It’s appalling to hear of real estate values that shoot off the roof. Owners are out of sight when they quote their properties for sale way beyond assessed values of financial institutions. It’s like quoting a price that is not wanting to sell. But who is to determine or valuate a true or realistic market value? The seller, the real estate agents, the intangible market or the banks and financial institutions? What comes to mind is how bubbles are created and sustained over periods of time as if this was the strategy. The strategy on how to ruin markets to prick bubbles eventually. Let’s take for example the perceived selling price per square meter for the gated Makati Villages and the offices within the central business districts. Prices quoted by owners are well beyond the assessed values banks provide. Is there a true disconnect of values assessed by banks or are real estate re-sellers out to make a killing. Either way the market suffers from an acute shortage of proper valued real estate to be utilize thereby creating a bubble that is artificially born outside the true market conditions. And who suffers; the economy of course. Public utility is a different story altogether. The delivery of services, the unfriendly business rates, the intermittent and poor delivery are all but signs for disaster. Power in the country is one if not the highest and most expensive in Asia not to consider its intermittent supply. Transportation grinds to a halt not considering its inconvenience (traffic). Business services such like the internet connectivity is slow and expensive. Importation through our ports are not only congested but cannot be managed as of late. If these are all signs of an improved economy there is something very wrong with the pronouncements of government that all is heating up towards an improved situation, don’t you think?
Posted on: Thu, 18 Sep 2014 03:19:01 +0000
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