As supplement to the previous post on whether an asset bubble is imminent, another
Inquirer article on demand for office spaces caught my attention. It basically says that demand for office spaces increased for 2012 (led by BPO firms) and that companies are also already committing for and reserving office spaces to be available by 2013, 2014 and even 2015. This bodes well for the property development and real estate sector.
That’s why consumers and businesses now reserve as early as possible, to get the cheapest offer prices. Technically, such customers are lending to the property firms. They lend property firms on account of a promise that 3-4 years from now, a condo unit will be available for you. At the back of my mind though, what if the project does not push through? Or what if economy turns sour and property prices drop? To these questions I don’t know the answer yet. Most likely it is in the documents I signed but did not really digest.
But on the other hand, if the buyer fails to meet the down payment requirements, s/he loses the unit (sadly) and developer is free to sell it again to a new buyer. Shrewd right?
Was blessed enough to be able to reserve a unit in SMDC’s development in Taguig (PSE: SMDC), right outside BGC and nearby DMCI’s prime developments (PSE: DMC). I chose this over getting a car. Have already paid some amount but as far as I can see, ground breaking and construction has yet to begin. I’m just seeing the familiar blue fences in the site, not even their big red and yellow logo is installed there yet.
I just wish construction commences as soon as possible, (by 2013?) not just for resale value to increase, but also for my peace of mind that finally, my own humble condo unit is now slowly taking shape.