In Cebu, Phiilpines the economy, being upbeat, is paving the road for

an uptick in construction for 2013 which led to significant growth in the real estate/construction sector.

Residential Real Estate News

Even though people are concerned about the ASEAS integration plans, the RE construction sector is showing all-time performance metrics for 2013, CEBU being right near the top of the list.

There were approximately 4900 new construction projects approved first quarter 2013 with a combined total value in area of P7.82 billion.  This information is from National Economico and Developmental Authority (NEDA 7).

85% of construction projects, which were approved, are residential buildings.  Eleven of every 13 projects that were registered with Board of Investments (BOI ) in the 1st quarter 2013 were in mass housing project with approximate costs estimates of P3.21 billion.

Regardless, the PCA Philippine Constructors Assoc is expressing some nervous tension regarding their future in relation to the ASEAN integration planned for 2015.

Many have warned against the “bahala na” attitude which can represent an attitude of complacency.  ‘This is not the time’.

 The construction arena had to guard its turf in 2013, with the need
to guard its turf and empower its domestic foothold.  Filipino players are not ready for the integrations of AFTA for 2015, yet.

 

Construction contracting will be open to constructors from ASEAN countries if they are properly licensed in their home country.  Filipino constructors will also be able to engage in ASEAN countries as well.

Foreign competition could take over if Filipino contractors are not ready to meet this challenge.

This applies to sub specialty contractors as well as to general contractors because foreign contractors will come with all the help they need.  Philippine contractors must improve their skills, and that of their workforce if they are to meet the challenge head on.  The current construction boom will attract highly competent competitors.

Ramon Allado who is the PCAB Chairman mentioned that they are taking steps to buoy contractors licensing in order to make sure they are better suited for the upcoming challenge.  Rules and Regs (IRR) with RA 4566 is to be amended soon.

The president will be required to  sign the amendment once the Construction Industry Authority of the Philippines (CIAP) approves it.  The AAAA category requires a capitalization of P1 billion.

There are 12 local contractors that currently qualify for this AAAA parameter.

 

 

Asian Real Estate