Set to happen in 2015, 11 member-states of the Association of the South

East Asian Nations (ASEAN) will gather to form The ASEAN Economic
Community (AEC). The AEC is an ASEAN initiative that will create a
single market where goods, capital and skilled labor will be allowed to
move freely across borders within the participating 11 ASEAN countries,
which are the following:
1. Brunei Darussalam
2. Cambodia
3. Indonesia
4. Lao PDR
5. Malaysia
6. Myanmar
7. Philippines
8. Singapore
9. Thailand
10.Viet Nam
11.Timor-Leste

The AEC is a response to Southeast Asias increasing role in the global

economy that continues to attract foreign investors, and with the
upcoming developments, good things are coming our way.

Many experts believe that this regional collaboration of ASEAN countries

will spur demand forPhilippine real estate properties, which translates to
more jobs and business opportunities for Filipinos.
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.
In an interview with Rappler, Noel Cario, president of Chamber of Real
Estate and Builders Association (CREBA) said that The demand for
residential spaces adjacent to malls, retail complexes, and other
recreational spaces would go up and will likely increase the already
healthy real estate market.
However, to maximize this opportunity, and for the real estate sector to
achieve immense growth upon the implementation of developments
brought about by The AEC, there will be requirements that the
Philippines needs to fulfill.
Below are the 5 key changes to expect from the ASEAN integration:
1. STRONGER DEMAND FOR REAL ESTATE PROPERTIES

Following AECs vision to build a single market that will give way to a freer
flow of capitalacross borders and faster movement of goods, services, and
skilled labor, businesses based abroad are anticipated to set up headquarters
in the country for expansion, thus the need for more office, industrial, and
residential space to accommodate these businesses.
2. ELIMINATION OF TARIFFS

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.
3. THE RISE OF NEW BUSINESS SITES

To accommodate future demands in operations facilities, new growth areas in

Metro Manila and Cebu would be maximized, as well as the need to speed up
developments of potential growth areas that include Iloilo, Cagayan de Oro,
General Santos City, and Angeles City and San Fernando that are both
located in Pampanga.
4. THE GROWING DEMAND FOR MORE AND BETTER INFRASTRUCTURES

The apparent need for more business spaces will bolster the construction
industry. Construction companies will race to deliver better offices, retail
complexes, and residential areas to support the booming economy.
5. LIFTING THE PROHIBITION ON FOREIGNERS FROM OWNING REAL ESTATE

Due to the expected influx of foreign investment, there will be a need for the
government to amend the Constitutions prohibition on non-Filipinos with
regards to land ownership. By eliminating the prohibition, the real estate
sector will reach new heights.

Once dubbed as Asias sick man, the Philippines efforts to improve good
governance has brought economic benefits, and as the country
continues to gain momentum, bright opportunities are certainly ahead of
us.