The luxury property market may soon feel the ripple effects of the flood control corruption scandal, as legitimate real estate investors grow wary of being associated with politicians allegedly using upscale condominium units as hiding places for billions in kickbacks.
Economist and former Social Welfare Undersecretary Prof. Emmanuel Leyco echoed these concerns in an interview on Saturday, September 27.
He said that high-end real estate has begun to cool as investors hold back purchases, anxious about being misidentified as contractors tied to anomalous projects.
“Ngayon po, sa ating consumption, magkakaroon din po ng epekto iyan, pati doon sa investments. Nabalitaan din po natin, nabasa natin na ang real estate po ay tinatamaan na, lalo po sa mga high-end,” Leyco said.
“Mukhang nagpipigil ngayon ang mga mamimili na pumasok doon sa mga investments na iyon dahil ba mapagkamalan silang mga kontratista. Kung kaya po nagpipigil sila, at magiging masama po iyan para sa ating kabuhayan,” he warned.
This as Baguio City Mayor Benjamin Magalong recently revealed that some lawmakers have been stashing illicit funds in high-end condos converted into so-called “room vaults.”
The revelations, amplified by Senator Panfilo “Ping” Lacson’s disclosure that up to 25 percent of flood control funds go to project sponsors, have cast a shadow over the entire property sector.
What were once symbols of prestige and stability, luxury condominiums are now increasingly seen as emblems of excess and corruption, leaving both developers and buyers to deal with reputational fallout.
