao Beach Club Resort, and Kang Irag Golf Course.
“TIEZA is mandated to designate areas as Tourism Enterprise Zones (TEZs) and to register Tourism Enterprises. Once designated as a TEZ, the enterprises therein will be entitled to fiscal and non-fiscal incentives to be granted and administered also by TIEZA,” he said. Examples of TEZs are: Resorts World Manila, Ciuded de Victoria in Bulacan, Queen’s Castle in Cebu, and Bravo Golf Resorts in Negros.
To tie up these areas of growth, Armenia Ballesteros, SHDA National President, says knowledge of these areas of growth gives industry members an idea to come up with a plan to build communities with mixed-use development. “That’s what the buyers are now looking for.”
The Subdivision and Housing Developers Association, Inc. (SHDA) is the country’s major and leading organization of housing and real estate developers in the Philippines. For more information, visit: http:// shda.ph.