Migrants are buying more houses, says survey

More families of migrant Filipino workers have recently acquired houses, supporting the growth of the remittance-driven real estate industry.

“The percentage of OFW households that apportioned part of their remittances for amortization or full payment for houses purchased increased to 15 percent in the first quarter from 10.5 percent in the previous quarter,” said Rosabel Guerrero, director of Bangko Sentral’s Department of Economic Statistics.

The percentage of families that allocated remittances for houses was also significantly up from just 11.2 percent in the first quarter of 2009, based on a component of the Bangko Sentral’s Consumer Expectations Survey, which focused on OFW households.

The Chamber of Thrift Banks earlier confirmed that sales of new housing developments were bullish this year, supported by a projected double-digit growth in remittances.

Migrant workers’ families are considered more qualified to avail of bank loans forhouse and lots, costing P1 million and up, with a down payment of 20 to 30 percent. This means a down payment of at least P300,000 for the smallest housing unit.

Remittances, which grew 5.6 percent to $17.3 billion in 2009, are expected to rise 6 percent this year, according to Bangko Sentral Deputy Gov.Diwa Guinigundo. Banks, however, foresee a faster growth, given the pace of global economic recovery.

The survey also showed that 6.6 percent of OFW families used remittances to purchase motor vehicles in the first quarter of 2010, slightly down from 6.7 percent in the fourth quarter, but up from 5.5 percent a year ago.

Those acquiring appliances and consumer durables rose to 30 percent in the first quarter from 26 percent in the fourth quarter of 2009 and 24.7 percent a year earlier.

The percentage of households that allocated portions of their remittances to savings has also steadily increased since the second quarter of 2009.

As of the first quarter of 2010, savers rose to 50.4 percent from 44.8 percent in the fourth quarter. Households using remittances for investment decreased to 5.8 percent from 7.1 percent in the fourth quarter. –Roderick T. dela Cruz, Manila Standard Today