‘Bright year ahead for real estate’
By MIA A. AZNAR-Tuesday, February 1, 2011
FOR officials of an investment company, real property will continue to be an “optimistic” sector for 2011.
Justino Ocampo, senior vice president of First Metro Investment Corp., said that with a 3.5 million backlog in housing that needs to be served, the demand needs to be filled up.
He predicted that for the first quarter of the year, issuances will be given to home developers.
“We expect many new names in the market,” he said.
Ocampo, who spoke on corporate issuances and growth industries during a recent FMIC 2011 Economic and Investment Briefing, also identified power, mining, electronics and the equity market as industries that are expected to do very well this year.
Ocampo said power is a big requirement for the country this year and that the demand for 2011 and 2012 will be higher than in 2010.
He noted that there are many power projects that are under discussion for financing.
As for mining, he cited it as an industry that can be developed.
However, he admitted that some problems such as regulatory requirements and misconceptions of communities rich in minerals have to be threshed out.
Dr. Victor Abola, an economist for the FMIC and University of Asia and the Pacific Capital Markets Research Alliance, noted that local government units and “misguided” non-government organizations prevent the startup of mining.
As for the equities market, he believes this will be more active in 2011.
Ocampo, however, does not see the public-private partnership (PPP) that the government is pushing for taking off this year, saying corporations are still gearing up for it.
For FMIC executive vice president Roberto Juancho Dispo, Cebuano businessmen should take advantage of good economic indicators to do expansion.
“In 2011, there is a tremendous opportunity to do that,” Dispo said in the same briefing.
He noted that with 63 percent of the country’s gross domestic product (GDP) driven by the consumption sector, businesses in food, fun (entertainment and tourism) and fashion will continue to do well.
For his part, vice president Eduardo Banaag Jr., who spoke on equity markets and stock picks, predicted that stocks of conglomerates, metals and real estate will do well this year.
He identified conglomerates in construction, metals like nickel and ore and new real estate players as good stock picks for the year.
Published in the Sun.Star Cebu newspaper on February 02, 2011.
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