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‘COOKIE-CUTTER’ PROJECTS COULD PRICK THE HOUSING BUBBLE IF NOT AVOIDED
DON’T LET THE BUBBLE BURST T By Roderick L. Abad | Contributor
HE residential segment of the property sector is heading toward a bubble, if the market continues to be flooded with cheaply priced yet poor-quality housing projects, cautioned an international real-estate expert.
dwelling market has technically extended its run against the bust of the looming bubble. This could be attributed to the vigilance of the Bangko Sentral ng Pilipinas (BSP) in limiting the amount of money that banks can loan to real-estate borrowers. “At the maximum, I think it’s 20 percent. So that’s an automatic check to rein in possible overinvestments in real estate, because the bubble, if it bursts, it gets very expensive from an economic standpoint. So the BSP is controlling that,” Keyland Corp. Chairman of the Board Rex Drilon noted.
Other factors
Decreasing lending rates and the continued peso depreciation could, likewise, be factored in the constant resilience of the housing sector at present. It was noted that as borrowing rates collapse, more residential units, particularly from condominiums, are being introduced to Continued on A2
Annnmei | Dreamstime.com
“Fundamentally, the bubble per se, it’s a healthy event. It should not burst, though, because the bubble is an issue of supply and demand,” said Prof. Enrique Soriano, chairman of the marketing cluster and program directorship for real estate at the Ateneo Graduate School of Business. “The bursting is something we’re worried about. That’s what scares a lot of people like me.” Over the years, it’s the residential that has been the stellar performer in the property field, as seen in the mushrooming of various vertical and horizontal projects across the country. Data from the Philippine Statistics Authority showed there are 15.7 million square meters of floor area of approved building permits in 2015, whose constructions are still ongoing. Of the total, single houses account for 52 percent; townhouses, 20 percent; and residential condominiums, 28 percent. Such an apparent boom in the
MMDA relaunches estero cleanup drive ahead of the rainy season
T
By Claudeth Mocon-Ciriaco
he rainy season may still be a month or so away, but the Metropolitan Manila Development Authority (MMDA) this early has started to implement floodmitigation measures to save lives and properties before heavy rains pour. MMDA Acting Chairman Thomas M. Orbos said the agency has relaunched the Estero Blitz project as part of the yearly
flood-mitigation activities aimed at declogging and cleaning up waterways, such as creeks and esteros, in preparation for the fast
PESO exchange rates n US 49.9270
approaching rainy season. While summer fun lovers flock and frolic to the beaches in droves, hundreds of MMDA personnel from the agency’s Flood Control and Sewerage Management Service have started the cleanup activity at the Estero Tripa de Gallina in Malate, Manila. Armed with various floodcontrol tools and equipment, the agency’s personnel are conducting the not-so-pleasant job of dredging and cleaning up the city’s waterways and sewers.
Target projects
Despite the regular cleanup of Estero Tripa de Gallina in Pasay City, Orbos noted that it has always been swamped with domestic
waste materials coming from the upstream as well as midstream areas. There are also houses built along and near the creek, he added. There is a host of other waterways that have to be declogged, some of which are the Pasig River Basin in Port Area, Manila; Estero de San Miguel, Estero de Quiapo, Estero de Magdalena and Estero de Maypajo also in Manila; Lapu-Lapu/Spine Open Canal and Letre Open Canal in Malabon City; Pasong Malapad Creek and the lagoon in Caloocan City; Waling-Waling Creek and Tanque Creek, Santa Lucia Creek and Villa Creek in Quezon City; Pinagkatdan Creek in Pasig City; Balanti Creek in Marikina City; Continued on A2
THIS August 7, 2012, file photo shows heavy flooding in Marikina City. Hrlumanog | Dreamstime.com
n japan 0.4440 n UK 64.5157 n HK 6.4155 n CHINA 7.2404 n singapore 35.6545 n australia 36.9809 n EU 54.8448 n SAUDI arabia 13.3139
Source: BSP (5 May 2017 )