Information: ASEAN Integration: Real Estate Practitioner Perspective

By : Augusto "Gus" Agosto, REB, REA

What is the view of the real estate practitioners on ASEAN Integration? The integration will bring both opportunities and challenges to the 28,869 licensed real estate practitioners in the country. It means bigger market and area for business, exposure to different practices and culture, marketing strategies and plans. It should help in easing the problems besetting the practitioners for several decades.

ASEAN Countries Map

ASEAN is composed of 10 countries—Brunei, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. It has a vast economic market of 600 million people, which accounts for at least 8 percent of the global population, spread across 4.6 million square meters of prime real estate.

The integration will result in stronger capital inflow and investments, particularly in real estate industry. More industry players also mean increased rate of construction activities where we will be seeing mixed-use residential districts, retail, commercial and office hubs, and key infrastructures—airports, sea ports and many others more—racing to dot the skyline all at the same time.

We will also see more emerging economic hotspots in various parts of the country, particularly in Mindanao—a region deemed as the Philippines’s gateway to the rest of Southeast Asia. Small and new players will venture other markets in provinces.

The free flow of goods and services will result in much higher rate of consumer spending. This will then drive the development of more lifestyle-centric developments, such as malls, retail complexes and properties anchored on tourism, across the archipelago.

This will activate other industries in our country that will result in job creation and lessening new entrants and “part-timers” in real estate.

With ASEAN, foreign and local developers will rely on local practitioners to market their properties and in exploring more properties in our country. We will be seeing in the coming years of different realty business thriving, forging alliances and cooperation in different levels.

This will play a significant role in fueling a stronger exchange of best industry practices and ideas among practitioners of ASEAN participants.

The above indicators should excite every real estate practitioner rather than fret in the competition that it will bring. It will push authorities in resolving the deadlock in the accredited and integrated professional organization issue and strict implementation of Real Estate Service Act (RESA) on the proliferation of “colurums” in the industry. It means redrawing of our business plans, strategies and sharpening of our skills and brand of service.

The inevitable entry of foreign practitioners demands a new and higher level of capabilities, quality service, stronger real estate organizations and cooperation to safeguard the common interest of practitioners. The best preparation is to prepare ourselves, and it should start…Now!

The writer is a practicing real estate broker and appraiser.  He is an AB Economics graduate and recently completed the Comprehensive Seminar and Review for Consultants. He is currently the president of Cebu South Real Estate Board, a local board under Philippine Association of Real Estate Brokers.

If you want to read more articles by our guest writer : Mr. Gus Agosto, please visit his blog: https://appraisalcebu.wordpress.com/

Map Source : 

www.asean-community.au.edu

Information : Philippines is Now ASEAN's Economic Leader

From being the economic basket case of the ASEAN region, the Philippines has made a 180 degrees turn in its economic recovery. For the past years, the Philippine economic status has been continuously upgraded by international economic analysts, and just recently has been upgraded to "investment grade".

According to a report by the the Standard and Poor's (S & P), an American financial  researcher and analyst, the country is now ASEAN's undisputed economic leader.

“The Philippines, which Standard & Poor's recently upgraded to investment grade, has taken over the Asean growth leadership role from Indonesia,” S&P Asia Pacific chief economist Paul Gruenwald said in a new report released Monday. 

Philippine Economy on the Rise

Here's the complete report from Interaksyon.com :

MANILA - The Philippines is now Asean's undisputed economic leader, according to Standard & Poor's (S&P).

“The Philippines, which Standard & Poor's recently upgraded to investment grade, has taken over the Asean growth leadership role from Indonesia,” S&P Asia Pacific chief economist Paul Gruenwald said in a new report released Monday.

Gruenwald said the Philippine economy would grow by 6.9 percent this year, faster than other Asean economies.

According to its forecast, S&P sees Indonesia's gross domestic product (GDP) growing 6.1 percent; Vietnam, 5.3 percent; and Malaysia, 5.3 percent.  The Philippine growth forecast is higher than that for China at 7.3 percent.

A measure of economic performance, GDP is the amount of final goods and services produced in a country.

S&P's forecast for the Philippines' GDP growth this year is at the higher end of the government's target range of 6-7 percent.

The credit rating firm said growth however would slow to 6.1 percent next year before picking up to 6.5 percent in 2015.

Philippine GDP grew 7.8 percent in the first quarter of the year, making it the fastest-growing is Asia.

