What kinds of places do contemporary mobilities of capital and labour create, and what kinds of place-specific capitalisms do they enable? This chapter addresses this question through an examination of the restructuring and rise of the largest Philippine-nationality conglomerates (PNCs) from 2001 to 2015, a period which saw the emergence of property development businesses as a core interest among these companies. It situates this development within two place- and period-specific sets of labour and capital mobilities: the continued growth of the overseas Filipino workforce and their inbound remittances; and the emergence of a foreign direct investment-driven, information technology-enabled business process offshoring industry in the country’s major urban centres, and a concomitant strengthening of domestic rural-urban migration flows. While PNCs had played only minor and indirect roles in facilitating these two developments, they have been the primary beneficiaries of demand for residential, office, and retail property which these movements of labour and capital have created.
All these transformations—the Philippine brand of neoliberalization, the unique vectors through which its economy globalized, and its uneven sectoral and geographical development—converge in urban real estate. Mirroring the trajectory of the economy as a whole, real estate development began the decade in crisis: the sector shrank from 2000 to 2002, hitting a 24.7 percent year-on-year contraction in the first quarter of 2001. But beginning with 2003, residential lot sales, coupled with office and retail space rental and leasing, have sustained record levels of growth: from the second quarter of 2004 until the fourth quarter of 2008, it sustained a double-digit streak, broken only twice by dips into high single-digit growth rates (see Figure 3). In the third quarter of 2006, the sector grew at a record pace of 26.2 percent year-on-year, breaking a record that was previously set in the third quarter of 1982. This record was broken yet again when the sector grew by 27.7 percent in the second quarter of 2010. At the end of its bust period in 2002, the gross value added of real estate development stood at approximately PhP8.8 billion. In 2010, it had grown to PhP22.1 billion. If considered as a separate subsector, real estate was the second-fastest growing sector of the economy over the past decade, outpaced only by mining.