Post away folks! :colgate:


Link to Thread 1 (http://www.skyscrapercity.com/showthread.php?t=471610&page=50) in the Archives. :okay:

Since I am not from Phil, I have a quick question.

I would like to find out the current market price of a project, where can I get reliable information? Is there a land department I can consult?

In addition, would anyone else categorize the local real estate market as bubble?

^^ First Sarah, join our threads, try to immerse yourself with us, try to go to the Samahan thread if possible.

Second, there are a lot of good realtors here, you can try going to the "Metro Manila Projects on the Rise" or Philippine Projects on the rise.

Third, ask a lot of questions. You cannot just put that question in this thread with little information given afterwards.

PM us, or me...

Is she German-Arab-Filipino?:D

Nope, we are a couple. He's German, she is Filipina and we both live in Dubai, using 1 account

At first I thought you're a student doing some thesis or something:D

Tougher corporate code seen

BusinessMirror Philippines
Monday, 12 March 2012 22:30 Miguel Camus / Reporter

The Securities and Exchange Commission (SEC) plans to propose “long- overdue” amendments to the Corporate Code of the Philippines as part of sweeping efforts to reform the country’s corporate laws.

SEC Chairman Teresita Herbosa told reporters on Monday that revisions could involve the possible shortening of the 50-year license granted to corporations, increased scrutiny on companies with canceled business licenses, and a “clearer” implementation of the foreign ownership requirement.

She said the Philippines’s corporate laws were last amended decades ago, prompting the current review. The SEC is separately studying revisions to portions of the Securities Regulation Code.

“I’m sure within the year we will be finished with our proposed amendments to the government,” Herbosa told reporters at the sidelines of the launch of the Philippine Business Registry on Monday.

In revising the 50-year lifespan of a corporation, Herbosa said the SEC is trying to avoid situations wherein a firm innocently fails to renew its license because its original incorporators are deceased.

“We are thinking of other ways. Either we make it shorter by 25 years or perpetual with certain periodic renewals,” Herbosa said. :ohno:

Stricter rules are also being eyed for corporations with revoked business licenses, Herbosa said, noting that some owners take revocation “lightly” and continue to operate the business.

Such a company, Basa-Guidote Enterprises Inc., featured prominently in the country’s media outlets during the ongoing impeachment trial of Chief Justice Renato Corona, bringing to the fore questions on the legitimacy of the business actions of a corporation operating without a license.

The SEC is also seeking the tighter implementation of so-called nationality of foreign ownership requirement, Herbosa said.

“We want to be clearer on the nationality requirements to reinforce our authority on whether companies are in compliance,” she said.

The Supreme Court last year ruled that the SEC only use common or voting shares, and no longer use preferred nonvoting shares, in computing equity.

The move effectively changes the definition of how the 40-percent foreign ownership limit is calculated, and has since been appealed by the private sector.

Herbosa said on Monday the ruling is not yet final and is still scheduled for oral arguments.

In the meantime, firms like Ayala Land Inc. and Philippine Long Distance Telephone Co. have taken steps to restructure their capital to comply with the requirement.

http://www.businessmirror.com.ph/home/top-news/24449-tougher-corporate-code-seen

^^ Proposal by SEC to amend corporation life span to 25 years might cause potential problem to existing and future condominium corporation :no:

IDEA: Create a system whereby a developer/financing company managing/focused on a specific barangay or city collects a very small amount (PhP 1) from the residents/clients everyday and redistributes the total amount to a number (10people?) of residents who then use the large amount (relative to PhP 1 they lost) as capital for small business.

^^ Proposal by SEC to amend corporation life span to 25 years might cause potential problem to existing and future condominium corporation :no:

Genuine question as I'm maybe missing something here but is this proposal not actually good news by, ever so slightly, helping to improve corporate governance?

Ayala Land to spend P60 billion to 'Make it Makati' :cheers: :banana: :banana: :banana:

by Coco Alcuaz | ANC | Thursday | Posted at 03/22/2012 5:23 PM | Updated as of 03/22/2012 | 5:24 PM

MANILA, Philippines - Ayala Land Inc. said Thursday it and Makati Commercial Estates Association will spend P60 billion over the next five years to carve their Makati properties into six districts as it launches a "Make it Happen, Make it Makati" campaign.

The amount, about 95% to be shouldered by Ayala Land, is about a third of the company's total budget for the period, President Antonino Aquino said. Ayala Land's total budget this year, covering construction and acquisitions, is P37 billion, more than a fifth over last year's.

The purpose is to create "opportunities for all" to live, shop and be entertained and work in Makati, Meann Dy, head of strategic land banking, said at a briefing.

Aside from new buildings, part of the plan is extension and improvement of elevated walkways and pedestrian underpasses, she said. Some walkways will have retail space. Underpasses will have exhibits.

"The city of the future is not about cars, it's about pedestrianization," Dy said.

Ayala and Macea are also in talks with the Department of Transportation and Communication regarding a bus rapid transit system that will run the length of Ayala Avenue from Edsa to the former Santa Ana racetrack.

Ayala Land last year agreed to develop the 21-hectare property, with owner Philippine Racing Club Inc., into one of the six districts, focused on entertainment. Dy said talks include where to relocate jeepneys that will be displaced by the system.

The other districts are Ayala Center, the central business district, Ayala Triangle, Makati North and Makati South. Makati North is the area that includes the Convergys, People Support and Solaris buildings. Makati South will be a transport hub on Edsa corner Ayala, including the current site of a Shell station.

"There will be a meeting of minds," Dy said. The BRT is planned to include stops along the Philippine National Railways' Manila line and the LRT-1 on Taft, she said. In a BRT system, buses on a dedicated lane function like a commuter train, with timed stops at specified locations. It's estimated to cost a 10th of a commuter train.

Ayala Land said 200 stores will open in Glorietta 1 and 2 by October, and the malls will be fully open before Christmas, five years after a blast of still-disputed origin prompted the company to demolish and redevelop them. The stores will include a "flagship" National Bookstore, the company said.

Ayala Land said it will launch the "Make it Happen, Make it Makati" slogan and campaign by mid-year, including mobile apps, a website and merchandise such as mugs.

Source: http://www.abs-cbnnews.com/business/03/22/12/ayala-land-spend-p60-billion-make-it-makati

Since I am not from Phil, I have a quick question.

I would like to find out the current market price of a project, where can I get reliable information? Is there a land department I can consult?

In addition, would anyone else categorize the local real estate market as bubble?

I suggest get the price/sqm in Philippines and compare it there in your country. If Philippines came out cheaper, then not bubble.

:lol: that's not how you check fro property bubbles...

Since I am not from Phil, I have a quick question.

I would like to find out the current market price of a project, where can I get reliable information? Is there a land department I can consult?

In addition, would anyone else categorize the local real estate market as bubble?

I don’t believe there is a property bubble, however there might be a possibility of softening of the real estate market in the next two years. The prices will continue to rise, but at a very moderate rate of no more than local inflation. But then again, this is just my opinion.

I don’t even think it will dip or flatten. A combination of a lot of contributing factors just makes it unlikely in my opinion for a bubble to occur.

An increase of BPOs continue to rise and generally sustained economic growth.
An increase of remittances continues unabated.
An ever increasing of tourist going to the Philippines, with Koreans & Chinese (mainland) at an unprecedented levels than just a few short years ago.
Demographics of older generation of former Filipinos that immigrated abroad in the 70’s, 80’s and 90’s are reaching retirement age, and finding the right conditions in the Philippines to invest in properties for retirement purposes.
Over population.
A common trait among Filipinos that considers property as a prized possession, and first and foremost where to invest their hard earned money.

Ayala Land to spend P60 billion to 'Make it Makati' :cheers: :banana: :banana: :banana:



Source: http://www.abs-cbnnews.com/business/03/22/12/ayala-land-spend-p60-billion-make-it-makati

This is a very great move to revitalize Makati

I don’t believe there is a property bubble, however there might be a possibility of softening of the real estate market in the next two years. The prices will continue to rise, but at a very moderate rate of no more than local inflation. But then again, this is just my opinion.

I don’t even think it will dip or flatten. A combination of a lot of contributing factors just makes it unlikely in my opinion for a bubble to occur.


I appreciate your feedback, yet my main concern is exactly that. The real estate business relies so heavily OFWs. Condos are purchased mainly by OFWs as investments, not by endusers. So you require people to rent it from you. Now looking at the working population, what is your potential customer base that can actually afford living in these places?

As I said, we do have a unit and I am certainly looking for another investment, a commercial investment this time. So I am aware of the strong points, but a real estate market relying on investors and not endusers has its risks.

I appreciate your feedback, yet my main concern is exactly that. The real estate business relies so heavily OFWs. Condos are purchased mainly by OFWs as investments, not by endusers. So you require people to rent it from you. Now looking at the working population, what is your potential customer base that can actually afford living in these places?

As I said, we do have a unit and I am certainly looking for another investment, a commercial investment this time. So I am aware of the strong points, but a real estate market relying on investors and not endusers has its risks.

Take a look at this news item, although it was written 3 months ago, nevertheless I believe is still current.

http://www.mb.com.ph/articles/344511/is-it-still-safe-invest-philippine-real-estate

Take particular note of the following mentioned in the article, and I believe this as well.

==> However, seasoned investors in our group forewarn that acquiring condominiums for investment purposes may not be such a good idea. The continued flow of new units into the system will continue to drive rental rates and re-sale values down. While this bodes well for the end-users, it leaves property owners with the risk of getting stuck with a unit that they can only sell or rent out at a discount. <==

I might add the following points: If you want to persist in investing on a condo unit not as an end user, but more for investment purposes & will need to rent it out to keep up with the mortgage, then select a desirable location that is in or close to a CBD or where there is a higher demand base on work & school and with easy access to public transportation, just so it is easier to rent it out. This is my experience as we own 4 units in Canada for rental purposes, all located in downtown, and we never had problems finding tenants for them, even during downturn in the economy or slow economic growth.

I appreciate your feedback, yet my main concern is exactly that. The real estate business relies so heavily OFWs. Condos are purchased mainly by OFWs as investments, not by endusers. So you require people to rent it from you. Now looking at the working population, what is your potential customer base that can actually afford living in these places?

As I said, we do have a unit and I am certainly looking for another investment, a commercial investment this time. So I am aware of the strong points, but a real estate market relying on investors and not endusers has its risks.

Take a look at this news item, although it was written 3 months ago, nevertheless I believe is still current.

http://www.mb.com.ph/articles/344511/is-it-still-safe-invest-philippine-real-estate

Take particular note of the following mentioned in the article, and I believe this as well.

==> However, seasoned investors in our group forewarn that acquiring condominiums for investment purposes may not be such a good idea. The continued flow of new units into the system will continue to drive rental rates and re-sale values down. While this bodes well for the end-users, it leaves property owners with the risk of getting stuck with a unit that they can only sell or rent out at a discount. <==

I might add the following points: If you want to persist in investing on a condo unit not as an end user, but more for investment purposes & will need to rent it out to keep up with the mortgage, then select a desirable location that is in or close to a CBD or where there is a higher demand base on work & school and with easy access to public transportation, just so it is easier to rent it out. This is my experience as we own 4 units in Canada for rental purposes, all located in downtown, and we never had problems finding tenants for them, even during downturn in the economy or slow economic growth.

In short LOCATION, LOCATION, LOCATION!

this principle in investing in real estate is true anywhere you invest. bubbles may come but if you have a good location it does not matter at all. and besides i don't think our country's real estate is now on bubbles. other countries maybe because of too much speculations but the Philippines i don't think so. For me we're just taking off. Just see how our population grows and what's the trend nowadays. I noticed retirees are starting to notice our country and this for me is another opportunity for real estate investors but of course this is just my personal opinion. :cheers:

Appreciated, thanks.

^^ Sarah, you may want to visit the "completed projects" threads in SSC. Thankfully SSC is one of the few locally-focused threads which are not merely tainted by sales talk and you actually get a hand on firsthand buyers of real estate.

http://www.skyscrapercity.com/forumdisplay.php?f=3230

http://www.skyscrapercity.com/showthread.php?t=959412

Is our project...
My wife bought it before we got to know each other and it has been handed over to us last year.

At least we have a place to stay when in Phil.


Just for you to understand, we Germans are rather conservative when it comes to real estate investment. We are usually renting for most of our life and usually buy to live.

^^ You'd hit the nail right on the head sir. I guess most people most of their lives do not want to rent, especially here in the Philippines wherein land is getting scarcer.

To give you an idea sir, the average Filipino would barely get by with a monthly salary of 15,000 pesos so an added income (or marrying someone else in the same income bracket) would do just fine.

However, most Filipinos prefer to rent close to their place while they are getting the house of their choice.

Most average housing loans, would run 30 years.

So most of us do take real estate seriously.

Oh I completely understand. Our loans run for the same period of time and we have quite a few schemes that support the average joe to buy his own property. However, it is really pretty much based on buy-to-live.

The median income is what gives me a bit of a worry. Because many projects are aiming at the high end to mid-class segment, which is still above the average income. I may be completely wrong, but these people are not able to afford to rent and live in these condo communities.
So you are pretty much relying on a small segment of the population, the same segment that can afford to buy on their own. I have seen the brokers over here selling their projects to the OFWs and quite frankly, people overestimate the ROI. So they end up having a unit that cannot cover its monthly installments.

So to sum it up, the property sales market is steady, perhaps even positive, based on OFWs investing but how about the rentals?

BTW, how is the taxation on properties and income, generated from properties in Phil?

^^ You'll have to ask some of our expert peeps here about the taxes mam and about those who bought their properties as well.

But I have to tell you now. Anything beyond the 20,000 pay scale as monthly rent is considered high in the rental market.

Again I am not to speak about this but considered that I live in Manila, for someone like me who earns on less than 30k but above 20k in pesos, 10,000 for rent is too much.

We're pretty much on the same line here. Rent for our place is supposed to be 20.000 and we are intending to do some alternations and furnish it, so we might be able to get a better yield through short term rental, which will enable us to live there when we are going to philippines, thus save the money for a hotel.

Thanks ADY

Guys, Acqua Livingstone? Is this the Acqua Residences across Rockwell?

http://www.buffalonews.com/business/24-hour-business-http://tmagazine.blogs.nytimes.com/2012/03/23/in-the-philippines-missonis-first-condo/

In the Philippines, Missoni’s First Condo
Culture, Travel
http://graphics8.nytimes.com/images/2012/03/23/t-magazine/23missoni2-heyman/23missoni2-heyman-tmagArticle.jpg
By STEPHEN HEYMAN
| March 23, 2012, 3:00 pm
A rendering of the lobby of Missoni's condominium tower, scheduled to be completed in 2015.A rendering of the lobby of Missoni’s $315 million condominium tower, scheduled to be completed in 2015.

From Milan to Kuwait City to Dubai to Edinburgh, Italian luxury fashion houses have clearly conquered the hotel business. Now it seems condominiums might be their next avenue of expansion. This week, the polychromatic money machine Missoni released renderings for its very first residential project, a condominium tower in a $315 million master-planned community in the Philippines.

The flashy tower, called Acqua Livingstone, is scheduled to be completed in 2015. Since the condominiums went on sale at the beginning of the month, 25 percent of them have already been purchased, according to the developer. The apartments are cheap by New York standards: one-bedroom units start at $82,000. The common spaces, like the pool, lobby and gym, are all decked out in the brand’s variegated squiggles and stripes, but the actual residences are empty of Missoni design touches, which are offered for an additional premium.

“We brought our colors and our style inside. It’s a happy, positive approach: summer colors, solar colors,” Vittorio Missoni said of the 52-story building. “Coming from the outside you’re going to be surprised. … It’s like opening a box and discovering something unexpected.”

Pumasok na Camella sa Puerto Princesa, Palawan...Sigurado sunod sunod na ang pagpasok ng mga well-known mass housing developers nyan.

sigurado yan.. dadagsa na mga home developers sa Palawan! ;)

sigurado yan.. dadagsa na mga home developers sa Palawan! ;)

Basta pumasok ang Ayala (high-end) o Camella (middle class), siguradong susunod na ang iba pang well-known developers...

Pumasok na Camella sa Puerto Princesa, Palawan...Sigurado sunod sunod na ang pagpasok ng mga well-known mass housing developers nyan.

I just heard this but Camella daw is good on the outside but poorly build on the inside.

I just heard this but Camella daw is good on the outside but poorly build on the inside.

May katotohanan yan. Loko yung mga contractor na nakukuha. Tinitipid yung mga materyales. Kaya bago kunin ng buyer ang unit dapat paayos sa Camella muna.

Ganun naman lagi.


Kahit yung mga nakuha ni Chief Justice Corona kaya hindi sinama sa SALN dahil hindi in-accept ni Mrs. Corona ang Ayala Columns, kasi daw puro palpak ang pagkakagawa at ang Megaworld's Bellagio naman napakalaki ng nakuhang discount dahil daw palpak din pagkakagawa....ayon sa Defense team niya....toinks!:lol::lol:

Basta pumasok ang Ayala (high-end) o Camella (middle class), siguradong susunod na ang iba pang well-known developers...

My only problem with big time developers is that, as what Coniocondo says in one thread, they become "greedy."

My only problem with big time developers is that, as what Coniocondo says in one thread, they become "greedy."

Yes thats the problem.

Ngayon pa lang may projected ng glut sa condo market.Kahit mayaman ka at may pera kung uubusin mo rin ay milyong piso bakit ka naman bibili ng condo lalo kung first home buyer ka o malaki pamilya mo? Siyempre bili ka na lang ng house and lot.

Delikado pa ang mga hi-rise lalo dito sa earthquake prone country of ours. Yun na ngang kay Corona's Columns and Bellagio hi-end na palpak papaano pa yung mga fly by night na "developers' daw. toinks!

^^ I don't want to be a Debbie Downer too but kahit na planong ipa-renta ng iba diyan yung mga condo nila, can the average Juan even afford the monthly mortgage?

^^ I don't want to be a Debbie Downer too but kahit na planong ipa-renta ng iba diyan yung mga condo nila, can the average Juan even afford the monthly mortgage?

Di kaya.

Magkano isang condo unit, studio type lang..1.2-2 million. E yung ngang row house na worth 300,000k lang (meron pa ba?)di pa kaya e.Pag-Ibig pa yung payment ha....

^^ Wala na sigurong Row House na tig 300,000 pero may iilan pa siguro sa may San Jose del Monte or Rizal (yung Eastwood Residences.)

I never knew that Camella properties are like that.. Suprising! They have to at least choose contractors na hindi titipidin ang mga materyales!

http://www.skyscrapercity.com/showthread.php?t=959412

Is our project...
My wife bought it before we got to know each other and it has been handed over to us last year.

At least we have a place to stay when in Phil.


Just for you to understand, we Germans are rather conservative when it comes to real estate investment. We are usually renting for most of our life and usually buy to live.

i think your wife bought a nice project. heard a lot of good things about the developer and i like the resort type of condo also.

I'd usually disdain blogs as a source, but this one, is too hard to ignore:

http://djsumaylo.wordpress.com/2009/05/02/camella-homes-vs-home-owners/

(by the way, it was written by one of my friends and erstwhile lecturer D.J. Sumaylo.)

Are columns part of the total area of a condo unit?
It says in the condominium act that the columns are considered as 'common' and part of the integral structure of the building.

If the column is almost 1 meter sq in area, should I complain about this? There are units that are in the price range of Php 100k per sqm. Php 100k is no easy money nowadays.

Are columns part of the total area of a condo unit?
It says in the condominium act that the columns are considered as 'common' and part of the integral structure of the building.

If the column is almost 1 meter sq in area, should I complain about this? There are units that are in the price range of Php 100k per sqm. Php 100k is no easy money nowadays.

Columns are considered common insofar as ownership is concerned because you are not allowed to alter it, but part of the unit area because it is within the horizontal & vertical boundaries of your unit. To understand unit area, think of an empty lot the size of 1000 square meter with no structure of any kind in it including fencing. If one day, the owner of the lot decide to fence the perimeter of the lot using thick hallow blocks 6 inches wide, would you say that the lot is now reduced by 6 inches all around? Of course not. The size of the lot is unchanged, although the livable (or useable) space certainly changed. Unit area and livable space are two different things, and the spec of a condo unit insofar it is defined in the CTBS (Contract to Buy and Sell) follows the unit measurement, not the livable space.

The onus rest on a prospective buyer to take into account any structural walls and post within a unit, as it certainly reduces the livable space and yet included in the unit area of measurement.

Columns are considered common insofar as ownership is concerned because you are not allowed to alter it, but part of the unit area because it is within the horizontal & vertical boundaries of your unit. To understand unit area, think of an empty lot the size of 1000 square meter with no structure of any kind in it including fencing. If one day, the owner of the lot decide to fence the perimeter of the lot using thick hallow blocks 6 inches wide, would you say that the lot is now reduced by 6 inches all around? Of course not. The size of the lot is unchanged, although the livable (or useable) space certainly changed. Unit area and livable space are two different things, and the spec of a condo unit insofar it is defined in the CTBS (Contract to Buy and Sell) follows the unit measurement, not the livable space.

The onus rest on a prospective buyer to take into account any structural walls and post within a unit, as it certainly reduces the livable space and yet included in the unit area of measurement.

thanks for the reply... i think that the condo act should be updated. condos during the time of marcos were not as high as most condos which are being contructed today thus a bigger set of columns are important for lower floors. this would really make the livable area a lot smaller than promised. lugi ung mga nsa lower floor kesa sa upper floors. :ohno:

Guys, do you know of any house and lot projects in the Philippines?

^^ There's a lot man... no pun intended :D

I think you can find a sizable many by just browsing sulit.com.ph. :D

^^ You'll have to ask some of our expert peeps here about the taxes mam and about those who bought their properties as well.

But I have to tell you now. Anything beyond the 20,000 pay scale as monthly rent is considered high in the rental market.

Again I am not to speak about this but considered that I live in Manila, for someone like me who earns on less than 30k but above 20k in pesos, 10,000 for rent is too much.

Here in New York a rental above 30% of the net monthly is considered excessive by the New York State housing Authority. NYC has a waiting list of at least 5 years because the rent is base of the renter 30% automatic deducted from the pay regardless of their income with free electricity and gas, except when it reach the $70K gross annual pay because this bracket is considered above middle income or not in hardship and can afford pricey units. The renters are required to submit their annual income pay stabs and will be match with the IRS and State taxes as reported in their income taxes. Thus prevent cheaters. Cheaters will be fined or jailed

^^ I'm not really the expert to say to that sir but I am merely judging from what I consider as "sagad" in the sense.

Let's face it, the real estate market is booming and constructions are all over the metro. While there is a reported "housing backlog" most people cannot afford these high-end condominium units and reported claims of "7,000 per month" units are nothing more than shoebox-sized studio units that cannot accommodate a minimum family of 3. Low-priced housing unfortunately, is located in far-off areas like Bulacan/Cavite/Laguna which is not practical for some families.

Some then would resort to renting.

There are still "rooms for rent" that are reasonable in metro manila and these provide the barest, but not always the best type of dwelling. These range from 3,000 to 10,000 which is in some ways still very economical for some families. Thus, renting being a "safe financial instruments" is used as one of the reasons why some should get a condo. They sell it to foreigners since they cannot own land. They sell it to OFWs as ROI is attractive and red tape is cut. They sell it to just about anyone for the basis of location and that rental yields are attractive, and by theory they should pull us in.

However, most of these rental units are also expensive in their own right. Next is that while there are ways to sell it like condo-sharing, these are often between friends and several people who share the same sentiment of being together just because the unit is close to their location. And we're just talking about the rent. What about the utilities?

In the end, the housing backlog remains. Some renters are left with no choice but to go to rooms rented inexpensively by longtime dwellers or succumb to long trips to the outskirts in Manila which most are not too keen on.

I just wish the best for the condo business in the city.

^^ I'm not really the expert to say to that sir but I am merely judging from what I consider as "sagad" in the sense.

Let's face it, the real estate market is booming and constructions are all over the metro. While there is a reported "housing backlog" most people cannot afford these high-end condominium units and reported claims of "7,000 per month" units are nothing more than shoebox-sized studio units that cannot accommodate a minimum family of 3. Low-priced housing unfortunately, is located in far-off areas like Bulacan/Cavite/Laguna which is not practical for some families.

Some then would resort to renting.

.

Thats why the government should either provide mass housing in the Metro or connect all of these mass housing projects located in far off communities with adequate mass public transport like rapid trains.

^^ Maganda din tong commieblocks ah... we just had a lively discussion about that in one thread here:

http://www.skyscrapercity.com/forumdisplay.php?f=477

article and photos from: http://theprojectreview.blogspot.com/2012/02/project-review-thunderbird-residences.html

There's a beautiful and new place to visit in the North : the Thunderbird Resorts, at Poro Point.
The Thunderbird Resorts is a 65 hectare beachfront development at the Poro Point Special Economic and Freeport Zone in San Fernando City, La Union in the North. Poro Point used to be the location of the US Military Base-Wallace Air Station. The resort boasts of a 5-star hotel, a beautiful infinity pool by the sea, a spa and wellness center, fine dining restaurants, a casino and a beautiful creamy white-sand beach. The resort complex is perched on a cliff overlooking the China Sea. The resort buildings' architecture are Greek and Mediterranean inspired which makes it stand-out in its location by the sea. This resort development is definitely a big tourism boost in the Ilocos region.

Incorporated in the resort and hotel development are the Point Residences, a residential village (where lots and villas are being sold) and the Thunderbird Residences, a condotel. The Thunderbird Residences Condotel is being offered as an income generating investment package.

The Thunderbird Residences privately-owned condotel units will be pooled together as part of the hotel managed properties and whatever income that is generated from the renting out of a condotel unit will be shared by the two parties (i.e unit owner and hotel management). On income sharing, seventy(70) percent goes to the condotel unit owner and thirty(30) percent goes to the hotel management. Even if the unit is not rented out, a condotel unit owner still gets an income from the use of the common areas facilities. It seems to be a very good investment indeed.

I hope that more developments of this type will sprout in the northern part of the Philippines. Having visited many provinces of the country, comparably, Ilocos ( Region 1) is one of the most scenic and historical region in the country. Add to that the hospitable and friendly people of the North, this new resort development will indeed be a beautiful place to visit, live and invest in.

http://2.bp.blogspot.com/-2w_wAWMfaP4/T0N4i0RBZYI/AAAAAAAAA5M/t40dTvukbvI/s1600/Condotels+Jpeg.jpg



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http://fbcdn-sphotos-a.akamaihd.net/hphotos-ak-ash4/400606_2767947871575_1044293887_32940024_852323872_n.jpg

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Athena Model House

Photo by: thenoblewanderer
see blog at: http://thenoblewanderer.wordpress.com/2012/03/16/thunderbird-resorts-poro-point/


Latest Status
http://cdn.sulitstatic.com/images/2011/0914/181940911_180740987d903f5231e63e196992ca59bb3ad4ee0a1e17ebf.jpg

source (http://www.sulit.com.ph/index.php/view+classifieds/id/4164371/Thunderbird+Condotel+Resrot+in+San+Fernando+La+Union)

http://www.camellahomes.net/communities/images/camellacandon-vmap.jpg

http://www.camellahomes.net/communities/images/camellacandon-sitedev.jpg

source: http://www.camellahomes.net/communities/candon/index.php

http://www.malaya.com.ph/03222012/images/prop3.jpg

Camella, the subsidiary catering to the mid-market segment of Vista Land & Lifescapes, is offerings its latest development in the most business-friendly city in the North.

Camella Candon, starting out as an 11-hectare masterplanned development, is expected to expand further in the suburbs of Candon, it is on the average five to eight minutes away from churches, the marketplace, schools, shopping centers, transport stations, and business firms.

Keeping to Ilocos Sur’s solid Filipino-Spanish heritage, every home in Camella Candon breathes of this tradition with a touch of modernity. The tasteful interiors reflect Camella’s 37 years of experience in nurturing families and building communities.

source (http://www.malaya.com.ph/03222012/property4.html)

Does it mean that it is a bit scary to buy metro manila properties?

http://newsinfo.inquirer.net/169895/sc-ruling-on-prime-quezon-city-land-blow-to-land-titles

Registered owners of more than half of the land in Metro Manila may lose their properties as a result of a recent Supreme Court ruling that the “sale certificates” of former friar lands that lacked the signatures of prewar government officials should be deemed void, a senior justice of the court said.
In a 23-page dissenting opinion, Senior Associate Justice Antonio Carpio said the Supreme Court’s March 6 decision in the ownership dispute involving the Manotoks and Barques over the P4-billion Piedad Estate in Quezon City would render millions of residents homeless.
“This is a disaster waiting to happen—a blow to the integrity of our Torrens system [of titles] and the stability of land titles in this country,” Carpio said.
“Hundreds of thousands, if not millions, of landowners would surely be dispossessed of their lands in these areas,” he said.
With a split vote of 8-7, the tribunal upheld its Aug. 24, 2010, decision that awarded the ownership of the 1,282-hectare of lands to the national government.
Chief Justice Renato Corona, who is facing impeachment in the Senate, agreed with the majority ruling written by Associate Justice Martin Villarama Jr.
Corona votes twice
Curiously, Corona virtually participated twice in the decision as he also voted with the winning bloc on behalf of Associate Justice Mariano del Castillo, who was supposed to be on sick leave when the court voted on the matter.

Does it mean that it is a bit scary to buy metro manila properties?

http://newsinfo.inquirer.net/169895/sc-ruling-on-prime-quezon-city-land-blow-to-land-titles

Registered owners of more than half of the land in Metro Manila may lose their properties as a result of a recent Supreme Court ruling that the “sale certificates” of former friar lands that lacked the signatures of prewar government officials should be deemed void, a senior justice of the court said.
In a 23-page dissenting opinion, Senior Associate Justice Antonio Carpio said the Supreme Court’s March 6 decision in the ownership dispute involving the Manotoks and Barques over the P4-billion Piedad Estate in Quezon City would render millions of residents homeless.
“This is a disaster waiting to happen—a blow to the integrity of our Torrens system [of titles] and the stability of land titles in this country,” Carpio said.
“Hundreds of thousands, if not millions, of landowners would surely be dispossessed of their lands in these areas,” he said.
With a split vote of 8-7, the tribunal upheld its Aug. 24, 2010, decision that awarded the ownership of the 1,282-hectare of lands to the national government.
Chief Justice Renato Corona, who is facing impeachment in the Senate, agreed with the majority ruling written by Associate Justice Martin Villarama Jr.
Corona votes twice
Curiously, Corona virtually participated twice in the decision as he also voted with the winning bloc on behalf of Associate Justice Mariano del Castillo, who was supposed to be on sick leave when the court voted on the matter.

With a split vote of 8-7, the tribunal upheld its Aug. 24, 2010, decision that awarded the ownership of the 1,282-hectare of lands to the national government.

Chief Justice Renato Corona, who is facing impeachment in the Senate, agreed with the majority ruling written by Associate Justice Martin Villarama Jr.

Wow!! Finally :banana: Mapapasakamay na ng mga nakatira sa disputed parcel of lands sa mga tamang may-ari at hindi sa mga manotok :cheers:

Ipapamahagi yan ng NHA sa mga may-ari ng bahay na na pinag-aawayan dahil inaangkin ng mga manotok

i think the issue is the attack on the torrens system, specifically on "friar lands". The SC basically requires the deed of conveyance from the manotok and a couple of signatures. Carpio's fear is that all lands that were previously owned by the friar whose deed of conveyance was lost or have gone missing, will be under scrutiny.

^^ Maganda din tong commieblocks ah... we just had a lively discussion about that in one thread here:

http://www.skyscrapercity.com/forumdisplay.php?f=477

Far better than what we have here like the Vitas, Tondo housing. Sana ganyan ang government housing sa Pinas. Instead of the government wasting money on ghost projects, why not build housing projects, strictly manage it and compel beneficiaries to follow strict terms imposed by the government ( payment of amortization, house rules like cleanliness etc). Karamihan kasi sa mga informal settlers binababoy ang government housing projects, hindi nagbabayad ng amortization. Gusto lagi libre ayaw magsipagtrabaho dami pang bisyo.:bash::bash::bash:

^^ I think we need to have stringent laws concerning that kind of ownership.

BLISS in Pag-Asa would've been a good case study for this.

^^ I think we need to have stringent laws concerning that kind of ownership.

BLISS in Pag-Asa would've been a good case study for this.

Yes, we should. So that government housing projects should not turned into another s#it hole by some of our irresponsible informal settlers.

Personally nadala ako when a Gawad Kalinga project that we supported was received by an ungrateful community. Nung una lang ok, eventually pinakita na ang tunay na kulay ng mga beneficiaries. Mga batugan o tamad o walang sariling sikap at walang malasakit sa proyekto ang mga tao. Puro hingi at libre gusto:bash::bash:

^^ I think we need to have categories for housing. If we need tenement style housing, we need to classify which needs which. For example, families with incomes less than 150,000 a year should be qualified to at least a one bedroom bare apartment with yearly appraisals. Those who cannot pay their rent or upkeep should immediately be penalized. Of course probable reasons should be provided. Yung mga matitigas ang ulo talaga at batugan, dapat daanin sa dahas and throw them out of the property and give them a 5-7 year blacklist period.

^^ I think we need to have categories for housing.

Yes what we need here in this forum is house and lots for the middle class, since this is the target of SSC. Less priority to tenements unless you define Hyatt and Shang as tenement condos as well.

Let's put them one by one. I've seen many non-skyscrapercity threads already (e.g., mind museum, maynilad bldg, moa, etc.) so non-skyscrapers are allowed by the mods.

This will be good to all, buyers will have more choice, sellers will have more projects to sell. It will make this board busier and have more traffic, knowledge-sharing.

:cheers:

wow, some commie blocks look better than a lot of projects under construction. Not gonna name names baka may mag-react.

^^ Ayala Land is already cashing in on it's latest development Bella Vita...

^^ I think we need to have categories for housing. If we need tenement style housing, we need to classify which needs which. For example, families with incomes less than 150,000 a year should be qualified to at least a one bedroom bare apartment with yearly appraisals. Those who cannot pay their rent or upkeep should immediately be penalized. Of course probable reasons should be provided. Yung mga matitigas ang ulo talaga at batugan, dapat daanin sa dahas and throw them out of the property and give them a 5-7 year blacklist period.

Agree here.

Guys with kind heart and extra energy, provide naman great H&L Projects going on in Philippines. The projects that you reply on this thread, I'll help in compiling and organizing them. Thanks in advance. Happy Easter.

san bang location gusto mo? sa luzon area lang ba?

Guys with kind heart and extra energy, provide naman great H&L Projects going on in Philippines. The projects that you reply on this thread, I'll help in compiling and organizing them. Thanks in advance. Happy Easter.

Mukhang mahihirapan ka conio (I will assume that when your savings will pile up your condo savings will be changed to "house" savings in the future. :lol:)

Not all companies go online and there's a lot of developers na din.

Guys with kind heart and extra energy, provide naman great H&L Projects going on in Philippines. The projects that you reply on this thread, I'll help in compiling and organizing them. Thanks in advance. Happy Easter.

If you want great H & L projects near Manila check Ayala Lands and Vista Land's properties along Daang-Hari, in Bacoor, Las PInas, Muntinlupa area.. Great projects.:cheers::cheers:

Does it mean that it is a bit scary to buy metro manila properties?

http://newsinfo.inquirer.net/169895/sc-ruling-on-prime-quezon-city-land-blow-to-land-titles

Registered owners of more than half of the land in Metro Manila may lose their properties as a result of a recent Supreme Court ruling that the “sale certificates” of former friar lands that lacked the signatures of prewar government officials should be deemed void, a senior justice of the court said.
In a 23-page dissenting opinion, Senior Associate Justice Antonio Carpio said the Supreme Court’s March 6 decision in the ownership dispute involving the Manotoks and Barques over the P4-billion Piedad Estate in Quezon City would render millions of residents homeless.
“This is a disaster waiting to happen—a blow to the integrity of our Torrens system [of titles] and the stability of land titles in this country,” Carpio said.
“Hundreds of thousands, if not millions, of landowners would surely be dispossessed of their lands in these areas,” he said.
With a split vote of 8-7, the tribunal upheld its Aug. 24, 2010, decision that awarded the ownership of the 1,282-hectare of lands to the national government.
Chief Justice Renato Corona, who is facing impeachment in the Senate, agreed with the majority ruling written by Associate Justice Martin Villarama Jr.
Corona votes twice
Curiously, Corona virtually participated twice in the decision as he also voted with the winning bloc on behalf of Associate Justice Mariano del Castillo, who was supposed to be on sick leave when the court voted on the matter.

No, I don’t believe so. But it was surely an eye catching news item worthy of publication for the purpose of selling newspaper, at least in the eyes of publishers.

In this specific case, the litigants failed the “litmus test” for ownership, the stringent requirements of the law for a valid acquisition of the land.

