Privatization of government assets is not new. The Philippines, and other international places, are known for turning government locations private because of economical and financial reasons. One of the biggest privatization that happened in the country is the privatization of Fort Bonifacio, now popularly known as Bonifacio Global City. Since its privatization, Bonifacio Global City has become one of the biggest business districts in the city.
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Last 2015 the former government of Noynoy Aquino privatized at least 20 government hospitals and health care centers. The trend will continue because the new administration, led by President Rodrigo Duterte, favors privatization. This gives many real estate developers the go signal to pursue some of the most esteemed government properties like the Manila Bay Reclamation or the Navy Officers Village.
But what are the actual effects of privatization to our local real estate? Fortunately, privatization is a blessing to real estate people. Here are the reasons why:
Opportunities for foreclosed government properties
There are many government assets today that met its demise thanks to lack of income and support. Foreclosed government properties have the power to see new light through privatization.
Mission and goals are met
Again, the lack of financial support has led for many government assets to work poorly in the past. Getting privatized can actually create help for these sectors to function effectively.
More opportunities
Privatization of government assets located at prime locations in the Metro can open many doors of opportunities. Business ventures and residential buildings will rise – which is good for real estate agents and future homebuyers anywhere.
Decrease corruption
Unfortunately, there are still corruption inside our local government assets. This kind of corruption may lead to many failures in the services. Privatizing unequipped government assets may actually erase these hindrances and improve the services that these assets are providing.
Less waste of resources
Let’s face it, government assets that are not being used are a waste of resources. The government may turn them into something great but the numbers can be against the odds. Through privatization, these assets can actually be used by many people.
But privatization is not perfect. Privatization may scream progress but it can also take a huge toll for us. Prices for services may increase and the Metro might experience too much of commercialization and industrialization. The bidding wars between developers may also increase which means only the winner maybe benefited from the privatization of these certain assets.
How about you? What do you think about the privatization of our local real estate. Comment down below!
