Despite a slowdown in residential construction, real estate sector posted growth in regions, according to Philippine Statistics Authority (PSA).
“The recent statistics released by PSA is a welcome development for regions” Gus Agosto Faculty of School of Business and Economics, University of San Carlos said in a briefing in Cebu City.
PSA recently reported a 4.3% contraction in residential construction and 46.6 % decline in residential construction in the fourth quarter of 2017. However, as embedded in the same report, other regions outrank National Capital Region, in terms of number of construction.
Calabarzon led other regions with a total construction of 7,292. Central Luzon ranked second with 3,611 constructions. Other regions in the top five were Central Visayas and Davao Region.
A lot of developers and investors are now pouring investments in regions.
“We’re seeing a lot of new growth areas that will unlock new opportunities in different regions across the country,” Agosto said.
The decline in residential construction is normal sans the quarter to quarter report of the previous years. In the second quarter, residential construction posted a negative growth compare to last year, but it bounces back in the third quarter. Nevertheless, real estate is one of the driver in economic growth in the last quarter according to the National Economic Development Authority.
“The decline and adjustments in terms of residential real estate is a signal to players to conduct market analysis. Real Estate practitioners must also venture other regions and be trained in marketing non-residential development such as commercial, industrial, agricultural and institutional. ” #
Gus Agosto is the Vice-President for Visayas of the Philippine Association of Real Estate Board (PAREB). He is a faculty of University of San Carlos, Cebu City and took up Master of Arts in Economics (Candidate) in the same university.