^^ kung millions ang affected, ewan ko lang kung di babalatan ng mga tao at susunugin nang buhay ang mga justices na yan :lol:

quick question: do you guys think that the current mortgage rates are high? I saw 5.75 but only fixed for 1 year. the 10 year fixed is still around 10 to 11%. tama bang matakot sa utang? or credit facility is something that we should be taking full advantage of?

quick question: do you guys think that the current mortgage rates are high? I saw 5.75 but only fixed for 1 year. the 10 year fixed is still around 10 to 11%.

I will skip answering the first question regarding whether an interest rate of 5.75% fixed for one year is high because I don’t reside there. The only thing I can say is to shop a few banks to compare. HSBC http://www.hsbc.com.ph/1/2/personal/loans/home-loan?WT.ac=HBAP_PH_PWS_MOL_HL_0001 is showing a 5.25% in their website, but I don’t know the details of this loan.

Prevailing interest rates for home mortgages in the Philippines has never been lower historically, although higher when compared to other countries like in the U.S. or Canada. My preference is to choose the shorter term (one year) to take advantage of the lower interest rate. You would still come out ahead when you get a smaller interest rate on short term loan, renewable, till paid in full, than getting a higher interest rate for a longer term. If you were getting the 10 year loan at 11% interest rate now, your monthly rental income might not suffice to cover your monthly expense, putting the soundness of the investment at risk.

tama bang matakot sa utang? or credit facility is something that we should be taking full advantage of?

As long as sustaining the credit (loan) is manageable, I wouldn’t have fears, but guarded. For me, it’s important that I choose my investment property (for rental) in a desired location so it makes it easy for rental and, the income generated pays for the expenses.

The use of credit is how most self made millionaires became rich. Your outlay is a smaller down payment, but with the appreciation of the value of your property over the years, it has a compounding effect on your return on investment. That is called leveraging.

Interested by the discussion on mortgage rates.

Wondering how difficult it is for foreigners who are non-resident to obtain mortgage financing as I've heard inconsistent information about this over recent years. I live in London and, until relatively recently, PNB provided mortgage financing to UK residents for property purchases in the Philippines but they no longer have a UK banking licence.

I think HSBC may provide mortgage financing to non-Filipino residents?

I have a number of condos in Makati turning over in another 12 to 18 months, originally purchased in early 2008 and with 40% of the total contract price paid. Therefore, assuming "paper" price appreciation, the loan-to-value levels I would be looking to finance are relatively modest.

Just trying to asccertain my options at this stage or whether I should be preparing to pay the remaining balance in cash? Any views, insights or recommendations would be much appreciated.

if you can get UK rate for a philippine property...that's a sweet deal.

Wondering how difficult it is for foreigners who are non-resident to obtain mortgage financing as I've heard inconsistent information about this over recent years. I live in London and, until relatively recently, PNB provided mortgage financing to UK residents for property purchases in the Philippines but they no longer have a UK banking licence.

I think HSBC may provide mortgage financing to non-Filipino residents?

I have a number of condos in Makati turning over in another 12 to 18 months, originally purchased in early 2008 and with 40% of the total contract price paid. Therefore, assuming "paper" price appreciation, the loan-to-value levels I would be looking to finance are relatively modest.

Just trying to asccertain my options at this stage or whether I should be preparing to pay the remaining balance in cash? Any views, insights or recommendations would be much appreciated.


In our case, we opted to finance our pre-selling condo not through local bank loans. We knew from the start the interest rate is higher for a local mortgage and, we have other means of financing more favourable to us, from savings and line of credit with very attractive rates that are at its lowest historically. We are making yearly balloon payments that started 2 years ago, culminating in 2 years when it will be paid in full upon possession.

If you don’t get a response to your specific question (local loan), suggest that you post at the property page. I’m sure others have explored that route.

If you don’t mind, I am curious as to your motive of buying a number of condo units in Makati? Do you have a short term view (aka flip it) or long term view (rent it out, or move back there eventually)?

If you don’t mind, I am curious as to your motive of buying a number of condo units in Makati? Do you have a short term view (aka flip it) or long term view (rent it out, or move back there eventually)?

I'm not moving back to Philippines as I'm not Filipino, although have spent much time there in previous years. Wouldn't rule out the Philippines as a potential retirement option for me but that's not for some years yet (I'm late 30s).

The purpose of buying in Makati was for a number of reasons - primarily for long-term capital investment (not a flip but, rather, to retain the property and rent out). I'm less certain about the investment prospects than I was due to the volume of projects coming downstream added to the higher value of the peso.

I might sell one or more of the units at, or around, turnover - in part, due to appreciation of the peso since I originally bought the units which would, in £ sterling terms, add significantly to mortgage payments if the units are not let out.

an officemate got the 5.something rate from HSBC, but im yet to ask them how much it went up after repricing. borrowing needs mental preparedness especially for those who are generally scared of long term debt. It may have something to do with watching too much telenovela which typically involves losing one's home from a nasty relative or heartless bank reps.

I guess my next question is, while you use a certain percentage of your liquidity to pay for the house in the form of equity (or you may opt to pay in full), how many percent do you keep as cash? Not sure about the "spending habit" of Filipinos, but I have office mates who have minimal savings and live from payday to payday paying off their mortgage and car loans at the same time! Is it okay to borrow while you are young and while credit facility is available? and have zero savings? It seems to be the norm now and these people get by.

I know that the "savings rate" of Americans aren't that stellar either.

I guess my next question is, while you use a certain percentage of your liquidity to pay for the house in the form of equity (or you may opt to pay in full), how many percent do you keep as cash? Not sure about the "spending habit" of Filipinos, but I have office mates who have minimal savings and live from payday to payday paying off their mortgage and car loans at the same time! Is it okay to borrow while you are young and while credit facility is available? and have zero savings? It seems to be the norm now and these people get by.

I know that the "savings rate" of Americans aren't that stellar either.

Ah, you raised a valid point. Although not quite exactly the same like your office mates, we are pretty much in similar circumstance, in that we live from paycheck to paycheck, well almost, on a cash reserve for 2 months (for us), and in my opinion not to be copied. But that’s more on account of our spending habits, as we travel a lot, about 3 or 4 times a year in far flung places. We could easily stop that, and increase our reserve to last us for a year. But attachments are hard to let go, especially when you enjoy so much the lifestyle it brings, as it pampers the ego so much and we succumb to the delusions of this ephemeral existence. However, I’m lucky to live in a country where there is universality of healthcare. That’s where similarity ends in Philippine setting. Should I, or a family member require expensive medical care, no out of pocket expense will be incurred by me. By maximizing our credit, we were able to acquire properties in Canada, U.S. & the Philippines. To answer your question, yes, I would maximize my credit with the following caveat: have an adequate reserve matching your circumstance (maybe at least 3 months reserve in Philippine setting) and your means of income is relatively secure to sustain your credit (loan). Simplistically speaking, “as long as you can afford it”. Imagine yourself 5-10 years from now. Would you be better off having bought some property or not? For me, the answer is yes, that’s why we pursued it.

I'm not moving back to Philippines as I'm not Filipino, although have spent much time there in previous years. Wouldn't rule out the Philippines as a potential retirement option for me but that's not for some years yet (I'm late 30s).

The purpose of buying in Makati was for a number of reasons - primarily for long-term capital investment (not a flip but, rather, to retain the property and rent out). I'm less certain about the investment prospects than I was due to the volume of projects coming downstream added to the higher value of the peso.

I might sell one or more of the units at, or around, turnover - in part, due to appreciation of the peso since I originally bought the units which would, in £ sterling terms, add significantly to mortgage payments if the units are not let out.

Oh, I see. Well, you are much more brave than me. All our other rental properties are within easy reach, close to home, where I can exercise control and maintenance. The Philippines right now is at arms length, so we have limited our acquisition there to one pre-selling condo and some land, for vacation purposes and maybe future retirement in mind, but not for rental.

Oh, I see. Well, you are much more brave than me. All our other rental properties are within easy reach, close to home, where I can exercise control and maintenance. The Philippines right now is at arms length, so we have limited our acquisition there to one pre-selling condo and some land, for vacation purposes and maybe future retirement in mind, but not for rental.

Not sure about brave. I am Irish and sold my property interests there in 2007 and 2008, just as the property market was on the edge of a cliff (and it's been a long fall since).

I have other investments (equities etc) but also like to have property interests but the real estate possibilities closer to home looked over-valued and, in fact, the subsequent years have proved that to be the case.

Metro Manila, in my view, is a good alternative notwithstanding the well known negatives, given it's a large and growing metropolis with improving infrastructure. The potential downside to this is the number of condos coming onto the market. Longer-term, I see this as positive (a well developed, large metropolis needs these buildings) but, short-to-medium term, I think it will provide challenges. Time will tell :)

Happy to hear that you are investing in Philippines.
I just wish these condos would allow four-legged companions. Like dogs.

Ayala Land pursues its vision of The New Makati
Business Mirror
http://www.businessmirror.com.ph/home/properties/25372-ayala-land-pursues-its-vision-of-the-new-makati

REAL-Estate giant Ayala Land Inc. (Ali) is taking concrete steps in making Makati the crown jewel of Metro Manila, as well as one of the most competitive cities in the region.

According to Ali president Antonio “Tony” T. Aquino, the company has earmarked P60 billion over the next five years for rebranding efforts and developments for Makati City. “We are riding on the renewed optimism and confidence brought by the Aquino administration. We think that the economic fundamentals are in place and this will allow us to compete regionally. We have the support of the LGU and Makati Commercial Estate Association (Macea) for this endeavor. We are developing six distinct and complementary districts to ensure that we stay relevant to a diverse market,” Aquino revealed during a roundtable discussion recently held at the InterContinental Manila

Preparing for contingencies such as disaster-proofing Makati is also part of Ali’s planning for economics and the environment. Macea has allocated a budget for flood-control studies (which will be done this year) and will be the basis of drainage upgrade plans for Makati Central Business District (MCBD). Together with other local government units, Ali is part of MMDA’s flood-control Bayanihan zone alliance (Makati Zone), which is responsible for flood control in Makati.

It will be recalled that last year Makati installed flood-monitoring devices in select areas of the city for emergency response, while the MMDA constructed a flood-diversion channel in Makati to accommodate floodwaters during heavy downpours. MMDA Chairman Francis Tolentino said this is just one way to mitigate the flooding in Makati and its adjacent localities. Ali will continuously clean the Maricaban creek where outflow of water from Makati passes before it flows to Manila Bay. Aside from the Marica*ban creek, Ali will also clean the tributary creeks in MCBD.

Ali wants to strengthen Makati’s status as the country’s unrivaled capital not just for business, but also for lifestyle, entertainment, culture and highlight Makati City’s equity as a complete city. One major move is the development project in Santa Ana, where Ali will spend P20 billion for its market, infrastructure, access, etc. At the same time, its size offers the benefits of a walkable, integrated experience, complete entertainment targeting families as opposed to the mass market and adult market for other hubs, as well as venues for performing arts, flagship retail entertainment concepts and an interactive river anchored by Alveo residential developments.

On the other hand, another P37 billion will be spent for Bonifacio Global City in the next five years. Ali sees minimal effect on the transfer of the Philippine Stock Exchange (PSE) to BGC. “If ever, only the stock brokers might want to move but most of the dealing transactions are now done online that a physical presence or office in the same PSE building is not necessary,” Aquino said. “Ali has not really lost market share to BGC. Office vacancy levels are at a very low 4 percent in Makati.”

In 2011 Ali reported its residential projects comprised about P24 billion or 60 percent of its total revenues. P4.4 billon or 18 percent of its revenues came from Makati residential projects such as the ALP (Park Terraces 1-3) with P2.3 billion; Alveo (Lerato) with P1.4 billion and Avida (San Lorenzo and Makati West) with P717 million.

Aside from malls, entertainment hubs and residential developments, Ali will also help upgrade the transport system with the Bus Rapid Transit linking MRT3, PNR Buendia Station and LRT1.

Ali plans to launch about the same number of projects this year but 29 percent higher in value and 20 percent more in terms of number of units. All indications show that Ali remains well positioned to pursue its growth projections and achieve the goals set under its 5-10-15 plan.

^^ How about that new QBD?

Ayala Land unveils P90B projects

MANILA, Philippines—Property giant Ayala Land Inc. (ALI) plans to roll out 67 new projects worth P90 billion this year as part of its “unprecedented” expansion to new locations and new market segments in the country.

ALI president Antonino Aquino said the P90 billion worth of projects to be launched this year would be supported by a P37-billion capital spending budget. He added that the property business continued to be robust, with the first three months of the year turning out as a “very good” quarter.

As part of its expansion plans, ALI will double its landbank over the medium term from 4,000 hectares at present. Aquino said the “Nuvali” eco-development in Sta. Rosa, Laguna, for instance should be replicated in areas like Cavite, Pampanga and Rizal.

Of the 67 projects to be launched this year, 50 will be in the residential segment spread out across the five brands and each of the brands will be a mix of both vertical and horizontal developments spread out all over the country, Aquino said. “It’s the best way to be able to diversify.”

About 26,000 residential units will be launched this year, higher than the 20,000 brought to the property market last year. “It will basically reflect the economic pyramid; in terms of number of units, the bulk will consist of Amaia and Bella Vita (the low-cost) brands but obviously, Avida, Alveo and ALP [Ayala Land Premier] will continue to ramp up,” ALI senior vice president Bobby Dy said.

Dy said ALI’s shopping mall group would also bring to the market 200,000 square meters of leasable area while 100,000 sqm of office space would be added to its portfolio this year.

On the shopping mall front, three new retail developments will open this year – the redevelopment of Glorietta 1, Centrio in Cagayan de Oro and Harbor Point in Subic, which all together will add a little over 140,000 sqm in leasable area.

For the hotel business, the 349-room Holiday Inn hotel will open in Glorietta Center this year while three boutique hotels under the brand “Kukun” will be completed in Bonifacio Global City, Cagayan de Oro and Davao.

On ALI’s tourism/resort portfolio, the Pangalucian Island in El Nido will start full operations by October this year.

http://business.inquirer.net/54257/ayala-land-unveils-p90b-projects

Ayala Land unveils P90B projects



http://business.inquirer.net/54257/ayala-land-unveils-p90b-projects

Laki pera nyan.

Iglesia ni Kristo is becoming a big property owner in the US.:cheers:

South Dakota ghost town now owned by Iglesia ni Cristo



By Rudy M. Viernes
FilAm Star
3:40 pm | Saturday, April 21st, 2012
share282209


The Iglesia ni Cristo church in the Philippines shelled out $700,000 to purchase an abandoned, tiny exclave in Scenic, South Dakota. For what? For possible expansion of its imposing edifices with trademark narrow-pointed spires which are landmarks in many towns and cities in the Philippines. But INC hasn’t divulged its plans for the property according to its offices in Daly City, California.

The town of Scenic, South Dakota — an unincorporated 12-acre (4.86 hectares) community in Pennington County, once a popular stop for people traveling to Rapid City from the Badlands — was bought by the INC including the surrounding acreage from owner and longtime resident and area rodeo legend Twila Merrill.

But its future is shrouded in new mystery. Wait for what the Iglesia ni Cristo in Manila, the new owner, will do with the property. And the few residents there, numbering nine in all, are excited about the possibilities the town pulsates with life again when the INC starts building its landmark super structures with spires pointing to the sky and its cavernous hall reverberating with shouts of worship.

http://globalnation.inquirer.net/?p=34205

haha parang kulto, dyan nila gaganapin ang pagtitipon, last days nila sa mundo, rapture ng INC members:lol:

kipande.net (http://Kipande.net) is the ultimate platform to buy property. Kipande.net (http://Kipande.net) enables you to buy a share of otherwise unaffordable property.

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Trouble on the 37th floor of Pacific Plaza
By Butch del Castillo / Columnist
Business Mirror
April 29, 2012
http://businessmirror.com.ph/home/top-news/26482-trouble-on-the-37th-floor

The City Engineer’s Office of Makati only last week received a formal complaint over major construction works that have been going on for the past eight months on the 37th floor of the upscale 43-story Pacific Plaza Condominium on Ayala Avenue.

The questions the City Engineer’s Office must answer are these: Did it issue building permits to the management of Pacific Plaza Condominium (and/or the occupant-owner of Unit 37-D) for the demolition works and major repairs that have been going on since August last year?
If so, were the repairs or renovations done in 37-D within the scope of the permits he had issued?
Or were there no permits issued at all?

The complaint, dated April 25, 2012, was addressed to Makati City Engr. Nelson Morales by lawyer Mcneil M. Rante (of the Santiago, Arevalo, Asuncion, Dela Cruz & Associates) in behalf of Ambassador Antonio L. Cabangon Chua, owner and occupant of Unit 36-D.

Note that the complaining party occupies the unit directly below the unit where the demolition works and major repairs are taking place.

Cabangon Chua’s counsel also sent a “final demand letter” to the management of Pacific Plaza Condominium on the same day that he sent the ambassador’s complaint to Makati City Engr. Nelson Morales (through Engr. Rosemarie Yumul).

The final demand letter was addressed to V. Christine F. Lopez, president and chairman of Pacific Plaza, and Pilar de Borja (or whoever exercises ownership or possession of Unit 37-D). It was coursed through Jiezl Go, administrative manager.

Lawyer Rante’s letter said:

“Our client, Amb. Antonio L. Cabangon Chua, owner and occupant of unit 36-D, referred to us for appropriate action the persistent loud noises and vibrations coming from the continuous demolition and construction of unit 37-D.

“The demolition and construction…started sometime in August 2011 and since then has been generating loud, irritating noises disturbing the quiet atmosphere in our client’s abode. Our client has called your attention to this matter in his letters dated September 9, 2011, and November 8, 2011. But much to our client’s dismay and discomfort, construction in unit 37-D continued with only notice of tentative dates of completion to our client and promise of minimal noise. Contrary to your assurances of minimal noise, however, our client continues to suffer intolerable noises and vibrations up to this date.

“As a result, our 78-year-old client has been suffering intermittent severe headaches and migraine, especially in the mornings. The constant hammering and sanding on concrete and other solid structures have even brought on a condition called vertigo, no doubt caused by the din of demolition works in unit 37-D. In fact, our client went on a two-week cruise of major Asian capitals in China, Russia, Japan and South Korea—to momentarily avoid the hellish noise. But upon his return, the noises from the demolition and construction activities in unit 37-D became louder than ever. It has been eight months since this needless and intolerable aggravation in the life of our client started.

“Our client and the members of his household felt deeply vexed and disappointed that the Pacific Plaza Condominium management no longer maintains the standards of excellence that unit owners expect of it. Your office has effectively allowed piecemeal construction of units without a definite time of completion. This has delayed the completion of the construction to the damage of our client and other unit owners. In effect, we are all at the mercy of unit owners like the one that owns 37-D.

“My client went up to 37-D recently and saw to his dismay that all the walls and partitions of the unit had been demolished. We are very much alarmed by this because the entire building is quite of age and reconstruction could weaken its foundations and endanger the lives of the rest of the building residents…

“Setting aside the issue of Pacific Plaza’s mismanagement, our client at the very least, expected the condominium corporation to treat him and his family in accordance with the level and value of the property he purchased and the condominium dues he has been paying—nothing more and nothing less.

“In view of the foregoing, we are demanding that you immediately stop the demolition and construction activities in unit 37-D upon receipt of this notice. Otherwise, we will file the necessary criminal and civil cases against all of you.”

According to Rante, it was only yesterday when the management of Pacific Plaza took a close hard look at what’s taking so long for the construction in Pilar de Borja’s unit to be completed.

The mysterious owner of unit 37-D, who was identified only as Pilar de Borja, has turned out to be a very wealthy socialite from Pampanga. In a Google search, her name was cited among “a high-powered cast of over a dozen principal sponsors led by President Gloria Macapagal-Arroyo during the high-profile wedding of Emigdio ‘Dino’ Tanjuatco and ANC anchor Nancy Irlanda.”

The construction workers in unit 37-D have let on that the renovation was actually completed after only three months last year, but the owner had all the changes ripped off because she didn’t like the final result. The expenses entailed in redoing the unit for several times didn’t seem to matter to her.

Pacific Plaza owed much of its prestige as the address of the rich and powerful to the fabulous former First Lady Imelda Romualdez Marcos was used to live there for several years.

But now, like a former beauty queen who has turned 35, Pacific Plaza no longer turns heads as much as it used to during its prime. Its name has lost much of its old luster as a gaggle of new and swankier condominium buildings have risen to dominate the Metro Manila skyline.

Pacific Plaza should be over 25 years old, if I’m not mistaken. A building this old is bound to suffer a marked deterioration in its wirings and plumbing. That’s why a number of three-bedroom unfurnished units (with floor area of 285 square meters and two parking slots) are being offered for only P26 million each. I’ve been watching its Internet ads for the last few days and there who at least one unit that sold for P24 million.

At the height of its fame, a penthouse unit in Pacific Plaza Ayala‚—which is right across the Glorietta mall—was fetching as much as P42 million, and you had to stand in line then, so I was told.

But now, its snob appeal has been all but eclipsed by such temples of opulence as One Roxas Triangle, which is easily the most valuable piece of real-estate property in Metro Manila today. There are other “hyper-amenitized” condo buildings, such as Essensa and Fairways in Global City, or the one that is now pre-selling units, the Discovery Primea in Makati.

If you are already a resident of the 45-story One Roxas Triangle on Paseo de Roxas and Cruzadas Street, your address alone speaks volumes about your financial status. (A sexy broker described this condo building as “the most prime” among all Metro Manila condos).

To acquire a unit here, you should have at least P50 million to spare. This amount may be enough for an unfurnished three-bedroom unit with a floor area of 286-330 square meters—most likely at a lower floor, somewhere between the 7th and 12th.

The prevailing guideline in pricing condo units is simply this—the higher the floor, the more expensive the unit. This is why in a way, condo-living has become a mark of distinction, or a status symbol. The closer you are to the sky, the more important you are. Thus, a penthouse unit costs much more than any of the units in lower floors.

Over the past 25 years there has been a condominium boom. This development alone is reason enough for our legislators to revisit the national building code, the chief implementer of which is the city engineer or planner. There seems to be a need to tighten the screws on these officials who issue building permits and clearances under fraudulent and questionable circumstances.

Ambassador Cabangon Chua’s complaint against his inconsiderate neighbor should be resolved as quickly as possible by Makati’s city engineer. He is expected to do his duty under the law.

Which reminds us of Sen. Francis “Chiz” Escudero, chairman of the Senate Committee on Environment and Natural Resources, who is urging a thorough review and rewrite of the national building code.

In February this year, he filed Senate Bill 2843 seeking to strengthen the government’s existing structural policy.

He filed the bill following the 6.9-magnitude earthquake that killed 52 people in Negros Oriental. He said public and private structures that have risen over the past few years might not be able to stand the destructive impact of unforeseen weather disturbances.

Escudero said it was unfortunate that building permits have been indiscriminately issued, allowing faulty constructions that endanger the lives of the innocent.”

“These fraudulent issuances have allowed faulty building constructions to the detriment of its occupants and those beside and around it,” he added. It’s as if he was referring specifically to Pilar de Borja’s unit in the Pacific Plaza Ayala Condominium.

^ Battle of the snobs :lol: Let their best gunmen take their fight for them na lang. :lol:

^^ Will you still be buying a Condo conio or a house :D

Why not a townhouse na lang in Taguig?

Nowadays real estate and housing industry price and rant very increase as past data base. So it transaction as very increase. I have investments but also like to have property interests but the real estate possibilities closer to home looked over-valued.

Actually this is old news, but the VAT threshold for residential dwellings was increased from PhP2.5M to PhP3.199M as of January this year. Here’s the excerpt:


“Moreover, Sections 4.109.-1 (B)(1), (p)(4) of Revenue Regulations No. 16-2005, as amended by Revenue Regulations No. 16-2011 should properly be worded as follows:

(p) The following sales of real properties are exempt from VAT, namely:

(4) Sale of residential lot valued at One Million Nine Hundred Nineteen Thousand Five Hundred Pesos (P1,919,500.00) and below, or house & lot and other residential dwellings valued at Three Million One Hundred Ninety-Nine Thousand Two Hundred Pesos (P3,199,200.00) and below where the instrument of sale/transfer/disposition was executed and notarized on or after January 1, 2012;”


Realizing that this would be good for more homeseekers, DMCI Homes responded by offering 2-bedrooms below this new threshold:
http://business.inquirer.net/58137http://

Now, our questions are: 1. Why wasn't this new ruling publicized well? 2. How did the other developers respond to it?

The housing bubble particularly at the Fort is so prevalent it will smack you right in the face.... Take a look at all those pretty condo towers at night with only a few apartments actually lit up. The number of speculative investors far outstrip genuine end users for the mere fact there's not enough people that earn enough to pay those inflated rental yields. (Yes that includes your expats from the BPOs - there's just not enough of them around)

Yet the developers keep building and raise their prices artificially (without using wages nor inflation as a basis)...

I never knew that Camella properties are like that.. Suprising! They have to at least choose contractors na hindi titipidin ang mga materyales!

Camella is rubbish... Checked at some house and lot of theirs quite recently, in Taguig.. a house RFO was so badly finished I literally walked out and cut my appointment short with the agent. Pencil marks all over the fixtures, uneven fixings, unstable staircases. Some window frames even already had rust!!! (this was a brand new place)

thanks for the reply... i think that the condo act should be updated. condos during the time of marcos were not as high as most condos which are being contructed today thus a bigger set of columns are important for lower floors. this would really make the livable area a lot smaller than promised. lugi ung mga nsa lower floor kesa sa upper floors. :ohno:

What a load of rubbish!! Beams are NOT part of a unit's SQM! It's liveable space, considering you don't own the land and sold a "unit" from the master deed with a price based on SQM.

The fencing analogy used is irrelevant to units... By your logic developers can make structural beams as big as they wish and sell you an unfavourable SQM quotation.

Philippines urged to implement REIT system

The Philippine property scene may experience the inflow of as much as $500 million in fresh foreign capital within one year if the real estate investment trust (REIT) system is implemented in the local financial market.

Simon Treacy, group CEO of property investment fund MGPA, said that based on his experience closely working in Malaysia—the latest nation to allow REITs in Asia—investments into the country could easily hit $2.5 billion in two years.

He stressed, however, that for the Philippines to benefit from these foreign investments, policymakers and the private sector would have to restart stalled talks on the local issuance of REITs, which have faltered due to the Department of Finance’s opposition to the tax-exempt status granted to it by law.

“The Philippines is now the most overlooked, undervalued real estate market in Asia,” Treacy said. “Both sides [of the debate] should come back to the table to talk about this.”

REITs are tradable securities whose underlying assets are property portfolios that earn from either real estate sales or rent.

They are issued by property developers and sold to investors whose funds are then reinvested into new property developments.

Treacy, whose MGPA fund is one of the largest investors in REITs in Singapore, Malaysia and Poland, said that the Philippines is now in a unique situation to draw in more foreign investments if this novel scheme is allowed.

He noted that—apart from the advanced Singaporean financial system—policymakers in Japan and Malaysia were in the past also hesitant to introduce REITs in their country because of the misconception that the government would forego valuable tax revenues with the entry of these tax-exempt securities.

He pointed out, however, that both Japan and Malaysia are now reaping the benefits of massive inflows of foreign capital into their real estate sectors, helping keep their property markets buoyant and helping create jobs for their citizens.

In particular, the group noted that Metro Manila is the world’s fifth-largest urban area and, as the country’s political and economic center, can be improved with a more sustainable approach to city development.http://business.inquirer.net/60095/philippines-urged-to-implement-reit-system

The housing bubble particularly at the Fort is so prevalent it will smack you right in the face.... Take a look at all those pretty condo towers at night with only a few apartments actually lit up. The number of speculative investors far outstrip genuine end users for the mere fact there's not enough people that earn enough to pay those inflated rental yields. (Yes that includes your expats from the BPOs - there's just not enough of them around)

Yet the developers keep building and raise their prices artificially (without using wages nor inflation as a basis)...


Well said.:)

Eventually there will be a glut and condo prices will go down due to lack of buyers.

For me why spend my precious earnings and pay 2 million for a studio type unit? Whereas I can easily buy a modest townhouse unit in the suburb plus a brand new small car..

the Fort is like a high end subdivision, nice place to live, but no real economic activity atleast when compared to Ortigas or Makati or even QC. When you go there, you go to high street, and that's it. you end up bored but still nice to go there from time to time. as i mentioned in other thread, a friend bought a unit at MPR and its has been several years and its still less than 40% occupancy. he would have wanted to have it rented but alas, renters are hard to come by. I think there has to be an economic activity and foot traffic to draw in high end renters. i think PAGCOR development in Pque, looks promising but of course the safe bets would still be Makati and Ortigas.

^^ Some realtors would say "high rental yield" but it's mostly good on paper. Getting income out of rental yields comes realistically if the rent is not only sought after but also priced realistically, which is not always the case. The tagline "as low as" is actually a slap to some and come on, who can afford a price for 20k-30k per month when you can rent as low as 3k.

Well said.:)

Eventually there will be a glut and condo prices will go down due to lack of buyers.

For me why spend my precious earnings and pay 2 million for a studio type unit? Whereas I can easily buy a modest townhouse unit in the suburb plus a brand new small car..

I concur.

Condos are great for highly populated urban areas like Metro Manila. In fact, they are good investments for foreigners and not locals.

For locals, a house and lot is still the best.

I think the government should find a way to build more mass housing projects to address the slum (informal settlers) problem in the country.

Condos are great for highly populated urban areas like Metro Manila. In fact, they are good investments for foreigners and not locals.

For locals, a house and lot is still the best.
:okay: + ∞
I think condos are good investments for both foreigners and locals who bought their units in cash... I mean, nothing to pay monthly at the bank for 5, 10 or 15years with interest rates... just a mere assoc. dues nalang...

For me, I still prefer a house & lot by which I can have my own garden, my own pool at the back and a parking area at front...


I think the government should find a way to build more mass housing projects to address the slum (informal settlers) problem in the country.
I agree.

the gov't should also try to consider "container vans" because it actually looks much nicer than the usual socialised mass housing we see... and seems to be much safer from calamities...

http://www.thedailygreen.com/cm/thedailygreen/images/one-container-house-lg.jpg

http://www.hungdaocontainer.com.vn/images/hinhtrienlam/House_hanoi.jpg

http://www.jonworth.eu/wp-content/uploads/2007/04/amsterdam-container5s.jpg

Property surge takes shape in the Philippines



By: Charles Cotton
Oxford Business Group
8:10 pm | Thursday, May 24th, 2012
share8071


MANILA, Philippines – Confidence in the Philippines’ property market, fuelled by economic growth, an influx of expatriate workers and rising investment by overseas Filipino workers (OFWs), is intensifying competition between the country’s major real estate players.

On April 17, Property giant Ayala Land announced investment plans worth P90 billion ($2.09 billion) for 67 new projects, in what the firm described as an “unprecedented” expansion into new market segments and new locations.

Major investment conglomerate SM Group revealed the same week that it would soon finalise plans to purchase a controlling stake in property developer Ortigas Holdings. Though neither side has divulged financial details of the deal, local media has speculated it could be worth $1 billion.

While SM Investments indirectly owns the country’s largest shopping mall developer and Metro Manila’s largest residential condominium builder, according to local media, Ortigas’ properties include “some of the country’s best residential, business and commercial developments”.

Such maneuvers and mergers are likely motivated by confidence-building factors, including increasing remittances from overseas workers, rapid growth in the business process outsourcing industry and the government’s low interest rate regime. In mid-April, the Philippines’ central bank decided to keep key policy interest rates at 4%, following two successive rate cuts.

In February, property developer CBRE said that a growing expat population was helping to fuel increased demand for luxury residential condominiums, adding that this factor, along with a growing need for hospitality accommodation, was creating a “mini-boom” in the local market.

“A luxury condominium is one of the top choices. If it is bought for investment purposes, the chance of you being able to lease it out at a very good rate is high,” said Jose Luis Matti, the executive director of CBRE Philippines Asset Services, in a company statement.

Another rising source of property investment is the country’s legions of OFWs, with salaries earned abroad increasingly being used to buy properties ranging from low-priced condominium units to upscale spaces. Monthly remittances grew 5.8% from a year earlier to $1.59bn in February, after increasing 5.4% in January, the central bank said in April.

“If you were to look at the wish lists of OFWs, owning their own house, whether it’s a house or a condo, is always up there, alongside being able to give their children a good education,” said Nita Claravall, the head of marketing at SM Development, told Hong Kong News in late March.

http://business.inquirer.net/category/latest-stories

:okay: + ∞
I think condos are good investments for both foreigners and locals who bought their units in cash... I mean, nothing to pay monthly at the bank for 5, 10 or 15years with interest rates... just a mere assoc. dues nalang...

For me, I still prefer a house & lot by which I can have my own garden, my own pool at the back and a parking area at front...



I agree.

the gov't should also try to consider "container vans" because it actually looks much nicer than the usual socialised mass housing we see... and seems to be much safer from calamities...

http://www.thedailygreen.com/cm/thedailygreen/images/one-container-house-lg.jpg

http://www.hungdaocontainer.com.vn/images/hinhtrienlam/House_hanoi.jpg

http://www.jonworth.eu/wp-content/uploads/2007/04/amsterdam-container5s.jpg

I agree. Especially those discarded container vans. :)

Villar's Vista Land is largest homebuilder in PH: report



ABS-CBNnews.com
Posted at 05/11/2012 10:16 AM | Updated as of 05/11/2012 10:51 AM


MANILA, Philippines - Vista Land & Lifescapes is the largest homebuilder in the country, according to a property market report by Colliers International Philippines Inc.

"Based on a market scan of various vertical and horizontal residential projects in the Philippines developed by 14 major players in the real estate industry, Vista Land has captured 22% of the over 80,000 units of reservation sales in 2011 with the middle-income as their primary market,” Colliers said in its March 2012 report.

Vista Land, a property company owned by the family of Sen. Manuel Villar, was cited for its good track record in developing communities even before other property companies come in. The company currently has condominium and subdivision projects in over 50 cities and municipalities around the country.

For 2012, Vista Land is seeing continued strong performance. Manuel Paolo Villar, president and CEO, said the company is projecting around 20% growth in revenues and earnings.

"Demand for housing in the Philippines continues to be very strong so we are expecting robust growth in reservation sales given our planned project launches countrywide," he said.

The company is planning to spend more than P15 billion in capital expenditures for 2012.

Vista Land is the listed holding company of Brittany, Crown Asia, Camella Homes, Communities Philippines and Vista Residences. In 2011, the company generated P13.5 billion in revenues and P3.5 billion in net income.


http://www.abs-cbnnews.com/business

Philippines urged to implement REIT system

http://business.inquirer.net/60095/philippines-urged-to-implement-reit-system

So what's the verdict guys? To invest or not to invest?

:okay: + ∞
I think condos are good investments for both foreigners and locals who bought their units in cash... I mean, nothing to pay monthly at the bank for 5, 10 or 15years with interest rates... just a mere assoc. dues nalang...

For me, I still prefer a house & lot by which I can have my own garden, my own pool at the back and a parking area at front...



I agree.

the gov't should also try to consider "container vans" because it actually looks much nicer than the usual socialised mass housing we see... and seems to be much safer from calamities...



I like this idea too. And I guess it's also faster to build than the traditional social housing projects. We can make use of unused container vans from cargo companies. :) :cheers:

@Container vans, how about Kalawang?

^^^^^^^^That might be the problem in the long run..so cement, concrete and steel is still better.

http://business.inquirer.net/files/2012/05/acuzar1.jpg
http://business.inquirer.net/files/2012/05/acuzar1.jpg
LAS CASAS Filipinas in Bataan is the realization of NSJBI president Jose Acuzar’s dream.


Home builder fulfills dream by rebuilding past




By: Theresa S. Samaniego
Philippine Daily Inquirer
11:22 pm | Friday, May 25th, 2012
share8177



ACUZAR’S success lies on his ability to provide affordable homes and preserve the country’s past.

While most of his contemporaries are still busy working on their dream projects, Jose L. Acuzar has already built his.

The 57-year-old chairman of New San Jose Builders Inc. (NSJBI) proudly points to Las Casas Filipinas de Acuzar in Bataan as the realization of his dream of entirely improving the way people see housing.

“Most of our guests who visit Las Casas begin appreciating the importance of heritage conservation. We built this for our children, so that they may see and feel parts of our culture and identity as a people, not just through books or stories. That is why we try hard to relive age-old traditions and practices like songs, dances and games,” Acuzar said in an interview with Inquirer Property.

But more than being a custodian of the country’s heritage, Acuzar has since become an instrument to the realization of every Filipino’s right to own a decent home they can call their own.

Passion for property dev’t

Acuzar, who as a kid also once dreamt of becoming a bus conductor, recalled that he started out as a draftsman in 1975 at the Tondo Foreshore Redevelopment project, which was then under Gen. Gaudencio Tobias.

