Building/Construction
Philippines
Overview
(In $ Millions)
2003 2004 2005
Total Market Size 1,486 1,452 1,911
Total Local Production 1,200 1,200 1,200
Total Exports 236 244 246
Total Imports 522 496 957
Imports from the U.S. 39 31 33
Total Exports, Imports and Imports from the U.S. gathered from the Philippines’
National Statistics Office. Total local production is an unofficial estimate.
Imports of building products are expected to grow at least 5% over the next two years because of the bullish outlook for the real estate/construction sector. Philippine property developers are raising more funds to finance their real estate projects, encouraged by the prevailing low interest rate regime as well as the strong housing demand from overseas Filipino workers and Filipinos living abroad who are seeking residential units for their own use or as an investment. There are over 10 million Filipinos working or living abroad.
Aside from residential units, there is also an exponential growth in demand for office space by the fast-growing business process outsourcing sector. Moreover, construction of retail real estate and shopping malls will continue over the next two years. Public construction is likewise growing due to the implementation of critical infrastructure projects, such as construction, repair or rehabilitation of roads, bridges, rail transport, airports, seaports and flood control systems.
Many U.S. made/U.S.-brand building products are available in the Philippines, including everything from locks to roofs.
Best Products/Services
Building products with specialized characteristics or high-end products for specific application, especially those not produced in Asian countries, fare the best in the current Philippine market. These include, but are not limited to, interior design and renovation products, specialized fittings, etc. Green building products that can improve a company’s bottom line, e.g., products and systems designed to promote water conservation, improve energy efficiency, and harness renewable energy, will also have good prospects in the Philippines.
Opportunities
Residential Units, Shopping Mall, Office Buildings - Ayala Land Inc. (www.ayalaland.com.ph), Filinvest Corporation (http://www.filinvestland.com), M.V. Villar Group of Companies/Crown Asia (http://www.crownasia.com.ph), Megaworld Corporation (http://www.megaworldcorp.com), Robinsons Land (http://www.robinsonsmalls.com), SM Prime Holdings (http://www.smprime.com) Sta. Lucia Realty and Development (http://staluciarealty.com) are among the active developers of residential, shopping mall and/or office building projects.
Infrastructure projects – Information on major on-going and upcoming projects are available at http://www.neda.gov.ph (National Economic and Development Authority), http://www.dilg.gov.ph (Department of Interior and Local Government) and http://www.dpwh.gov.ph (Department of Public Works and Highways).
Resources
Trade Events:
Catalog Show at Worldbex 2007 (The 12th Philippine World Building and Construction
Exposition), March 14-18, 2007, World Trade Center Metro Manila, Roxas Blvd., Pasay City, http://www.buyusa.gov/philippines/en/worldbex2007.html,
U.S. Green Building Products Trade Mission to Asia, June 6-8, 2007 (Philippine Stop)
http://www.buyusa.gov/downtownlosangeles/greenbuild_asia.html
Philconstruct 2007(17h Philippine International Construction Equipment and Building
Materials Exhibition), November 15-18, 2007, World Trade Center Metro Manila, Roxas Blvd., Pasay City
Bebe Montesines, Commercial Specialist
U.S. Commercial Service Manila
Email: Bebe.Montesines@mail.doc.gov , Manila.Office.Box@mail.doc.gov