Posted on March 13, 2013 10:14:11 PM [ BusinessWorld Online ]
CEBU CITY -- There is no property bubble in sight “yet” in the country, an official of real estate service provider Jones Lang LaSalle (Philippines), Inc. assured in a recent briefing here.
Claro Cordero, Jr., Jones Lang head of research in the Philippines, said property prices in the country have increased by less than 10% in the last five years, compared to 50-60% in Singapore, for instance.
“There’s no bubble yet. There might be a bubble developing but it’s not yet here,” Mr. Cordero said in his presentation during the 3rd Cebu Annual Economic Briefing by Cebu Business Club on Friday last week.
A property bubble develops when a rapid price hike is not backed by demand but by speculation.
Still, Francis O. Monera, president of Ayala Land, Inc. subsidiary Cebu Holdings, Inc., said in the same briefing that talks of a bubble have been increasing.
“More and more people are talking about whether there is a bubble or not, but I’m more concerned with how to prevent it,” he said.
In order to remain firmly grounded on demand, Mr. Monera said his company launches a new product only when sales of existing ones reach at least 70% of total offerings. -- M. D. Limpag