 “The major Asean economies we cover -- Indonesia, Malaysia, Philippines, Thailand, and Vietnam -- continue to outperform. These economies are more domestically focused than the newly industrialized economies and therefore tend to do better when global growth is sluggish,” Gruenwald said.

For the entire Asean, S&P expects growth of 5.5 percent through 2015.

In making its forecast, S&P expects a rebound in the US economy later this year and in 2014. The Asean forecsat however remains below trend because of flat growth in Europe, which is Asia's biggest trading partner.

Overall, risks to Asia-Pacific growth remain skewed to the downside, S&P said, adding that a slowdown in China will have a ripple effect on Australia, which is the largest supplier of iron, and other economies that export heavily to China.

Two important risk factors are the pace of Chinese investment and real GDP growth, and the strength of the US economic recovery, S&P said.

Afterthought :
With the continuous improvement of the Philippine economy, many Filipinos are hoping that these improvements on the economy would soon also affect and bring about positive changes on the lives of the ordinary citizens of the country. Only then would the majority of Filipinos can restore their confidence in their government which has long neglected them.

Picture Source :
http://uaeexchangeblog.com/
News Source :
http://www.interaksyon.com/business/68009/philippines-has-displaced-indonesia-as-asean-economic-leader----sp
Related Link :
http://www.bloomberg.com/news/2013-05-02/philippines-wins-investment-grade-from-s-p-in-aquino-affirmation.html

Economy : Philippines - Asia's Laggard No More!

Many Filipinos almost gave up on the Philippines. A few actually did and migrated to other countries. Many were forced to work abroad, and by doing so, helped the country withstood the economic crises through their dollar remittances. The Filipino "diaspora" is still ongoing. Almost 10% of the total population of the country live or work abroad. The irony is that while many developing countries are hiring Filipino technocrats and labors to maintain their economic developments, the Philippines continues its brain drain. (Though there seems to be a reverse brain drain nowadays with other nationalities immigrating to the Philippines). For many years, the Philippines was the "Laggard of Asia". But Filipinos remained patient, patriotic and resilient despite all the odds.

Recently, Time magazine featured a special report on the Philippines referring to it as a new Asian Tiger. And other sources' statistics point to an improving economy of the country. Of course, Filipinos were ecstatic about the news. But everyone seems to ask : Is this for real?

Philippines : Asia's New Tiger

The country's economic growth as statistics show is on the bright side in the next few years. Some ASEAN neighbors are in economic lull right now after experiencing phenomenal economic booms in the previous years. Indonesia and the Philippines' economies seem to be the ones in active mode right now. 

If it's any indication of the good things to come, according to real estate pundits, the real estate boom in the country will continue for the next three years. I guess then that for the next three years our economy would still be on an upswing. 

Another indicator are the positive words of New York University professor and economist Dr. Nouriel Roubini about the Philippines' strong economic growth and resiliency, and his opinion/recommendation that the Philippines should be upgraded to investment status this year or in the next thirty months. Dr. Roubuni said these encouraging remarks about the Philippines despite his prediction last year of a "global perfect storm next year (2013) as economies the world over slow down or shudder to complete halt."[1]

Other factors which might help sustain our economic growth in the years to come would be : the transfer of Japanese companies to the country because of the ongoing territorial conflict of Japan with China, which has affected Japanese factories and companies located in mainland China; the growing tourism industry and the BPO service industry. 

The uninterrupted dollar remittances of OFW (Overseas Filipino Workers) and Filipino emigrants would still be the lifeline of the Philippine economy that will ensure  stability in case other factors fail to deliver. For years it has become the anchor of the country's economy.(The Filipino diaspora has turned out to be a blessing in disguise.) But this has to stop eventually, exports, tourism and BPO, not OFW remittances should be the country's main dollar source for its foreign currency reserve. A positive effect triggered by OFW remittances is an increase in domestic spending and consumption.

2012 Philippine GDP growth : 6.6%

Last year the Philippines had a 6.6 percent GDP growth. The best in the ASEAN region and the sixth best in the world. Let's just hope and pray that this trend continues. For the moment let's be happy that our country is Asia's laggard no more!

News and Picture Source:
http://www.businessoutlook.co.uk/specialreports.html
http://www.businessoutlook.co.uk/reports/2012/Philippines_Dec2012.pdf
News and Infographic Source :
www.rappler.com
[1] http://www.reuters.com/article/2012/07/17/us-roubini-outlook-idUSBRE86G1C820120717
Related News :
http://business.inquirer.net/82418/japanese-manufacturers-move-to-philippines