Since then, Acuzar’s passion for property development never wavered. It even became stronger and more apparent that after he became a contractor in the ’80s, he eventually established New San Jose Builders as a single proprietorship in 1986.

“We were then the go-to-guys for landscaping or steel works,” he recalled, as he shared with Inquirer his journey toward becoming one of the country’s first providers of affordable housing.
Influence of mentors



Luckily, Acuzar’s passion and strong will paid off. Together with the guidance and influence of mentors, to whom he credited much of his success, Acuzar said he was able to grow New San Jose Builders, which now has a number of affordable, quality property developments under its belt while also setting its sights to provide for the mid-market segment.

“General Tobias introduced to me the value of time as time is very important to him—he was very strict on deadlines. My management style I adopted from House Speaker Feliciano ‘Sonny’ Belmonte, while from former Mayor Lito Atienza, I learned the meaning of social responsibility and the value of kapuwa tao,” Acuzar reminisced.

It was because of these people and his strong desire to provide quality housing that Acuzar has also managed to hurdle the challenges that came his way over the past decades.

And although he knew that the Philippine real estate business will always be beset by difficulties that may be brought about by new local and global market conditions, changes in consumer needs, stiff competition and other challenges, Acuzar has since remain undeterred.

Quality, affordable homes

“The issues our future and current homeowners face are also ours. There is a demand but if the market can’t afford to make these purchases there is no business for us,” he added.

This is why NSJBI, according to Acuzar, is constantly looking for ways to innovate and provide better-quality housing for Filipinos at more affordable prices.

“We always try to remain the most affordable in the market,” he further said.
Acuzar likewise credits his success to spiritual guidance and his management style which, of course, is just as important in the success or failure of every business undertaking.

BEING a hands-on boss, Acuzar makes sure that employees who perform well are rewarded and given incentives.

“I am a hands-on boss. I am emotionally attached to my employees and my management style is performance-based. Those who perform well are rewarded and given incentives for creating milestones,” Acuzar disclosed.
Part of Acuzar’s success, of course, lies not only in his ability to provide affordable, quality homes but also in his eagerness and will to preserve the country’s past for the benefit of the future.

“Our company builds homes for the future but we also take pride in the past. I believe our greatest contribution to society is the preservation of our country’s heritage through Las Casas Filipinas de Acuzar,” he claimed.

Las Casas Filipinas is considered as a living museum and a heritage resort that is truly and uniquely Filipino. It allows modern-day individuals to have a glimpse of the past and to travel back in time with its authentic 19th-century Principalia Mansions and stone houses.

“We restored otherwise neglected structures like the University of the Philippines College of Fine Arts Building, Bahay ni Juan Luna and Bahay na Bato from Batangas. Most of these structures would have been reduced to rubble if we didn’t rebuild them here in Bataan,” Acuzar explained.

His efforts did not go unnoticed as he has already been conferred a number of awards and citations for Las Casas Filipinas, the most recent of which was given by the Rotary Club of Manila during its 8th Tourism Awards.

On a lighter note, and despite his demanding and busy schedule, Acuzar still manages to enjoy spending his free time playing tennis and going back to one of his greatest legacies, which is Las Casas de Filipinas de Acuzar.

http://business.inquirer.net/category/columnists

DEMAND FOR OFFICE SPACE HIGH
‘We haven’t seen this kind of office activity since the 1990s’
Malaya
http://www.malaya.com.ph/index.php/business/business-news/5134-demand-for-office-space-high-3-more-happy-years-for-property-market

Corporations relocating or upgrading will keep demand for office space high enough for the property market to remain robust for the next three years.

Property consultancy Jones Lang LaSalle Leechiu (JLLL) yesterday said the office space market, although dominated by business process outsourcing (BPO), will be strengthened by high demand from corporate or traditional offices such as financial services and insurance companies.

JLLL believes there is no oversupply of residential condominiums especially in Metro Manila as take-up would be sustained by first-time buyers starting families and second-home buyers and workers seeking homes near their place of work.

In a report released yesterday, another property consultancy firm, CBRE Philippines, said demand is quickly catching up with supply as office space requirements are showing no signs of a slowdown.

CBRE said that in the first quarter, prime and Grade A offices in major business districts posted a more than 96 percent occupancy rate on the average.

Philip Añonuevo, associate director for markets of JLLL, said while corporate offices previously accounted for only 10 percent of office space leased, this segment is expected to grow as much as 20 per cent as multinational companies prepare to upgrade their office facilities.

He sees these activities creating an additional demand of 100,000 to 200,000 square meters.

Añonuevo said if demand from corporate offices continues, take-up of office space could reach 450,000 sq.m. annually for the next two years from the average demand line of 360,000 sq.m., mostly from BPOs.

“We haven’t seen this kind of office activity since the 1990s,” Añonuevo said, referring to the time when office spaces were occupied by corporations to a high of 186,000 sq.m. in 1993. Demand was practically nil in 1997, only to pick up in the 2000s with the BPO firms, which take up 300,000 sq.m. each year.

“There would an undersupply by 2015, but this is not bad. This shows a healthy office market,” said Añonuevo.

Añonuevo said that many new multinational companies were making investments in local firms and consequently seeking better quality office spaces.

Figures from the Business Processing Association of the Philippines (BPAP) likewise indicated that office demand was further strengthened by the growing number of “captives” or offshore operations owned by multinationals, as opposed to offshore operations outsourced by multinationals to third-party vendors such as BPOs.

The deficit would be met by incoming total supply by the end of the year of 465,172 sq.m., of which 254,246 sq.m. is committed.

Añonuevo said Bonifacio Global City is playing catch-up with Makati business district for Grade A offices with total supply -- pipeline and current – between 2012 and 2015 -- expected to more than double to 700,000 sq.m. by 2015 from 300,000 sq.m.

Of the total supply of 7.8 million sq.m. for the period, Makati would have about 2.94 million sq.m. or 53 percent of total supply across all districts that also include Ortigas Center, Alabang, Quezon City, McKinley Hill, Eastwood City, Mandaluyong, Bay City and Araneta Center.

Ortigas accounts for 25 percent and Bonifacio Global City at 6 percent. A number of other emerging districts like Bay City and Quezon City account for less than 3 percent.

Anonuevo said future pipeline supply from 2012 to 2015 will fuel the growth of business districts besides the Makati CBD. Bonifacio Global City will capture as much as 41 percent of the new office stock in addition to its many attractions, while Quezon City will account for 15 percent, Makati 11 percent and Ortigas 10 percent.

Añonuevo said the country might see renewed interest from real estate funds to invest in the office market.

But despite the shortfall, Añonuevo does not see any drastic increases in the rental rates, which is good for end-users since the costs would be more predictable.

Rental rates for example for grade A offices have doubled to P800 to P900 per sq.m. per month from P400 per sq.m. in 2003.

The average rental rate is P750 per sq.m., which makes the Philippines more competitive, especially for MNCs, compared with, say, Hong Kong, which charges P5,500.

In its report, CBRE said additional supply is expected for turnover in the second half of the year to augment the supply of both traditional and BPO offices.

CBRE said the first building set for completion during the year is the Zuellig Building, which is the first prime office building to be pre-certified Gold under the LEED Core and Shell Program. It will be operational in the third quarter and will provide 33,000 square meters of new leasable space.

Claro Cordero Jr., JLLL head for research, said Metro Manila would see a supply of 154,000 residential units between 2012 and 2016, of which 97 percent of 149,730 units are in mid-market units that cost P1.5 million to P10 million each. Makati would have 20 percent of the supply, followed closely at 19 percent by the Ortigas, Pasig, Mandaluyong corridor where the more affordable units are located.

Cordero said the 154,000 units would be absorbed by the sheer number of people in Metro Manila wanting to live near their places of work.

The residential segment, he said, is also pushed by low lending rates. Some banks offer as low as 5.2 percent interest rate that they compete directly with government institutions like the Social Security System and the Pag-IBIG (Home Development Mutual Fund).

Cordero also noted that major developers are shifting to lower-end – units costing P1.5 million to P3 million each – signaling that there is demand.

Cordero also emphasized that the mid-market residential sector, comprising units selling from P50,000 to P110,000 per sq.m., is far from reaching an oversupply situation.

He said the 154,000 units projected to be built out from 2012 until 2016 is 30 per cent more than the 118,000 units built from 1999-2011.

“Nevertheless, the timetables for completion of these projects are highly elastic. Moreover, Metro Manila’s estimated daytime population of 14 million, as opposed to its nighttime population of around 10 million to 11million, indicates that demand for (mid-market) residential units is far from being fully served.”

CBRE said while investor demand has been increasing, transactions continue to be concentrated on leases as supply of luxury condominiums remains tight. In addition, luxury condominiums are facing strong competition from newer Grade A condominiums.

Cordero said tourism is projected to shore up the economy and the real estate sector until 2015.

He disclosed that projects that account for 10,536 rooms, to be completed between 2012 and 2015, have been launched. Projects that will supply another 3,600 rooms mostly within Entertainment City in Parañaque have also been announced but with no completion dates specified.

Expansion of multinational firms drive office space, luxury housing growth
Interaksyon
http://www.interaksyon.com/article/33341/expansion-of-multinational-firms-drive-office-space-luxury-housing-growth

MANILA - The expansion of multinational firms in the Philippines is driving the growth of the office space and luxury housing segment of the real estate sector, as they bet on the continuity of the stable macroeconomic environment, property market research firms said.

In a briefing on Monday, Jones Lang LaSalle Leechiu said the expansion not only of the business process outsourcing sector, but also of other companies is already putting pressure on the supply of office space in Metro Manila.

"Many of them are based here [and] had been operating for a long time. They have now the inclination to upgrade their offices. Local companies who are doing very well [are also] improving their office space," Phillip Anonuevo, JLLL associate director, said.

He said most of these companies are in the finance, food and beverage, and insurance sectors. In the past few years, about 90 percent of the office spaces in Metro Manila was occupied by BPOs, but this has gone down to 80 percent, as traditional office space leasers have steadily grown.

Anonuevo said they have not seen such office activity since the 1990s. The country's total office space has expanded from 300,000 square meters in the 2008-2009 period to 360,000 in 2011-2012. Anonuevo said this can "possibly" go up to 400,000 square meters through 2013.

Of the total office space built, about 60,000 to 70,000 square meters will be leased by multinationals and local firms.

"[In the past] it was very, very thin. Multinational companies stay where they are. They weren't expanding, they weren't leasing new office space. There were hardly any big lease transactions concluded," Anonuevo said, adding that the growth can be attributed to the favorable macroeconomic conditions.

"They are doing very well and at the same time they have a need to upgrade their office space. Previously, a company would be nagtitipid and they would just do with whatever they have," he said.

"Since they have done so well and the near future looks promising to them, they now find some appetite in upgrading their offices," he added.

CB Richard Ellis agreed, adding that the strong demand for traditional office has pushed rentals down despite constant or lower vacancy rates.

"Demand is quickly catching up with supply as office space requirements are showing no signs of a slowdown. Throughout the first quarter, prime and grade A offices in major business districts posted more than 96 percent occupancy rate on average," CBRE said in its latest quarterly report.

In Makati, the average vacancy rate dipped from 4.47 percent during the fourth quarter of 2011 to 3.4 percent in the first quarter this year, but average lease rates went up P818 per square meter per month as of the fourth quarter of 2011. In Fort Bonifacio, the vacancy rate dipped to 1.74 percent from 4.16 percent last year.

The same story is seen for Ortigas Center, which saw its vacancy rate drop from 5.6 percent to 3.7 percent, while average lease rates picked up by 4.1 percent from P537 per square meters to P559.

Alabang has the lowest average vacancy rate since all BPO buildings are fully occupied while Quezon City saw an uptick in vacancy and average lease rates.

Despite these slight increases in rental rates, companies still find value in setting up offices in Manila.

"In a survey on prime rents among major business districts in the Asia Pacific region undertaken by CBRE, the country ranked as the most cost-effective office destination of a prime rent of US$22 per square meter annually," the real estate consulting firm said.

Aside from office space rentals, the expansion of multinationals has also pushed the number of expatriates to the country, increasing the demand for luxury housing.

"Expatriate population is continuously growing, which spurs the demand for luxury condominium units. In the succeeding quarters, prices of luxury condominium units are expected to sustain its current levels as owners will hold on to the value of their units given the favorable prospects in the luxury residential market," CBRE said.

Because of this, expats and other rich home-seekers only get housing by leasing given the tight supply. However, new grade A condominiums are posing a threat to the luxury housing segment as expats now view these developments as alternatives.

CBRE said the demand for units in Pacific Plaza Towers in Makati was affected by the new adjacent construction that is blocking the view of several of its units. Despite this, the capital values of these luxury condos were still the same as demand continues to be supported by the growth of the market segments that are also driving office space growth.

WB to help Phl meet housing targets :applause:

by Jose Rodel Clapano | The Philippine Star| Wednesday | Updated June 06, 2012 | 12:00 AM

MANILA, Philippines - The World Bank (WB) is extending aid to the Philippine government to meet its target to eradicate the country’s housing backlog, Vice President Jejomar Binay said yesterday.

Fresh from his nine-day trip to Kuala, Lumpur, Malaysia and the US, Binay said the WB agreed to provide technical and financial assistance to the Philippine government to achieve its goal for sustainable housing for homeless Filipinos.

“I encouraged the World Bank to consider extending both technical and financial assistance to the Philippines, namely in the implementation of our program to build sustainable housing communities,” Binay said.

“I am glad to announce that the World Bank has acted positively on our requests and that steps will be taken to see to their immediate implementation,” Binay added.

After his speaking engagement in Malaysia, Binay went to the US and attended the 5th Global Housing Finance Conference in Washington DC and met with WB executive director Rogerio Studart.

Binay sought the World Bank’s assistance in building housing communities in New Bilibid Prison in Muntinlupa, North Triangle in Quezon City, San Miguel New Town, and Welfareville in Mandaluyong.

“We also sought technical assistance in reforming our loan program for the homeless poor, and the formulation of a policy to encourage rural banks to open a special window on housing and micro finance,” Binay said.

Earlier, Binay secured the interest of the Malaysian business community into exploring more investment opportunities in the Philippines, specifically in agriculture and agribusiness, housing, finance, tourism and infrastructure.

Binay, chairman of the Philippines’ Housing and Urban Development Coordinating Council (HUDCC), also invited Malaysian businessmen to invest in housing development and mass housing projects that would help government build 3.6 million units in the next few years.

“This is one business opportunity where the rewards are high, not necessarily in terms of financial returns alone but above all in terms of the physical satisfaction of having helped provide homes for millions and transformed the landscape across the nation,” Binay said.

Binay was in Malaysia from May 27 to 29 as head of an official delegation that included 35 business leaders.

His visit was the first high-level visit to Malaysia in five years.

“The Malaysian business community, to use their own words, is very excited about the Philippines,” Binay said.

Source: http://www.philstar.com/Article.aspx?articleId=814309&publicationSubCategoryId=66

^If this pushes through, there is no reason for the government to not to push low-cost mass housing project which is not only exclusive to illegal settlers but for every Juan Dela Cruz!

With a boom in BPO office development, there is also a boom in ecozone land development.:cheers:

Ecozone Developers On Expansion Mode


By BERNIE CAHILES-MAGKILAT
June 8, 2012, 1:16am
Manila Bulletin


Developers of economic zones (ecozones) are also in a growth mode indicating their readiness to accommodate the growing numbers of expansion projects of existing locators and new investments that flock into the export zones.

Lilia B. De Lima, secretary-general of the Philippine Economic Zone Authority (PEZA), told reporters at least six private economic zone developers with combined investments of P6.37 billion have been approved by the agency in the first five months of the year alone.

"The developments of new economic zones are necessary because of the growing number of investors in our ecozones," De Lima said.

Although there is still enough available ecozone spaces for new and expanding investors, De Lima said the influx of investments into the country are going to saturate the ecozones if there are no new developments.

The six new ecozones are comprised of a tourism ecozone, three IT zones and two agro-industrial estates.

The new tourism ecozone is the Puerto Rosario de Cordova in Cebu City, a tourism ecozone with an investment of P2.219 billion.

Gokongwei’s Robinsons Land is also investing P1.309 billion for an IT ecozone in Cebu City. The five-hectare Robinsons Maxilom IT Center has investments of P1.309 billion.

Jazz, a mix-use development of the Henry Sy-owned SMDC along Reposo St. in Makati City, is putting up a P1.144 billion IT Center.

A new IT ecozone is also being developed in San Jose Del Monte, Bulacan called – the Manila Newtown Ecozone with investments of P822 million. This 30-hectare ecozone will cater to light IT manufacturing operations.

Two agro-industrial estates are going to rise with combined P976 million worth of investments. One development would be the 110-hectare Floridablanca Agro Industrial Estate in Pampanga with P450 million investments.

The other agro industrial ecozone is the P426 million UniStar in Agoo, La Union. This is a 15-hectare agro-ecozone.

At present, there are a total of 258 ecozones scattered around the country 258 economic zones around the country hosting 2,700 locators and employing 915,260 Filipinos.

In terms of exports, the 2,700 PEZA locators were able to export $463 billion worth of merchandize. PEZA accounts for 87 percent of the country's total merchandize exports.

De Lima, however, stressed that ecozone developers are not eligible to tax and fiscal incentives, but their locators are entitled to such. The incentive package includes income tax holiday, 5 percent tax on gross income earned after the ITH, zero duty on capital equipment importation, among others.

PEZA zones have been the favorite destinations for export-oriented enterprises, not just because of its attractive incentive package but also because they are efficiently run with no bureaucratic redtape at all.(BCM)

http://www.mb.com.ph/articles/361443/ecozone-developers-on-expansion-mode

By: Tessa R. Salazar
Philippine Daily Inquirer
11:39 pm | Friday, June 8th, 2012

http://business.inquirer.net/files/2012/06/thunder1.jpg
THE THREE-STORY Athena, which is near the golf course and the hotel's main lobby, in all its five-star amenities.

Athena, Chloe, Selene, Alexa and Aphrodite may surely sound Greek, but they all look good enough for guests to go on a five-hour road trip from Manila, or go down from the cool mountain breezes of Baguio to this humid province in Northern Luzon.

The destination is the luxurious Thunderbird Resorts in Poro Point, La Union, where the payback for a long trip and a hot day is a breathtaking view of the West Philippine Sea and the five-star amenities of the resort hotel, where villas with Greek names have been permanent fixtures since the Thunderbird Residences’ launch in October 2010. Thunderbird Resorts property is Santorini-inspired due to its proximity to the cliffside.


The villas are actually lifestyle beach homes dotting the 65-hectare resort-cum-golf course-cum-casino. Specifically created for vacationing families who want to rent them out or buy them, Thunderbird Residences is situated within the vicinity of the Thunderbird Resorts Hotel, an all-weather golf course, and a beach club. Soon, an expanded area will be the location of a P200-million condotel.

Livable model unit

http://1-ps.googleusercontent.com/h/business.inquirer.net/files/2012/06/600x399xthunder2.jpg.pagespeed.ic.hOWjTvCT5F.jpg

One of the beach homes—actually a livable model unit—is named Athena, which is a prominent structure when viewed from the hotel’s main lobby. There have been two Athena model units built, in fact.

Currently, there are 10 villas being built, but only two (including Athena) are enrolled to the Thunderbird rental program. Katalene Ross Agmata, corporate communications manager of Thunderbird Resorts and Residences, explained that each unit owner has the option to rent out or own in full the unit they would occupy.

Should the homeowners opt to manage their home privately, it becomes a private venture. The owners of the lots are also entitled to free playing rights to the Cliffs Golf and Beach club. Aside from Athena, four more designs—Chloe, Selene, Alexa and Aphrodite—have been approved by Thunderbird.

The 80 lots launched for the Thunderbird Residences are all situated within 15 hectares of each other, to ensure that the property maintains visual space and ambiance. “We have also committed to a three-hectare park and recreation area which will be devoted to wellness and the retirement lifestyle,” she told Inquirer Property.

The 80 lots for sale is now 75 percent sold. Agmata said that each property owner is required to follow certain setback allowances ranging between 2.5 and 5 meters. Aside from this, the planned three-hectare community park would offer lots of open spaces.

P25,000 a day

The three-bedroom Athena, which has a floor area of 310 square meter, was built at a cost of approximately P9 million. Fully furnished, Athena is being offered for P13.5 million. The minimum downpayment is 30 percent, with the balance to be paid in five years, with applicable interest rates.

http://1-ps.googleusercontent.com/h/business.inquirer.net/files/2012/06/600x399xthunder4.jpg.pagespeed.ic.UvqFXMMPKG.jpg
A TYPICAL bedroom of Athena.

With the same Mediterranean lines as the hotel, the Athena Villa has five-star amenities, and promises quick and efficient residential services. Guests can experience the Athena Villa living experience for P25,000 per day. This includes a breakfast buffet for six persons, plus access to all the resort amenities and leisure living, while at the same time soaking in the seaside atmosphere.

Agmata said most Thunderbird visitors come from Manila (80 percent) and Baguio, but there are also foreign visitors.

“To our surprise, casino players have not played an important role on the lot sales. Most of the sales have come from hotel guests and walk-ins,” she disclosed.

P200-M condotel

http://1-ps.googleusercontent.com/h/business.inquirer.net/files/2012/06/600x399xthunder5.jpg.pagespeed.ic.F9TzS6SOXt.jpg
ATHENA’S staircase winds all the way up to the bedrooms and attic

Agmata added that Thunderbird Resorts has been “regionally strong” in advertising and marketing the lots, and future condotel projects.

Thunderbird Resorts has also announced an additional P200-million investment aimed at constructing the condotel. The condotel project is expected to start this year. It is a response to address the need for more rooms in the hotels, which now has an 80-percent occupancy rate. The project effectively adds an additional 51 rooms, each offering a breathtaking view of the West Philippine Sea.

Clients who purchase a condotel unit will also have the option to enroll their units to the rental program, enabling them to enjoy significant returns on the rentals. Within this program, owners turn over their units to Thunderbird. The unit will then be managed as a hotel room.

La Union can be exceedingly warm and humid during summer, and be directly in the line of storms during the rainy season. Currently, there are plans for additional air-con units for the spacious Athena model to address the heat. Asked if the designers of Thunderbird Resort were familiar with the weather condition in Poro Point during the early years of construction, or if there had been any issue on weather, wind and storm, Agmata said this was the reason it took 18 months to build the resort.

source: http://business.inquirer.net/64015/santorini-inspired-la-union-resort-dotted-with-villas

:okay: + ∞
I think condos are good investments for both foreigners and locals who bought their units in cash... I mean, nothing to pay monthly at the bank for 5, 10 or 15years with interest rates... just a mere assoc. dues nalang...

For me, I still prefer a house & lot by which I can have my own garden, my own pool at the back and a parking area at front...



I agree.

the gov't should also try to consider "container vans" because it actually looks much nicer than the usual socialised mass housing we see... and seems to be much safer from calamities...



ito rin yung ginagamit ng ibang low-cost housing developers. Say P80,000 ang halaga ng isang truck-size na container van, tapos itatransform nila na bahay, say P300k ang magagasto including finishes, fixtures, lote tapos ibebenta nila ng milyones, napakalaki ng kita doon

By: Tessa R. Salazar
Philippine Daily Inquirer
11:39 pm | Friday, June 8th, 2012


source: http://business.inquirer.net/64015/santorini-inspired-la-union-resort-dotted-with-villas

Greek inspired... lugmok ang Greece... nagbabadya :D

peace hugo hehehehe :D

ito rin yung ginagamit ng ibang low-cost housing developers. Say P80,000 ang halaga ng isang truck-size na container van, tapos itatransform nila na bahay, say P300k ang magagasto including finishes, fixtures, lote tapos ibebenta nila ng milyones, napakalaki ng kita doon

Mahal pa din :( I'd rather buy a lot then magpatayo na lang ng bahay, tapos ipapaunti-unti na lang.

By: Tessa R. Salazar
Philippine Daily Inquirer
11:39 pm | Friday, June 8th, 2012


source: http://business.inquirer.net/64015/santorini-inspired-la-union-resort-dotted-with-villas

I'm very interested in beachfront properties. Want to own one someday. Do post similar ones you find. Thanks.

Mahal pa din :( I'd rather buy a lot then magpatayo na lang ng bahay, tapos ipapaunti-unti na lang.

low cost housing i guess ay hindi mas mamahal pa sa P4 million. Sa 4 million na iyon, pwede na ang "mini-mansion" including yung lote kapag sa probinsiya ipapatayo.

Greek inspired... lugmok ang Greece... nagbabadya :D

peace hugo hehehehe :D

hahahaha utangero naman kasi ang Greece. Ang laki ng inutang nila noong Olympics. they spent money (around $17B) more than they can produce ($11B)

puros from Metro Manila and Baguio ang nag-avail ng mga lote sa Thunderbird.

Sa La Union pala, hetong Thunderbird ang pinakasosyal na real estate rito. the rest are low-cost housing na. wala pa rito yung medyo lelevel between luxury and simplicity at expensive sa low-cost gaya ng Camella

I'm very interested in beachfront properties. Want to own one someday. Do post similar ones you find. Thanks.

will do :D.

Mahal pa din :( I'd rather buy a lot then magpatayo na lang ng bahay, tapos ipapaunti-unti na lang.

I am also thinking of the same.

Napapansin ko lately, may mga recent private housing developments na lote lang binibenta nila. Question ko, what if I buy lot only, dapat ba yung design ng house na ipapagawa ko eh same nung typical designs ng house nila?

June 11, 2012, 4:26pm

http://www.mb.com.ph/sites/default/files/DSC_0522.jpg

Thunderbird Resorts Poro Point (TRPP) was a major sponsor of the Sillag Festival of Lights, playing host and venue to its key activities last April. The Thunderbird Boardwalk was the venue of the Lantern Fluvial Parade, performance by the Philippine Marine Band, releasing of the Hope Lanterns, rock concert and Pyromusical Show last April 28.

The following day marked the groundbreaking ceremony of TRPP’s three-storey Thunderbird Condotel. Thunderbird is set to build 51 additional rooms in the Condotel, to add to the existing 41 rooms at TRPP, with a total investmentof R200 million for the expansion project. To date, TRPP has pumped in a total of R1.2-B investments in the country since it started five years ago.

Clients who will purchase a condotel unit will have the opportunity to enroll their units to the rental program, which will enable them to enjoy while earning significant returns on the rentals.Within this program, owners turn over their unit to Thunderbird so that Thunderbird can manage the unit as a hotel room and allow owners to relax while earning.

The April 29 groundbreaking had the following key officials (see photo) in attendance: (from left) Wilson Tieng, corporate partner of Thunderbird Resorts; Felicito Payumo, BCDA chairman; Fausto Liriano, TRPP operations director for construction; David Chong, TRPP project manager for real estate; Shaun Thomsen, Thunderbird Resorts chief gaming officer; Arnel Casanova, BCDA president and CEO; Florante Gerdan, PPMC president and CEO; and Yves Remondeulaz, TRPP hotel general manager.

Meanwhile, Thunderbird Residences continues to expand, with the plan to build approximately 140 more villas or lifestyle beach homes in six to 10 years.Thunderbird Residences was launched last October 2010, and occupies 15 hectares within the total 65 hectare property of TRPP. Thunderbird Residences launched only 80 lots for sale and is currently 75 percent sold. The owners of the lots are also entitled to free playing rights to the Cliffs Golf and Beach Club. A Thunderbird residence is the perfect vacation or retirement place, as included in its expansion plans is a three-hectare park and wellness area, and a commercial area.

Other ongoing TRPP projects include the expansion of the Casino, whereby 1,100 square meters more of floor space is being added to accommodate more machines and gaming tables, a bigger entertainment area and bar, another kitchen, and to which the VIP rooms will be relocated; and the continued expansion of the resort’s all-weather golf course.




source (http://www.mb.com.ph/articles/361699/groundbreaking-of-thunderbird-condotel-and-other-expansion-plans)

Filipinos Abroad Buying Manila Condos Buoy Peso: Southeast Asia
Bloomberg Business Week
http://www.businessweek.com/news/2012-06-13/filipinos-abroad-buying-manila-condos-buoy-peso-southeast-asia#p1

Filipinos investing in the local property market with money earned overseas helped make the peso Asia’s best-performing currency of 2012, even as a global economic slump sapped demand for riskier assets.

Euliver Dizon, a web designer in the U.S., is scouting for a home in Manila, praising President Benigno Aquino for improving the economy. Rommel Adre, a software developer who worked abroad from 2000 to 2011, bought a home in the capital and some properties to rent. Aileen Respicio, a former domestic helper, opened a beach resort with her Scottish husband six years ago and is now buying more land.

The peso has gained 3.7 percent this year versus the dollar including interest. Capital inflows aid Aquino’s drive to win an investment-grade rating, which would allow the Philippines to attract pension money needed to build roads, bridges and airports. Central bank data shows remittances from overseas workers rose 5.4 percent in the first quarter from a year earlier to $4.8 billion, accounting for 10 percent of the economy. They don’t detail use of funds.

“Aquino has been working to remove corruption and other things that used to make investors reluctant to put money into the country,” Toshifumi Sugimoto, president and chief investment officer in Tokyo at Capital Asset Management Co., which runs a $16 million Philippine stock-dedicated fund, said in an interview on June 7. “The country has been moving quite fast and, because of strong growth and solid demand, there are many new properties going up.”

Asset Bubbles

The peso rose as much as 0.5 percent to a one-month high of 42.43 per dollar after exports rose 7.6 percent in April from a year earlier, exceeding the estimate for a 0.5 percent gain in a Bloomberg News survey. The central bank predicts remittances will reach a record $21 billion this year and is due to report April figures tomorrow. They are growing faster than the 5 percent target, supporting the peso, Finance Secretary Cesar Purisima said. He said there is no evidence of hot money driving property prices higher.

“We are monitoring carefully the situation to make sure we don’t create problems down the road for us in terms of asset bubbles,” Purisima said in a June 12 interview in New York. “We are very far from the situation.”

Overseas Filipinos account for about 30 percent of residential sales, as many workers have already satisfied the food and clothing needs of their families, said Alex Pomento, head of research at Macquarie Group’s Manila unit. About 100,000 housing units have been added per year since Aquino took office in 2010, up from about 60,000 in 2007, he said.

Returnees Targeted

Property firms are targeting returning Filipinos, known as balikbayan. Ayala Land Inc. (ALI), the nation’s largest developer, has been holding project exhibits in places such as Milpitas, California and Washington D.C. as well as three Canadian cities to attract expatriates with the slogan “we’ll bring you home.” Filipino-American actor Sam Milby sang at the opening of the company’s first U.S. office in Milpitas on April 28.

Between 2005 through first half of 2011, prices of two- bedroom condominiums rose at a compound annual growth rates of between 5.5 percent to 16 percent for selected projects located in five areas in Metro Manila, according to Richard Laneda, analyst at CitisecOnline.com.ph.

“I’d like to have my own home in the Philippines,” Dizon, 37, said in a June 6 interview. “It’s a good investment considering the positive developments in the economy.”

The peso may weaken as Europe’s debt crisis hurts Asia’s export outlook, according to Jonathan Ravelas, chief market strategist at BDO Unibank Inc. (BDO) in Manila.

“The peso is resilient but not immune to this global volatility,” he said.

Faster Growth

So far the economy is outperforming regional peers. First- quarter growth of 6.4 percent was the most among Southeast Asia’s five biggest economies as Aquino increased state spending to a record this year.

The government reported its second monthly budget surplus of 2012 in April and aims to narrow the annual shortfall to 2 percent of gross domestic product by 2013 from 2.6 percent this year. Collections made by the Bureau of Internal Revenue rose 14 percent from January to April, surpassing the 12 percent increase in state spending, official data showed on May 21.

Moody’s Investors Service upgraded the nation’s rating outlook in May to positive, citing improving debt levels. That followed a similar move by Standard & Poor’s in December. Both companies rank the $200 billion economy at the second-highest junk level. Fitch Ratings raised its assessment to one step below investment grade last year.

Budget Progress

Borrowing costs for the Philippines are now lower than higher-ranked Spain, which was downgraded by Moody’s yesterday by three steps to Baa3, the lowest investment grade. The Philippines’ 15 percent peso-denominated government bonds due March 2022 yielded 5.99 percent today, compared with 6.79 percent for Spain’s 5.85 percent bonds due 2022.

The cost of protecting Philippine five-year debt against non-payment has fallen 19 basis points to 173 basis points this year, while that for investment-grade Indonesia, slid nine basis points to 199, according to CMA, which is owned by CME Group Inc. The swaps pay the buyer face value in exchange for the underlying securities or the cash equivalent should a nation or company fail to adhere to its debt agreements.

Aquino unveiled a $16 billion infrastructure program when he took power, including elevated highways that will link expressways to the north and south of Manila. He succeeded in winning Senate approval for the ouster of Renato Corona, the country’s top judge, for illegally concealing his wealth.

Political Stability

The Philippines climbed in last year’s Transparency International Corruption Perceptions Index to 129th place from 141th in 2008, below Thailand at 80th and Indonesia at 100th, according to the Berlin-based watchdog’s website.

The Philippines is on track to win credit upgrades in two or three years as “broad political stability” allows fiscal reforms, said Chia-Liang Lian, Singapore-based head of investment management for Asia excluding Japan at Western Asset Management Co., which oversees $443 billion of assets globally.

“The potential for the Philippines to unshackle itself from its sub-par growth trajectory has never been stronger,” said Lian, who holds more peso bonds than the benchmark used to track performance. “Policy makers should seize the opportunity to do the right thing. What this current administration has been successful at is the revenue side of the equation.”

Information technology and business-process outsourcing have also driven inflows, said Finance Secretary Purisima. Revenue rose 24 percent to $11 billion in 2011, the Business Processing Association of the Philippines said on its website. Purisima estimates it will grow to $24 billion by 2016.

Expat population spurs demand for posh condos
By: Tessa R. Salazar
Philippine Daily Inquirer
June 15th, 2012
http://business.inquirer.net/65303/expat-population-spurs-demand-for-posh-condos


Not every story behind luxury condominiums is about a controversial, high-ranking government official. Amid all the drama the past few months brought about by the impeachment of the Chief Justice, the luxury residential market has been brought to public attention.

But the overlooked fact is that this market has become the sunshine sector of the real estate industry for some time now. Looking at the robust growth more closely, one can see that the expatriate population in the Philippines has spurred the demand for luxury condominium units.

According to property consultant CB Richard Ellis’ First Quarter 2012 MarketView Metro Manila, the expatriate population is still growing, as there has been no letup in the entry and expansion of outsourcing and offshoring companies.

“The expansion of multinational companies due to the favorable macroeconomic situation is likewise contributing to the inflow of expatriates. Because of the consistent growth in the expatriate population, the demand for housing remains strong,” the report said.

The Bureau of Immigration’s alien registration division’s statement in March indicates that more than 65,155 foreign nationals residing in the Philippines filed their annual reports this year (higher by 5,123, or 8.53 percent, than the number that filed last year; the government earned more than P19.5 million in fees paid by aliens who filed their reports this year).

The report added that while investor demand has been increasing, transactions continue to be concentrated on leases as supply of luxury condominiums remains tight.

“In addition, luxury condominiums are facing strong competition from newer Grade A condominiums. Demand for units at the Pacific Plaza Towers was also affected by the adjacent construction, which is blocking the view of several of its units. Capital values of luxury condominiums, however, were maintained in the first quarter of the year.”

Newer Grade A buildings and newly renovated houses are seen by expatriates as an alternative to luxury condominiums. Because of leasing competition, rents were maintained in the first quarter of 2012. Unit owners have also been wary of increasing rents as they are aware of the limits on expatriate housing budgets.

Luxury residential condominium statistics disclosed in the report showed that the monthly rental rates of the Makati CBD range from P240,000 to P250,000; the Rockwell Center P210,000 to P230,000 and Bonifacio Global City P230,000 to P250,000.

Luxury residential houses statistics showed Forbes Park with rental rates of P350,000 to P500,000; Dasmariñas Village with P300,000 to P400,000; Urdaneta Village with P250,000 to P300,000; and Bel Air Village with P150,000 to P250,000. CBRE added that recent developments have prompted the organization to defer the use of size as a criterion in measuring lease rates for houses in these upscale communities. Extensive renovations done on a number of smaller houses in these communities have resulted in some of them fetching higher lease rates compared to their bigger but older counterparts.

The chart on upscale condominium statistics showed 40-sq-m to 250-sq-m units (ranging from one to three bedrooms) in Legaspi Village fetching monthly lease rates of P60,000 to P220,000; Salcedo Village’s 110-sq-m to 250-sq-m units (two to three bedrooms) have lease ranges of P115,000 to P160,000.

The Apartment Ridge ranging from 77-sq-m to 285-sq-m units (one to three bedrooms) have lease ranges of P40,000 to P150,000; Rockwell Center with 75-sq-m to 247-sq-m units (one to three bedrooms) are leased for P70,000 to P250,000. Bonifacio Global City’s 50-sq-m to 306-sq-m units (one to three bedrooms) have lease ranges of P70,000 to P220,000.

