Image via WikipediaThe BPI Family Savings Bank (BPI Family Savings) does not foresee a mortgage bubble in the Philippine property sector in the fact of strong demand for housing loan.
BPI Family Savings president Jose Teodoro Limcaoco said that demand for mortgage loans has been growing at a strong pace.
“In fact, BPI Family Savings has been making bookings of between P1.4 to P1.8 billion a month in mortgage loans,” Limcaoco said, during the formal launching of a unique financing package between the Philippine Franchising Association, the Association of Filipino Franchisers Inc. and the country’s leading thrift bank.
Majority of the borrowers are first-home buyers and ends-users with a small portion classified as speculators. That means that the borrowers will end up owning the properties and that the loans will be paid.
The bubble occurs when the majority of the buyers are speculators or individuals who acquire property or units for the purpose of re-selling. The tendency in a predominantly speculator market, is that the prices of the properties or units become too high or unrealistic.
Another reason for the optimistic outlook is the large number of reputable developers entering the housing market. “Respected developers such as Ayala Land, Robinsons Land and the SM Development Corp. are building left and right,” the bank president said.
http://www.philstar.com/Article.aspx?articleId=661762&publicationSubCategoryId=74
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