The Market Monitor Minding the Nation's Business
Owning a home is every Filipino’s dream. With growing purchasing power, stable interest rates, and a more competitive real estate market, an increasing number of Filipinos are buying homes in Metro Manila and cities such as Cebu, Iloilo, and Davao.
Investing in homes is considered to be a major decision by most Filipinos – a long-term commitment that would take a huge amount of dedication and resources to fulfill. Buying a home in the Philippines is usually done through loans, either with banks or government financial institutions.
“For Filipinos, a housing loan is a once-in-a-lifetime transaction that they have to entrust with an institution they can rely on,” said Lance Gokongwei, chairman of the JG Summit group. “The demand for homes is there, especially with the growing middle class, business process outsourcing workers, and overseas Filipino workers. Developers have responded to the demand and we are seeing a vibrant real estate industry in the next five years.”
Given the supply and demand surge, Robinsons Bank aims to bridge the gap between the buyers and the developers. And buying a house, either as a home or as investment, has never been more suitable. “We have a robust economy driven by a growing middle class, and the fiscal policies of government have driven interest rates to a low point,” Gokongwei said, citing the country’s fiscal stability.
The Gokongwei-led Robinsons Bank, a commercial bank, is gearing to increase its housing loans portfolio as it wants to realize the dreams of millions of Filipinos in owning a home. Considered to be the most important segment in consumer loans, Robinsons Bank is increasing its capital to P12 billion.
To capture a larger portion of the home loan market, Robinsons Bank is aggressive in marketing and introducing reduced home loan interest rates. The bank is also working on special promotions with Robinsons Appliance to provide perks for home loan applications.
“We want to make it easier for people to be able to own homes, for every Filipino to have a home they can call their own,” Gokongwei said.