I am also thinking of the same.

Napapansin ko lately, may mga recent private housing developments na lote lang binibenta nila. Question ko, what if I buy lot only, dapat ba yung design ng house na ipapagawa ko eh same nung typical designs ng house nila?

I think there are some developments @Calaguyo that would somehow restrict the price of the house you're building. Abrio for one requires that you put in 10 million pesos daw eh, that's what @Mercato once told us.

More property landmarks to dot Ph

By: Tessa R. Salazar | Philippine Daily Inquirer | Friday | June 15th, 2012 | 10:47 pm

SM Prime Holdings’ 42nd mall

What do Cebu Property Ventures and Development Inc., SM Development Corp., Filinvest Development Corp., Belle Corp. and Tiger Resorts, Leisure and Entertainment have in common?

They are never still, as all of them are putting up new buildings to accommodate offices, malls, hotels and entertainment complexes in various areas in the country.

Jones Lang LaSalle Leechiu’s Philippine Property Market Monitor in February 2012 enumerated the construction of a new IT building in Cebu City by Cebu Property Ventures and Development, a new office building by SMDC, a 10-story building from Filinvest, the 7-story SM Olongapo and a new Filinvest retail complex in Cebu City.

Expansion

The JLL monitor also singled out the expansion of Belle Corp. and Solaire Manila at the Pagcor Entertainment City at the Manila Bay Reclamation area. Tiger Resorts, Leisure and Entertainment Inc.’s recently launched $2-billion entertainment complex, meanwhile, has been called Manila Bay Resorts.

Construction of another IT building at the Cebu IT Park in Cebu City has started. The 12-story eBloc 3, with a total of 15,764 sq m of leasable space, is a project of Cebu Property Ventures and Development and Asian i-Office Properties.

SMDC is currently studying a possible venture to develop office buildings catering to business processing outsourcing companies.

The JLL property market monitor also mentioned Filinvest’s winning the bid for the development of a 10-story building on the property once occupied by the Bagong Buhay Rehabilitation Center and the Cebu City Treatment and Rehabilitation Center. The development would then be under a build-operate-transfer agreement with the Cebu City government.

Retail updates

A $2 BILLION entertainment complex will rise in the Pagcor Entertainment City.
The 7-story, 40,863-sq-m SM Olongapo mall—to cater to customers from Zambales, Bataan and other nearby provinces—was recently opened. This is SM Prime Holdings’ 42nd mall.

Filinvest is investing at least P7 billion in two retail establishments—the existing Festival Mall in Alabang and an upcoming retail complex in Cebu City. The JLL Property Market Monitor said the Festival Mall will have a new wing. The construction will increase the mall’s leasable area by around 50 percent.

The February 2012 JLL monitor also reported, “Grocery chain Puregold Price Club Inc. is looking to merge with S&R, an upscale membership supermarket.”

Lease additional land

A plan to lease an additional land in the Pagcor Entertainment City at the Manila Bay reclamation area by Belle Corp. and Bloomberry Resorts has also been revealed. The JLL February report said the two developers are in talks with the government. Plans are afoot for the expansion of their ongoing projects Belle Grande Manila Bay for Belle Corp. and Solaire Manila for Bloomberry Resorts.

Tiger Resorts, Leisure and Entertainment, a subsidiary of Japan-based Universal Entertainment Corp., has officially launched its $2-billion entertainment complex to be called Manila Bay Resorts. The project will include luxury hotels, a high-end shopping mall and a casino. It will rise in the Pagcor Entertainment City.

Source: http://business.inquirer.net/65299/more-property-landmarks-to-dot-ph

I think there are some developments @Calaguyo that would somehow restrict the price of the house you're building. Abrio for one requires that you put in 10 million pesos daw eh, that's what @Mercato once told us.

hindi kasi puede maglagay ng low cost housing sa ganyang lugar:D
lalo na kung bahay kubo ilalagay mo, dapat kung pang sobrang yaman ang lugar pang sobrang yaman din ang mga bahay:lol:

BEST YEAR IN 2 DECADES; P472B pins property boom
Manila Times
http://www.malaya.com.ph/index.php/business/business-news/6761-best-year-in-2-decades-p472b-pins-property-boom

Pumped with P472 billion bank loans, property developers are enjoying the best year in two decades with the happy result of the Philippines now being assessed as a country of homeowners not only renters.

The loans made in the past year ending March went into the construction of middle and low middle high rise apartments that continue to dot the landscape in Quezon City, Makati, Mandaluyong and Manila.

Other favorable factors are falling into place, cheap lending rates encourage homebuyers to choose from a wide range of available units –– all competitively priced.

Rick Santos, chief executive officer and chairman of CBRE Philippines, said in a briefing that Filipinos are benefiting from a “democratized” housing industry -– fed by a single-digit mortgage rate, a boon for buyers.

“The single-digit mortgage rate has democratized the housing ownership in the Philippines allowing Filipinos to buy rather than just being renters for life,” Santos said.

The low financing scheme prevailing nowadays was witnessed in the United States after the Second World War.

CBRE said that in most cases, monthly rental rates for a typical household dwelling in Metro Manila are now at par with mortgages for house and lot or residential condominium units.

CBRE said demand remains strong due to the increasing affordability of funds for housing acquisitions.

“The liquidity in the market enables developers to provide more affordable payment terms to buyers. Low cost of borrowing are likewise spurring development expansions in the residential/ housing industry,” CBRE said in a report.

Victor Asuncion, executive director, global research and consultancy of CBRE, said the residential market is not slowing any time soon but it “is still location, location, location.”

A lot of developers including Ayala Land Inc. and Robinson’s Land are into heavy landbanking to ensure that they have enough supply to sustain growth.

Asuncion said a lot of the units are concentrated in Quezon Cty where a lot of business action is happening, such as in Eastwood, the UP area and even along EDSA, where high-density condo buildings are sprouting along the rail transit line for accessibility.

CBRE said that between 2016 and 2023, about 143,123 condominium units would come on stream in Metro Manila alone with more than two-thirds located in Quezon Cty, Makati, Mandaluyong and Manila, where the business process outsourcing firms are also rising.

Asuncion said developers are also shifting from the high-end residential towards the affordable segment.

“The demand for affordable condominium unit continues to grow year on year. The reason most property developers are shifting to the development of reasonably priced condominium units around the Metro is to cater to the growing population who are empowered by the economy to own their dwelling place,” Santos said.

“The Philippines is no longer the sick man of Asia, it is now the sweet spot for investors. We are now experiencing the best real estate market in the Philippines in the last 20 years.”

All eyes are now moving from BRIC (Brazil, Russia, India China) economies to TIP (Turkey, Indonesia, Philippines) Economies.

"The Philippines is becoming the lifeboat for many US and European companies that need to outsource in order for their businesses to survive and actually preserve jobs back in the US and Europe.”

Pre-leasing is back! The office sector goes from strength to strength, with a surge of pre-leasing commitments in the central business districts.

The Philippine property market is turning green into gold.

“Green buildings are future proof investments! As the outsourcing and offshoring sector gains strength in the country, we see more occupiers and developers prioritizing flight to quality, with green buildings becoming more the norm than the exception.”

Bright prospects seen for PH office market
Philippine Daily Inquirer
http://business.inquirer.net/66443/bright-prospects-seen-for-ph-office-market

Metro Manila continues to be the most cost-effective office destination, outperforming 18 other central business districts, according to real estate services and advisory firm CB Richard Ellis (CBRE) Philippines.

As economies in the West tighten, CBRE pointed out that the strong demand for alternative office locations has pointed multinational companies toward Asia and has opened opportunities for the Philippines.

“The Philippines is becoming the lifeboat for many US and European companies that need to outsource in order for their businesses to survive and actually preserve jobs back in the US and Europe,” noted CBRE chairman and CEO Rick Santos. “All eyes are now moving from BRIC [Brazil, Russia, India, China] economies to TIP [Turkey, Indonesia, Philippines] economies.”

Based on data provided by CBRE, the average office lease rates in Metro Manila stood at $22 per square foot a year. In contrast, the top six countries that have the highest rates were Hong Kong-Core Central with $200; Beijing CBD with $173; Tokyo, $162; Shanghai-Puxi, $121; and Mumbai-BKC and Singapore, $117.

On a local note, however, rental rates in Metro Manila CBDs, namely, Makati, Fort Bonifacio, Ortigas, Alabang and Quezon City, have noticeably increased in the first quarter of 2012 as against the previous year’s levels.

These rate increases, CBRE noted, could be attributed to tight office space supply and strong pre-leasing demand.

“Pre-leasing is back. The office sector goes from strength to strength, with a surge of pre-leasing commitments in the central business districts,” Santos said. He noted that these pre-commitments were being sustained by several factors, including cost anticipation, securing space, expansion and consolidation.

According to CBRE, office space demand was catching up with supply, particularly in the major business districts where office space requirements were on a steady uptake with no signs of a slowdown. Average occupancy rates during the first quarter of this year hovered at 96 percent.

CBRE explained that the sustained expansion of the outsourcing and off-shoring industries, as well as the limited tenant turnover, continued to put pressure on the already tight supply.

Although new supply of traditional and BPO office space was scheduled to come online in the second half of this year, it was not expected to do much to alleviate the situation, the firm noted.

As it is, of the 293,000 square meters of anticipated new supply, about 232,000 square meters have been pre-committed. The limited supply continued to put an upward pressure on office lease rates, CBRE said.

“We urge developers to push through with their planned projects and to avoid any delays and to capture all potential investments in the country. Developers with multiple office projects in their pipeline have the advantage over other developers as these provide confidence to lessee’s expansion projections,” CBRE said.

“Office market will continue to be active and it is guaranteed to be at its peak in the next two years,” it added

High Street South among the best in AsPac
Malaya
http://www.malaya.com.ph/index.php/special-features/property/6742-high-street-south-among-the-best-in-aspac

Ayala Land’s subsidiary, Alveo Land, recently announced that High Street South -- its newest, most iconic mixed-use development in Bonifacio Global City (BGC) -- won the Best Development Marketing in Asia-Pacific in this year’s International Property Awards held in Kuala Lumpur, Malaysia, thus joining the best developments, architecture, and interior design concepts across the region.

“Our winning marketing campaign is an expression of our passionate vision for High Street South. The campaign is tightly supported by the masterplan both springing from the overall vision of the district,” said Jennylle Tupaz, Project Development Group head of Alveo Land, adding that High Street South will now be carrying with it the International Property Award certification, a world-renowned mark of excellence.”

The awards from the Asia-Pacific region, combined with the other regional awards’ programs for Arabia, Europe, Africa and the Americas, form the globally renowned International Property Awards (IPA). Now on its 19th year, IPA is the world’s most prestigious award-giving body residential and commercial property professionals from around the globe.

High Street South is a pioneering Alveo Land initiative benchmarked on the most prominent cities across the globe.

“High Street South represents Alveo Land’s genuine commitment to create the best masterplanned urban address in Metro Manila. It will offer modern conveniences and a lively street experience that complements BGC’s thoughtfully-designed urban landscape through

a unique streetscape dotted with pedestrian-friendly infrastructures,” Tupaz said.

The district will exude a lively, cosmopolitan vibe through distinct and evolving architectural designs that radiate a memorable sense of place, thus delighting urbanites with an inviting and multifaceted city experience.

High Street South is a multi-faceted community complete with commercial; leisure; and institutional components such as art venues, theaters, and other civic spaces.

It is a pedestrian-friendly district not only through its delightful architectural and landscape elements, but also through its exciting retail mix ranging from community services to global brands.

Taking inspiration from Ayala Land’s unparalleled standards in property development, Alveo Land is now pioneering High Street South as an innovative district that fuses the concepts of a vibrant, modern, and integrated lifestyle.

tanong ko lang , me hiwalay ba na bayad na association dues/monthly maintenance fee ang car par slot? Thanks

^^ Opo Doc meron din monthly dues ang parking slot if you have one. Depending on how the project does it, the dues for the parking slot may be computed at the same cost multiplier amount as your unit. Some projects use a different cost multiplier amount for units and parking slots. Anyway best to check with your developer. Hope this helps. :)

Thanks 3Cr, yeah that helps:)

No glut in high-end residential market: CBRE
ABS-CBNNews (http://www.abs-cbnnews.com/business/06/23/12/no-glut-high-end-residential-market-cbre)
By Cathy Rose A. Garcia, ABS-CBNnews.com
Posted at 06/23/2012 8:36 AM | Updated as of 06/23/2012 8:36 AM

MANILA, Philippines - Luxury residential condominium projects are popping up all over the metropolis, making some people wonder if there's too much supply.

But according to property consultant CBRE Philippines, there is no glut in the high-end residential market.

"In my opinion, a glut is where there's supply but no take-up... We don't see that slowing down anytime soon," Victor Asuncion, CBRE Philippines executive director for global research and consultancy, said in a recent briefing.

http://www.abs-cbnnews.com/sites/default/files/a_images/topics/others/20120622_makati-skyline.jpg
A view of Makati City's skyline / Courtesy of CBRE Philippines

Based on CBRE figures as of June 15, there are 143,123 upcoming residential condominium units in the next 8 years. Of the total amount, 27,351 units will be turned over this year, and 37,678 units in 2013.

"It's still location, location, location. There are some irrational developers who build anywhere and then complain that they don't sell and say there is a glut. You have to build where the market is and developers are positioning where the market is," Asuncion said.

More than two-thirds of the upcoming supply is located in Quezon City (24%), Makati (18%), Mandaluyong (15%) and Manila (12%).

CBRE sees the upcoming residential condo supply shifting to the price range of P80,000 to P100,000 (42.5%) and P40,000 to P80,000 (36.8%). The share of projects priced above P100,000 is going down.

More condos in provinces

CBRE also noted the rise of condominium developments in key provincial cities such as Iloilo, Cebu and Davao.

In Cebu, there is a strong demand for condominiums, with a take-up rate of 434 units a month. "Cebu is catering to the upscale market, mostly condos in Mactan and the central business district," Asuncion noted.

Asuncion noted that SM Development Corp., Ayala Land through Avida, Camelia Homes and Megaworld are all gearing for condominium developments in the provinces.

Int’l pressure mounts for more ‘green’ buildings in PH
Philippine Daily Inquirer
http://business.inquirer.net/66775/intl-pressure-mounts-for-more-green-buildings-in-ph

The construction and real estate industries have been called to shape up for the environment. While industrialization has long cast a gray pall over the planet, wealthy nations have also long been made aware of the consequences and have been implementing “green” building initiatives with international green rating systems.

The Asia-Pacific region is catching up in terms of these initiatives. The scale, pace and general trend of recent construction efforts have been geared toward efficient commercial real estate that complies with green building codes.

CBRE Philippines cited that an increasing number of building owners are retrofitting and upgrading existing buildings to improve their energy efficiency and environmental performance, among other things.

Now, there’s mounting pressure from the international business community, especially from foreign investors, on local locators to offer more green buildings in the country.

Joannie Mitchell, director for CBRE Philippines’ global corporate services, announced to the press during the June 20 mid-year report that international companies trying to invest in the country are looking for more environmentally sustainable structures to hold offices in.

Amid the presence of five LEED (Leadership in Energy and Environment Design)-certified buildings in the Philippines and 58 more projects currently registered for LEED certification, more building tenants have been encouraging their landlords to retrofit their buildings to be environmentally sustainable. Some multinational tenants have required landlords to retrofit their buildings for the latter to be able to secure the contract to lease.

Increased demand

Mitchell added that there has been a business demand for more green buildings, and from the viewpoint of corporate social responsibility, a moral imperative to build environmentally sustainable structures.

CBRE Philippines maintained that the surge in the number of green buildings would support the robust growth of the country’s property sector market.

“Fortune 500 companies, multinational corporations, and even local firms now consider green initiatives as prerequisites in their day-to-day maintenance and operations,” said Rick Santos, CBRE Philippines chair and CEO. “Through our global networks and resources, we have been strengthening the drive toward sustainable development which, as pointed out in several studies, could also benefit not only developers and the environment but also end-users—tenants, employees and residents—in the long run.”

A local rating, a counterpart of the LEED certification, has already been established by the Philippine Green Building Council. Called Berde, the certification means Building for Ecologically Responsive Design Excellence.

Another local rating has been formulated by the Philippine Green Building Initiative. This ratings body is composed of professional organizations such as United Architects of the Philippines, Institute of Integrated Electrical Engineers of the Philippines, Philippine Institute of Interior Designers, Geological Society of the Philippines, Heritage Conservation Society, International Council of Monuments & Sites, the Philippine Society of Ventilating Air-conditioning & Refrigerating Engineers.

Rating system

LEED, meanwhile, is a widely used international green rating system developed by the US Green Building Council.

The five LEED certified buildings are the Asian Development Bank, Nuvali One Evotech, Shell Shared Services Office, and Texas Instruments in Baguio and Clark.

Among the 58 projects currently registered for LEED certification are The Zuellig Building in Makati; BTTC Centre in Greenhills (both precertified Gold under the Core & Shell Program); Megaworld 8 Campus Building in Bonifacio Global City (which is pursuing Silver Certification under the Core & Shell Program); and Wells Fargo Headquarters in Bonifacio Global City, which is seeking Gold Certification under the Commercial Interiors Program.

Energy Efficiency Measures Required For New Locators, Buildings In Makati
Manila Bulletin
http://www.mb.com.ph/articles/363085/energy-efficiency-measures-required-for-new-locators-buildings-in-makati

MANILA, Phililppines --- Economic zone locators and new building proponents in Makati will be required to build energy-efficient facilities otherwise they would not be allowed to construct as part of the measures being implemented to make them competitive in light of the high cost and short supply of power in the country.

Henry Schumacher, executive vice president of the European Chamber of Commerce, announced during the launch of the 3rd Philippine Energy Efficiency Forum (PEEF) 2012 slated on July 10 at the SMX Convention Center that they have to do this because efficiency measures have not yet really been practiced by companies religiously.

“We are barely scratching the surface,” said Schumacher when asked

if companies have already reached the 30 percent reduction in their power consumption through energy conservation.

He even admitted that ECCP, which is spearheading the PEEF, has members that are not compliant just like other companies.

According to Schumacher, the ECCP has an agreement with Philippine Economic Zone Authority director-general Lilia B. De Lima and Makati City Mayor Junjun Binay to strictly impose energy efficiency measures among companies operating in their respective areas.

For PEZA, Schumacher said that one of the requirements of their registered locators is to invest in energy efficiency measures otherwise they would not be allowed to construct.

“Locators in the zone are required to take energy efficiency seriously by reducing their energy consumption and prepare to the period when subsidy is no longer to be there once open access is implemented,” Schumacher said.

In the case of Makati, he said, they are working on crafting a city ordinance that would require new buildings in the city to conform with energy efficient programs.

In Makati alone, he said, there are 300 buildings that have not converted to energy efficiency measures.

“The idea is to work with Mayor Binay because it is hosting so many BPOs so they should insist that energy efficiency program on new buildings,” he said.

“Companies should invest in energy efficiency program because the payback period of three years in energy savings is no brainer,” Schumacher said but he noted that it is a long way to convince people.

He said that if new buildings continue to be energy efficient then companies will transfer to these buildings.

Energy cost of BPOs alone would account for 40 percent of their total cost but these would be reduced by a minimum of 20 percent if they invest in energy efficiency measures.

“This would make them more competitive,” Schumacher said.

ECCP president Hubert d’Aboville said the 3rd PEEF will discuss topics on energy efficiency technologies, energy policies and consumer education that need to be integrated across the electric power sector value chain to improve energy security, enhance global competitiveness and accelerate economic growth.

“We believe that by bringing together stakeholders across the power sector value chain, from the private, government and international sectors, we are able to do more as well as operate more efficiently with the limited resources we are using to promote energy efficiency throughout the country,” he said.

^^^The government and private sector should rehabilitate old existing buildings (especially the historical ones) in Manila and then retro-fit them to make them "green".

I hope local banks could offer as low as 3% to a maximum of 5% interest rate for home loans. I was surprised to see 10-12% prevailing interest rates comparing with 1-2% in Singapore and 5-6% in Malaysia.

Trumps Consider More Project Branding
By JAMES A. LOYOLA
June 26, 2012, 6:11pm

http://mb.com.ph/articles/363588/trumps-consider-more-project-branding

MANILA, Philippines --- American billionaire Donald Trump is considering developing more projects in the Philippines following the successful launch of the $150-million Trump Tower Manila being built by luxury developer Century Properties.

The Trump Organization executive vice president Donald Trump Jr. said “we’re incredibly excited of bringing the brand here. The Philippines, the country that’s done so well as of late and taking their high- end real estate experience to levels that have never been done before.”

He noted that, “demographics are there, money is there, people travel all over the world start to understand brand, quality, construction. And when it came or us to do the project, we partnered with the people who can really deliver the brand.”

“Based on the conversation we had, this will not be the last project in the Philippines. We’re looking forward to rolling out a couple of (things in the Philippines,” Trump said.

For his part, Century chairman Jose Antonio said “we are very choosy, we are very selective in the type of developments we do. We like to develop projects with quality. We’re looking to doing great projects and hopefully to do some more with the Trumps.”

Eric Trump, also executive vice president in The Trump Organization, said Trump Tower Manila will be tallest in the Philippines. “The building that is just uncompromised when it comes to amenities… architecture is absolutely stunning…We look forward to be here for years to come as we watch this building to come up from the ground,” he added.

In a video message, Donald Trump said “Trump Tower will be something very, very special like no one has seen before.”

The over 220 unit residential skyscraper will rise at the 3.4-hectare Century City, the flagship mixed-use development of Century Properties in Makati City.

Century Properties managing director and Trump Tower Manila project manager Robbie R. Antonio said “Trump Tower Manila is perhaps the country’s most powerful symbol of progress and readiness to compete on the world stage.”

With very limited number of units, ranging from Suites of approximately 57 sqm and 1 to 4-bedrooms and penthouses as spacious as approximately 425 sqm, Antonio said that Trump Tower Manila will be offered at very competitive market prices.

Ayala unveils 'biggest investment' in one area
Rappler.com
http://www.rappler.com/business/7741-p30-billion-investment-in-landmark-block-of-bonifacio-global-city

MANILA, Philippines - The Ayala group and its partners are pouring P30 billion over 4 years into the development of a prime real estate block in Bonifacio Global City in Taguig.

At a press launch on Thursday, June 28, Ayala Land CEO Antonino T. Aquino referred to this block as "the biggest investment in one single area."

Situated between 3rd Avenue and 30th Street is One Bonifacio High Street, a name apt to show its "importance" as "the principal address" in Bonifacio Global, explained Aquino.

Aquino said half of the costs would be taken on by the Shangri-La Group, which will erect a 5 star hotel. "This is going to be the best Shangri-La put up in this country," he added.

He said the remaining P15 billion of the investment will be shared by Ayala Land (via unit Ayala Land Premier), Campos-Ayala venture Evergreen Holdings, and Fort Bonifacio Development.

Of this amount, the following real estate projects will be built;

P3.5 billion for the new Philippine Stock Exchange (PSE) tower
P2 billion to P3 billion for a retail component featuring 63 stores
P9 billion for The Suites, a premier residential project

'The Suites'

The market has been receptive for the high-end real estate products. Buyers for the suites is "a very discerning affluent" one, said Aquino.

After priority selling for the 298-unit residential suites started on June 24, 99% were reserved within 96 hours, leaving only 3 units of 298 left as of June 28.

He said Fort Bonifacio is the neighborhood to be in and that One Bonifacio High Street will "cut at the heart of the district."

"The defining element that we will always set in any Ayala Land Premier project is location," said Aquino.

"If we consider Makati to be the Wall Street of the Philippines, Ayala Avenue is effectively that Wall Street. In Bonifacio, we did something better… the center is called Bonifacio High Street, the longest pedestrian mall in the country -- one kilometer long," said Aquino.

"This (One Bonifacio High Street) is where we are going to offer nothing but the best in terms of living in the suites, working, living… and a lot of entertainment and dining," said Aquino.


Here's the render...

West Block Mall
http://static.rappler.com/images/retail-perspective-one-bonifacio-high-street-2012-06-28.jpg

from:http://www.rappler.com/business/7741-p30-billion-investment-in-landmark-block-of-bonifacio-global-city

New Unified Philippine Stock Exchange Building
http://static.rappler.com/images/New-PSE-BUILDING-2012-06-28.jpg

Ayala Land, Ortigas group seal P15B deal

ABS-CBNnews.com
Posted at 06/29/2012 9:18 PM | Updated as of 06/29/2012 9:18 PM


MANILA, Philippines (1st UPDATE) - Ayala Land Inc. (ALI) has sealed a P15-billion peso deal with a group led by Ignacio Ortigas for the development of the Ortigas family's land bank areas, including the Greenhills Shopping Center and Tiendesitas.

This, after the Ortigas group - or at least part of the family - blocked Henry Sy's attempt to take over one of the country's oldest real estate companies.

The Ortigas family consolidated its interest in their holding company by buying a 34 percent stake held by British banking giant HSBC, matching an earlier offer by Sy's SM Group.

The buyout of HSBC's stake gave the Ortigases time to think about their options while property giants SM and the Ayala groups wrestled for control of the urban property developer.

ALI said the deal will allow them to expand their list of business districts that already counts Makati, Quezon City and Bonifacio Global City.

"The partnership... was forged upon the invitation of the Ignacio R. Ortigas group," Ayala Land said in a press statement.

"We are privileged to be a part of this strategic alliance. We welcome the opportunity to participate in the development of these key areas in Metro Manila," ALI President Antonino T. Aquino said.* "Many of our successful developments such as the Ayala Alabang, Cebu Park District, Bonifacio Global City, Trinoma, Nuvali, Abreeza Davao, and Centrio Cagayan de Oro were built on strong partnerships with various groups."

Ortigas & Company currently owns strategic land bank areas in the Ortigas Business District, Greenhills Shopping Center, Tiendesitas in Frontera Verde, Circulo Verde, and Capitol Commons.*

PSE disclosure

In an earlier disclosure to the Philippine Stock Exchange on Friday, ALI said it had obtained authority from the board to negotiate and enter into a strategic alliance with the group led by Ignacio Ortigas for the purpose of allowing ALI to participate in OCLP Holdings Inc., the parent company of Ortigas & Co Ltd.

ALI said it had allocated an initial amount of P15 billion for this partnership and in the development of various properties and businesses.

"This opportunity comes with the invitation of the group of Mr. Ortigas and is in line with the company's expansion plan," the disclosure said.

It was earlier reported in that some Ortigas family members have started talking to the Ayalas, who are likewise of Spanish descent, to foil the entry of the SM group.

Strategic alliance

ALI said: "The strategic alliance is consistent with Ayala Land's thrust of expanding its operations to other areas within and outside Metro Manila through partnerships."

"Our company intends to contribute its expertise in building large scale mixed use developments to this partnership. This development project includes plans for residential, office, retail and hotel components," ALI said.

The Ortigas family members who bought the stake from HSBC - erstwhile the single biggest stockholder in the company - can not divest their stake under a lock-up period. But the deal effectively consolidated a controlling interest within the family which made it easier to sell an enlarged stake to a new investor.

"The existing stockholders which consist primarily of the Ortigas groups exercised their right of first refusal on HSBC shares on Ortigas Holdings Inc.," SM Investments Corp. Cora Guidote said in a text message Thursday night.

Banking sources confirmed that payment to the stake was paid to HSBC as of Thursday.

It was earlier reported that while certain factions within the Ortigas family were willing to take in SM Investment Corp. as a new investor while some preferred the Ayalas instead.

Industry sources said family members from both factions jointly out up funding to buy out HSBC's stake.

Ortigas Holdings was created when Ortigas & Co. Ltd. was converted from a limited partnership into a corporate entity, a restructuring that paves the way for the entry of a new investor, a stock debut or both. It had taken some time for the Ortigas holding firm to take this corporate route because of the diverse ownership, the old partnership being a very old entity whose shares of stocks had been passed on from one generation to another.

A key urban developer, Ortigas Holdings has 50 hectares of land spanning Quezon City, Pasig, San Juan and Mandaluyong, the crown jewel of which is the 16-hectare Greenhills property complex. Another 40 hectares of prime land can be added to its land bank, which include portions of Camp Crame (10 hectares) and Camp Aguinaldo (30 hectares), which were donated to the government years ago but which it has the right to buy back if the government vacates the area in the future. - with a report from ANC

Thank God, Ayala came into the picture to steal the thunder from SM. Best news I heard all week. Time to invest in ortigas!

Ayala unveils big QC project
Posted June 29th, 2012 by Alena Mae S. Flores & filed under Business.


Property developer Ayala Land Inc. is set to launch next week an integrated mixed-use development complex which will form part of a new central business district in Quezon City.

Ayala Land president Antonino Aquino said the company wanted to expand its presence around the country, particularly Quezon City.

“We want to build some type of CBD for Quezon City. We want to build up on that. We feel the need for a host of other developments in the area,” he said.

Ayala Land plans the new business district near its Trinoma shopping mall at North Ave. in Quezon City.

The Quezon City council has earlier approved an ordinance classifying 250 hectares covering properties with North and East Triangles and the Veterans Memorial Medical Center.

Aquino said the Quezon City CBD project would be launched on July 5 and would follow the success of its P9-billion residential development called the Suites at One Bonifacio High Street in Taguig.

Aquino told reporters the residential development project had been well received by the market, as 295 of its 298 units had been sold.

He said the strong takeup of the project showed the “Philippine economy has proven its resilience.”

He said the strong foreign investor confidence and macroeconomic fundamentals had encouraged the Ayala Group to launch major projects such as the Suites.

The Suites at One Bonifacio High Street is a 63-story single tower with 298 residential suites.

The tower features larger-than-usual unit areas and high ceiling with living spaces that range from 136 square meters to 430 sq. m.

Aquino, meanwhile, said Ayala Land, together with partners Evergreen Holdings and Fort Bonifacio Development Corp., would develop the One Bonifacio High Street project at a cost of P30 billion.

One Bonifacio High Street will integrate an office building, premium lifestyle center, an all-suite residential tower as well as a five-star Shangri-La Hotel.

The P3.5-billion office building will be the new home of the Philippine Stock Exchange while a P2-billion to P3-billion lifestyle hub composed of restaurants and luxury shops will complement the entire project.



(Published in the Manila Standard Today newspaper on /2012/June/29)

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Ortigases block Sys' acquisition bid; partner with Zobels
Rappler.com
http://www.rappler.com/business/7820-ortigases-block-sys-from-acquiring-shares-in-their-property-firm

MANILA, Philippines - The SM Group, led by the Philippines richest man Henry Sy, was blocked from its attempt to acquire a 34% stake in one of the oldest landlords of Manila, Ortigas & Co Limited Partnership Holdings Inc (OHI).

Closing the deal would have given Sy's SM Group a major share in the Ortigas family's crown jewel, the Greenhills shopping center, and their vast properties spanning Mandaluyong, San Juan and Quezon City.

Thanks to the right of first refusal, the Ortigas family was able to retain control of their property holding firm and buy the shares held by Hongkong and Shanghai Banking Corp.’s (HSBC).

In a disclosure to the Philippine Stock Exchange on Friday, June 29, SM Investments Corp said "We were informed that the existing stockholders of Ortigas Holdings Inc, which consist mainly of the Ortigas family, exercised their right of first refusal on OHI shares owned by Hongkong and Shanghai Banking Corp."

Company Director Jaime M. Ortigas told BusinessWorld, HSBC sold its entire 34% stake for "something worth like P11 billion."

Partnering with Zobels instead

Despite the SM Group's keen interest to get into Mandaluyong's central business district for the past few years, the Ortigas family opted to parner with Ayala Land Inc for development of their Ortigas properties.

The same day SM informed the PSE of its failed bid, rival developer Ayala Land of the Zobel family announced its own strategic alliance with the Ortigases to develop key growth centers in Metro Manila.

Analysts had said if SM sealed the deal it would have been a "game-changer" that would have swelled their land bank to the size of Ayala Land's.

Now, Ayala Land is the Ortigases' group of choice and has agreed to enter the partnership at the latter's invitation. ALI will make an initial investment of P15 billion to help develop residential, office, retail and hotel components in various properties owned by the Ortigas group.

According to OHI's website, the growing urban center of Mandaluyong was known as Hacienda de Mandaloyon when it was acquired by the Ortigases in the mid 1900s. The vast property was then a "virtual wasteland" but has since transformed into skyline of highrises with growing commercial and industrial businesses.

For his part, Ayala Land CEO and President Antonino T. Aquino said in a statement, “We are privileged to be a part of this strategic alliance. We welcome the opportunity to participate in the development of these key areas in Metro Manila.”

“Many of our successful developments such as the Ayala Alabang, Cebu Park District, Bonifacio Global City, Trinoma, Nuvali, Abreeza Davao, and Centrio Cagayan de Oro were built on strong partnerships with various groups,” he added.

Ayala Land said it will contribute its expertise in building large scale developments and that the strategic alliance will be able to benefit from synergies with ALI's other integrated mixed-use communities in key business districts such as Makati, Bonifacio Global City, and Quezon City.

Ayala unveils 'biggest investment' in one area
Rappler.com
http://www.rappler.com/business/7741-p30-billion-investment-in-landmark-block-of-bonifacio-global-city

MANILA, Philippines - The Ayala group and its partners are pouring P30 billion over 4 years into the development of a prime real estate block in Bonifacio Global City in Taguig.

At a press launch on Thursday, June 28, Ayala Land CEO Antonino T. Aquino referred to this block as "the biggest investment in one single area."

Situated between 3rd Avenue and 30th Street is One Bonifacio High Street, a name apt to show its "importance" as "the principal address" in Bonifacio Global, explained Aquino.

Aquino said half of the costs would be taken on by the Shangri-La Group, which will erect a 5 star hotel. "This is going to be the best Shangri-La put up in this country," he added.

He said the remaining P15 billion of the investment will be shared by Ayala Land (via unit Ayala Land Premier), Campos-Ayala venture Evergreen Holdings, and Fort Bonifacio Development.

Of this amount, the following real estate projects will be built;

P3.5 billion for the new Philippine Stock Exchange (PSE) tower
P2 billion to P3 billion for a retail component featuring 63 stores
P9 billion for The Suites, a premier residential project

'The Suites'

The market has been receptive for the high-end real estate products. Buyers for the suites is "a very discerning affluent" one, said Aquino.

After priority selling for the 298-unit residential suites started on June 24, 99% were reserved within 96 hours, leaving only 3 units of 298 left as of June 28.

He said Fort Bonifacio is the neighborhood to be in and that One Bonifacio High Street will "cut at the heart of the district."

"The defining element that we will always set in any Ayala Land Premier project is location," said Aquino.

"If we consider Makati to be the Wall Street of the Philippines, Ayala Avenue is effectively that Wall Street. In Bonifacio, we did something better… the center is called Bonifacio High Street, the longest pedestrian mall in the country -- one kilometer long," said Aquino.

"This (One Bonifacio High Street) is where we are going to offer nothing but the best in terms of living in the suites, working, living… and a lot of entertainment and dining," said Aquino.


Here's the render...

West Block Mall


New Unified Philippine Stock Exchange Building

The PSE is short in height but I love the design.

Megaworld transfers Eastwood concept to Mactan Island
By: Connie E. Fernandez
Inquirer Visayas
11:35 pm | Saturday, June 30th, 2012

http://business.inquirer.net/files/2012/06/newton.jpg
8 NEWTON Boulevard: The first mixed-use condominium complex to rise in Mactan Newtown in Cebu.

CEBU CITY—A new “town” is rising on Mactan Island, Cebu.

Mactan Newtown, a commercial mixed-use complex on a 16-hectare property in Brgy. Mactan, Lapu-Lapu City, is the biggest project in the Visayas of giant property developer Megaworld Corp.

It will be home to luxury residential condominiums, BPO offices, retail shops, entertainment and leisure establishments, a wellness facility and a boutique hotel.

Noli D. Hernandez, Megaworld first vice president for sales and marketing, said in a a recent briefing here that the company intends to bring the Eastwood City experience to Mactan island, a major tourist destination that is known for its beaches and resorts.

Eastwood City in Libis, Quezon City is considered the country’s first IT park and Megaworld’s first masterplanned township development, Megaworld said in a statement.

It features 17 high-rise residential towers, 10 office buildings and 65,000 square meters of retail space.

“We started the live-work-play concept with Eastwood,” said Hernandez, “We will duplicate what we have done in Libis and make it better here in Mactan.”

http://business.inquirer.net/68339/megaworld-transfers-eastwood-concept-to-mactan-island

"Transfer"? I don't think it's an appropriate word. It's more like "adopt" or "fan-out".

