05/04/2020
Sustaining trust in resilient real estate
Published By: Inquirer.net | March 28, 2020
MANILA, Philippines – Over the past several weeks, governments across the world have taken extraordinary—at times, even drastic—measures to contain the COVID-19 pandemic which, by now, has already sent some economies reeling.
It’s no different in the Philippines where the Luzon-wide enhanced community quarantine has held down several industries as most workers are forced to stay at home to avoid the risk of exposure to COVID-19. Consequently, the outbreak is expected to dampen economic growth over the short term as of now, but the impact will depend on how long the pandemic will persist.
Still, some quarters choose to wax optimistic amid the crisis. While some segments in real estate are obviously taking a hit, this industry is among those touted to remain resilient.
“We now focus on commercial real estate. Again, it is important to note that while COVID-19 has added to the near-term downside risks, most concur that a majority of lost output will be gained back in future quarters. The overall longer-term fundamentals for the commercial real estate sector—positive economic growth, employment growth and robust relative value—all currently remain intact. There will be pain points, but they need to be viewed in context,” a February 2020 Cushman & Wakefield report stated.
Attractive returns
Similarly, a JLL Global Research dated March 2020 pointed out that “real estate investment has fluctuated during previous crises, but the overarching trend over time has been for increased allocations to the sector and we see no reason for this to change. Real estate continues to offer attractive relative returns in comparison to other asset classes.”
The same research however cautioned that while the consensus forecast is for a sharp shock to the global economy in the first half of 2020, followed by a bounce-back, JLL’s current base case is guarded. “The further the outbreak widens and the longer it persists, the greater the chance of a more prolonged impact on the global economy and, by extension, real estate markets,” it added.
Locally, Prof. Enrique Soriano III, executive director of Wong+Bernstein Advisory Group, said in an earlier interview that real estate is one of those resilient sectors, especially in the case of the Philippines where a huge demand for housing remains unmet.
“For the long term, I would still bet my last centavo on real estate. Real estate investing, when done right, will continue to be a local play for most investors. Unless you are a methodical stock market player, the risk is higher in capital markets as stock movements are heavily correlated to regional and global events,” Soriano earlier told the Inquirer.
Filter your options
However, for you to enjoy the promised lucrative, stable returns of real estate, it would be crucial to filter your options and ensure that the property you will choose will have yields you’re aiming for. Most common considerations to look at include the reputation, credibility and financial health of the developer, which entails looking at their past projects to see if they have delivered what they have promised to their buyers. It would also be wise to look at the location of the project, its amenities and features, and other value add-ons.
One trusted brand of choice by many Filipinos looking for either a home or investment today is SM Development Corp. (SMDC).
It’s a fairly easy choice to bet big on SMDC projects since for one, it’s the primary residential arm of SM Prime Holdings Inc., one of the largest integrated property developers in Southeast Asia. This means, you’re placing your hard earned savings on an established brand backed by a property giant like SM Prime, which grew its net profit last year by 18 percent to P38.1 billion.
A cursory look at all the SMDC projects across the country would meanwhile further reveal why it should be your preferred choice.
Promising offer
All SMDC projects are located in prime areas that are either within or near the city centers, thus promising easy access to modern necessities as well as other key establishments and institutions.
Currently, SMDC projects are strategically situated in key areas across Metro Manila specifically the central business districts of Mall of Asia Complex, Makati, Ortigas, Taguig, Quezon City, Manila, Pasay, Paranaque and Las Piñas. SMDC has further expanded its footprint in neighboring provinces like Cavite, Bulacan and Pampanga, and has likewise established its presence regionally particularly in the cities of Davao, Iloilo and more recently, in Bacolod.
Beyond providing roof over one’s head, SMDC offers an enhanced lifestyle befitting the modern urban dweller by integrating retail developments in each project. With the promise of a premier lifestyle by the mall, residents are afforded a different kind of comfort, convenience and security of having almost everything with easy reach.
In keeping with its promise of an enhanced lifestyle, SMDC brings to each development hotel-like lobbies to welcome you to your sanctuary every day, as well as resort-styled amenities that would allow you to relax, unwind and unplug after a long day or a grueling workweek. Add to that lush landscapes and open spaces that offer that much needed breathing room even while you’re in the middle a bustling city.
And of course, its professional property management is there to ensure the upkeep of every SMDC development long after it has been turned over to the residents.
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