The government policy on infrastructure development will influence the direction the property sector will tread beyond the term of President Rodrigo Duterte, real estate consultancy Colliers International said on Thursday.
“The implementation of infrastructure projects nationwide should provide access to properties that could be redeveloped into mixed commercial, residential, hotel/leisure, and industrial estates,” Joey Roi Bondoc, research manager at Colliers, told reporters in a press briefing in Makati City.
“The infrastructure plans of the current administration will dictate the direction of real estate developments beyond the term of Duterte,” Bondoc noted.
The consultancy firm has taken the position that developers will be more aggressive in pursuing projects outside Metro Manila as access will be significantly enhanced.
“The government’s thrust to intensify infrastructure development bodes well for the long-term growth of the economy,” Bondoc said.
“This should trickle down to various sectors, including real estate,” he emphasized.
The President ordered streamlining the approval process for infrastructure projects, particularly under the public-private partnership scheme.
The administration is also ramping up spending to 5 percent of the gross domestic product, starting next year.
However, in order for private developers to fully reap the benefits of fiscal spending on infrastructure, the government must ensure institutional reforms are in place.
“These include the implementation of the recently enacted Right-of-Way Act, introduction of amendments to the current Build-Operate-Transfer law, easing of foreign ownership restrictions in key sectors, and streamlining of bureaucracy to improve government agencies’ capacity to implement project,” Bondoc noted.
On top of that, the government must ensure contracts with the private sector are honored so as “not to discourage investors from taking part in the country’s massive development program,” he added. — VDS, GMA News