[ Manila Bulletin Online ] October 22, 2008
Vice President and Housing and Urban Development Coordinating Council Chairman Noli L. de Castro said yesterday that the Philippine housing sector will be able to weather the global financial crisis arising from the subprime problem in the United States.
De Castro made the rebuttal after the European Chamber of Commerce of the Philippines noted that the "boom’s over" for the real estate industry in the Philippines, as indicated by the entry of speculation into the local property sector.
The Vice President explained that the growth of the real property sector in the Philippines is fueled by the favorable policy environment in the housing sector and the Filipinos’ desire to own a home.
Among the policy factors in favor of the real estate industry are the substantial allocation of R30 billion by Pag-IBIG in addition to the funds that are available through private banks, the improvements in the regulatory environment as a result of the collaboration between the government and private developer groups, and the guarantee provided by the government to housing loans through the Home Guaranty Corp.
