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5 things PH presidential front-runner Duterte could do for real estate

Can the tough-talking mayor improve the property sector?

While only unofficial election results have been released as of press time, it seems that Davao Mayor Rodrigo Duterte is set to assume the role of the 16th President of the Republic of the Philippines in an election tainted by unabashed name-calling, black propaganda and multiple conspiracy theories.

The opponents of long-time front-runner Duterte, who was born in the Visayas and grew up in Mindanao, already conceded defeat, the BBC reported.

Once officially declared winner, Duterte will replace outgoing president, Benigno “Noynoy” Aquino III, who is generally credited by analysts as a champion of economic revival and public-private partnership (PPP) projects that helped drive real estate activity in secondary markets outside Metro Manila.

Although the 71-year-old Duterte has not been very specific about his policies during the campaign period, there are a few things that Philippine real estate professionals should expect from his presidency.

1—The Philippines could be home of the next Singapore or Hong Kong

In an interview with the Philippine Star last January, Duterte said he was planning to lease some of the country’s islands (there are around 7,500) to establish the next Singapore or Hong Kong.

“If we can lease our land for military bases, why not lease an island… to create our own version of Hong Kong, Taiwan or Singapore? The jobs will come here. Going abroad must be a choice, not a necessity,” he said, adding that the buildings and infrastructure owned by multinational corporations should revert to the Philippines after 50 years.

“From the 51st year to the 99th year, they will pay rental for those buildings and infrastructure from the Philippines, thereby creating the country’s income,” he told reporters.

2—Ending crime and corruption could help increase transparency

Duterte’s popularity is mainly attributed to his promise to eliminate crime and corruption within the first six months of his presidency, as the Wall Street Journal reminded readers.

While that ambitious promise remains to be fulfilled, his call to eradicate crime and corruption could improve real estate transparency, which has been categorised as “semitransparent” by Jones Lang LaSalle Philippines.

Lindsay J Orr, country head of JLL Philippines, told the Business Mirror that the “perceived corruption in the Philippines has affected the country’s transparency rating.”

3—Secondary and provincial markets could receive further boost

Duterte is likely to decentralise Manila and promote impoverished provincial locations, where he aims to bring prosperity, citing a “crime-less” Davao as his template.

“Davao City is my Exhibit A,” he was quoted as saying last January by online news agency Rappler.com.

“Before a city or province can really prosper, you have to establish order. So that the investors would be coming in, comfortable in their thoughts that there would be no corruption, that they are safe, and that their businesses will prosper.

4—Equal opportunity among real estate buyers… can it be achieved?

Duterte received a lot of criticism from various sectors for his offensive or insensitive statements during the campaign period, with some comparing him to US presidential aspirant and real estate mogul Donald Trump (but TIME disagrees). That same trait has also endeared him to his supporters.

The controversial politician was reported to having a “soft spot indigenous peoples” by issuing an anti-discrimination ordinance in Davao City upon learning that Muslims received discrimination from real estate agents.

5—Green space ordinance might be implemented nationwide

Sun Star Davao reported in March that Duterte recently reinforced a city ordinance that requires property developers to allocate 10 percent of green space in residential subdivision development projects.

If he can push Congress to require developers nationwide to follow strict regulations on sustainability and urban planning, then the Philippines would be a greener place.

That is, if he doesn’t abolish Congress.

Now read: A look at the Philippines’ emerging real estate markets

Source: Property Report