August 2006 Newletter

2006

hello everyone,

just want to share with you a newsletter i did way back in 2006 when i used to do these real estate market updates MONTHLY !  times have changed and since then information overload has affected so much of my activities.  anyway, i am gearing up to do these newsletters once again in the near future.  take note of my analysis then in 2006 and how the market evolved since then.

thanks to all the correspondents who now provide us with newsletters keeping us all updated on current philippine real estate activities.

August 1, 2006 NEWSLETTER

hello everyone,
half the year is over and we are now at the third quarter of the year.
i would say that it's been really busy but that doesn't necessarily
mean profitable. how do you know it's busy ? just look at the
classified ads of bulletin today.  what used to be 3 to 4 sections is
now 8 !  check it out, it's mostly job employments for call centers or
business process outsourcing companies.  look at them and you will see
who is growing and where the business is.  in addition, box ads for
real estate is now back whereas during the crisis, it was just at the
main page of the classified where line ads are.  call ins from
newspaper advertisement have also gone up.  there was a time when no
matter how big or how attractive your advertisement was, there were
just no inquiries !

for your info, activity it is not the same everywhere.  for us real
estate brokers specializing in the primer areas of makati, pasig, san
juan, quezon city and alabang, we have seen a correction in prices and
this time, to the seller's advantage.  it is slowly turning into a
seller's market.  one has to analyze, who the sellers are today.
remember, we have had this crisis since 1997 and it is now 2006.

property owners that are selling their properties today have weathered
the crisis and are not desperate to sell their properties.  from 1997
to 2001, property owners who had mortgage, either sold cheap or had
their properties foreclosed.  some of these were developers, private
individuals, and holding companies who had dollar loans and all of a
sudden were hit with the devaluation of the peso.  from 2001 till 2004
more properties were foreclosed or were paid to the banks ( dacion en
pago ).   

property owner's problem got deeper as they now had to
compete with the bank's inventory which at the same time offered
financing.  this was also the time when the government came out with
the SPAV ( special purpose asset vehicle ).  naturally, the good
assets were sold but more importantly, the banks unloaded their non
performing assets.  since then, inventory of foreclosed assets were
reduced.

during this crisis, i got to know who the real investors were and who
weren't.   there are two kinds of investors.  the ones that buy low
when there is hardly any activity or the ones that buy higher when
there is movement.  do you buy low and wait for the unexpected or do
you buy high when probability of selling is better ?  the sellers we
have today have maneuvered whatever they could to keep their assets
inspite of the crisis, that's why they are not desperate to sell or
give into the buyer's price !  this is what has happened to properties
in makati villages namely bel-air, san lorenzo, urdaneta, dasmarinas,
and forbes park.  by the way, same situation goes for condominiums
both in makati and fort bonifacio.  property owners either pulled
their property out of the market or simply raised their prices !
believe me, there are now so many buyers / investors but not enough
inventory to offer at the price buyers are willing to pay.  i have had
several friends and clients that regret not buying what they believed
was not a good deal.  so what happens next ?  i believe that the trend
 for market appreciation will continue for the primer areas and that
buyers will realize that the best time to buy is either now or was two
years ago .......

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