Property sector better prepared for global crisis
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THE LOCAL real estate industry is in a better shape to face the global economic crisis and the brewing credit crunch than it was a decade ago since regulatory frameworks have been put in place, especially in the financial sector, property experts said.
Analysts noted that local banks are more stable now following the 1997-1998 Asian currency crisis. "The property industry should emerge relatively stronger once the global economic slowdown is over," said Claro G. Cordero, Jr., research and consultancy head of Jones Lang La Salle Leechiu.
"With all the needed regulatory frameworks properly in place, the Philippine property industry should be all set to welcome misplaced opportunities on the sidelines due to the economic and investment slowdown in some of the major economies," he added.
Mr. Cordero said the different segments of the property market have evolved and matured — Filipino workers abroad for residential developments, the outsourcing industry for office buildings, and local and foreign tourists for hotel and leisure projects.
"Although being challenged by conditions brought about by the global economic slowdown, these challenges are seen as temporary and will persist only in the near term," he pointed out.
Mr. Cordero said the country now has a stable banking system that can help stimulate investments in the property sector once the crisis is over. "The banking system after 1997 was beleaguered by high nonperforming loan ratios, thus, banks were unable to lend to the property sector," he said.
