In the last five years, the real estate industry in the Philippines has been boosted by dynamic developments brought about by the effects of progress in the other economic sectors. Because of this, being a key player in the field has been quite a rewarding job. Real estate services firm KMC-Savills' VP for Marketing and Landlord Representation Yves Luethi tells Philippine Tatler about what it’s like to be in the middle of the consistently growing real estate scene in the country.

Philippine Tatler: You came to the Philippines to work at KMC-Savills. Where was your assignment before this and could you recall what it was like during your first week or month here in Manila?

YL: I was studying in Thailand where I met a Filipino classmate who encouraged me to visit his country. The plan was to take a 2-week vacation in Boracay and Manila, but I enjoyed being here so much, I decided to enroll in the Ateneo Business School to take my MBA. There were a lot of career opportunities; I remember just feeling anxious and eager to explore this new path and having a strong feeling in my gut that says “This is it, this is the change I am waiting for.”

PT: You’ve devoted a big part of your career in real estate, what is it about the industry or the work that is exciting for you?

YL: The country continues to pose consistent and significant growth despite the slowdown in the global economy. This opens up several opportunities, not just in real estate, but across all sectors – finance, manufacturing, and etc. – which should be enough reason to get everyone motivated to work or move to the Philippines.

After its slowdown during the Financial Crisis, Philippine real estate was starting to pick up and I came at the time when everyone, from large-scale multinational firms to foreign SMEs, were looking to invest and enter this market.

I was also lucky to be part of the fast growth of KMC. Looking back, I see how far we have gone, from a small firm trying to conquer the domination of larger real estate companies in the Philippines, to carving our niche in the industry and receiving the support of Savills (global real estate services provider listed on the London Stock Exchange). This continues to inspire me, help me appreciate being in this industry.

PT: In your opinion, how does one rise up the ranks in the competitive industry of real estate? What does it take?

YL: While they are considered tired and overused words in any industry, creativity and transparent hard work are arguably, the keys to succeed in this business in my opinion. At KMC in particular, the fast growth can be largely attributed to our team’s ability to do and see things a bit differently.

We saw the opportunity in catering to the underserved market of SMEs looking to outsource and offshore their services to the Philippines. The young team of KMC was able to reach a large part of our target market, despite our lower resources, through the power of online marketing. We were able to build lean, multifunctional teams, equipped with customized real estate and marketing software that allowed us to build our own database, manage our pipeline, and basically, match the activity of our competitors despite a smaller operational size.

PT: Throughout the years you’ve been with KMC-Savills, what has been the biggest challenge you’ve faced?

YL: I believe the biggest challenge is finding the right talent to join our organization and that shares the same values and drive for business. However, we have been successfully recruiting and training young people which rose through the ranks and are handling significant projects now.

PT: The Philippine real estate industry has been booming for the past few years, but when you think about the different positive and negative factors that are affecting it, how would you describe and compare the state of the industry then when you first came on board and now?

YL: While there is less activity in the luxury and mid-end residential market, there are still massive investment opportunities in the low-end residential market, which has the highest number of housing backlog. There are also still large opportunities in the office and retail sectors, with the non-stop take up and expansion of BPO firms not just in Metro Manila but also in next-wave cities such as Laguna, Cavite, Davao, Subic-Clark, and Bulacan, among others.

When I first came, the industry and the government were not really focused on ensuring the sustainability of this growth. It’s a good thing that they are now taking steps to properly monitor, manage risks, and prevent the real estate market from overheating.

Industry-wise, I have also noticed that landlords and tenants have become more careful in selecting their partners in the industry. More landlords see the value of investing in landlord representation, and working with an expert firm to manage their facility and market their property. Tenants, especially foreign groups, on the other hand, have become more meticulous in choosing their partner and preferred development. They now have preferred brokers and developers and are more confident in investing in developments with consistent track record in quality.

Photo courtesy of KMC-Savills

PT: What trends in customer preference or behavior are you seeing for the rest of the year?

YL: For the residential side, Filipinos who now have more spending capacity are now upgrading their preferences and would be willing to pay a higher premium if they see maximum value in the property – if it has the location accessibility, unit size, and building quality they want.

Multinational firms and SMEs locating in the Philippines would also prefer to locate in premium green buildings that can cater to their operational needs, suit their values of environmental and social responsibility, and reflect the value of their brand.

Together with upgrading consumer preferences and increasing number of foreign tourists in PH, retail stores will also need to provide a more luxurious, world-class shopping experience. Developers would need to provide more upscale store and location options to accommodate the global brands that will enter the market.