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Jaime Ysmael, senior vice-president and chief finance officer of Ayala Land Inc. (ALI), made this assessment on the impact of the flooding in those areas on the local property market.
It will dampen the interest of investors which is a natural reaction but we cannot be sure it is a permanent thing because people forget, Ysmael said.
On the part of ALI as a developer, Ysmael said that the geological location of the property that they are planning to develop is very important in their decision making.
"We are very conscious of location and geological location of our properties. We make sure that customers who buy properties from us are not subjected to that kind of disaster. We are quite deliberate in choosing location and with the disaster we have to monitor closely," said Ysmael.
ALI, the property arm of the Ayala Corp. (PSE:ACPA), is the country's biggest property developer and surprisingly it has not undertaken a development in those affected areas although it has few developments in the eastern part of Metro Manila but which have been spared from the wrath of Ondoy.
St. Alexandra, its high-end development in Antipolo with a price range of P3.7 million (US$78,107) to P5 million, was not affected by the flooding as it is located on a higher ground.
Ysmael further noted the local property market has been posting growth in the past four years.
The growth has been sustained even with the impact of the global financial crisis.
The trends are consistent although the third quarter is raining but the overall number is still good, Ysmael said.
Weve never been into recession and there is no property bubble to speak of, prices are stable and in fact some are increasing, Ysmael said.
The underlying reason, he said, is there is an increased demand for mid-range housing and there is liquidity for the high-end sector.
The global crisis has affected us to a certain extent but as of end of the second quarter we are up and the hope the trend continues, he said.
On interest rates, he said, there is still room to reduce some more to further encourage investors in the real estate sector.
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