ALI to spend P65 B on new QC hub :cheers:
By Zinnia B. Dela Peña (The Philippine Star) Updated July 06, 2012 12:00 AM


MANILA, Philippines - Taking an even more aggressive posture, property giant Ayala Land Inc. (ALI) is coughing up P65 billion over a 10-year period to develop Vertis North, a new urban, transit-oriented, mixed-use community within the North Triangle property in Quezon City, which is envisioned to be the country’s next premier central business district.

In a briefing yesterday, ALI president Antonino Aquino said the 29-hectare Vertis North will be the group’s biggest and most modern development in Quezon City seen to attract top locators in the area.

Vertis North, a joint venture between ALI and the state-run National Housing Authority, will have 45 towers, comprising a broad range of offices, residential and retail spaces and a hotel when completed.

Aquino said the group’s track record and strong branding will ensure that the development will achieve its highest potential value.

Encompassing 220,000 square meters of space, the first phase of Vertis North will require an investment of P12 billion over a three-year timeframe to construct office buldings catering to business process outsourcing (BPO) companies, a Kukun hotel, and a retail strip patterned after Bonifacio High Street within a seven-hectare lot.

“The aim is to create a new and dynamic urban area with a high quality of life. This is envisioned to be the gateway to the North given its connection to the commuter rail lines and major road arteries. We feel QC, being the largest city in area and population, deserves to have its own CBD,” Aquino said.

“Vertis North will be no different from what ALI has developed in the past. It would be like Makati - a large-scale mixed use development that is now the country’s central business district,” he added.

Vertis North is the culmination of a public bidding process initiated by the government on Oct. 3, 2008. The joint venture aims to benefit NHA in achieving its mandate of providing housing for informal settlers and transforming a non-performing asset into a model for urban renewal.

NHA, which contributed the land, expects to gain around P11 to P12 billion worth of housing investments through its partnership with ALI, partly helping them curb the huge housing backlog.

NHA general manager Chito Cruz said that of the 10,000 families squatting in the area, the number has been reduced to around 3,500. He is hopeful he can relocate the remaining informal settlers by September this year.

Aquino said ALI, which pioneered the establishment of integrated business hubs like the Makati central business district and Bonifacio Global City, wants to put up an intermodal transport terminal facility at Vertis North to further stimulate growth in the area.

http://a5.sphotos.ak.fbcdn.net/hphotos-ak-snc6/179525_458610704157941_860355074_n.jpg

I hope local banks could offer as low as 3% to a maximum of 5% interest rate for home loans. I was surprised to see 10-12% prevailing interest rates comparing with 1-2% in Singapore and 5-6% in Malaysia.

Commercial interest rates for real estate loans in PH right now range from as low as 5% to 7.5%. The state owned Pagibig also reduced their rates to 7%.

The private banks' rate of 7% has been there since 2010.

Commercial interest rates for real estate loans in PH right now range from as low as 5% to 7.5%. The state owned Pagibig also reduced their rates to 7%.

The private banks' rate of 7% has been there since 2010.

Which banks offer the 5%?

Which banks offer the 5%?

East West Bank offers 5.188 interest rate.

East West Bank offers 5.188 interest rate.

I'd stay away from East West, after the initial "promo" first year, they have the highest spreads in the market over benchmark rates for subsequent years...

ASEAN Ranking on Real Estate Transparency:

Transparent
1. Singapore (Global Ranking: 13)
2. Malaysia (Global Ranking: 23)

Semi-Transparent
3. Philippines (Global Ranking: 35)
4. Indonesia (Global Ranking: 38)
5. Thailand (Global Ranking: 39)

Low Transparency
6. Vietnam (Global Ranking: 68)

Source: Jones Lang LaSalle (http://www.joneslanglasalle.com/GRETI/en-gb/Documents/GRETI/docs/TransparencyIndex_2012.pdf)


The Philippines is also one of the top 10 most improved country when it comes to real estate transparency! :cheers2:

Property developments in PH monitored

by Anna Leah G. Estrada | Manila Standard Today | Monday | Posted on July 09, 2012 | 12:01am

The Bangko Sentral said over the weekend it is closely watching the rise in vacancy rates in certain segments of the real estate sector, but assured there are still no signs of asset price bubbles in the industry.

“The rise in vacancy rates in certain market segments in the real estate sector necessitates close monitoring,” said Bangko Sentral Deputy Governor Diwa Guinigundo.

Guinigundo said based on reports by Colliers International Research, there was a recent increase in capital and rental values, driven by demand for office space from the business process outsourcing industry and expatriate demand for luxury three-bedroom units in Makati.

He said the supply of high-rise residential condominium units continued to surge across Metro Manila, mostly in the middle-income segment and were broadly located outside the major business districts.

Major property developers such as Ayala Land Inc., SM Development Corp., Megaworld Corp., DMCI Holdings, Eton Properties Philippines Inc., Robinsons Land, Filinvest Development Group, Shang Properties, Vista Land, Brittany Corp., Century Properties, Moldex Realty Inc. and Anchor Land are constructing high-rise office and residential buildings across Metro Manila to take advantage of the increasing purchasing power of the Filipino middle-class.

Guinigundo said capital and rental values of office space and residential units in Makati remained below the peak levels reached in 2008.

He said the number of new supply of housing units were still not enough to satisfy the estimated housing demand in the country based on the number of licenses to sell issued by the Housing and Land Use Regulatory Board and the estimated demand for housing units for the period 2007-2010.

Source: http://manilastandardtoday.com/www2/2012/07/09/property-developments-in-ph-monitored/

^^ How can demand be curbed when they're not building for the intended target homeowners, which are of course, the lower middle class.

The numerous property development projects in the Philippines cater more on the upper middle class market which is very small.

Majority of the Pinoys can only afford mass housing projects with prices ranging from 150k to 300k TCP.

Above 500k is beyond the reach of ordinary workers and even office workers.

It is a very useful information, I have a plan to go abroad for some time and want to use my house as rental house. There are many people who really interested to use this house but I think the best idea is, contact with an agent.

There are a lot of mass housing projects out there, developers are required by law to build them. Personally, once they get occupied, they become glorified slum areas, far from the vision of the architect of the developer.

It's the people who live there really, chickens outside the house, sari sari stores, and then aside from that there are a lot squatters, either they took over the mass housing unit or they simply stopped paying. I wouldn't wanna live there if I was an office worker, given the rampant theft as well in mass housing projects.

I don't the solution really right now, if you don't have money, or if you're constantly struggling, dignity is the last of your concerns. But what I don't like is the concept of not paying and simply squatting and then renting out your unit. Just go to any Pag-Ibig office and see the list of foreclosures, most of those are on a as is where is basis where you have to get rid of the occupant.

^^ This is how housing is grouped these days based on what I see in many online stores:

Low Cost Housing: Around 200-400k, most of these mass housing developments are usually the ones developed by local (usually not so well known) firms. Naging mautak yung mga developers these days and only utilize rowhouse to save on space and use cramped land, thereby limiting the chance of someone in the lower strata to develop their dwelling.

Lower Middle Class Housing: Around 500-900k these are usually townhomes which has the same build quality as the rowhouses I mentioned earlier. In the bedroom communities of Metro Manila, most townhouses are built in Cavite/Bulacan/Laguna areas.

Middle Class: Around 1.0 Million to 1.5 million these houses are usually single detached one storey houses that are around 40-60 square meter houses made with decent building materials.

Higher Middle Class: Around 1.6 Million to 3 Million, these are 2 storey houses or one to two bedroom condo types perfect for the peeps on the go. Houses can have one carport and these types tend to be nestled in some classy-named subdivision

High-End: These are the types ranging from 5-10 million usually with wide lawns, very good and luxurious build quality, and made by topnotch architects or developers. You need to engage in a high paying job to get one.

Actually I don't think that some mass housing facilities tend to go down to the drain and disintegrating into glorified slum areas though some do. Others develop and become luxurious houses on their own. My aunt's house in Davao was built in 1986 and was a one storey house in a mass housing subdivision just beside one of the most elite subdivisions in the city. Through countless developments and such, it had turned into a 2 storey spawling mansion nearly 26 years later.

Some of the houses built before were made of decent construction grade materials and you can buy one decently for 500-700k, one detached single storey house. Of course due to the housing boom, it's nearly impossible to get one like that in our province.

While developers need to get paid, some of the constructions leave out the low income categories or shortchange them, building low-quality materials at the expense of the buyer. Some brokers resort to misleading advertisement or run off with a person's initial payment.

I believe that there should be longer periods or manageable amounts for payments on equity. We should somehow ban or create an allowance for rowhouses to be upgraded to townhouses or build townhouses instead of rowhouses. And lastly, we need the cooperation of the government as well, of which one of the most important things is building effective mass transport systems.

Since I am not from Phil, I have a quick question.

I would like to find out the current market price of a project, where can I get reliable information? Is there a land department I can consult?

In addition, would anyone else categorize the local real estate market as bubble?
Hello Sarah! If you need to find out the current market value/price of a certain property, you may want to hire a real estate/property agent. They have their own computation for this. I think this would be the easiest way.

The numerous property development projects in the Philippines cater more on the upper middle class market which is very small.

Majority of the Pinoys can only afford mass housing projects with prices ranging from 150k to 300k TCP.

Above 500k is beyond the reach of ordinary workers and even office workers.
No, some residential developments are now also catering “near” lower-class Pinoys. In fact, they’re providing cheap and easy payment terms which are just right for their monthly income.

Pumasok na Camella sa Puerto Princesa, Palawan...Sigurado sunod sunod na ang pagpasok ng mga well-known mass housing developers nyan.
Yup! Considering Puerto Princesa as an emerging tourist spot, sigurado maraming developers ang pupunta diyan at magtatayo ng mga residential communities. Tulad sa Boracay, marami na atang residential houses na pinatayo doon.

Bonifacio Global City: The next CBD
Malaya
http://www.malaya.com.ph/index.php/special-features/property/8277-bonifacio-global-city-the-next-cbd

As Fort Bonifacio Development Corp. (FBDC) moves to develop the latest portion of the area’s landbank, Bonifacio Global City (BGC) continues to entrench itself as the next big business district in Metro Manila.

Developments and improvements in the once tree-studded military base continue nearly 20 years its conversion into a commercial area in the early 1990s.

At present, about half of the 240-hectare property have been sold to third-party developers and are in various stages of development and planning, according to Manny Blas, FBDC head for commercial operations.

FBDC in partnership with mother company Ayala Land, Inc. and Evergreen Holdings, Inc. formally launched what it calls “the address” in the fast-rising central business district (CBD) -- One Bonifacio High Street -- capping the one-kilometer long retail stretch of development that serves to complement the CBD’s commercial area in Market! Market!.

The P30-billion single block development will house the new trading floor of the Philippine Stock Exchange, hotel chain Shangri La Group and a mix of residential, and retail spaces.

As development of the area continues, FBDC is also busy improving the infrastructure of the area, such as the installation of an efficient traffic management system.

FBDC has acquired P42-million worth of traffic light system to address the growing mass of vehicles in the area. It is spending another P200 million to double its bus fleet from the current 25 to improve transportation access of the public.

A preferred place for transplantation by many businesses, BGC has been attracting companies from the traditional business center like Makati’s Ayala CBD.

Property consultant Jones Lang La Salle Leechiu said BGC “has been attracting the majority of property-related investment and development funds in the Manila property sector.”

“Currently, there are five development clusters/zones within the area totaling approximately 140 hectares,” said Jones Lang La Salle head of research Claro Cordero, Jr.

Jone Lang LaSalle in its first quarter monitoring of the office space in the Philippines noted that BGC accounts for 41 percent of ongoing construction for office space up until 2015 at 694,599 square meters, the biggest of the 465,172 sq.m. pipeline supply in the market.

So far, BGC accounts for 6 percent of the actual supply of office space at 338,070 sq.m. of the 7.8 million sq.m. office space supply across districts.

Driving the growth of office space in the area are built-to-suit (BTS) developments, catering to the offshoring and outsourcing (O&O) industry.

Jones Lang LaSalle identified BGC as the fourth location to house the biggest number of business process outsourcing firms in Metro Manila.

In terms of residential condominium space, BGC accounts for 14 percent of the 118,230 units built between 1999 and 2011. It also accounts for 9 percent of some 154,000 units that are to come on stream between 2012 and 2016.

In Ayala Land’s residential development in One Bonifacio High Street, the property giant reported that it sold 99 percent of the project, The Suites, within four days after its launch at an average price of P180,000 per sq.m. The Suite, which is an all-suite residential tower for the affluent, is offering one- to four-bedroom units with living spaces ranging from 136 sq.m to 340 sq.m.

The Shangri La Group’s hotel, scheduled to open in 2014, meanwhile is a 60-storey mixed-used landmark with 577 hotel guestrooms, 97 hotel residences and 96 luxury condominiums.

Among the other developments in the area are the Singaporean embassy which moved from Makati CBD to the area in 2008. Also in BGC are the Leaders International Christian School of Manila, British School Manila, International School Manila, Manila Japanese School, STI College, and MGC-New Life Christian Academy - Global City --- all located in the University Parkway of Bonifacio Global City.

Blas said about a quarter of BGC’s land area remains with FBDC which the company may opt to develop based on the original 15-year development plan of the property when first bought. FBDC also reserves the option of either developing it on its own or in joint venture.

BGC’s development dates back to 1992 when the 2,578-hectare Fort Bonifacio was privatized by the Bases Conversion Development Authority (BCDA). A consortium led by Metro Pacific Corp., won the bidding in what was dubbed as the property “deal of the century” with the acquisition price of P30.4 billion or P333,283.88 per square meter, Metro Pacific had to relinquish its interest on the property after the 1997 Asian financial crisis to

Metro Pacific sold its interest in Fort Bonifacio Development Corp., the firm created to oversee and implement the masterplan of BGC to the consortium of Ayala Land, Inc. and Evergreen Holdings, Inc. of the Campos Group in 2005.

Does anyone has a compete info regarding the Pag-Ibig loan to as much as Php 3M? competitive ba tlga rates nila? pls post some info here. this is a nice move for Filipinos to own a home... :)

Does anyone has a compete info regarding the Pag-Ibig loan to as much as Php 3M? competitive ba tlga rates nila? pls post some info here. this is a nice move for Filipinos to own a home... :)

If you loan 400K the interest rate is only 4.5% for the life of the loan..

No real estate bubble but experts wary
Philippine Daily Inquirer
http://business.inquirer.net/70807/no-real-estate-bubble-but-experts-wary

Will a crash follow the surge? Are we in a bubble that’s about to burst? A real estate bubble occurs when values begin to increase and reach a point where they outstrip the collective incomes of potential buyers. This causes drastic stalls in lending and sends values spiraling downward.

Enrique Soriano, Ateneo program director for real estate and senior adviser for Wong+Bernstein Business Advisory, recently tackled the phenomenon in a lecture, explaining further that the present property situation does not show that the Philippines isn’t in a bubble yet as the local has exhibited strong fundamentals. He said, however, that the country shouldn’t let its guard down.

He revealed to Inquirer Property of the indicators (such as price points, low borrowing rates, concentration on the National Capital Region, inexperienced players) that lead to a bubble. He also warned that global events may also induce a bubble.

“The key is for stakeholders to be well informed, be made aware of their responsibilities and push for collective programs on property best practices,” Soriano said.

He added that “the role of government is to promote a regularity regime and it must play that role without fear or favor.”

Victor Asuncion, CBRE executive director for global research and consultancy, said there is no possibility of an asset price bubble in the Philippine real estate industry because most projects being built in Metro Manila and other urban centers cater to end-users and not speculating buyers (for office and residential purposes).

Growing consumer demand

“For retail, the developments are addressing the growing consumer demand. Therefore, the buyers of land across the country are either developing or landbanking for future development and not necessarily to ‘trade’ the asset. In fact, there is scarcity of developable land in key urban centers now like Makati, Taguig, Quezon City and Alabang,” Asuncion said.

He cited an expert definition of asset price bubble as the continuous sharp rise in asset prices with expectations of further price increases attracting more buyers, particularly speculators, with the intention to trade the assets and not for end-use or for recurring income.

Soriano said “The current scenario in the country is that almost 80 percent of residential and office developments are in the National Capital Region and developers will jockey for every piece of real estate. With this happening, land prices will continue to increase,” Soriano said.

Naturally, he said, developers would now shift from mid-rise to high-rise developments to offset the higher than usual cost of land. The next scenario would be to build higher, more densely and borrow more to finance bigger, riskier developments.

The ideal scenario would be for developers to disperse their development thrusts outside NCR. The growth areas outside of Manila are Subic and Clark, Iloilo, Bacolod, General Santos City, Cagayan De Oro, Cebu and Davao and even Antipolo, Sta. Rosa City, Pampanga and Bulacan.

Spotting red flags

Soriano stressed that recognizing when a bubble may occur becomes easier with the ability to spot red flags in the areas of lending, spending and employment.

“When the number of available home loan programs increases, home ownership increases with it. While this is sometimes not dangerous, it can be a clear sign of a bubble, especially when buyers increase housing obligations while their income remains the same,” he said.

Soriano said that “as long as mortgages are in good standing, values hold firm or increase. However, as natural life occurrences (illness, lay-offs and pay cuts), unfold in large numbers, condo owners find themselves at the mercy of downsizing—even foreclosure, which gradually drives the price of real estate down.”

Soriano also opined: “However, when a market becomes saturated with mortgage debt, lending will often decrease and the number of potential home-buyers follows. Equity naturally slips and profits from home sales gradually decrease (in what becomes a buyer’s market).

“When values continue to fall, it often leads to rashes of homeowners who are suddenly ‘underwater’ (who owe more on their mortgages than their homes are worth) and in extreme cases, foreclosure looms.”

Soriano also cited an increase in unemployment when job fronts level off and unemployment rates increase as a sign that a bubble could be on the horizon; also when workers begin moving to more favorable markets in search of better jobs, or when consumer spending decreases and the market becomes flooded with available properties. He said such scenarios drive values down, marking the true making of a bubble.

Arthaland to develop 400-hectare property north of Metro Manila

MANILA - Arthaland Corp. is beefing up its land bank as the property firm gears for the launch of the second tower of its "green" development in Bonifacio Global City, Taguig next week.

In a briefing, Angela de Villa-Lacson, Arthaland president and chief executive, said the company recently signed an agreement with a landowner to develop the latter's 400-hectare property in the north, marking the real estate firm’s maiden foray outside Metro Manila.

Arthaland is preparing the master plan for the property, but refused to identify its location.

Arthaland also has a 35-hectare raw land in Tagaytay. The master plan for the project may have a "leisure play" into it, said Arthaland vice president Nina Cordero.

Arthland will spend P3.54 billion for the second tower of Arya Residences, bringing its total investment in the two-tower residential development to P6.20 billion.

The 43-storey tower will offer 211 units ranging from two-, three- and four-bedroom penthouse units of 124 to 385 square meters.

Unit prices in the second tower have increased by 5 percent to an average of P145,000 per square meter from that in the first tower, which has attracted high-net individuals as buyers.

The two towers will be delivered in the first quarter of 2014 and 2016, respectively.http://www.interaksyon.com/article/37293/arthaland-to-develop-400-hectare-property-north-of-metro-manila

BSP Governor Guinigundo’s take on property boom
By RTD | Posted on July 15, 2012
http://manilastandardtoday.com/www2/2012/07/15/guinigundos-take-on-property-boom/

Bangko Sentral Deputy Governor Diwa Guinigundo offers insights on the latest phenomenon sweeping Metro Manila, the property boom.

Guinigundo, in trying to make sense of all the construction activities happening simultaneously in town, assures the growth of the real estate sector is at a healthy pace, but cautions against the risks of widening vacancy rates.

He says reports from Colliers International Research point to increasing capital and rental values, driven by demand for office space from the offshoring and outsourcing industry and expatriate demand for luxury three-bedroom units amid limited supply, particularly in the Makati central business district.

“On the other hand, the supply of high-rise residential condominium units has continued to surge across Metro Manila, but most of these are in the middle-income segment and are broadly located outside the major business districts,” he says.

Guinigundo says that based on the number of licenses to sell issued by the Housing and Land Use Regulatory Board and the estimated demand for housing units for the period 2007-2010, the new supply of housing units are still not enough to satisfy the estimated housing demand in the country.

No asset price bubbles

“However, the rise in vacancy rates in certain market segments in the real estate sector necessitates close monitoring,” he warns.

The Bangko Sentral official in charge of monetary stability sector says that despite the recent rise in capital and rental values for office and luxury residential segments in Makati, “there appears to be no clear signs of an asset price bubble as the general upward shift in property sector indicators remained driven by fundamental factors such as the continued expansion of the O&O industry which fuels demand for office space and residential units.”

He notes that the capital and rental values of office space and residential units in Makati CBD remain below the peak levels reached in 2008. Meanwhile, the price-to-rent ratios for both the office and luxury residential segments have fallen below trend of late as rental values have grown faster than capital values, he adds.

“We note that there has been no dramatic increase in the prices of both office spaces and luxury residential units. However, rental values for the office segment went up due to continued strong demand from the O&O industry amid limited office space, particularly in the Makati CBD,” he says.

“Similarly, the upward trend of rental values for the luxury residential segment was due to limited availability of luxury three-bedroom units,” he adds.

Macroprudential measures

Guinigundo says Bangko Sentral has existing macroprudential regulations in the Philippines to protect the industry, such as the statutory limit of 20 percent on the share of real estate loans to banks’ total loan portfolio, maximum loan-to-value ratios for real estate collaterals, and statutory loan limits to single entities or large borrowers.

These measures, he says, have helped make the economy less prone to asset price escalations. The enforcement of the rent control law also helped limit the undue increase in real estate prices while the law on real estate investment trust has helped temper the boom in real estate activity.

He says banks remain compliant with the real estate loan exposure limit. “In spite of the continued strong growth of real estate loans, the combined universal, commercial, and thrift banks’ exposure to real estate loans reached only 15.2 percent of their total loan portfolio as of end-March 2012,” he says.

Contribution of real estate

“The BSP recognizes that the real estate sector is a key contributor to the economy, with the sector accounting for about 10.7 percent of the country’s real GDP in 2011. The sector, likewise, plays an important role in the economy with its forward and backward linkages with other sectors, particularly with the housing and construction sectors,” says Guinigundo.

“For this reason, the BSP continues to pay close attention to developments in the real estate sector, including price trends as well as the growth of credit to the sector, since the overall activity of the sector has broader implications for the banking system and the economy as a whole,” he adds.

Delete.

If you loan 400K the interest rate is only 4.5% for the life of the loan..
Wow! Very nice talaga ang rates ng PAGIBIG Housing loan. Kaya kung regular contributor ka naman ng PAGIBIG, bakit magba-bank loan ka pa? Di ba? Total marami namang mga residential developers diyan ang tumatanggap ng PAGIBIG loan.

Property boom transforms PH skylines

by Agence France Presse | Sunday | Posted on 07/22/2012 11:32 AM | Updated 07/22/2012 3:04 PM

MANILA, Philippines - As a Philippine property boom gathers pace, even Paris Hilton, Donald Trump and high-fashion house Versace are getting a piece of the action.

The good times are into their 4th year, fuelled by steady economic growth, Western firms offshoring jobs to the Philippines, the buying power of millions of Filipinos working abroad and low interest rates.

"It just so happens that today the stars are aligned... we have never seen the economy this bullish," said Antonino Aquino, president of Ayala Land, one of the country's biggest property developers.

Ayala Land is one of the main players in what industry figures describe as an unprecedented construction boom that is transforming the skyline of the nation's capital, as well as many provincial cities.

In Manila, formerly sleepy pockets such as the Fort army base and the rundown Eastwood industrial zone have become chic, new business districts, catering mainly for the fast-growing outsourcing sector.

At the Fort, Ayala Land this year broke ground on its $714-million One Bonifacio High Street project, which when completed in 2017 will host the Philippine Stock Exchange, a Shangri-La hotel, and retail outlets.

The project also has a 63-storey residential tower, with 298 suites ranging from $500,000-$1.9 million that sold out last month in 96 hours, according to the company.

Across the country, more than 850,000 square metres (9.1 million square feet) of office space and 14,000 residential units will enter the market this year, property consultants CBRE Philippines said in a report.

It said many of the residential units catered for a growing middle-class on the fringes of Manila and other urban centres.

The building boom has also spread to hotels, shopping malls and casinos, triggering hopes of a long-anticipated take-off of the underdeveloped tourism industry.

Three of the world's biggest gaming industry leaders are building a $4-billion, 100-hectare (247-acre) Entertainment City complex of casinos on Manila Bay. The first of the casinos are set to open early next year.

Meanwhile, Trump, the New York mogul, has put his name to a $150-million, 56-storey, curtain-glass-walled Trump Tower that broke ground in the financial district this year.

"High-end buyers look for key differentiated features," said Robbie Antonio, managing director of Century Properties that is behind the Trump Tower development.

He said 70% of the 220 residential units, which are worth up to $1.86 million each, have been sold.

The firm is putting up a nearby tower designed by the Versace fashion house -- the first of its kind in Asia -- featuring individual wading pools as well as its iconic Medusa-head brand imprinted on lamp shades and cutlery.

Century also flew in socialite and hotel heiress Hilton to Manila last year to help design and promote a suburban Manila residential project that features a man-made beach.

Industry players say the property boom reflects the overall status of the nation's economy as it picks up steam after decades of underperforming compared with many of its Asian neighbors.

The economy grew 6.4% in the first quarter, the stock market has surged 20% this year to hit all-time highs, and the country's credit rating has been bumped up to just a step below investment grade.

The central bank's benchmark interest rates are also at historic lows -- 4% for the benchmark borrowing rate -- ensuring large piles of cheap cash for property development.

Aside from the macro economic picture, real estate analysts point to the outsourcing phenomenon as one of the key drivers of the property boom.
From virtually nothing a decade ago, outsourcing now employs more than 600,000 people and is worth $11 billion annually, according to the main industry association which is forecasting 15% growth in the years ahead.

Many of the skyscrapers are being built to cater for the outsourcing workforce, which performs a myriad of tasks from call centre duties to designing architectural plans for foreign firms.

Meanwhile, roughly nine million Filipinos who work overseas are sending large chunks of the $22 billion they earn -- equal to 10% of the nation's gross domestic product -- back home, often investing in real estate.

The frenetic building pace has some quarters anxious over a potential property bubble, with the global economic woes adding to concerns.
But Rick Santos, CBRE Philippines chief executive, remains bullish, in large part because of the expected continued growth in the outsourcing sector.

"As economies in the West tighten, global companies will see it in their interest to outsource their non-core functions to save on costs, " Santos told an industry briefing recently.

Ayala Land's Aquino also said local market had not seen the price bubbles that preceded crashes in other countries, where property values suddenly doubled or tripled.

"The price increases have been very close to or a little more than the inflation rate," Aquino said.

Trump Tower developer Antonio added: "We are confident that there's still a demand that has to be met."

Source: http://www.rappler.com/business/8979-property-boom-transforms-philippine-skylines

FTI Sale Attracts 7 Firms

By CHINO S. LEYCO | MANILA BULLETIN | Sunday | July 22, 2012 | 3:24pm

MANILA, Philippines — The country’s seven largest real-estate developers are competing for the prime 74-hectare Food Terminal Incorporated (FTI) state-property in Taguig City, the Department of Finance (DoF) announced over the weekend.

The finance department, through the Privatization and Management Office (PMO), said that representatives from Robinson’s Land Corporation, Empire East Land, Ayala Land Incorporated, Rockwell Land Corporation, Century Properties Group Incorporated, SM Land Incorporated and Filinvest Land Incorporated attended the pre-bid conference held last Friday.

“Parameters of the sale such as the minimum target selling price and pre-qualification requirements were detailed [last Friday],” PMO said.

The finance department said that the seven local property developers will outbid each other for the agro-industrial property, which has a floor price of P10.2 billion. Proceeds from the sale will go to the Department of Agrarian Reform for the Comprehensive Agrarian Reform Program and to the Department of Agriculture.

PMO will hold the public bidding for the sale of FTI on August 8, which aims to generate a surge in economic activity in the area, improve transportation linkages and boost employment opportunities.

PMO said all interested bidders were also given bid packets detailing Asset Specific Bidding Rules to ensure a transparent and competitive bidding process.

In its efforts to minimize delays to complete the transaction seamlessly, PMO will be conducting a workshop to help bidders prepare for the submission of bid envelopes to prevent technical violations.

“Following the last failed bidding of the 103-hectare FTI Complex in October 2009, the government has been working diligently to design a plan that would optimize the use of the parcel,” Karen Singson, PMO chief said.

With that, the government has decided to sell only 74 hectares of the total 103-hectare FTI complex. The remaining land parcels of the complex will be used for other purposes. Some parcels are owned by the National Food Authority.

“PMO continues to coordinate with other government agencies to ensure that the privatization of FTI complements the broad array of infrastructure building and agriculture initiatives of the government,” she added.

Ongoing projects in the complex include the construction of a five-hectare Integrated Bus Terminal under the Department of Transportation and Communication (DOTC) and the Department of Public Works and Highways (DPWH).

Source: http://www.mb.com.ph/articles/366931/fti-sale-attracts-7-firms

^^^^^^It would be better for the government to just lease this piece of property. :)

matagal nang pina lease yan, :D nakita mo ba ano hitsura nya ngayon? parang post apocalypse era:D

ito sample:D
https://lh3.googleusercontent.com/-iEXvC_jyzLk/TmblJxgBotI/AAAAAAAACHo/AIsb1XMCh1s/car%252520control%252520clinic%252520copy.jpg

matagal nang pina lease yan, :D nakita mo ba ano hitsura nya ngayon? parang post apocalypse era:D

ito sample:D
https://lh3.googleusercontent.com/-iEXvC_jyzLk/TmblJxgBotI/AAAAAAAACHo/AIsb1XMCh1s/car%252520control%252520clinic%252520copy.jpg

oo nga, sigiro dapat medyo ayusin.. lagyan ng magandang entrance at kalsada tas ipalease.. kaya dapat meron matinong lease property management...

kung entrance lang maganda naman:D yung mga lumang building na pre world war 2:D(kidding:D) pa tinayo dapat mapalitan na.

DHUD is Aquino’s ‘legacy’ to the people–Binay
Business Mirror
http://businessmirror.com.ph/home/economy/30464-dhud-is-aquinos-legacy-to-the-peoplebinay

Vice President Jejomar C. Binay welcomed on Thursday the Senate’s approval of Senate Bill 3199, which seeks to create the Department of Housing and Urban Development (DHUD), saying the creation of the housing department will be President Aquino’s “legacy to the Filipino people.”

“The housing sector is saddled with a huge housing need estimated at 3.6 million units as of the end of 2010, and with the steady growth of the population, this number is projected to rise to 5.7 million by 2016. The creation of the DHUD will help us address this need more efficiently and effectively,” he said.

Binay said the creation of the housing department will streamline government functions as the DHUD merges the functions of the Housing and Urban Development Coordinating Council (HUDCC) and Housing and Land Use Regulatory Board (HLURB). He added that the DHUD also strengthens adjudication and enforcement with the conversion of HLURB into a commission.

He added “the Department’s lean and mean organization will result to a wider participation and investment from the private sector.”

Binay is also the chairman of HUDCC and HLURB.

He stressed the creation of the the DHUD will not entail any additional cost to the government “since the budgetary approval for the new department will be sourced from the current budget allocations of HUDCC and HLURB.”

“Budget increases or decreases in succeeding years will be left to the Department of Budget and Management [DBM], just like all other departments in the government,” Binay said.

He added that the accountability and responsibility of the secretary and undersecretaries clearly defined in the DHUD bill, which is in line with President Aquino’s daang matuwid policy.

According to the bill, DHUD will be “the primary national government entity responsible for the management of housing and urban development.”

Moreover, the vice president said during the 6th Philippine Real Estate Festival on Thursday that “the creation of the department is timely as it will be crucial in reaping the potential of our housing and property sector for our country.”

“The proposed department, by closely working with environmental planners, builders and community beneficiaries, shall ensure a holistic strategy in addressing access to and affordability of the human basic needs,” he said during his keynote. The DHUD bill is one of the legislative measures in the first set of priority bills of the Legislative-Executive Development Advisory Council. It was approved on third reading and final reading on Tuesday.

Binay said he is optimistic that the Lower House’s version of the bill would be passed by August.

“With the continued support of Senate President Juan Ponce Enrile and Speaker Sonny Belmonte, we look forward to the Bicameral Conference Committee to harmonize the two versions,” he said.

I'm not moving back to Philippines as I'm not Filipino, although have spent much time there in previous years. Wouldn't rule out the Philippines as a potential retirement option for me but that's not for some years yet (I'm late 30s).

The purpose of buying in Makati was for a number of reasons - primarily for long-term capital investment (not a flip but, rather, to retain the property and rent out). I'm less certain about the investment prospects than I was due to the volume of projects coming downstream added to the higher value of the peso.

I might sell one or more of the units at, or around, turnover - in part, due to appreciation of the peso since I originally bought the units which would, in £ sterling terms, add significantly to mortgage payments if the units are not let out.

Im in the same situation, I have two units in prime locations, I'm in my mid 30s and thinking in getting retired in the Philippines, the peso appreciation makes me think about selling one at least.

http://www.skyscrapercity.com/showthread.php?t=959412

Is our project...
My wife bought it before we got to know each other and it has been handed over to us last year.

At least we have a place to stay when in Phil.


Just for you to understand, we Germans are rather conservative when it comes to real estate investment. We are usually renting for most of our life and usually buy to live.


We are acouple Spain-Philippines living in Abu Dhabi.... we can have a drink some time and talk about bubbles! :cheers:

We have two units in Manila, one in McKinley Hills and one in Serendra 2, I keep thinking if there is a bubble in Philippines, in Spain we now a lot about bubbles :nuts:

The ambiance in Manila is like a bubble, the sellers are coming in the street desperate to sell units... There are advertisements everywhere etc...

It is clear that there is going to be over supply of units in the following years.

Is it a bubble?
- Credit: The credit is not yet very available, the mortgages are expensive 10% is a lot...
- Foreigners: Are only allowed to buy 40% of a building, I don't think that there is a lot of foreign speculation... taxes are also high...
- Ratio Rent/Income: In high end condos the target tenant is an expat or an executive, I think they are still affordable, not sure about other markets.
- Ratio Rent/price: Yields are healthy at the moment, usually in a bubble the yields are low, like 2-3%, that is not yet happening.
- Construction companies: they are going up in the stock market very quickly, there is a boom or there is a bubble, I don't think that it is sustainable.
- Peso: The peso is going up a lot, that is good news for locals as they have more purchasing power and they can afford to buy higher end units, it is bad news for OWF as it is more expensive for them to buy.
- Prices: I believe that the prices are still far from the top of the ones in the Asian crisis.
- Cycles: Property cycles usually last 18-20 years, that is only a theory but it holds in many cases, that means that the bubble can last a few more... if there is a real bubble...

It is kind of scary that I saw in Davao in the malls that they were selling properties in Manila, it looks like they are desperate to sell, there is an oversupply and prices might correct, I cannot see the cause of a pop un the bubble in the near term unless a crisis happens in Phils... It looks like the money is flowing to south east asia, smart money is flying from US, Euro and BRICS, then next in the list for a boom are well known, Goldman Sachs created the list some time ago...

By the way, I think it could be a good time to invest in property in UAE, prices are bottoming and getting stable, they need skilled people, and skilled people are flying from western countries scared of the crisis, the money from the oil can create a lot of industry in the area, there could be a new boom soon.

We are acouple Spain-Philippines living in Abu Dhabi.... we can have a drink some time and talk about bubbles! :cheers:

We have two units in Manila, one in McKinley Hills and one in Serendra 2, I keep thinking if there is a bubble in Philippines, in Spain we now a lot about bubbles :nuts:

The ambiance in Manila is like a bubble, the sellers are coming in the street desperate to sell units... There are advertisements everywhere etc...

It is clear that there is going to be over supply of units in the following years.

Is it a bubble?
- Credit: The credit is not yet very available, the mortgages are expensive 10% is a lot...
- Foreigners: Are only allowed to buy 40% of a building, I don't think that there is a lot of foreign speculation... taxes are also high...
- Ratio Rent/Income: In high end condos the target tenant is an expat or an executive, I think they are still affordable, not sure about other markets.
- Ratio Rent/price: Yields are healthy at the moment, usually in a bubble the yields are low, like 2-3%, that is not yet happening.
- Construction companies: they are going up in the stock market very quickly, there is a boom or there is a bubble, I don't think that it is sustainable.
- Peso: The peso is going up a lot, that is good news for locals as they have more purchasing power and they can afford to buy higher end units, it is bad news for OWF as it is more expensive for them to buy.
- Prices: I believe that the prices are still far from the top of the ones in the Asian crisis.
- Cycles: Property cycles usually last 18-20 years, that is only a theory but it holds in many cases, that means that the bubble can last a few more... if there is a real bubble...

