Construction investments
may slowdown in 2009

CEBU - Leaders of the Cebu Construction Industry are cautious these days. They are anticipating the global effect of the financial crunch that may dramatically hurt the industry. They forecast a slowdown in new property development that may be felt next year.

Although prices of some construction materials such has steel have now dropped by 30 to 40% in the last 2 months, industry leaders expect the pace of some major developers to slowdown a bit.

Statistics shows that people are very cautious where and if ever they will invest their money. Investment in housing or condo development may be considered as precarious, as felt in the US for the past year. Across the globe, the over-supply of housing & condominium property is clear and few are buying if not foreclosed.

Developers in both in the residential and commercial - are likely to finish their ongoing development projects until next year, however upcoming projects for 2009 -10 may be put on an indefinite hold, depending on the gravity of the impact of the financial crunch.

Last August, the price of steel bars was at P65 Kilo and this has gone down to P40 kilo. Although this will benefit buyers, in the long run, it will hurt the industry players with diminishing profits.