Cheap money is seen driving a shift by the housing market from low-cost to middle market.
David Leechiu, chief executive officer of Leechiu Property Consultants (LCP), told a forum hosted by the German-Philippine Chamber of Commerce and Industry, mass housing will have to go vertical as land becomes expensive.
“The next big jump is the traffic from the low-cost housing market to middle class driven by cheap money. I am talking about the collapse in interest rates and the mortgaged market in the Philippines that will empower the middle class to be able to afford (to buy),” Leechiu said.
He added fixed interest rates that go as low as 10 to 15 percent and a long-term security rate will give people motivation to move to middle to lower middle market.
“That will be dramatic,” Leechiu added.
Leechiu noted mass housing should now be addressed through vertical development and not as single-detached homes.
He said projects in Laguna and Cavite will also have to shift vertical very soon because land has become very expensive because of the penetration of infrastructure.