It is kind of scary that I saw in Davao in the malls that they were selling properties in Manila, it looks like they are desperate to sell, there is an oversupply and prices might correct, I cannot see the cause of a pop un the bubble in the near term unless a crisis happens in Phils... It looks like the money is flowing to south east asia, smart money is flying from US, Euro and BRICS, then next in the list for a boom are well known, Goldman Sachs created the list some time ago...

By the way, I think it could be a good time to invest in property in UAE, prices are bottoming and getting stable, they need skilled people, and skilled people are flying from western countries scared of the crisis, the money from the oil can create a lot of industry in the area, there could be a new boom soon.

Lots of players in the condo market right now, but SM seems to be the one that is more spread out. Problem is I think they are using BDO, their bank, as a financing option for their buyers, something that is not allowed by the BSP, it might cause them trouble somewhere down the line. There are also a lot of balloon payment schemes but I have yet to research the extent of this, this will result in a good number of buyers defaulting in the future.

Up to 70% of condo sales are from OFWs, foreigners probably make up only a small percentage of it, so you don't have to worry about not having enough units to invest in even with a 40% share.

I'm not sure about the rental market, I find rates of 55K - 100K prohibitive for a local, but expats could very well afford them, so that would be your market if you expect rental income. Thus, the more foreign investments, BPOs, and others who invest here, the better for you.

For local markets and OFWs as well, a lot are investing in MRBs, those 5 storey communities of several buildings clustered around an amenity.

Things are selling right now, which is a sign of a lot of pent up demand from OFWs and locals, but I don't think the foreign investor market is big enough to cause a bubble, maybe a few years down the line when they suddenly start flocking here, but right now sales are being driven by the OFW and local market.

Thanks a lot,

Once the mortagages go to pre-crisis European levels and the foreigners start buying I'll get worried, at the moment it looks like there is a big demand for office space in BGC and Makati, that is very good and it should bring rental demand.

I'm interested in buying some land in Palawan most probably, I was looking in Coron but is very difficult as there are so many scams, rules etc... I couldn't find anything safe, and the other problem are the squatters as I want the land for my retirement, leaving the area empty could be risky, any advice?

That's a nice place, paradise.

You have to do a lot of DUE DILIGENCE, get the services of a lawyer or consultants to check the authenticity of the title, they should be able to do this with the Land Registration Authority and Registry of Deeds. Don't try to save on this service or else you might end up being scammed.

Squatters could be a problem, so it's advisable that you have your property fenced as well, and maybe have a caretaker or security. But sometimes it happens that your caretaker becomes the squatter so be careful with your agreements with them.

Yes, a lot demand for office space in BGC partly because of the prestige factor as well, but due to the high costs of acquisition for a unit, your market may be limited to expats, which is not in short supply in BGC of course.

Anyway, this is for everybody, I think this flood map by Project Noah (http://noah.pscigrid.gov.ph/) would be really useful when considering property here in Metro Manila, buy in places less prone to floods for convenience and protection of your investments.

Thanks for the floodmap!

Yes, I did some due diligence, and my brother in law is a lawyer, at the moment I was looking to a subdivision lot in Coron, but seems like the papers are not right and they don't have all the permisions, it is the only subdivision in Coron at the moment! For a piece of land I'll need to spend more time over there...

There is a possibility of charter change limited to economic provisions of the constitution, with Juan Ponce Enrile and Feliciano Belmonte intent on bringing this about, and if they are able to convince President Aquino to go along, I think that prohibitions on land and condo (currently limited to 40% foreign content) ownership for foreigners will be removed. But what will the effect be on real estate prices? Will there be skyrocketing of real estate prices and make affordable housing beyond the reach of most Filipinos? My opinion is yes. But what do you think?

Megaworld earnings plunge; Filinvest Land posts growth
Business World
http://www.bworldonline.com/content.php?section=Corporate&title=Megaworld-earnings-plunge;-Filinvest-Land-posts-growth&id=56807

TWO LISTED developers yesterday reported mixed first-half results, with Megaworld Corp. posting a profit drop on weakened revenues, while Filinvest Land, Inc. fared better with a double-digit earnings hike.

Megaworld, the middle-income property arm of Alliance Global Group, Inc., saw its first-semester net income decline by 30.16% to P3.59 billion from P5.14 billion a year ago, a filing with the Philippine Stock Exchange showed yesterday.

Total first half revenues, comprised mostly of real estate sales and rental income, slid by 2.03% to P15.43 billion from the same period last year, while costs and expenses in the period expanded by 10.86% to P11.74 billion versus P10.59 billion, year on year.

For the second quarter alone, Megaworld’s net income plummeted by 47.83% to P2.04 billion from P3.91 billion last year, while revenues shrunk by 15.95% to P8.43 billion versus P10.03 billion in 2011.

Gotianun-led developer Filinvest Land, Inc., for its part, hiked its net income for the year’s first six months by 19.53% to P1.53 billion from last year’s P1.28 billion, fueled by an uptick in the company’s revenues that increased by 24% to P5.21 billion versus P4.19 billion in the same period last year, a separate disclosure showed.

Real estate sales grew by 28% to P3.84 billion from P2.99 billion last year, while rental income from Festival Supermall, PBCom Tower, and Northgate Cyberzone amounted to P894 million, 16% higher than P738 million in the first half of 2011.

Filinvest Land’s latest financial statement was not immediately made available.

Filinvest Land was incorporated in 1989 and, as of end-2011, held a 2,288-hectare land bank mostly in Mega Manila.

Megaworld was similarly incorporated in 1989 as Megaworld Properties and Holdings, Inc., and claims to have launched approximately 225 residential, office, and hotel units -- bringing its aggregate property footprint to over 5.8 million square meters.

At present, Megaworld is developing over 40 residential and business process outsourcing projects in Metro Manila under its so-called “live-work-play-learn” philosophy.

Megaworld shares gained by 1.77% to close at P2.30 apiece yesterday, while Filinvest Land fell by 0.75% to P1.33.

Bad habits, overdevelopment caused Metro floods, say analysts
Philippine Daily Inquirer
http://business.inquirer.net/77498/bad-habits-overdevelopment-caused-metro-floods-say-analysts

This time, real estate analysts agree with the views of a nature conservationist. Jose Ma. Lorenzo Tan, chief executive officer of the environmental group Worldwide Fund for Nature (WWF)-Philippines, was quoted by the Inquirer last August 13 as saying, “Filipinos, not the monsoon rains, are to blame for the deluge that paralyzed the metropolitan area of 14-million residents last week.”

The Inquirer article also cited Tan as saying that “the latest disaster to hit the Philippines was a result of an unfettered and mindless march to urbanization that had replaced soils and trees, which could absorb the rains and reduce flooding, with concrete jungles.”

Veteran real estate broker Enrico S. Cruz, a civil engineer who resides in Marikina, said he “fully agrees” with Tan’s observations, but said this would be just “one of several factors causing these disasters.”

“For example, more building and developments result in less trees and open spaces, which result in more rainwater in the surface that needs to flow to the existing outdated drainage system that gets clogged because of improper waste disposal, or sometimes intentionally clogged by the enterprising neighborhood making a few pesos pushing cars out of their intentionally flooded streets.”

Enrique M. Soriano III, Ateneo program director for real estate and senior adviser for Wong+Bernstein Business Advisory, said, “The subject of overdevelopment is now classified as a ‘clear and present danger’ and must no longer be ignored.”

Overdevelopment

Soriano said: “We can no longer hide an elephant in the room! Overdevelopment overwhelms the natural resources of a given area. In Metro Manila and the expanded NCR, with a population base of close to 17 million, overdevelopment is the fastest-growing threat to our local environment that will inevitably impact our quality of life.”

He added: “As property stakeholders, are we providing a reasonable and concerted support to make every development, every zone compliant to environmental standards? The consequences of decades of unplanned, rapid growth and poor land-use management are evident: increased traffic congestion, crowded schools, worsening air and water pollution, disappearing open space, increased flooding, wildlife habitat destroyed (whatever of that has been left in the Metro), higher taxes and deteriorating city centers.”

Julius Guevara, Colliers International’s associate director for valuation and advisory services and head of consultancy and research, said: “While some real estate developers have again been put in a bad light, I think that some sectors have unfairly put the blame on this sector. Bad urban planning and management is the culprit, and real estate developers wouldn’t build on a site if they didn’t get the permits. How they got those permits is another story altogether, though.”

Guevara explained that “the effects of climate change, whether caused by man or nature, are apparent in the spate of flooding that we are experiencing. Real estate development should be more responsible.” Guevara suggested that one way to do this is to inject green building strategies into the development. He explained that stormwater management strategies can be employed, such as building retention and detention ponds to control rainwater onsite before it goes to the public stormwater systems. These ponds and bioswales can be installed in horizontal developments to act as amenities as well as effective stormwater control.

“One may notice that it floods in the metro right away even when it doesn’t seem to rain that much. This is because there is too much impervious material on our ground, such as concrete and asphalt. Minimizing these impervious surfaces is essential; porous paving blocks can be substituted so that water can be absorbed by the soil underneath,” Guevara said.

Obsolete dev’t patterns

Soriano suggested that the government and stakeholders must now rethink and rewrite development patterns that are obsolete, with some dating back to the end of World War II. The Housing and Urban Development Coordinating Council (HUDCC) must now compel developers to disperse developmental programs outside Metro Manila and encourage “smart growth initiatives” in city centers compromised by overdevelopment. Government must now seriously “walk the talk” on issues related to urban development, less vehicle-dependent master plans and draconian programs in the enforcement of zoning and homebuilding laws.

Cruz added that even with a good drainage system, the water needs to flow to the creeks or natural waterways which is silted because of indiscriminate waste dumping and narrower (drainage system) because of illegal settlement and illegal encroachment or reclamation.

“But please look at the mountains. Less trees because of logging, legal or illegal, subdivision developments, and mining. Because of less trees in the mountains, more water comes down to the rivers. Coming down with the water are mountain soils and waste that will contribute to the siltation and clogging of the riverways,” Cruz said.

He urged readers to see the extent of “these causes” by opening Google Maps.

“In the Manggahan Floodway, for example, a closer look will show settlements in the apron of the man-made canal. A closer look will show further that there are kangkong plantations that may seem innocent, but during critical flooding situation, their being in the waterway adds to the problem by impeding waterflow.”

In civil engineering terms, an apron is “any device for protecting a surface of earth from the action of moving water, a platform to receive the water falling over a dam.”


Metro Manila is sinking — geologist
GMA News
http://www.gmanetwork.com/news/story/270028/news/metromanila/metro-manila-is-sinking-mdash-geologist?ref=section_banner_full

A geologist and University of the Philippines professor revealed during a Senate hearing on climate change that Metro Manila is gradually and noticeably sinking.

"Lumulubog ang lupa sa Malabon at hindi lang Malabon but actually the entire Metro Manila is sinking...not slowly. It's sinking at several centimeters per year," said Dr. Fernando Siringan of the UP Marine Science Institute at Thursday's climate change committee hearing on the state of disaster and climate risks in the country.

He said that in Malabon, some areas have been sinking by 10 centimeters a year and others by as much as one meter in four years.

He said that the subsidence is easily noticeable, as several places that used to be flood-free now experience flooding.

"May kalye na itinaas ng isang metro wala pang tatlo, apat na taon, binabaha na naman ng tubig dagat, hindi tubig ulan. Bakit ka papasukin ng tubig dagat kung 'di bumababa ang lugar?" he said.

Siringan also noted that apart from the region's sinking, the sea level is also rising by almost one centimeter per year because of global warming.

The geologist explained that one of the causes of Metro Manila's sinking is the over-extraction of ground water.

Senate climate change committee chair Senator Loren Legarda added it is also being caused by the conversion of fish ponds into other structures.

"Pag bumabagsak ang lupa, pagdating ng ulan ay siyempre lumulubog...napupuno rin ang ating karagatan and siltation ng mga tubig na ito ay nakakadulot din ng baha," she said.

"Ito ay dapat ini-input sa pagplano ng mga public works project at pati pagplano sa mga flood control project," she added.

Siringan mentioned Metro Manila's sinking after saying the Department of Public Works and Highways (DPWH) did not follow scientists' suggestion to widen the rivers to address flooding in Metro Manila.

"Imbes na luwagan, sinikipan pa ang mga ilog. Walang bisa na laliman nang laliman ang ilog because it will be filled up by sediments anyway," he said.

"Ang point ko lang, kung may mga projects, dapat ikonsider na tumataas ang dagat at bumababa ang lupa at ang pagbaba ng lupa ay hindi pantay-pantay at hindi mabagal ito, ito ay mabilis," he added.

Legarda said the DPWH has committed to change phases 1 and 2 of their flood control projects affecting Malabon, Navotas, Caloocan, and Valenzuela, but did not specify the changes.


http://opinion.inquirer.net/files/2011/09/Metro-Manila-Flood-map.jpg
http://opinion.inquirer.net/12757/large-areas-of-metro-manila-sinking

MAGE of Metro Manila showing movement of the ground. Blue areas correspond to land sinking up to 5.5 centimeters a year. Red means the ground is moving upward or laterally toward the radar satellite. This image was processed by Narod Eco of the project team of the Department of Science and Technology. CONTRIBUTED IMAGE

Real estate is a great way to generate more income and profit. There are several types of real estate investments such as Residential real estate investments, Commercial real estate investments, Industrial real estate investments, Retail real estate investments, Mixed-use real estate investments and Real Estate Investment Trusts.

Property sector outpaced other industries in Q1

The real estate sector posted the fastest sales growth among the country’s major industries in the first quarter of 2012, while a slowdown was noted in the manufacturing industry, according to a recent National Statistical Coordination Board (NSCB) report.

The total gross revenue index of industries increased by 11.3 percent in the first quarter of 2012, the NSCB said.

The real estate sector registered the highest growth at 28.1 percent followed by trade at 15.9 percent and finance 12.7 percent.

The real estate sector also topped the employment index growing at 8.1 percent, the fastest since the fourth quarter of 2007.
The real estate sector also topped the employment index growing at 8.1 percent, the fastest since the fourth quarter of 2007.

There is a possibility of charter change limited to economic provisions of the constitution, with Juan Ponce Enrile and Feliciano Belmonte intent on bringing this about, and if they are able to convince President Aquino to go along, I think that prohibitions on land and condo (currently limited to 40% foreign content) ownership for foreigners will be removed. But what will the effect be on real estate prices? Will there be skyrocketing of real estate prices and make affordable housing beyond the reach of most Filipinos? My opinion is yes. But what do you think?

Most Filipinos can't afford condos anyway, 60-70% of condo buyers are OFWs and maybe around 10% foreigners. I'd say we shouldn't impose a limit on condo ownership. Besides, condo sales are slowing down, the industry needs all the help it can get. Sudden price increases? I doubt, the most it can do is that we will have "ghost" buildings, condos where most of the buyers are investors and do not live there.

Anyway, part of what increases land prices here are "SOP" and "For the boys", a per square meter bribe developers must pay to Councilors and Mayors in order for them to release the Development Permit of the project. Take away corruption and you can reduce land prices by about 15 to 60 pesos per square meter. If you think that's small multiply it by the hectare!

Most Filipinos can't afford condos anyway, 60-70% of condo buyers are OFWs and maybe around 10% foreigners. I'd say we shouldn't impose a limit on condo ownership. Besides, condo sales are slowing down, the industry needs all the help it can get. Sudden price increases? I doubt, the most it can do is that we will have "ghost" buildings, condos where most of the buyers are investors and do not live there.

Anyway, part of what increases land prices here are "SOP" and "For the boys", a per square meter bribe developers must pay to Councilors and Mayors in order for them to release the Development Permit of the project. Take away corruption and you can reduce land prices by about 15 to 60 pesos per square meter. If you think that's small multiply it by the hectare!

Yeah, I pretty much agree with your statement. I used to think otherwise, based on what I noticed with property prices in the Caribbean Islands when some places allowed foreigners to own properties, causing prices to shoot up and making it unaffordable to locals. But I had a change of heart lately because we are being left behind by neighboring states that allowed it, causing more investors money to flow in to their county. Timing couldn’t be better as well. I don’t foresee a sudden surge of foreigners gobbling up lands in the first few years of implementation, the situation in Europe & U.S. hasn’t picked up yet economically to make that possible. You never want a sudden boom, just a gradual sustainable growth to make it lasting, and the economy can use all the help it can get from foreign investments now.

Falling rates to spur Asean spending
Business Mirror
http://businessmirror.com.ph/home/top-news/31628-falling-rates-to-spur-asean-spending

Real-interest rates across the region are falling, and this development is seen to spur countries in Southeast Asia, the Philippines included, to boost spending on assets and infrastructure, a globally recognized accounting body based in London said.

“Cheap money will allow countries in Asean to fund investments in public infrastructure, from transport links to education systems, while low returns in the financial markets are likely to prompt companies to invest in machinery, technology and skills instead,” the Institute of Chartered Accountants in England and Wales (Icaew) added.

Real-interest rates reflect the cost of money for those who need to borrow and the yield or return for lucky lenders after computing the corrosive impact of inflation.

They remain positive in the Philippines at present, no matter a recent decision of the Monetary Board to recalibrate 25 basis points lower the rate at which the Bangko Sentral ng Pilipinas (BSP) borrows from or lends to banks, BSP Deputy Governor Diwa C. Guinigundo said.

With real-interest rates falling in most parts of the world, governments and businesses were seen to hike their exposure in assets and infrastructure as a consequence, the Icaew said.

“With the availability of cheap money for Asean governments, we expect that public investment in needed infrastructure will increase this year,” according to Charles Davies, Icaew economic advisor and head of macroeconomics at the Center for Economics and Business Research (CEBR).

According to the CEBR, the average infrastructure-investment growth this year till 2014 is seen at 5.2 percent in Thailand, 8.1 percent in Vietnam, 9.1 percent in Indonesia and 6.8 percent in Malaysia.

Even Singapore, with the lowest infrastructure-investment growth in the region, should post a respectable 4.8-percent growth during the period.

Data from the World Bank show real-interest rates falling in the case of the Philippines from a high of 5.6 percent in 2009 to 3.3 percent in 2010 and only 2.3 percent last year.

Such rates have proved positive at 0.25 percent at present or enough compulsion for both borrowers and lenders to engage in productive economic activities as the effort still produces sufficient returns.

Since 2010, Malaysia has posted a negative real-interest rate environment, World Bank data also show.

The CEBR expressed apprehension over the continuing global slowdown arising from sovereign debt and banking uncertainties in Europe, the slowing down of emerging markets such as China and India as well as the tentative growth prospects of the Unites States.

“Singapore’s GDP [gross domestic product] has been downgraded substantially following the contraction of output in the second quarter, with an average growth of 2.2 percent expected in 2012 and a marginal increase to 2.5 percent in 2013.

“Countries such as Thailand, Malaysia, the Philippines and Indonesia remain positive, however, with domestic demand continuing to fuel growth. Nevertheless, falling commodity prices and the falling remittance from overseas citizens may impact on Indonesia and the Philippines, respectively,” the CEBR said.

“With the slowdown in international markets, the inherent weakness of an industrial sector geared toward global trade becomes more obvious. The more closely linked to Western markets, the more affected the Asean economy in question will be. However, the story of a developing Asean continues, and we expect Asean will weather the global uncertainty well as a bloc,” Mark Billington, regional director at ICAEW South East Asia, said.

Asean groups the Philippines, Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand and Vietnam.

Property business is also for young and not-so-rich

http://www.expatads.com/adpics/affordable-manila-condo-own-it-for-only-php8k-per-month-501ccc9ca7c5a3074851.jpg
Image copyrighted from its respective owner.

With interest rates at historic lows and supply being abundant, the time is ripe for investing in real properties.


Contrary to common notion that it is fit only for big enterprises and the extremely rich, the property business is also something the young professionals and the not-so-rich can engage in.


“While an individual is young, that is the best time to start building one’s property portfolio,” Carl Dy, Property sales coach and Ayala Land Premier sales director tells SundayBiz.

Ayala Land Premier is the developer of the group’s most expensive projects.

At 34, Carl already has several properties in his portfolio from which he earns extra income, mostly from rent.

The property sector in the Philippines has continually grown over the past three years as evidenced by the growing number of condominium buildings among other real assets.

source: http://business.inquirer.net/78656/property-business-is-also-for-the-young-and-the-not-so-rich

Filipinos becoming owners from renters
Philippine Daily Inquirer
http://business.inquirer.net/78660/filipinos-becoming-owners-from-renters

A real estate industry, buoyed by cheap lending rates and more affordable units, is driving the Philippines closer to becoming a country of owners rather than renters.

Rick Santos, chair of CB Richard Ellis Philippines (CBRE), says that the Philippine urban centers can emulate Singapore’s transformation into a clean and green city with the on-going “democratization” of its property sector.

“Low interest rates have made renters into home owners and this has created a sense of pride in more Filipinos. Once they owned their houses, they took better care of their houses because they want to pass these on to their children as compared to somebody living on a one-year lease,” says Santos in an interview.

Santos relates how he took a delegation of Filipinos to Singapore a few years to learn first-hand the tiny city-state’s makeover from a sleepy stopover point into a business hub in the region and how home ownership played a role in its change.

The Bangko Sentral ng Pilipinas reported that interest rates have dropped to an average of 6.34 percent as of last month, while some institutions like Pag-Ibig, or Home Mutual Development Fund, lend up to 30 years.

“What we are seeing is a democratization of the market not unlike the baby boom years in the US when returning vets from the World War were given low borrowing rates to be able to afford the homes they want. If we wind the clock pre-1997, interest rates were north of 16 to 18 percent. Bank loans now are more realistic and longer term,” says Santos. “Encouraged by cheaper loans, more firms are building units at affordable prices to put home ownership within the grasp of masses.”

While some pundits have warned of an imminent glut in property, Santos is optimistic that the industry will continue to grow considering that interest rates may continue to fall (with the Philippines poised for more credit upgrades later this year) and demand for residential and office space remaining strong with a large number of the population still looking for homes and foreign investments continuing to flow in the country.

“Having been here for almost 20 years, I’ve seen many cycles. I was here in the Asian financial crisis and the global crisis. What’s different this time is we have a strong base. We have record low interest rates because banks are extremely liquid and solid. The commercial and office accounts are being drive by the BPO (business process outsourcing) sector which is expected to grow 20 to 30 percent,” says Santos.

He adds that after going through two global financial meltdowns in the last 14 years, property developers have not only become more financially stable but also more “well-rounded.”

“They are not just niche players specializing in one sector like residential or office. With the new opportunities in the market, more buyers can now afford having a primary home in Metro Manila and a secondary home in a beach front. Developers have to provide multiple assets because that is what the clients are demanding,” says Santos.

Jollibee owner ventures into property dev’t

Tan Caktiong teams up with Sia family

by Doris C. Dumlao | Philippine Daily Inquirer | Monday, August 27th, 2012 | 3:58 am

http://1-ps.googleusercontent.com/h/business.inquirer.net/files/2012/08/273x205xtony-tan-caktiong-300x225.jpg.pagespeed.ic.f1_xUOPGQp.jpg
Tony Tan Caktiong: From fast food to real estate. Photo from Facebook

Fastfood chain magnate Tony Tan Caktiong and entrepreneur Edgar “Injap” Sia II have teamed up on the property development business that they envision to be one of the country’s biggest property developers by 2020.

The two have formed a joint venture firm, DoubleDragon Properties Corp., to venture into commercial, residential and even foray into public-private partnership (PPP) projects. Sia, the company’s chairman and chief executive officer, said the upstart property company was also planning to debut on the Philippine Stock Exchange “when the right time comes.”

DoubleDragon was previously known as Injap Land Corp., which started in 2009 as a wholly owned subsidiary of Sia’s holding company Injap Investments Inc. Recently, Tan Caktiong’s HoneyStar Holdings acquired 50 percent of the company, thus becoming an equal venture and renamed as such.

“I enjoy the journey of now jumpstarting and assembling DoubleDragon and setting a big dream for the company. It’s just like how it was eight years ago when Mang Inasal was starting out,” Sia said in an e-mail interview with the Inquirer.

Sia—who sold a 70-percent interest in the Mang Inasal grilled chicken chain to Tan Caktiong-led Jollibee Foods Corp. in 2010—also said a future listing for DoubleDragon would be a way to share the “company of the future” to other prospective stock investors.

Property development has always been a dream business for him, which was why he ventured into property development in 2009, Sia said. For now DoubleDragon’s projects and landholdings are in Iloilo and Roxas. “But we also intend to venture anywhere in the Philippines as the opportunity arises, for horizontal and vertical projects, both for commercial and residential developments, including retail commercial spaces and office spaces except condotel or hotel projects,” Sia said.

Sia’s group has interests in condotel and hotel projects under a separate company called Hotel of Asia Inc., formed in 2010 as a partnership among Injap Investments Inc., Oishi Liwayway Marketing Corp. and Steineil Development Corp.

Even prior to the entry of Tan Caktiong’s group as partner, Injap Land completed and fully sold the People’s Condominium project, the first condominium in Iloilo City within its first three years of operations. This year, DoubleDragon is set to complete its first horizontal project, the 111-unit First Homes Village in Mandurriao, Iloilo City. “Both projects gave us the experience and learn the ropes of property development and the experience will greatly equip us in our future bigger projects,” Sia said.

With the real estate industry in the Philippines at its peak and already dominated by the big players, Sia said the upstart DoubleDragon intended to initially work on pocket developments to accumulate more experience while bracing for new opportunities that might come along the way. “We also intend to position DoubleDragon ahead for the next cycle of a property development boom in the coming years,” Sia said.

While Sia and his siblings handle the management and provide the dynamism for Double Dragon, he said Tan Caktiong and his siblings would “bring in the wisdom and support given their [more than] 30 years of experience in successfully managing and professionalizing Jollibee.” He said another advantage was that the Jollibee Group owned several food brands and could create synergy in DoubleDragon development projects.

Initial investment in DoubleDragon is estimated at P500 million.

Sia said the name DoubleDragon came about as he, 35, and Tan Caktiong, 59, were both born in the Lunar Year of the Dragon. “And coincidentally, the DoubleDragon deal was also finalized this year, also a year of the Dragon. We are also both Capricorn. I and Tito Tony are also both born in the month of January. My father and my son are also born in the year of the Dragon,” he said.

Source: http://business.inquirer.net/78816/jollibee-owner-ventures-into-property-devt

BCDA bids out 2 projects in Taguig

by Louella D. Desiderio | The Philippine Star| Updated August 27, 2012 | 12:00 AM

Manila, Philippines - Five firms have submitted bids to develop the Sampaguita property, while three others gave proposals for the Eastgate parking facility both in Taguig City, the Bases Conversion Development Authority (BCDA) said.

Nena Radoc, BCDA vice president and chief finance officer, said in a telephone interview that five of the 10 firms that bought bid documents for the Sampaguita property submitted proposals to develop the lot.

The auction for the 1,224 square meter (sqm) Sampaguita East Ramp lot which can be developed as a residential, commercial and institutional area was held on Friday.

“All five bids are higher than the floor price of P28 million,” Radoc said.

The highest bid received for the property is P47.55 million.

Radoc declined to name the firms which submitted bids for the property citing that all proposals still have to go through post-qualification and verification.

For the 3,099-sqm Eastgate parking facility which has been designated for institutional use, she said three of the five firms that purchased bid documents submitted proposals for the property.

She noted that all three firms submitted bids above the P122 million floor price.

“The highest bid is P190 million,” she said.

She also refused to identify the bidders for the Eastgate parking facility noting that the proposals will still be evaluated.

“Hopefully, we will make announcement of the winners by next month,” she said.

On Wednesday, the BCDA declared a failure of bidding for the 5,005-sqm driving range lot as well as the 5,389-sqm Nichols Loop with a combined value of P89.59 million as only one firm submitted a proposal.

“The plan is to re-bid the property. We will make the announcement within the next two weeks,” Radoc said.

Apart from the three properties, the BCDA is also looking to hold the auction for the 1,000-sqm property beside Everest Academy in Bonifacio Global City (BGC) this year but no date has been set so far.

It also plans to bid out bigger properties in BGC this year after securing the approval of the Office of the President.

Source: http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=842182

Federal Land wants PNB lot

by Jenniffer B. Austria | Manila Standard Today | Tuesday | Posted on August 28, 2012 | 12:01am

Federal Land Inc., the property unit of tycoon George Ty, has expressed interest in acquiring a foreclosed 8,000-square-meter prime lot in Makati City previously owned by a company of businessman Ramon Jacinto.

Federal Land executive vice president and general manager Jose Mari Banzon said in an interview the company had offered to acquire the property at the corner of Gil Puyat Ave. and Paseo de Roxas from Philippine National Bank.

Banzon said Federal Land planned to transform the lot into a mixed-use development. The property is beside the head office of Ty-controlled Metropolitan Bank and Trust Co.

Banzon conceded that other property developers were also interested in acquiring the same lot, which served as an open parking lot since 1997.

Federal Land is a wholly-owned unit of GT Capital Holdings Inc., the listed holding company of the Ty group.

The property firm posted a net income of P1.7 billion in the first half, up 77 percent from previous year’s P201 million. Revenues grew 123 percent to P3.6 billion from P1.6 billion during the same period on higher real estate sales.

Federal Land has 19 ongoing projects and a landbank of 100.8 hectares as of -end 2011.

The Buendia property was previously subject to a dispute between PNB and RJ Group.

Source: http://manilastandardtoday.com/2012/08/28/federal-land-wants-pnb-lot/

ABS-CBN branches out to theme park dev't

by Zinnia B. Dela Peña | The Philippine Star | Tuesday | Updated August 28, 2012 | 12:00 AM

MANILA, Philippines - Lopez-led multimedia conglomerate ABS-CBN Corp. is branching out into theme parks and resorts development, following the footsteps of global media giants Walt Disney Co., NBC Universal and Viacom which broke out of the cocoon of home entertainment.

The country’s largest media outfit has incorporated ABS-CBN Theme Parks & Resort Holdings Inc. with an initial authorized capital of P270 million to serve as the group’s vehicle for its foray into the amusement park business.

The Lopezes were earlier reported among those that have signified interest to partner with Japanese billionaire Kazuo Okada, one of the four investor groups granted a license to operate a casino in Philippine Amusement & Gaming Corp.’s Entertainment City.

Okada and the group of taipan John Gokongwei are still in talks for a possible partnership in the Japanese pachinko tycoon’s planned $2 billion integrated resort along Manila Bay.

Sources said ABS-CBN is banking on the flourishing market for family amusement rides and live shows as Asia’s large populations are now moving up into the bottom rungs of the middle classes, triggering a boom in theme park construction. With more disposable income and free time, the continent’s growing middle class tend to spend some of it on thrill rides.

In an industry challenged by piracy and a deteriorating DVD business, amusement parks have emerged as a bright spot. Theme parks have become one of the few steady growth drivers for global media and entertainment conglomerates.

Analysts said real estate has become indispensable to an entertainment company’s portfolio, its growth and promotional strategies. The recent years have seen many global media firms venturing into theme park and resorts development to diversify their revenue stream.

ABS-CBN produces world-class entertainment, news and information programs through its flagship station in Mega Manila, ABS-CBN Channel 2, and its free-to-air UHF channel Studio 23. Backed by a regional network of 25 originating stations, eight affiliates, and a collection of strategically-located relay stations across the archipelago, ABS-CBN’s nationwide reach remains unmatched to date.

The group also operates the country’s leading radio network led by DZMM Radyo Patrol 630 and Tambayan 101.9 in the FM band.

ABS-CBN owns SkyCable, the country’s largest cable television service provider with around 500,000 subscribers in Metro Manila and key urban areas nationwide.

Outside of the Philippines, ABS-CBN reaches an estimated two million Filipinos out of the more than eight million Filipinos overseas, through ABS Global’s The Filipino Channel (TFC).

TFC is available in the US, Canada, the whole of Europe, Australia, the Middle East, Japan, and a host of other Asia-Pacific countries via cable TV, direct-to-home satellite, Internet Protocol Television (IPTV), and the internet through TFC Now.

ABS-CBN’s in-house produced programs also reach foreign audiences through the distribution of ABS-CBN content to countries in Southeast Asia, Eastern Europe and Africa.

Star Cinema, ABS-CBN’s movie production unit, accounts for a 75 percent share of the local film market based on gross box office receipts, consistently producing one blockbuster hit after another.

ABS-CBN also leads the local music production and distribution outfit in the country through Star Records.

The media giant completes its tri-media offering with 14 glossy magazine titles, addressing the needs of the Philippine upscale market with features on fashion and lifestyle, gossip and entertainment, culinary arts, interior design, sports, and male-specific interests.

Blazing the trail in new media technology, ABS-CBN Interactive pioneered traditional media and SMS tie-ups in the country with the launch of TV text promos and TV polls / voting systems.

The group’s online properties – entertainment and news sites, online games, and social networking through one of the leading social networks in world, Multiply, have a solid following.

Source: http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=842485

Ayala Land clears Ortigas venture

by Jenniffer B. Austria | Manila Standard Today | Wednesday | Posted on August 29, 2012 | 12:01am

Ayala Land Inc., the real estate unit of conglomerate Ayala Corp., said Tuesday its board approved the strategic alliance with the Ortigas family for the development of the latter’s vast properties.

Ayala Land’s board approved the partnership with the group led by Ignacio Ortigas which will allow the company to participate in OCLP Holdings Inc., the parent company of Ortigas & Co. Ltd.

Ayala Land earlier earmarked P15 billion for the strategic partnership. The Ortigas group has vast properties in Mandaluyong, San Juan and Quezon City.

Meanwhile, Ayala Land said its board also approved the issuance of fifth series of Homestarter Bond worth P3 billion, subject to registration requirements of the Securities and Exchange Commission.

The property firm tapped BPI Capital Corp., China Banking Corp., PNB Capital and Investments Corp., and RCBC Capital Corp. as underwriters for the bond offering.

The bonds will be sold through a general public offering to retail investors. The bonds will be priced at 100 percent of face value and will mature in three years from the initial issue date.

Ayala Land said it would use the proceeds for general corporate purposes.

The Homestarter Bond program of Ayala Land, first launched in 2006, primary targets mid-income individuals and couples who desire to own their dream home.

Under the previous Homestarter Bond scheme, buyers were required to set aside as low as P5,000 a month for a bond subscription over 36 months. The resulting P180,000, which will earn 5 percent a year, can then be used as downpayment for a housing unit being developed by Ayala Land through its residential brands.

Ayala Land currently has four residential brands, namely Ayala Land Premier, which is geared towards for the high-end market, Alveo Land for the middle-income market, Avida Land for the low-income market and Amaia Land for the affordable market.

Source: http://manilastandardtoday.com/2012/08/29/ayala-land-clears-ortigas-venture/

Ayala Land sets issue of P3B homestarter bonds

by Madelaine B. Miraflor | Manila Times | Wednesday | Published on 29 August 2012

Ayala Land Inc.’s (ALI) board of director recently approved the issuance of the fifth series of the company’s homestarter bond with an issue size of up to P3 billion, which will be sold through a general public offering to retail investors.

In a disclosure to Philippine Stock Exchange, ALI said that the issuance will be subject to the registration requirements of the Securities and Exchange Commission.

“The bonds will be priced at 100 percent of face value and will mature three years from initial issue date,” said the disclosure.

ALI added that the proceeds, net of issue related expenses, will be used to fund the company’s general corporate purposes.

The listed real estate firm, meanwhile, has declared a cash dividend of P0.10 per outstanding common share, which reflects a 42 percent increase from last year’s regular cash dividend of P0.07 per share. That will bring the company’s dividend payout to 40 percent of prior year’s earnings.

Also, the company made the approval of the strategic alliance that they entered into several months ago with the group led by Ignacio Ortigas, allowing them to participate in OCLP Holdings Inc.

In June, ALI entered into a strategic alliance with the group led by Ignacio Ortigas to participate in OCLP Holdings, and allocated P15 billion to the development of its various properties and businesses.

ALI said that the alliance with OCLP Holdings, the parent company of Ortigas and Company Ltd. Partnership, was an invitation that came from Ortigas and this is in line with ALI’s plan to expand.

Source: http://www.manilatimes.net/index.php/business/top-business-news/29905-ayala-land-sets-issue-of-p3b-homestarter-bonds

Fight for Ortigas lot heats up
PhilStar
http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=843202

MANILA, Philippines - Two of the country’s biggest conglomerates – Ayala Corp. and SM Investments Corp. (SMIC) – are gearing up for a potential battle to gain a foothold in the Ortigas family’s vast landholdings.

Ayala and SMIC officials said they are financially prepared to engage in a battle for control of OCLP Holdings, the private holding firm that owns the 16-hectare Greenhills shopping complex.

“The Ayala Group is prepared to make further investments. Ayala Corp. (parent firm) for instance has over P20 billion cash on hand and a low gearing ratio,” said Ayala managing director Eric Francia.

A low gearing ratio means the company has only a small amount of debt in proportion to its assets. A company with a low gearing ratio has greater elbow room to obtain loans to finance acquisitions or future growth.

