(from left to right: Raymundo G. Alonso, GM-Earth and Style Corporation; Victor H. Manarang, President; Fernando Magcanlas of R.F. Magcanlas Realty; Evelyn C. Solis, COO; Olan Toque of Eco Prime Realty; Eduino L. Tan, GM-Earth Aspire Corporation; Robirose M. Abbot, GM for Business Resource Unit; William J. Chuacuco, GM-Earth Prosper Corporation)
Victor H. Manarang, president of the Earth+Style Corp., said the industry, as a whole, remains bullish as the factors fuelling the growth are still there such as low interests, high GDP growth, and rising income level of the population.
"But the supply side has also grown substantially in the last few years so a lot of inventory is coming in, and therefore, we cannot say for sure if we have balanced the supply and demand, or supply has actually overtaken demand.
That is why we, at Earth+Style
, are cautious in growing our supply," Manarang
, who has personally witnessed the movement of the industry as an insider since 1987, said.
Just like in 2009 and 2010, Manarang
said 2011 should see the continuation of the uptrend.
said some would predict the cycles by counting the number of years from the last experienced uptrend to the downtrend as gleaned from the past 20 years.
But there are economic and industry factors that should also be considered, including the period of the delivery of the supply and the re-sale of units that were bought by investors.
said a lot of the buyers are not acquiring properties for end use but for investment, like having them rented or offer them later for re-sale.
said, will greatly affect future market conditions as plenty of re-sale or rental units will cause oversupply.
said, it is not easy to separate which purchases are for end-use and which of them are for investment purposes.
said the 3 to 4 million housing backlog as announced by the government is not a good gauge in determining the size of the demand.