ASEAN Integration and what it means to our country’s Real Estate business
Over the years, the real estate industry here in the Philippines experienced a tremendous increase in demand due to the rise of our country’s economic growth. The country’s economic growth caused property value’s to increase which later on, attracted a lot of foreign investors. But with ASEAN Integration at hand, can the Philippine real estate industry compete with the best of these ASEAN Nations?
First of all, what is ASEAN Integration? According to philpropertyexpert.com, ASEAN Integration envisions to “build a single market that will give way to a freer flow of capital across borders and faster movement of goods, services, and skilled labor”. An intense competition will therefore raise the bar for innovation, quality and productivity, which will enable businesses to compete head on with other players. But really though, how will this impact the country’s real estate business? The website philpropertyexpert.com believes that this regional collaboration of ASEAN countries will “spur demand for Philippine real estate properties, which translates to more jobs and business opportunities for Filipinos.” Personally, I agree with the belief of philpropertyexpert.com. But in order to maximize this opportunity, entrepreneurs need to plan strategically and differentiate themselves on service quality despite their best intentions as they become occupied with short-term, day-to-day tasks.
Real estate firms are largely operating in what can be seen as “commodity” business. With the ASEAN Integration, a tighter competition means lesser options of being differentiated to other firms. That’s where marketing graduates come in to the picture. Before, any college graduate with any degrees is being accepted as a real estate agent. But now, marketing graduates are being prioritized due to their knowledge in customers as companies shift in a more customer-oriented approach. The service is also being highlighted due to recent studies that analyze the service quality differentiation. With the “boom” of real estate business here in the country, large firms like Ayala Land, Megaworld, etc. are developing condominiums that are strategically located in the country. I think that’s their way of differentiating their service to other companies.
Going back to the implication of ASEAN Integration in the real estate business, for professionals and businesses that are in the local real estate sector, the integration would require more commercial and residential infrastructures for highly-urbanized cities within the region, including key cities of the Philippines. This means that a higher demand for commercial and residential infrastructures is forecasted. Companies now a day’s understand the link between technology-customer, technology-employee, and technology-company within the quality-value-loyalty chain. Customers appreciate and value the use of technology in their relationship with the company. This could mean a greater opportunity for local real estate companies in order to take advantage ASEAN Integration. They need continuous innovation in order to build relationship with the foreign market because the service quality of a firm is ultimately linked to the perceptions formed by consumer and their preceding expectations.
A wealthier Southeast Asia also means that there will be an elimination of tariffs on goods and services. In relation to this, a higher disposable income is foreseen and this will equip consumers with more money to spend. So, the need for more commercial spaces such as malls, retail complexes, and shopping establishments is expected to grow. This is expected to give local real estate companies a big opportunity or a big threat. It really depends on how they’re gonna play their cards. They need to maximize the resources they have in order to turn it into an opportunity. Continuous innovation with the incorporation of technology is also one key success factor that they need to take into account.