By Bronx Hebrona
In a fifty-minute trip from out of town recently, in the midst of a
lively discussion about Philippine politics, a third companion in the
car butted in: "Is real estate in Gensan booming nowadays?"
In
the brief, awkward silence that ensued, it became clear to whom the
question was directed -- I was the only real estate broker in the car,
and my "expert" opinion is being sought.
Just like in
other places in the Philippines, nobody in General Santos City regularly
monitors and publishes real estate prices. The only available reference
is the schedule of valuation by the Bureau of Internal Revenue for
taxation purposes. Seldom updated, said schedule is not very reliable
especially if it is the latest current market value that you want to
know.
The local bankers' association called CBAGS
(Commercial Bankers Association of General Santos) used to publish real
estate price guides in certain selected streets in the city, but I
haven't seen an updated guide in the last eight years.
The
best way to gauge property values in an area is to hire a licensed
real estate appraiser to give you an educated estimate, based on a mainstream
formula used by property valuers anywhere. It would, however, cost
you some amount if you seek to have every property you are interested in
appraised by the licensed appraisers.
The
banks, of course, have their in-house appraisers, who also use similar
formulas in property valuation. However, bank appraisers might not show
you the best value for your property as their primary mandate is to make
their financing deals favorable to the bank by being very conservative
in estimating the value of your property.
That leaves
me to base my estimate of a general increase in real estate values in
Gensan on my subjective personal observation and experience. I
therefore, with my biases, opine that there is an increasing trend in
real estate values in Gensan. I base this on the following:
*
The entry of major residential developers such as Vista Lifescapes of
Manny Villar, Sta. Lucia Realty and Robinsons Homes.
*
The entry of the country's mall chains. John Gokongwei's Robinsons
Place opened shop last September 2009, while Henry Sy's SM City Gensan Mall opened just last August. Word has also been going around that Rustan's, Ayala Malls and NCCC are also
seriously studying to open branches in the city.
* The ongoing expansion of local malls such as KCC and Gaisano.
* The ongoing construction of more commercial buildings by Gensan-based and outside investors.
* The ongoing development of socialized to middle-level cost housing projects by local developers.
* The continuing purchase of prime properties and construction of commercial buildings by local boxing hero Manny Pacquiao.
The above facts show that the use (and therefore, the value) of real estate in the city is improving.
The other factors that have a bearing on property values include the following:
*
Increasing vehicle traffic in the city. The city government has been
installing traffic lights in major intersections to better regulate the
flow of vehicles.
* The increasing number of brand-new
car dealerships. This means more people can now afford to buy new cars
(and thus, property), some of whom are looking for a new residence with a
bigger garage.
* While a few major banks have merged
and consolidated nationwide, the number of local bank branches
increased. This indicates a growing clientele in construction and
development financing and home mortgages.
* The
airlines plying the Gensan-Manila and Gensan-Cebu routes have reported
an increase in passenger and cargo traffic. This indicates that more
people have disposable income (and can now afford air transport) and
some domestic and export trading businesses are thriving.
My
best personal proof, however, of an ongoing real estate boom in Gensan
is based on the value of a few subdivision lots I purchased on
installment in mid-2005. The selling price of lots in the same
subdivision has increased by more than 400% now, despite it being about 1.5
kilometers away from major developments and from the national highway.
That means properties closer to the said areas have increased in value
at a higher rate.
So, yes, there seems to be an ongoing
real estate boom in Gensan amidst the worldwide financial crisis. And
in my opinion, the best time to participate was last year. However, the
second best time is now. Tomorrow is always uncertain.
(Mr. Bronx Hebrona (PRC Real Estate Broker Reg. No. 0008695) is Managing Broker of Shepstein Realty, a Top Professional Realty Service Firm in General Santos City and Southern Mindanao area. He may be contacted at: shepsteinrealty@gmail.com)
