Real Estate and Housing Industry

[kiretoce]

Post away folks!


Link to Thread 1 in the Archives.

[sarahwassmann]

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?

[Ady001]

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...

[amigo32]

Is she German-Arab-Filipino?

[sarahwassmann]

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

[amigo32]

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

[boypad]

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.

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/hom...rate-code-seen

[boypad]

Proposal by SEC to amend corporation life span to 25 years might cause potential problem to existing and future condominium corporation

[hyperion2662]

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.

[Ulidia]

Originally Posted by boypad

Proposal by SEC to amend corporation life span to 25 years might cause potential problem to existing and future condominium corporation

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?

[InfinitiFX45]

Ayala Land to spend P60 billion to 'Make it Makati'

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/...make-it-makati

[Coniocondo]

Originally Posted by sarahwassmann

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.

[wino]

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

[tchitz]

Originally Posted by sarahwassmann

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.

[hugodiekonig]

Originally Posted by InfinitiFX45

Ayala Land to spend P60 billion to 'Make it Makati'



Source: http://www.abs-cbnnews.com/business/...make-it-makati

This is a very great move to revitalize Makati

[sarahwassmann]

Originally Posted by tchitz

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.

[tchitz]

Originally Posted by sarahwassmann

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...ne-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.

[LuckyLady]

Originally Posted by sarahwassmann

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.

Originally Posted by tchitz

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...ne-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.

[sarahwassmann]

Appreciated, thanks.

[Ady001]

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