The Philippines, one of the best performing economies in the world, is set to grow further and be wealthier in the next five years.
This, as the Duterte administration, noting that the country today “is in a more favorable position than it has ever been in the last four decades,” embarks on a master plan aimed at enabling Filipinos to have more disposable income.
And this is good news because the more people have money to spend the higher the property value becomes.
Thus, experts suggest, overseas Filipino workers (OFWs) should not miss out on this investment opportunity that promises, by way of government programs, high yields in terms of passive earnings through rentals.
In its 2017-2022 Philippine Development Plan, the administration noted that “no longer weighed down by an unmanageable fiscal deficit and more secure in its political legitimacy, the government can now afford to think about national goals based on a longer time horizon.”
To sustain and take this to the next level, the administration is putting in two major ingredients into the mix that past governments had not.
One: Spend money to make money by way of massive infrastructure projects to the tune of up to Ph8.4 trillion till 2022, as proposed by Duterte’s economic planners. The amount is at least 5% of the projected gross domestic product (GDP); infrastructure spending was less than 3% in previous years, the PDP said. Bloomberg Market said the GDP is forecast to grow by 6.5% annually in the next three years.
Two: Decentralize growth across the regions to address the “stark inequality in development” between the National Capital Region (NCR) and the rest of the country, thereby offering property developers and other businesses enticing propositions.
Growth
With these main components together, and augmented by support measures, the administration targets a reduction in poverty incidence from 21.6 percent in 2015 to 14 percent by 2022.
“This is equivalent to lifting about 6 million people out of poverty,” the NEDA master plan said.
It added: “The Philippines will be an upper middle income country by 2022. In the medium term, GDP growth is expected to strengthen further to 7-8 percent, in real terms.”
This means, the master plan said, the economy will expand by about 50 percent by 2022 from its base in 2016.
“Per capita income will increase from $3,550 (Ph181,500 or Ph15,125 a month) in 2015 to at least $5,000 (P256, 000 or Ph21,300 a month) in 2022,” stated the master plan.
More money
“Pag mataas ang per capita ng tao, may mas malaking pera siya for extra spending, not only for the basics, kasi lalaki ang disposable income nya para pambili ng big items gaya nga ng real property, or i-invest o ilagay sa savings,” explained Edwin Punzalan, AVP at Banco de Oro-Unibank.
This, supported by the regular remittance from relatives working abroad, further seals the deal for property developers, Punzalan said. “A higher per capita means a healthier economy and a positive thing for the property sector,” he said.
The 5th PPIE edition, which puts together key players in the Philippine real property scene, will be held on Sept. 22-23 at JW Marriott Deira, Dubai.
The much-awaited event is the UAE’s longest running and most trusted property show.