Francia also noted that property unit Ayala Land Inc. (ALI) has significant cash on its balance sheet, amounting to around P36.8 billion as of end-June this year.

In earlier interviews, SMIC chief finance officer Jose T. Sio said the company enjoys favorable balance sheet conditions, having amassed healthy cash reserves of around $1 billion. Tycoon Henry Sy’s investment holding firm recently raised $150 million from an overnight top-up placement of shares to institutional investors.

Sio said SMIC is in a strong competitive position to seize any opportunities that might arise. Aside from its massive cash pile, the group also has an untapped credit line.

The tug of war for control of OCLP continues to heat up as both parties refuse to back down, capitalizing on the deep differences within the landed Ortigas family members.

The Ayalas have struck a strategic alliance with the group of businessman Ignacio Ortigas, allowing the former to participate in the development of the Ortigas clan’s various properties.

The Sy family, on the other hand, has found an ally in the group led by Francisco “Pacqui” Ortigas III. They, however, are now keeping their cards close to their chest to keep competition from second guessing their moves.

“No comment,” was Sio’s reply when asked whether the Sy family has gained board representation in the Ortigas property firm.

The Ortigas clan has a vast urban landbank spanning Mandaluyong, San Juan and Quezon City, the crown jewel of which is the Greenhills Shopping Center.

SMIC was close to acquiring a foothold in OLCP by buying British banking giant HSBC’s 34-percent stake. The Ortigas family, however, exercised its right of first refusal over HSBC’s shares to retain control of the property holding firm.

In its agreement with Ignacio Ortigas, ALI will pour in an initial investment of P15 billion to help develop residential, office, retail and hotel components in various properties owned by the Ortigas group.

The Ortigases, whose historic roots date back to the 300-year Spanish colonial rule, are among the largest landowners in the country. They developed upscale residential subdivisions Valle Verde and Wack-Wack as well as the 77-unit Luntala townhouse project within Valle Verde 6.

Aside from the Greenhills Shopping Center, the group’s retail portfolio also includes the 18-hectare Tiendesitas in Pasig.

Ongoing projects by the Ortigas group include Circulo Verde, a 15-tower residential development located on a 12-hectare property in Calle Industria in Bagumbayan in Quezon City and the P25-billion Capitol Commons, which will rise on a 10-hectare property previously occupied by the Rizal Provincial Capitol.

Capital Commons will include the development a high-end shopping mall to be called Estancia, slated for completion in 2013. Plans also include the development of a hotel and cinema complex.

Acquisition of a controlling stake in the Ortigas property firm will allow the SM Group to corner the lion’s share of the retail market in the burgeoning Ortigas-Pasig-Mandaluyong area.

^^ Now, vehicular traffic near the vicinity of U of Life and Capitolyo is bad. Will it get better or worse when Capitol Commons is completed? Hmm.

On alliance with Ortigas, ALI takes measured steps

Ayala Land bides its time as terms are drawn up

by Doris C. Dumlao | Philippine Daily Inquirer | Wednesday, August 29th, 2012 | 11:55 pm

Property giant Ayala Land Inc. for the moment does not expect to join the boardroom of OCLP Holdings—parent company of urban property developer Ortigas & Co.—because the final terms of its alliance with the group of Ignacio Ortigas are still being drawn up.

Ayala Land president Antonino Aquino said in a text message that the ALI board’s approval of the deal served to formalize the company’s strategic alliance with the group of Ignacio Ortigas.

Aquino said that the ALI board had previously only authorized discussions leading to an alliance with the Ignacio Ortigas group.

“They will continue to be the ones who will sit on the board,” Aquino said of the present makeup of OCLP Holdings.

In a separate text message, ALI chief finance officer Jaime Ysmael said the disclosure was “just to report formal board ratification of the transaction which was approved by the executive committee. We are still threshing out the final terms of the agreement.”

ALI earlier earmarked a budget of P15 billion to invest in OCLP Holdings. It is not yet known how this partnership with Ignacio Ortigas will affect OCLP as another group in the family, led by former ambassador to Mexico Francisco “Paqui” Ortigas III, is allied with rival SM group.

Biz Buzz earlier reported that Francisco’s group recently nominated tycoon Henry Sy’s eldest son to the board of the Ortigas holding firm, giving the Sys a foothold in the board.

The Ortigas group has a land bank of 50 hectares located at Quezon City, Pasig, San Juan and Mandaluyong. Another 40 hectares of prime land can be added to its land bank, which include portions of Camp Crame (10 hectares) and Camp Aguinaldo (30 hectares), which were donated to the government years ago but which it has the right to buy back.

SM Investments negotiated to buy the OCLP stake held by HSBC and some family members ahead of ALI. But Ortigas family members decided to exercise their right of first refusal on HSBC’s 34-percent stake. The Ortigases consolidated their hold on the firm. But the family is still split, with some members siding with Ignacio, while others with Francisco.

Source: http://business.inquirer.net/?p=79354

Since I am not from Phil, I have a quick question.

I would like to find out the current market price of a project, where can I get reliable information? Is there a land department I can consult?

In addition, would anyone else categorize the local real estate market as bubble?

Yes. Especially that the Philippines had bounced back generously from the recession. Also, you may be guided by the Bureau of Lands Management, under DENR. Unless, you're up to a condominium development in which you just need to consult developers. I can recommend DMCI Homes. It's been awarded by Readers Digest as a trusted real estate brand in Asia.

^^^The government and private sector should rehabilitate old existing buildings (especially the historical ones) in Manila and then retro-fit them to make them "green".

I agree with you on this a hundred percent. The only good recompense I'm seeing are developments having particular themes, such as that of Zinnia Towers (http://www.dmcihomes.com/zinnia-towers.php) which is a resort- inspired community that has Lumiventt Design Technolgy - a green project.

Filipinos Abroad Buying Manila Condos Buoy Peso: Southeast Asia
Bloomberg Business Week
http://www.businessweek.com/news/2012-06-13/filipinos-abroad-buying-manila-condos-buoy-peso-southeast-asia#p1

Amidst the gain in economic power, I somehow, reflect on whether this buying opportunity while in abroad is a smart investment move? What are its pros and cons? Good thing, there are certain developers in the country that provide extra services and effort for our OFWs.

Happy to hear that you are investing in Philippines.
I just wish these condos would allow four-legged companions. Like dogs.

They do. Your display picture is just the cutest. Is that your dog? Well, DMCI Homes do accepts these four-legged friends.

No bubble yet, but why risk it
DEMAND AND SUPPLY By Boo Chanco
The Philippine Star
August 31, 2012
http://www.skyscrapercity.com/newreply.php?do=postreply&t=1495202

I guess BSP Gov. Amando Tetangco just got tired being asked all the time if there is a property bubble yet. Or maybe, he is starting to see danger signs and just wanted to be proactive. He is also very responsive to public sentiment and does what he can within the limits of the BSP Charter.

The recent BSP order for banks to change how they report their exposure to the property market made some people a little worried. They had been suspicious of a glut in the property market, particularly in the condominium segment, and the BSP order is being seen as a kind of admission that something is afoot.

But I want to believe that what our BSP chief is actually doing is just showing us why he is one of the world’s top central bank governors, rated to be even better than the US Fed’s Ben Bernanke. Our Gov. Say rated an “A”, same as the previous year, compared to Bernanke’s “B”, an improvement from the previous “C”.

Only five other governors rated an “A” out of 50 rated by Global Finance magazine. An “A” rating represents an “excellent performance” in areas of “inflation control, economic growth goals, currency stability and interest rate management,” the statement announcing the ratings explained.

“Every year, we assess the determination of central bankers to stand up to political interference and their efforts at influencing their government on such issues as spending and economic openness to foreign investment and financial services,” Global Finance publisher Joseph Giarraputo was quoted as saying in the same statement.

So I guess the BSP chief wants to be rated “A” again next year and he won’t let something like a property bubble frustrate that. The latest precautions will also give us an early warning system and make banks behave themselves when tempted to be liberal to a sector that caused untold miseries abroad.

The previous rule excludes loans issued to individuals for property acquisitions or home construction, as well as to developers of socialized- and low-cost housing projects.

According to the BSP chief, “For purposes of determining a bank’s exposure under the new rules, real estate activities shall refer to the construction and development of real estate projects as well as other ancillary services like buying and selling, rental and management of real estate properties.”

“The new guidelines provide a more comprehensive measure of a bank’s real estate exposure. It now includes loans as well as investments in debt and equity securities, the proceeds of which shall be used to finance real estate activities,” he said.

Tetangco said the ceiling on real estate loans will remain at 20 percent, but served notice that the BSP will adjust this when necessary. He said the BSP will “review the ceiling after we get the reports from the banks to see if there is a need to adjust.”

He also stressed the move was not taken because asset prices are heading to a bubble. “In terms of loans, it is comfortably below 20 percent. If I am not mistaken, it is more or less 14 percent the latest that I’ve seen,” he told Interaksyon, referring to banks’ exposure to the property market.

It is just as well that the BSP is being proactive. An Australian website, Global Property Guide, recently acknowledged a robust property market here. In a posting last week, it heralded a “Big property surge in the Philippines!”

It opened its report with the observation that “As always happens in countries enjoying economic growth and fundamental structural reform, house prices are rising sharply.” It then offered figures to back that this is happening here.

In the first quarter of 2012, Global Property Guide reports that “the average price of a luxury three-bedroom condominium in Makati CBD rose 4.8 percent to P114,000 ($2,727.53) per sq. m. (q-o-q), according to Colliers International, or by 10.68 percent during the year to Q1 2012 (7.34 percent when adjusted for inflation).”

It continued: “Average prices in other key areas of Metro Manila, namely Rockwell Center and Bonifacio Global City, rose by 11.4 percent during the year to P119,500 ($2,859.12) in Rockwell, and by 8.6 percent to P112,900 ($2,701.21) in Bonifacio Global City.

“High-end residential real estate prices are likely to rise by another 9.9 percent during the next 12 months, according to Colliers. Rockwell Center is predicted to have the highest growth with a 9.9 percent y-o-y increase. Makati CBD and Bonifacio Global City values are expected to rise by 8.2 percent and 5.9 percent, respectively.”

Global Property Guide also reported that “The highest rents are still in Rockwell Center, with condominium average rentals of P780 ($18.66) per sq. m. per month in Q1 2012, up 1.3 percent on the previous quarter. In Makati’s CBD, a 290-sq. m. unit rental averages P658 ($15.74) per sq. m. per month.”

The Guide reports: “Overseas Filipinos’ remittances are powering the low-end to mid-range residential property market. They are snapping up housing projects and mid-scale subdivisions in regions near Metro Manila such as Cavite, Batangas and Laguna Provinces, while the expansion of the upper residential market, including the luxury market, is due to increased housing demand from BPO employees and expatriates, according to the World Bank.”

Citing the Ayala experience, The Guide points out that OFWs account for around 17 percent to 18 percent of residential sales of Ayala Land. “In the next five years Ayala Land president Antonino Aquino expects to double this, by branching out to the affordable and low-end market segment.”

The Guide observes that “Ayala Land is a late entrant to this market, previously dominated by companies such as Vista Land and Lifescapes Inc. Around 55 percent of Vista Land’s reservation sales currently go to OFWs in Asia, Europe and Middle East, while US-based OFWs account for another five percent to 10 percent of sales.”

Ayala will have some catching up to do in the mid-market. When I last talked to Sen. Manny Villar, he told me of his plans to be, in his words, ‘the Jollibee of affordable property.” Apparently, his flagship Vista Land had been land banking in key regional capitals and around Mega Manila. It is a matter of time before they go full blast developing these for the middle income market.

As expected, Sen. Villar does not think there is a glut in the property sector just yet. The market, he said, is so large. But he warned, a developer must know what segment of the market to exploit. He sees more promise in the affordable property segment, specially in fast growing regional centers outside of Metro Manila.

I suppose Sen. Villar is “happy na rin” that P-Noy’s victory has caused a dramatic rise in business confidence so that he may quickly enhance his premier position in the property market. That must have made it easier for him to agree on a coalition of his Nationalista Party with P-Noy’s Liberals. The senator said he can’t wait to go back to running his business enterprises after his term expires next year.

So it is clear: no property bubble yet in the horizon but the BSP is just being cautious. Having said that, those intending to buy property must exercise due diligence. It is first of all still location, location, location.

Secondly, pick a good reputable developer. Anybody can put up a building. But not every development is a Rockwell or an Ayala Land development. The numbers speak for themselves. Appreciation of property prices are highest in the reputable developments… not in the also runs no matter how upscale their market positioning may be. The more hard sell the advertising, the more cautious you should be.

Only OFW's, investors and upper class people can only afford to buy these condos, which only comprise about 20- 30% of the working population.

If they want to prevent bubble burst in property sector, they should engage in middle class type of residential scattered in Metro Manila. It doesn't need to have pools, gym, podium and other amenities. Just a low cost highrise apartments (<12F) with good parking option, good waste system and sewage system.

60-70% of working filipinos are only average earners.

Nowadays, a not so fancy 2BR condo already cost 5M with a monthly amortization of perhaps maybe P40,000. Take note that monthly amortization should only be 30% of the total household income. So inorder for you to buy 5M for a 2BR condo, your total household income must me P120,000! How many percent of working Filipinos have this net income?

Exactly. Kailangan ata more than half ang DP mo

^Which is very unlikely unless you win in a lottery haha!

They do. Your display picture is just the cutest. Is that your dog? Well, DMCI Homes do accepts these four-legged friends.


No offence, and I've nothing whatsoever against DMCI Homes but your constant plugging of this company is tiresome and would be much better kept to the specific project threads.

I like to read this thread for insight, analysis and news - not people simply using it as a vehicle to plug their company.

Empire East cleared to raise P2.69b

by Jenniffer B. Austria | Manila Standard Today | Saturday | Posted on September 01, 2012 | 12:01am

The Philippine Stock Exchange has approved the P2.69-billion stock rights offering of Empire East Land Holdings Inc., the property firm which teamed up with Japan’s Okada Group to build a luxury residential project in Entertainment City Manila.

Shareholders of Empire East will be entitled to purchase one right share for every four common shares they own at an offer price of P1 per share. The offer period will be on Oct. 8 to 12 while the shares will be listed in the PSE on Nov. 29.

Megaworld Corp., the major controlling shareholder of Empire East, committed to subscribe to its entitlement shares and to any unsubscribed rights shares that will not be taken up during the offer period.

The property firm tapped BDO Capital and Investments Corp. as the underwriter for the offering.

Empire East signed a joint venture agreement with Okada Group’s Tiger Resort Leisure and Entertainment Inc. and Eagle 1 Landholdings Inc. last month to take the lead with a majority stake in the development of a 12.95-hectare luxury residential resort condominium project in Entertainment City.

The high-end resident project will have more than 25 residential towers in several phases. Development cost is expected to reach P45 billion.

The company earlier agreed to increase its authorized capital stock to P33.4 billion from P23.4 billion.

Empire East reported a net income of P60.4 million in the first half, up 12 percent from P54 million posted in the same period last year.

Consolidated revenues also increased 21 percent to P1.15 billion from P954 million recorded a year ago, as real estate sales climbed to P712 million from P470 million during the period.

Source: http://manilastandardtoday.com/2012/09/01/empire-east-cleared-to-raise-p2-69b/

Floods encourage more high-rise developments

by July Rada | Manila Standard Today | Saturday | Posted on September 01, 2012 | 12:01am

Demand for high-rise residential units has increased further, following the heavy monsoon rains that flooded Metro Manila in early August, according to an executive of property consultancy firm Jones Lang LaSalle.

Claro Cordero Jr., head of research, consulting and valuation advisory at Jones Lang LaSalle Philippines, said the floods caused not only physical damages on properties but also emotional stress on city dwellers.

“As high-rise accommodation presents a better housing alternative for urban dwellers, the developers are also looking for locations that are less prone to flooding,” Cordero said in his research blog The Rise (of Flood) In Metro Manila: Lessons and Opportunities.

He said as of August 2012, some 142,000 new residential condominium units were expected to be made available within the next three years.

“This has led to an observed increase in real estate values in certain areas, where new communities could be established,” he said.

Metro Manila experienced heavy flooding following days of torrential rain in the recent weeks. The amount of rainfall last month revived memories on the devastation brought about by tropical storm Ondoy in September 2009.

The Ondoy floods not only affected the real estate values but also reshaped urban development trends in the metropolis.

Cordero said that while floods and the need for high-rise accommodation seemed inevitable, a more balanced and holistic development should also be advocated.

“The infrastructure [including adequate drainage] and support facilities and services should be sufficient to provide a more sustainable growth of these high-density developments/precincts,” he said.

Cordero said indiscriminate development without concern for the social and environmental impact could not only result in further degradation of the community and quality of the environment, but also lead to imbalanced sprawl and artificially-inflated real estate values, which could have far more damaging repercussions in the future.

“At the same time, this phenomenon presents a new venue to review and look at how other neighboring countries have resolved the issue of balanced development in providing affordable and safe accommodation, especially for the low- and middle-market segments,” he said.

Cordero said flood-prone areas were not necessarily ineffective to rebuild, “but new technologies and measures to minimize the adverse impact of frequent and damaging flooding on property developments should be introduced in the process.”

Source: http://manilastandardtoday.com/2012/09/01/floods-encourage-more-high-rise-developments/

Floods bring out wiser buyers, developers

by Tessa R. Salazar | Philippine Daily Inquirer | Saturday, September 1st, 2012 | 1:47 am

As more flood-prone areas are pinpointed with the increasing intensities of weather disturbances, property experts have observed that buyers are becoming wiser and more meticulous in choosing the areas to invest in, as lessons (some painful) from past inundations are beginning to stick. Property analysts see barren days ahead (business-wise, that is) for developers who insist on building in flood-prone areas.

“Caveat emptor (let the buyers beware), the new set of homebuyers that we see now are educated and are Google savvy. They go through the process of initiating market information, geographic research using empirical data and first-hand data,” said Enrique M. Soriano III, Ateneo program director for real estate and senior adviser for Wong+Bernstein Business Advisory.

Soriano added that the only market that is still vulnerable to limited information are overseas Filipinos who have stayed in their host countries for too long to be aware of the situation in their home country.

National Real Estate Association chair Alejandro S. Mañalac explained, “In the first place, developers should have done due diligence and conducted a thorough study of the flooding history of a particular area before even considering to build,” adding that “this is the reason why buyers should look at the finer details when they compare prices.”

“Most of the time, people think they were able to save, until things like these happen and it is already too late to regret the wrong decision. It’s always best to consult professional and experienced real estate practitioners,” Mañalac added.

Stringent process

Julius Guevara, associate director, valuation and advisory services and head of consultancy and research of Colliers International, said that real estate developers typically undergo a stringent due diligence process where they analyze not only the financial risks in developing a parcel of land but the physical hazards as well.

Guevara said: “So, if the location is prone to flooding, then the developer may think twice or at least put in the necessary measures to mitigate the problem. However, developers who have the misfortune of building projects in flood-prone areas will be affected temporarily. But Filipinos tend to have a short-term memory and would likely forget about the risks if they are presented with a good enough deal.”

He cited as an example some subdivisions in the Pasig/Cainta areas which, according to him, were badly affected by Tropical Storm “Ondoy,” but have been doing well recently in terms of sales. “So if there are no other affordable options, people may take the plunge," Guevara said.

Claro dG Cordero Jr., Jones Lang LaSalle Leechiu’s head of research, consulting and valuation, told Inquirer Property that when Ondoy happened, buyers became more wary of flood-prone areas.

“However, as in the experience months after Ondoy, this challenge was welcomed by developers and they have made several major capital expenditures and investments to mitigate the effects of these natural calamities.”


Reshaping urban dev’t trends

Cordero recalled in the Aug. 24, 2012 JLL research blog “The Rise (Of Flood) In Metro Manila: Lessons and Opportunities,” that “the widespread flooding in Metro Manila in 2009 not only affected the real estate values but was instrumental in reshaping urban development trends consequently.” He added that physical damages and emotional stress from such continual flooding have added to the strong demand for high-rise accommodations.

Cordero said that as of August 2012, the total number of new residential condominium units which will be made available within the next three years has run to more than 142,000. As high-rise accommodation presents a better housing alternative for urban dwellers, the developers are also looking for locations that are less prone to flooding. This has led to an observed increase in real estate values in certain areas, where new communities could be established.

Guevara added: “Given that natural calamities are no longer once-in-a-lifetime events, I would implore both the developers and the local governments to adhere to good urban planning and management practices. An increase in urban density is inevitable, but could be managed more effectively.”

He urged zoning restrictions to be followed to the letter, and if variances are given, the necessary infrastructure should then be put in place.

Guevara explained: “For example, the stormwater systems in the city are only designed to a certain threshold based on a population limit. If the number of housing units in an area is increased through the construction of a condominium, for example, then the stormwater and sewerage systems should also be upgraded to accommodate the increase. Otherwise, our systems will continue to be overwhelmed. Both the developer and the government should bear the cost; in other countries these infrastructure projects are funded through tax increment financing.”

Cordero recommended in JLL’s research blog, “While the flooding and the need for high-rise accommodation seem inevitable, a more balanced and holistic development should be advocated.”

He continued: “The infrastructure (including adequate drainage) and support facilities and services should be sufficient to provide a more sustainable growth of these high-density developments/precincts. Indiscriminate development without concern of the local social and environmental impact could not only result in further degradation of the community and quality of the environment, but lead to imbalanced sprawl and artificially inflated real estate values, which could have far more damaging repercussions in the future.”

Source: http://business.inquirer.net/79664/floods-bring-out-wiser-buyers-developers

More property dev'ts eyed near big gov't infra projs

by Louella D. Desiderio | The Philippine Star| Saturday | Updated September 01, 2012 12:00 AM

MANILA, Philippines - More property developments are locating close to big government projects such as the Light Rail Transit Line (LRT) Line 1 extension to Cavite, MRT-7 project and Daang Hari-South Luzon Expressway (SLEx) link.

Julius Guevara, associate director for advisory services at Colliers International, said in a press conference yesterday that property developers are looking closely at government infrastructure projects being implemented.

“The LRT and MRT projects are something we are really looking at, the LRT (Line 1) extension to Cavite and MRT-7 going to Quezon City up to a part of Bulacan. Developers recognize this and are currently positioning themselves around these infrastructure developments,” he said.

He said the Daang Hari-SLEx link, the first project to be rolled out under the government’s public-private partnership (PPP) program, is also seen to be driving more property development activity in that area.

“We are seeing more projects like this will help the property market in general,” he said further.

The P60-billion LRT Line 1 extension project will involve increasing the existing 20-kilometer (km) railway to 32.4 kms.

Through the project, the LRT Line 1 which runs from Roosevelt station in Quezon City until the Baclaran station in Pasay City, will be extended until Niyog in Bacoor in Cavite.

Outgoing Transport secretary Manuel Roxas II said earlier that the Department of Transportation and Communications is set to conduct a feasibility and engineering study on the plan to extend the LRT Line 1 further to Dasmariñas in Cavite.

The deadline for the submission of qualification documents for the project has been moved to Sept. 28 from an original schedule of Aug. 22.

The MRT-7 project meanwhile, involves the construction of a 22-kilometer train line with 14 stations which will extend from San Jose del Monte in Bulacan to the corner of North Avenue and Epifanio de los Santos Avenue (EDSA) in Quezon City.

The MRT-7 project also includes a 22-kilometer, six-lane highway to Bulacan.

Earlier, a joint venture between Marubeni Corp. of Japan and DM Consunji Inc., Marubeni-DMCI consortium signed with Universal LRT Corp. Limited a contract for the construction of the Metro Rail Transit System and Intermodal Transportation Terminal of the MRT-7 Project.

The Daang Hari-SLEx link was awarded to Ayala Corp. in December last year.

The 30-year contract will involve development and operation of a new four-kilometer four-lane toll road that will link the southern Cavite province to the SLEx.

Colliers International is engaged in providing real estate services focusing on property marketing, sales and leasing brokerage, real estate management, investment advisory, corporate solutions, valuation and consultancy or research services.

Source: http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=843896

OFW remittances boosting real estate industry
Manila Times
http://www.manilatimes.net/index.php/business/top-business-news/30110-ofw-remittances-boost-real-estate-industry

THE Real estate industry in the Philippines is on an uptrend path as overseas Filipino workers (OFW) remittances remain to be the largest contributor to its growth.

“OFW remittances were still the major player in the real estate,” said Karlo Pobre, Research Analyst of the Colliers International.

He added that in the first half of 2012, remittances contributed P1.8 billion to the Philippine economy.

Recent gross domestic product (GDP) figures showed that the country’s economy grew by 5.9 percent for the second quarter of 2012, while for the first semester, the growth was recorded at 6.1 percent

Besides remittances, business process outsourcing was also identified as one of the main drivers of the real estate growth in the country.

Meanwhile, among the market indicators in the Philippine real estate market, office, residential, hotel and leisure all posted positive figures, while industrial ended flat in the first half.

As for offices, Julius Guevara, associate director and department head of Colliers International, said that for the second quarter of 2012, vacancy in Makati marginally declined to 3.9 percent and is seen to stabilize at the sub 4-percent level at the end of the year.

He added that office rental rates consistently increased as landlords experienced strong pricing power, mainly because of limited office space.

Regarding the residential segment, Guevara noted that the large supply of studio and one-bedroom units, a segment most associated to Grade A and B buildings, has contributed to the relatively high level of vacancies in the previous year.

“Yet in the second quarter, overall vacancy rate in Makati was stable at 11 percent,” he added.

On the other hand, the Colliers International director noted that hotel and leisure is advancing in terms of occupancy rates and other factors.

“Occupancy rates are expected to exceed 70 percent level by the end of 2013, as the number of foreign arrivals is seen to grow by an additional 660,000 by the end of 2012,” he said.

In the industrial segment, Guevarra explained that it remained relatively flat because supply continues to remain passive, as developers are less poised toward expanding their industrial project portfolio.

Colliers International, a global real estate organization, is providing a full range of real estate services that focuses on property marketing, sales and leasing brokerage, real estate management, investment advisory, corporate solutions, valuation and consultancy/research services.

Century Group eyes key cities as future projects sites

by Zinnia B. Dela Peña | The Philippine Star | Monday | Updated September 03, 2012 12:00 AM

MANILA, Philippines – Fresh from the very successful launch of its P4.1 billion project along Commonwealth Ave., Century Properties Group Inc. (CPG) is looking at key cities nationwide as future sites for residential projects catering to the affordable segment of the market.

Century intends to increase its affordable housing portfolio from 41 percent to 46 percent of the group’s total projects due to brisk sales of The Residences at Commonwealth, the group’s maiden offering for this segment.

“Our Commonwealth project is only the first of a series of master-planned developments that Century plans to roll out in key cities nationwide for this category. We recognize the demand for residential property outside Metro Manila and this is part of our expansion plans,” said Century co-chief operating officer Marco R. Antonio.

The Residences at Commonwealth is an eight-tower mid-rise development offering a total of 2,300 units valued at more than P10 billion.

Read More: http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=844610

Empire East Readies P2.7-B Offer

by JAMES A. LOYOLA | Manila Bulletin | Sunday | September 2, 2012, 3:56pm

MANILA, Philippines — Empire East Land Holdings Inc. will be holding its P2.7 billion stock rights offering from October 8 to October 12, 2012 after getting the approval of the Philippine Stock Exchange for the listing of the rights shares.

PSE documents show, the firm will offer 2.7 billion of its new common shares to existing shareholders at the rate of one rights share for every four held at the offer price of P1.00 per share. The shares will be listed on November 29, 2012.

Megaworld Corporation, as the major and controlling stockholder of Empire East, has committed and undertaken to subscribe to the subsidiary’s rights offer entitlement and to any rights offer shares not taken up by other shareholders.

This will ensure that all 2.7 billion offer shares will be subscribed, said Megaworld.

Empire East said it intends to use the proceeds of the rights offer for land banking, project development and general corporate purposes.

Read more: http://www.mb.com.ph/articles/371899/empire-east-readies-p27b-offer

Property watch credit positive
Malaya
http://www.malaya.com.ph/index.php/business/business-news/12167-property-watch-credit-positive

Moody’s analyst says the BSP measures will prompt banks to tighten their credit controls on a high-growth area whose credit risks have escalated.

Credit-rating agency Moody’s Investors Service yesterday said that the recent efforts of the Bangko Sentral ng Pilipinas to closely monitor banks’ exposure to real estate loans is credit positive for their rated financial institutions.

“The measures are credit positive for Philippine banks with substantial real estate lending because they will prompt the banks to tighten their credit controls on a high-growth area whose credit risks have escalated,” Simon Chen, Moody’s analyst, said.

Chen noted that BSP data show that banks’ outstanding real estate loans in first-quarter 2012 rose 21 percent year on year to a record P524 billion, while their non-performing loan (NPL) ratio was 5.1 percent in the quarter, more than double the system’s overall NPL ratio of 2.4 percent.

The new measures supplement current BSP guidance, which limits a bank’s real estate exposure to 20 percent of its total loan portfolio and applies only to loans for the acquisition, construction and development of real estate projects,” Chen said.

The BSP has expanded the types of real estate exposures covered by the cap to include the following: loans granted to individuals to finance the acquisition or construction of residential real estate for own-occupancy; loans extended to land developers and construction companies to develop low-cost housing; and, investments in debt and equity securities that finance real estate activities

In addition, Chen said BSP will begin monitoring banks’ real estate exposure against their capital base on a bank-only and consolidated-banking-group basis.

“These changes will force banks to be more selective real estate lenders because the expanded definitions will push banks closer to the exposure limit. The new focus on monitoring real estate exposures against banks’ capital base, in addition to total loans, will also act as an extra consideration on banks’ lending decisions,” Chen said.

He added that these measures also illustrate the central bank’s proactive stance toward helping to shield banks from a drop in property prices after double-digit growth last year.

“The widened scope of the new framework will better capture banks’ total exposure to the real estate market and allow the regulator to better monitor their sensitivities to a market downturn,” Chen said.

Chen said among their rated Philippine banks, the ones that will be most affected by the new measures are Metropolitan Bank and Trust Company (Ba2 positive; D/ba2 stable), Rizal Commercial Banking Corporation (Ba2 stable; D-/ba3 stable), Allied Banking Corporation (Ba3 positive; E+/b1 positive) and United Coconut Planters Bank (B2 stable; E/caa1 stable).

“Based on the banks’ reported financials at the end of 2011, these banks have a higher proportion of real estate loan exposures, including both residential and commercial, in their consolidated group loan portfolios, compared with the banking system average of 15.2 percent at the end of March 2012,” Chen said.

Bangko Sentral ng Pilipinas Governor Amando Tetangco, also the Monetary Board chairman, said that the tighter guidelines were meant to give regulators a “bigger or fuller view.”

“So the new measure would cover not only all loans to real estate. (It will also) cover all investments in debt and equity securities the proceeds of which will ultimately finance the needs of real estate companies,” Tetangco said.

Tetangco explained that there are some forms of funding that go to the real estate sector that do not come in the form of loans like investment in securities.

“The proceeds of some of these also are used by the real estate (companies). We want to also capture that and see how much funding is really going to the property sector,” Tetangco said.

Tetangco also said that 20 percent limit set for banks for loans to real estate remains but is “under review”.

Tetangco assured that in terms of the total loan portfolio, banks’ exposure to real estate remains below the 20 percent limit.

sige tayo lang tayo ng mga condo projects sa Metro Manila at lahat ng mga OFW's at mga taga probinsya ay palipatin lahat sa Metro Manila. pag dumating na yung problema sa tubig, kuryente, basura at traffic ay saka pa lang maiisip ng gobyerno na mali pala ginawa nila. :ohno: :bash:

sige tayo lang tayo ng mga condo projects sa Metro Manila at lahat ng mga OFW's at mga taga probinsya ay palipatin lahat sa Metro Manila. pag dumating na yung problema sa tubig, kuryente, basura at traffic ay saka pa lang maiisip ng gobyerno na mali pala ginawa nila. :ohno: :bash:

I don't think it will be problem. More condominiums means more ergonomic and it will open more open spaces in Metro Manila. These open spaces can be converted into more access roads to ease traffic, waterways to reduce flooding, parks and recreation areas.

Condo's are built with strategic parking areas and waste management system. Mas madali ang management ng wastes kasi consolidated na ito unlike kung mga landed houses na paisa-isa ang collections. Wala ka na ring makikitang mga sasakyan na naka-park sa mga gutters and pavements kasi nga may allocated parking areas ang mga condo.

And ofcourse during rainy season, wala nang maapektuhan ng mga baha kundi yung mga nakatira na lang sa mga landed houses. Mababawasan ang damages kumbaga.

But in parallel, dapat mabawasan or maminimize ang mga illegal settlers. I am for riverside and bay developments, eto kasi yung mga lugar na pinamumugaran ng mga IS.

I don't want to mention the risk of earthquake. Sana lang earthquake proof ang mga condo na ito.

Isa sa mga nakikita kong disadvantage kung puro condo na at highrises na sa Metro Manila ay ang mabilis na pagtaas ng inflation. More transactions, good to economy and high inflation will follow.

I don't think it will be problem. More condominiums means more ergonomic and it will open more open spaces in Metro Manila. These open spaces can be converted into more access roads to ease traffic, waterways to reduce flooding, parks and recreation areas.

Condo's are built with strategic parking areas and waste management system. Mas madali ang management ng wastes kasi consolidated na ito unlike kung mga landed houses na paisa-isa ang collections. Wala ka na ring makikitang mga sasakyan na naka-park sa mga gutters and pavements kasi nga may allocated parking areas ang mga condo.

And ofcourse during rainy season, wala nang maapektuhan ng mga baha kundi yung mga nakatira na lang sa mga landed houses. Mababawasan ang damages kumbaga.

But in parallel, dapat mabawasan or maminimize ang mga illegal settlers. I am for riverside and bay developments, eto kasi yung mga lugar na pinamumugaran ng mga IS.

I don't want to mention the risk of earthquake. Sana lang earthquake proof ang mga condo na ito.

Isa sa mga nakikita kong disadvantage kung puro condo na at highrises na sa Metro Manila ay ang mabilis na pagtaas ng inflation. More transactions, good to economy and high inflation will follow.

Tama. As long as there is a real demand, more condos or real estate projects contribute positively to the economy of the country.

There were reports that former Filipino renters are now condo owners. So, there is a paradigm shift among the mindset of Pinoys nowadays. It shows that there is a strong urge among young Filipinos professionals/businessmen to own condos or houses.

^Not to mention, BF interest rates are going down nowadays!

I've checked BPI and they have a promo of 7.5% interest rate fixed for 5 years.

https://fbcdn-sphotos-d-a.akamaihd.net/hphotos-ak-prn1/538404_417859774937819_1290609258_n.jpg

https://fbcdn-sphotos-d-a.akamaihd.net/hphotos-ak-prn1/538404_417859774937819_1290609258_n.jpg

Ito yong kay Injap Sia and Tony TanCaktiong ng Jollibee.

^^^^interesting!

Study: One strong earthquake can devastate Metro Manila
Business Mirror
http://www.businessmirror.com.ph/home/top-news/32493-study-one-strong-earthquake-can-devastate-metro-manila

THE two consecutive earthquakes that jolted Eastern Leyte and Bukidnon last week created panic in the affected communities.

While the impact of the magnitude-7.6 earthquake that hit Eastern Leyte and the magnitude-5.6 earthquake in Bukidnon was minimal because very few people inhabit the areas hit, they nonetheless struck fear in the hearts of Filipinos, aware that the country itself is on the Pacific Ring of Fire.

Remembering the 1990 earthquake that brought down vibrant Baguio City, the country’s summer capital and a prime tourist destination, to its knees, the question lingers: What would happen if an earthquake of such strength hit Metro Manila in the dead of the night? Or even during hours when people are in their workplaces?

With an estimated population of 12 million and towering residential and commercial buildings scattered all over it, what would be the impact of a magnitude-7.2 earthquake when it hits Metro Manila?

Still recovering from the effects of Tropical Storm Ondoy in the last quarter of 2009 and the heavy rains induced by the hanging habagat, or southwest monsoon, just last month, disaster preparedness initiated for the inundation remains sadly wanting.

Earthquakes are considered far deadlier than other natural calamities, their impact on lives and property far more severe than the flash floods that residents of Metro Manila and other low-lying areas in the provinces have experienced with intense typhoons, heavy rains and widespread floods, which are, in fact, now being considered the “new normal” because of the advent of climate change.

Earthquakes are known to cause buildings and bridges to collapse, trigger widespread fires, cut power, water and means of communications, create tidal waves or tsunamis and wipe out entire cities from the map, such as the one that triggered a tsunami and eventually a nuclear crisis in Japan.

A study conducted by the Philippine Institute of Volcanology and Seismology (Phivolcs) in 2004 showed that one strong earthquake—with a magnitude ranging from 6.5 to 7.9 on the Richter scale—can devastate Metro Manila and create complete chaos, even without the aggravating circumstances of a nuclear disaster as had happened in Japan.

