The it won’t happen to me complex has been on going in the Philippines while the rest of the worlds housing markets fell apart. The problem I noticed today though was due to having the misfortune of being in SM mall in Cebu during payday. I came across at least 10 – 12 major property developments in Cebu all pre-selling properties promising “make millions!” but my question would be who will buy them, who will use them, who wants them?
For a start if you buy one selling a second user unit is a lot harder than selling a new one. Next its the issue of renting it out as many people are borrowing up to the hilt to get the mortgage for a property in the hope they can sell it in a few years (Sound familiar??). Sub-divisions obviously do have the same issues but I don’t think to the same extent as the majority seem bigger and more family orintated. Condos on the other hand are more for the upwardly mobile, business community yet the business community in Cebu isn’t expanding as quick as the properties which does make me wonder with the current trend of government workers being fired around the world (including nearly half a million jobs in the UK) when will the OFW bubble that is supporting this financial property dry up. I was surprised that it didn’t go at the same time as other countries fell apart but at the same time the costs are a lot lower here supported by outside funding. At the same time this funding should in theory start to reduce as the economies around the world and governments are being forced to shrink their finances to stabilise home economies which can only have an adverse affect in overseas markets.
Just a thought.. as today the aggressive approach of the sales people all along SM seemed nothing short of desperate sales people.. and as a thought I can’t see the run on these properties going on forever.