Metro Manila lies along the path of several fault lines, including the West Valley Fault and the East Valley Fault, which makes it “highly at risk.”

The study, titled “Earthquake Impact Reduction Study for Metropolitan Manila in the Republic of the Philippines,” was conducted in collaboration with the Metropolitan Manila Development Authority and the Japan International Cooperation Agency. The study developed 18 earthquake scenarios, and provided concerned government agencies a picture of what could happen should such a devastating earthquake take place.

The distribution of ground motion, seismic intensity, liquefaction potential and slope stability were calculated for the earthquake scenarios by experts that pictured a “doomsday” scenario for Metro Manila, the seat of economic and political power in the Philippines.

Three of the scenarios—the West Valley Fault, the Manila Trench and the 1863 Manila Bay—could cause severe damage to Metro Manila, according to the study.

The West Valley Fault and the East Valley Fault that run north to south along the west and east edge of Marikina Valley are thought to pose the greatest threat to Metro Manila due to their proximity, the study said.

According to the study, a magnitude-6.5 to 7.9 earthquake striking Metro Manila is no longer in doubt.

“The likelihood of an earthquake of such magnitude to happen is certain. What we are not sure about it is when it will happen,” Ishmael Narag, officer in charge of the Seismology Division of Phivolcs, said.

A magnitude-7.2 earthquake, one of the scenarios developed, can devastate Metro Manila.

With such magnitude, people are forcibly thrown to ground. Many cry and shake with fear. Most buildings are destroyed. Bridges and elevated concrete structures are toppled or destroyed. Numerous utility posts, towers and monuments are tilted, toppled or broken. Water sewer pipes are bent, twisted or broken. Landslides and liquefaction with lateral spreadings and sand boils are widespread. The ground is distorted into undulations. Trees are shaken very violently, with some toppled, broken or uprooted. Boulders are commonly thrown out. River water splashes violently on slopes over dikes and banks.

In the first hour, according to the study, its impact is estimated to destroy 168,300, or 12.7 percent, of the 1.33 million residential buildings in the metropolis, and damage 339,800, or 25.6 percent.

Of the estimated 9.93 million people of Metro Manila, some 34,000, or 0.3 percent, would die, 90 percent of them inside the collapsed buildings; at least 113,600, or 1.1 percent, of the total population would sustain injuries. The injured may suffer trauma and bone fractures caused by the collapsed building and falling furniture.

The figure, according to the study, includes trapped people who are not immediately rescued from collapsed buildings and who may eventually die.

But the study revealed that in case of such a strong earthquake, the number of fatalities in squatter areas would be minimal.

In the next three to seven days, aftershocks would cause further building damage and some 1.26 million people would lose their homes and would have to seek shelter elsewhere for safety.

Habitation in high-rise residential buildings would become impossible.

As the earthquake inflicts damage on buildings, electric cables and telephone posts are tilted and broken; there would be no power and electricity, no means of communication and even water supply as the movement of the ground could also severely damage water facilities—and the main sources of water for Metro Manila’s supply, the La Mesa Dam.

Worse, public buildings, such as hospitals, schools, even fire departments, police and even local government units (LGUs), could be heavily damaged, making it difficult for rescue, relief and eventually rehabilitation effort more difficult.

The study estimated that of the 981 medium-rise buildings (10 to 30 stories), 11 percent would be destroyed and 27 percent damaged; of the 119 high-rise buildings (30 to 60 stories), 2 percent could be destroyed and 12 percent damaged.

The expected simultaneous outbreak of fires in about 500 different areas could be triggered by electricity short circuits. Fire in factories, hospitals, residential kitchens, petroleum and LPG leakages from storage tanks could also happen simultaneously within an hour after the earthquake.

Runways in airports could be damaged, and airports could encounter problems as a result of damage to airport facilities. Eventually, runways would be closed and only helicopters would be available.

Ports and harbors could also be damaged and tilted by liquefaction, while severe damage to roads and bridges would render major roads impassable, making distribution of relief goods, food, shelter and, more important, medicines for the injured and the sick in evacuation centers more difficult.

The scenarios also indicate that even Malacañang, the House of Representatives and the Senate buildings would suffer damage, as well. Official functions would be severely limited, therefore.

But Narag was quick to note that since the study was conducted and completed in 2004, Phivolcs and other concerned agencies have been closely coordinating to strengthen and prepare for the worst-case scenarios.

He said, in fact, the upgrading of the National Disaster Coordinating Council to the National Disaster Risk Reduction and Management Council was a major step in putting in place disaster-risk reduction plans against all kinds of natural calamities, including devastating earthquakes.

According to Narag, the study’s recommendations and action plan were already integrated in the master plans of various government agencies and some LGUs.

“The Department of Education and other concerned agencies are continuously conducting earthquake and fire drills in schools. The Department of Public Works and Highways is also looking into the structural defects of buildings and is making sure that proper engineering designs are in place,” he said.

The Department of Health, he said, had also crafted a master plan in case of such disaster.

The Philippine National Police and the Bureau of Fire Protection, he said, are also well aware of what to do in case of such national emergency.

“Even LGUs are strengthening their disaster risk-reduction strategies, and earthquake is one of those they are preparing for,” he said.

Some barangays, in fact, are conducting their own earthquake, flood and fire drills, he added.

The study urged concerned government agencies to prepare and draft master plans to reduce the risk of disasters.

But Narag said the impact of a devastating earthquake as developed in the 2004 study needed updating.

He said that by now, the number of people living in Metro Manila has gone up. There are also more residential and commercial buildings, as well as public infrastructures such as bridges and flyovers.

According to Narag, the impact of a devastating earthquake in Metro Manila is expected to radiate to neighboring towns and cities in the provinces near it. Even Rizal, Cavite, Laguna, Bulacan and Pampanga may be severely affected and their governments would not be able to provide help for Metro Manila because they would also need to look after their own people.

“The impact of an earthquake could be worse if we are not prepared for it. That’s why our ongoing risk-assessment project covers even floods and other geological hazards,” he said.

Narag said proper information, education and communication is important to make people aware of the potential impact of strong earthquakes and what needs to be done in case of emergency.

According to Narag, Phivolcs, in collaboration with the Australian Government Overseas Aid Program, the Philippine Atmospheric, Geophysical and Astronomical Services Administration, the Mines and Geosciences Bureau and the National Mapping and Resource Information Authority and concerned LGUs, is conducting similar “risk analysis projects” to include the possible impact of a devastating earthquake on neighboring provinces such as Rizal, Cavite, Laguna in the south, and Bulacan up to Pampanga in the north.

The new study, he said, would be comprehensive and hopes to come up with, like the 2004 study, sets of recommendations and action plan designed to reduce the risk of disasters as a result of a devastating earthquake.

“We are targeting the release of the study by the end of March next year,” he said.

The new study, he said, will update data and records, such as the population, number of residential and commercial buildings, identify schools and hospitals, pinpoint bridges and overpasses, and other public infrastructures that are potentially at risk in Metro Manila, as well as in Rizal, Cavite, Laguna, Bulacan and Pampanga. The study, he said, would also come up with recommendations to help prepare the various stakeholders in case of such tragedy.

GSIS plans sale of 4 properties

by Bernadette Lunas | Manila Standard Today | Monday | Posted on September 10, 2012 | 12:01am

State-run Government Service Insurance System plans to sell four real estate properties this year and rebuild its office on a three-hectare lot in Quezon City.

GSIS president and general manager Robert Vergara said the state pension fund would bid out some of its properties in Metro Manila this year, including a P1.6-billion lot in Pasig City and the former jai alai property in Manila.

The Pasig property, at the corner of Doña Julia Vargas and Meralco Avenues in Ortigas Center, is an 18,498 square-meter lot with an appraised value of P1.6 billion as of mid-2010. It is currently used by the Metro Manila Development Authority as an impounding area.

Meanwhile, the 6,470-square meter former jai alai property on Taft Avenue in Manila has an appraised value of P300 million.

The fund manager also plans to sell the Polymedic Apartment 1 and Polymedic Apartment 2 in Mandaluyong City.

Vergara, however, said they may defer the sale of the 2,411-square meter Philcomcen Building in Ortigas Center and the 2,429-square meter GSIS office in Makati City.

Source: http://manilastandardtoday.com/2012/09/10/gsis-plans-sale-of-4-properties/

33-Hectare Fort Lot Opened For Bidding

By BERNIE CAHILES-MAGKILAT | Manila Bulletin | Thyrsday | September 13, 2012 | 6:57pm

MANILA, Philippines — The Bases Conversion and Development Authority (BCDA) has terminated the competitive challenge proceedings also known as “Swiss Challenge” for the 33.1 hectare Bonifacio South property finally dropping the unsolicited proposal of SM Land Inc. but did not bar the property arm of the Sy Group from participating in the competitive bidding that it has decided to pursue for the sale of this prime property.

BCDA President and CEO Arnel Paciano D. Casanova said BCDA decided to set aside the unsolicited proposal of SMLI pursuant to the Office of the President’s directive.

Casanova noted that it will be more advantageous to government to conduct open competitive bidding for its land assets since it will not only result in getting the best price but the best development for the property.

“Transparency, which is the heart of public bidding, will ensure that everything is above board. This in turn will encourage the best bidders to compete in a level playing field,” Casanova said.

It could be recalled that BCDA published the invitation to real estate firms to submit comparative proposals to challenge the unsolicited proposal of SMLI for this prime property.

Read More: http://www.mb.com.ph/articles/373385/33hectare-fort-lot-opened-for-bidding

Tama. As long as there is a real demand, more condos or real estate projects contribute positively to the economy of the country.

There were reports that former Filipino renters are now condo owners. So, there is a paradigm shift among the mindset of Pinoys nowadays. It shows that there is a strong urge among young Filipinos professionals/businessmen to own condos or houses.

I AM WITH YOU.

I don't think it will be problem. More condominiums means more ergonomic and it will open more open spaces in Metro Manila. These open spaces can be converted into more access roads to ease traffic, waterways to reduce flooding, parks and recreation areas.

Condo's are built with strategic parking areas and waste management system. Mas madali ang management ng wastes kasi consolidated na ito unlike kung mga landed houses na paisa-isa ang collections. Wala ka na ring makikitang mga sasakyan na naka-park sa mga gutters and pavements kasi nga may allocated parking areas ang mga condo.

And ofcourse during rainy season, wala nang maapektuhan ng mga baha kundi yung mga nakatira na lang sa mga landed houses. Mababawasan ang damages kumbaga.

But in parallel, dapat mabawasan or maminimize ang mga illegal settlers. I am for riverside and bay developments, eto kasi yung mga lugar na pinamumugaran ng mga IS.

I don't want to mention the risk of earthquake. Sana lang earthquake proof ang mga condo na ito.

Isa sa mga nakikita kong disadvantage kung puro condo na at highrises na sa Metro Manila ay ang mabilis na pagtaas ng inflation. More transactions, good to economy and high inflation will follow.


THAT IS THR TRUTH.

Gatchalian-led Wellex shifting to real estate

By Zinnia B. Dela Peña | The Philippine Star | Friday | Updated September 14, 2012 | 12:00 AM

MANILA, Philippines - Gatchalian-led Wellex Industries Inc. is realigning its business and shifting focus from mining to real estate development to unlock the value of the 60-hectare Plastic City estate in Valenzuela City amid a resurgent property market.

On the sidelines of the company’s annual stockholders meeting yesterday, Wellex president and chief executive officer Weslie T. Gatchalian said the group is putting its mining plans on the backburner to allow it to jumpstart the development of a mixed-use urban complex on the property.

Wellex owns around 16 hectares out of the estimated 60 hectares of land in Plastic City.

“We’re shelving first our mining plans because we are seeing the potential of the real estate market in the Philippines. We wanted to catch this boom or growth in the country’s real estate sector,” Gatchalian said.

He said the group has already started discussions with five major real estate developers and expects to close a deal with one of them within the year.

Read More: http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=848552

Century’s Masterplanned Projects Cost P34B

by JAMES A. LOYOLA | Manila Bulletin | Sunday | September 16, 2012 | 4:12pm

MANILA, Philippines — Century Properties Group, Inc. is constructing its four masterplanned developments within Metro Manila at a projected cost of P34 billion as it positioned to take advantage of the sustained strength of the real estate market.

According to Century chief financial officer Jose Carlo R. Antonio, the company has sold 87 percent, or 9,017 units, from 10,336 units available for sale in Century City, Azure Urban Resort Residences, Acqua Private Residences and The Residences at Commonwealth by Century.

“We are humbled by the markets’ acceptance of our developments as we have pre-sold 87 percent of the units we have made available for sale as of June 2012. Furthermore, we are very thankful of the support of our financial partners,” he said.

Century raised P1.6 billion in a pre-IPO basis prior to its becoming public in January 2011, P2.3 billion from the sale of Century’s shares in February 2012, and has approved bilateral credit facilities of P5.5 billion from 10 financial institutions as of September 2012.

“This brings our financing capabilities to P10.4B,” Antonio added.

The sites of the four masterplanned communities have been converted to the highest and best use of land. Where former schools, sugar refineries or car factories formerly existed, thriving mixed-use developments are being constructed in Makati, Parañaque, Mandaluyong and Quezon City.

“Developing new projects in older, underutilized real estate allows us to revitalize overlooked prime areas. It naturally enhances the urban makeup of these sites, and consequently their property values,” Antonio said.

He pointed out that “all these projects were masterplanned with our customer’s experience and innovation in mind. We will endeavor to replicate these considerations and qualities when we expand our portfolio outside Metro Manila.”

Source: http://www.mb.com.ph/articles/373663/century-s-masterplanned-projects-cost-p34b

Megaworld creates LRMS to assist condo owners lease out, sell their units
Business Mirror
http://www.businessmirror.com.ph/home/economy/33740-megaworld-creates-lrms-to-assist-condo-owners-lease-out-sell-their-units

Megaworld Corp. is adding another sweetener to its aftersales services as it created a new unit that will bridge condominium unit owners who want to lease out or sell their units to prospective lessees and buyers.

Aside from finding buyers or lessees, the newly formed Leasing and Resale Management Services (LRMS) will also assist in negotiating and selecting bank financing options, and in maintaining and refurbishing the units.

The services of LRMS, which falls under Megaworld new marketing division Prime Properties Investment Group (PPG), are for free.

“PPG was created with a long-term vision of providing the best services to all our clients. Thus, we think of ways on how to reach out to all our clients by letting them feel like VIPs even if they already want to sell their units,” Donna Racho, PPG vice president for sales and marketing, said.

LRMS will be formally launched on Saturday. It will initially focus on the 19 residential towers in Eastwood City, the first township project of Megaworld, and later expand it to Bonifacio Global City and McKinley Hill.

Harold Geronimo, Megaworld marketing director, said LRMS will make it easier for unit owners to find lessees as Megaworld maintains a database of prospective clients. “We have a database of employees and companies, particularly BPOs [business-process outsourcing], in Eastwood. So if an owner will lease out his unit, we will just call these companies to find the match,” Geronimo said.

Racho said even before the formal launch, there are now about 10 owners who expressed interest in leasing their units through LRMS.

With this new department, both the unit owners and the lessees do not need to meet prior to the actual signing of the lease contract. In case of contract breaches, LRMS will also assist both parties in coming to terms. It will also do monthly visits to make sure the units remain in good condition.

“We can also do negotiations, but within the market value,” Racho said.

PPG was created to cater to a small segment of ready-for-occupancy (RFO) buyers for Megaworld projects in Eastwood, McKinely Hill, Forbestown Center, Newport City, and in-city projects in Makati, San Juan and Quezon cities. It gives free interior design services to RFO buyers who want to change the looks of their units according to their own tastes.

How can I be assured with the lot I am going to buy? will the deed of absolute sale enough? how can i be assured that there is no double sale for the same lot? when is the best time (in the process of title transfer) to give the cash payment?

BSP to regulate in-house funding schemes :ohno:
Preemptive move to avoid property price bubble

By Michelle V. Remo
Philippine Daily Inquirer
1:47 am | Monday, October 8th, 2012

The Bangko Sentral ng Pilipinas is drawing up policies to regulate the proliferation of in-house financing schemes, a popular means of aiding prospective buyers of real estate assets.

BSP Governor Amando Tetangco Jr. said monetary authorities were reviewing in-house financing activities in the country, particularly their extent and economic impact, to avoid an asset price bubble. The review will serve as the basis for the appropriate regulations to be implemented.

Tetangco said the review was being led by the BSP and the Securities and Exchange Commission. The SEC regulates financing companies while the BSP oversees the overall credit and liquidity situation in the economy.

“A closer look at in-house financing schemes is necessary. If there is excessive lending, this could create a bubble,” Tetangco told the Inquirer.

In the ongoing review, regulators wanted to find out the volume of transactions accounted for by in-house financing companies as well as their credit standards.

Tetangco said working closely with the SEC, together with other government agencies that are members of the Financial Stability Coordinating Council (FSCC), was necessary given that the BSP has no regulatory power over financing companies.

He said in-house financing schemes were one of the subjects being discussed by the FSCC as far as managing risks to the entire financial sector was concerned. Other issues included activities related to the sale of securities.

“The FSCC is tasked to identify areas of brewing pressures and to take pro-active measures before these risks spill over,” Tetangco said in a speech during a convention of finance executives last Friday.

The move to look into the activities of financing companies was in line with efforts of the BSP to caution banks against excessive real-estate lending.

Last July, the BSP directed banks to review the extent of their exposure to the real estate sector and ensure that this was kept within prudent levels.

In particular, the BSP said banks should now include housing loans extended to individuals and loans given to socialized housing developers in the computation of “real estate exposure.” Banks are required to keep their real estate exposure at a maximum 20 percent of their loan portfolios.

Previously, only commercial loans to property developers were included in the computation of real estate exposure.

Documents from the Bangko Sentral ng Pilipinas showed that outstanding housing loans extended by thrift, universal and commercial banks in the country amounted to P232.57 billion as of the end of the first quarter, up 21 percent from P192 billion the previous year.

Nonperforming real-estate loans, or loans for which amortization has remained unpaid for a certain period following maturity, accounted for 5.6 percent of total real estate loans. Although considered negligible, the 5.6 percent was higher compared with the average NPL ratio for all types of loans, which was just about 2 percent.

http://business.inquirer.net/85976/bsp-to-regulate-in-house-funding-schemes

CBRE SAYS: Property prospects still robust
Malaya
http://malaya.com.ph/index.php/special-features/property/14979-cbre-says-property-prospects-still-robust

Property consultant CB Richard Ellis is confident opportunities in the property market remain to be robust as property developers “exhibit maturity in their development strategy --- utilizing the hard-learned lessons from the Asian financial crisis of 1997.”

“With recent industry developments, the brewing problem is not market absorption but rather, the ability of the property companies to sustain revenue growth through future developments and as supported by their existing landbank,” CBRE said.

“Some property companies may not have taken into consideration the importance of accumulating raw land for future projects and were rather preoccupied with the development, sale and lease of their existing projects,” the property consultancy firm said.

Citing data in the second quarter of the year, CBRE said the local property market remained “among the best performing markets in the region.”

“Developers are actively pursuing projects and more big ticket developments are being lined up in the sectors of residential, office, hospitality and retail. Consistent with their expansion plans, developers are aggressively working on the acquisition of land which would be included in the ranks of active projects,” it said.

Developers are also “keen” on developing their current landbanks to take advantage of the market momentum that makes its “very suitable” to develop properties.

“Investments are still concentrated in the business districts of Makati and Fort Bonifacio though developments are becoming more active in the fringes... As a result of the scarcity in the supply of developable land in Makati, new projects within the CBD (central business district) are focused on redevelopments and refurbishments. Fort Bonifacio, on the other hand, still has areas of vacant developable land and remains among the major interest of developers as locations for real estate projects,” said CBRE.

CBRE said developers are in a “site acquisition frenzy,” driving land values in major business districts higher with land properties in Makati and Fort Bonifacio being the highest.

“Land transactions, however, are more active in Fort Bonifacio partly due to the availability of supply of developable areas. Also, acquiring additional FAR (floor area ratio) in Fort Bonifacio is easier than in Makati,” CBRE said.

CBRE noted that maximum FAR of lots in Makati are “less varied with a mode of FAR 16.”

“In Fort Bonifacio, maximum FAR are more likely to differ even between adjacent lots,” it said.

“While land values in Makati are higher, its accommodation values are lower than in Fort Bonifacio. This is due to the higher allowable floor are ratios in Makati. Stated differently, while land values in Makati can be 15 percent to 20 percent higher than in Fort Bonifacio, accommodation values in Fort Bonifacio can have 20 to 25 percent premium over Makati,” CBRE said.

The office segment of the market has not shifted to a demand-driven market with demand outpacing supply.

The consecutive quarters of tight supply situation, with most BPO offices hitting full occupancy, led the office market to reach the phase of “undersupply,” according to CBRE.

“Starting 2011, vacancy rates in the five major business districts have never gone up beyond the 5 percent level and in 2012 with the exception of Ortigas, average occupancy rates of the business districts were kept well above 96 percent. As a result, lease rates of offices have been continuously rising with rental growth being more pronounced in BPO buildings,” it said.

CBRE said supply pressures were steady as office space turnover remained “very limited.”

“Demand has not waned particularly with the sustained growth momentum of the outsourcing and offshoring sector. Due to the scarcity of available supply, the greater proportion of leasing transactions were concentrated on upcoming offices,” it said.

“The pre-leasing of upcoming buildings has been very active, the level of which the office market has not seen since the onslaught of the global financial crisis. In fact, almost 81 percent of the total leasable space which are up for pre-leasing and expected to be completed within the second half of the year are already taken up,” it added.

In the residential segment, luxury condominium lease rates remained steady despite competition from newly completed Grade A developments, CBRE said.

Newly-renovated houses at upscale residential subdivisions are likewise being considered by tenants as alternatives to luxury residential condominiums.

CBRE, however, said lease rates have remained steady due to strong demand from expatriates whose number continues to rise.

This is also a result of landlords’ stance to balance rental movements to match the intensity of demand with the threshold of tenants on lease rates,” it said.

CBRE said luxury-branded Raffles Residences is set to turnover its units towards the end of the year and will add 220 luxury condominiums units of supply Makati.

“In 2013, another 90 units is expected to be added on the Makati supply with the completion of Discovery Primea. On the other hand, 96 units of luxury condominium are set for turnover in 2014 in Fort Bonifacio which will come from the Shangri-La at the Fort project,” CBRE said.

“By 2014, another project in Fort Bonifacio will be completed which will provide another 298 luxury condominium units. The project is slated for launching during the third quarter of the year,” it added.

“Lease rates are likely to be stable at current levels due to the consistent strong demand from the expatriate population. Landlords however are in a wait in see attitude on how to adjust rents given the upcoming completion of the Raffles Residences in Makati towards the latter part of the year,” CBRE also said.

It, however, cautioned that occupancy rate may slide due to the additional supply expected in the market.

“However, the market is expected to recover shortly on occupancy due to the influx of expatriates who are expected to require luxury condominiums. Given the bright investment prospects in the country and the scarcity of supply of luxury condominiums for sale, The Suites is expected to have a strong take-up on its pre-selling stage,” it said.

In the retail segment, retail centers are rising as the labor market also improves, beefing up consumer spending.

“Expansion in the outsourcing and offshoring sector coupled with the stable growth in OFW remittances is supporting the high level of consumer spending. The labor market continues to grow with the favorable employment situation resulting to the rise in income of households,” CBRE said.

“With an increasing population backed by job opportunities and a strongly growing economy, bright prospects are sustained in the expansion of the retail sector,” it added.

CBRE noted that the second quarter was an “encouraging period” for retail operators with substantial growth in sales recorded given the start of the school season.

“Sales are also consistently supported by payday weekend sale of shopping malls in which mall hours are extended and retail items are offered in marked down prices,” it said.

CBRE said spending for retail products is seen to remain high throughout the year “as the rate of inflation remains manageable.”

“The retail sector will continue to grow mainly driven by the high consumer spending of the population. Income sources particularly local employment and OFW remittances which are the backbone of consumer spending are not likely to be on the downward trajectory given the steady expansion of the outsourcing and off shoring sector and the stable increase in the deployment of overseas Filipino workers. A large number of BPO offices in the pipeline have already been pre-leased. This indicates how much more new employment will be created by the outsourcing sector alone,” it said.

CBRE noted that developers are focusing on cluster developments, with more retail centers planned as part of mixed-use projects. Retail developments are also being built closer to residential condominium dwellers by constructing retail podiums as a component of multi-tower projects, it noted.

“Among the segments of the retail sector with apparent aggressive growth is the supermarket segment. Retail companies engaged in the operations of supermarket chains are actively pursuing expansion projects due to the increasing sales potential arising from the growth in population which is matched by income sources such as the favorable labor market and OFW remittances, CBRE said.

The slowing manufacturing sector meanwhile is posing a challenge to industrial land owners the industrial market remains challenged by weakening demand from major Philippine partners like the United States, Japan, China and Europe.

Manufacturing output for the second quarter expanded by 4 percent, noted CBRE, a slowdown from the 5 percent growth recorded in the first quarter.

“The focus of landlords is to remain competitive given the challenging global demand for industrial products. Aside from the sluggish global demand, the abundance of supply for industrial properties is a major factor that affects the attitudes of landlords in the movement of lease rates. Rents in industrial parks and primary lease rates in Clark were still unchanged in the second quarter since the current level of demand compounded by the supply situation cannot yet justify rental growth,” CBRE said.

CBRE said that despite this, however, certain bright spots can still be seen in the industrial sector.

“Demand for industrial facilities was supported by the expansion of existing and entry of new companies involved in the manufacturing of semiconductors and products for electronic data processing. Likewise, demand for industrial facilities was increasing due to the requirements from firms engaged in the production of consumer goods. The consumer goods business is still growing despite setbacks in exports because of its large dependence in domestic demand,” it said.

Transform slums, reduce housing backlog
By Charles E. Buban | Philippine Daily Inquirer | Friday | October 12th, 2012 | 11:53 pm

http://1-ps.googleusercontent.com/h/business.inquirer.net/files/2012/10/342x256wSHDA_Crisostomo-342x256.jpg.pagespeed.ic.lYV0YJ7BI8.webp
CRISOSTOMO. Photo by Charles E. Buban
(Conclusion)

The mushrooming of slum communities around the country’s urban areas is evident and often becomes a hurdle to the growth process. But instead of forcefully evicting them or transferring them to far-off locations away from their place of work (as is the usual case), in-situ housing project is perhaps the best method of slum rehabilitation.

“The urban slum dwellers’ plights must be addressed with care. We should provide solutions, especially by showing ways of gainful self-employment on a priority basis so that these slum dwellers will get confidence and move out to decent localities with increased personal incomes,” stressed Subdivision and Housing Developers Association chair Manuel Crisostomo during the group’s annual national convention held in Davao City recently.

He believes the national government and its local counterparts must be proactive rather than reactive in addressing slums and the growth of urban poverty. “New approaches should be developed to integrate slums into cities. If Brazil succeeded in formulating programs that rehabilitated their slums, I don’t see why such model will not work here,” he said.

Purchase land

In Brazil, the government and its partners are helping residents of slum communities purchase the land they live on, formalizing an important asset and catalyzing economic growth.

“This enables the Brazil government to implement much-needed infrastructure such as running water, sewer systems, electricity and paved roads,” said SHDA national president Paul Tanchi citing the experience of the South American country as reported to them by guest speaker Anaclaudia Rossbach, consultant for World Bank on low-income housing settlements and metropolitan management.

Tanchi said that to help realize the plan, government must set aside P24 billion a year to subsidize those families who cannot afford a housing unit.

Read More: http://business.inquirer.net/86960/transform-slums-reduce-housing-backlog

JONES LANG LASALLE LEECHIU SAYS: Strong growth bolsters boom in real estate
Malaya
http://malaya.com.ph/index.php/special-features/property/15557-jones-lang-lasalle-leechiu-says-strong-growth-bolsters-real-estate

Stable economic growth, rising investments and inflows from remittances, and a prospering offshoring and outsourcing sector are reasons that have bolstered the boom in local property market, says reputed real estate consultant David Leechiu, country head of international property consultancy Jones Lang LaSalle Leechiu.

Speaking before an audience of specially invited guests, Leechiu presented this year’s market overview for the real estate industry.

“Demand for high-end offices and residences is expected to continue throughout the year,” Leechiu said, citing numerous properties being developed into upscale offices and residential high-rise towers in multiple districts in Metro Manila.

Business channel CNBC ranked the Philippines in the top spot in its roster of countries for long-term economic growth prospects due to rapid population growth, beating India and China.

Citing consistent economic performance, population growth and high birth rates, Goldman Sachs included the Philippines in its N-11 list of countries expected to emerge as economic powers in the near future. The list includes Mexico, Indonesia, South Korea, Turkey, Iran, Bangladesh, Egypt, Nigeria, Pakistan and Vietnam.

In 2011, amid the US economic slowdown, Eurozone crisis and massive investment outflow, the N-11 had beaten 93 percent of US-based emerging market equity funds while BRICS, another group of developing economies comprised of Brazil, Russia, India, China and South Africa, lagged by almost 89 percent. For the first half of the year, N-11’s equity funds rose by almost 12 percent compared with the 3.2 percent increase of BRICS.

Upscale office space in demand

As office rents in Manila continue to be very competitive in contrast to its Asian counterparts, the Philippines continues to attract global businesses that set up operations in the country to take advantage of cost efficiencies and labor competitiveness.

The offshoring and outsourcing sector, in particular, continues to demand grade A office space. The consistent year-on-year increase in office space take-up comes in spite of country risk issues in the past decade.

According to Leechiu, Makati remains as the prime business capital in the country, with almost half or 46.2 percent of companies taking up office space in the area.

The entry and expansion of international retailers, mostly mid to high-end luxury brands, is also contributing to the spike in customer traffic in the country’s central business district.

Real estate industry still seen surging :cheers: :banana: :banana: :banana:

by MADELAINE B. MIRAFLOR | Manila Times | Tuesday | Published on 23 October 2012

IN the light of the growing Philippine economy, the local real estate industry is also seen booming as investments increase and remittances inflows remain positive.

“Stable economic growth, rising investments and inflows from remittances, and a prospering offshoring and outsourcing sector have been beneficial to the local property market,” said real estate consultant David Leechiu, country head of international property consultancy Jones Lang LaSalle Leechiu.

Leechiu, in a recent briefing, presented this year’s market overview for the real estate industry.

“Demand for high-end offices and residences is expected to continue throughout the year,” he said.

Leechiu also noted that there are many properties being developed into upscale offices and residential high-rise towers in multiple districts in Metro Manila. It was also mentioned in the presentation of Leechiu that upscale office space in several developments in the country is in demand.

Read More: http://www.skyscrapercity.com/newreply.php?do=postreply&t=1495202

Group offers P2.2B to buy into MJC property unit
Investors drawn to Manila Jockey Club’s property arm
By Doris C. Dumlao | Philippine Daily Inquirer | Monday | October 22nd, 2012 | 12:30 am

The Manila Jockey Club (MJC) is evaluating a “firm” P2.25-billion buy-in proposal from a consortium of Hong Kong-based and local groups keen on taking over 70 percent of MJC Investments Corp. (MJIC).

MJIC is the Manila Jockey Club’s hotel and tourism estate unit.

According to MJIC chairman Alfonso Reyno Jr., members of the board will discuss Monday the proposal in line with the company plan to beef up its capital base to P5 billion from P1.5 billion.

The proposal to subscribe to new shares of MJIC will enable the new investing group to acquire 70 percent of the company’s expanded capital. If the MJIC board were to accept the buy-in proposal, MJIC would cease to be a subsidiary of Manila Jockey Club Inc., even though it would retain its 30-percent interest in MJIC, Reyno told the Inquirer Saturday.

The prospective investor group, he said, had expressed a firm interest in MJIC’s plan to increase its capital. The group is willing to turn over P1.1 billion to MJIC right away as initial subscription, he said.

“With this additional subscription, we will be able to complete our ongoing projects, including the hotel-tourism hub in San Lazaro (Manila) and our hotel in Carmona (Cavite),” Reyno said.

Read More: http://business.inquirer.net/88534/group-offers-p2-2b-to-buy-into-mjc-property-unit

Gov't sets privatization of 2 prime lots
By Iris C. Gonzales | The Philippine Star | Tuesday | Updated October 23, 2012 12:00 AM

MANILA, Philippines - The Aquino administration is working to privatize two big-ticket properties by the end of its six-year term, a ranking Finance official said.

In an interview with The STAR, Finance Undersecretary for Privatization John Philip Sevilla said that following the successful sale of Food Terminals Inc. (FTI), the government is working on privatizing the 108-hectare Welfareville in Mandaluyong and its 300-hectare property in Muntinlupa.

“This is what we’d like to achieve before the end of the Aquino administration but these are big, complex projects. It will take time but we’re working as fast as we can,” Sevilla said.

The Welfareville is where the National Center for Mental Health is located. The Women’s Correctional Institution is also located in the area.

The government’s Muntinlupa property, meanwhile, is where the National Bilibid Prison is located.

However, Sevilla said there are no specific timetable or deadline for the privatization of the two big-ticket properties because of the complexities involved.

He said the Department of Finance (DOF) is coordination with other concerned government agencies such as the Department of Health (DOH) for the Welfareville sale and the Department of Justice (DOJ) for the relocation of the Bilibid prison facility.

Sevilla said the privatization process would be implemented in the context of reconstructing the country’s penal system.

The Justice department’s Bureau of Corrections is currently working on strengthening prison facilities in the provinces to accommodate inmates from Mandaluyong in case they would be relocated outside of Metro Manila.

Source: http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=862305

2 firms submit bids for BCDA properties
By Louella D. Desiderio | The Philippine Star | Tuesday | Updated October 23, 2012 12:00 AM

MANILA, Philippines - Two firms have submitted bids to develop the driving range lot and Nichols property in Pasay City, the Bases Conversion and Development Authority (BCDA) said.

In a text message, Nena Radoc, BCDA vice president and chief finance officer said two proponents submitted bids to develop the 5,005 square meter (sqm) driving range lot as well as the 5,389 sqm Nichols Loop at last week’s bidding.

“We had a successful bidding...in which two proponents participated,” she said.

She said one was declared ineligible however, as it failed to comply with the requirements.

The other proponent, she said submitted a bid higher than the floor price of P89.59 million for the two properties.

Read More: http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=862309

PHL mass housing backlog to hit 4.65-M units in 2016

by VS | GMA News |Wedbesday | October 24, 2012 | 12:52pm


The Philippines is expected to experience a mass housing backlog of 4.65 million units in 2016, prompting the Subdivision and Housing Developers Association to scramble for a way to address the shelter shortage.

“Before the roadmap process, the industry was aware that a housing backlog exists but the extent was not very clear,” Paul Tanchi, association president, said in a statement Wednesday.

“Now that we have prepared the roadmap, we were able to probe the issues affecting the value chain of our sector and factors that could help it grow,” he added.

The association noted there are serious issues that have an impact on the housing backlog:
• Delays in development permits at LGU level
• Rising costs of utilities
• Brain drain
• Lack of funding for the poor
• Informal settlers
• Rising costs of land.
The association and 10 other industries has turned over their roadmap to the Board of Investments this month.

Tanchi said the strategy to egg on a momentum for mass housing construction includes “making the processing of housing permits and licenses faster.”

Sustaining the shelter industry would also mean making houses affordable through affordable financial plans and developing a comprehensive government-backed program for housing assistance for specific segments of the society, according to the association.

“We recognize the need for stronger collaboration among industry players, key shelter agencies, and the national government to address these gaps,” said Tanchi.

Trade Undersecretary and BOI managing head Adrian Cristobal Jr. said implementing industry roadmaps will need genuine collaboration between government and private sector.

"We are reviving industry policy through the industry development roadmaps project so we can all agree on visions, strategies, and deliberate actions for industries to create meaningful jobs in the country," he said.

This policy shift is the latest trend not only in the Philippine but also in Europe, South Asia, and South America.

According to the mass housing industry roadmap, a P1 increase in investment spending in the industry generates P3.32 in additional output to the economy. Also, a P100-million investment in construction is estimated to generate P47 million in additional household income which corresponds to 228 direct jobs created.

Last January, the Department of Trade and launched the industry roadmap initiative as an approach to policy development.

The vision was to ensure that stakeholders were involved in crafting trade and investment policies and that positions taken in negotiations in the international marketplace support the growth of key Philippine industries.

To ensure the growth aspect encompassed in developing policies, the department noted the value of linking the manufacturing sector to all other sectors of the economy.

Source: http://www.gmanetwork.com/news/story/279479/economy/business/phl-mass-housing-backlog-to-hit-4-65-m-units-in-2016

when buying a private lot property (re-sale property), is there need a 12% VAT? if yes, who would be paid by? buyer or seller? thanks in advance!