9 trending local cities this year

Property analysts and experts forecast that developers will continue to pursue township developments in and outside Metro Manila in 2016. Now, where could these, and other types of developments be? Here are the nine likeliest urban locations:

1 Cavite. Colliers International Philippines cites three reasons Cavite is on developers’ maps:

• Cavite has been known as a suburban support area to Metro Manila. With its relatively cheaper housing costs, Cavite has drawn within its boundaries hundreds of thousands, who still commute daily to their workplaces within Metro Manila.
• Numerous infrastructure projects recently launched will allow Cavite to flourish. The LRT-1 extension project will end in Bacoor; the government has now started the bid for LRT-6 which will further extend the LRT line from Bacoor to Dasmariñas City. Furthermore, the 44-kilometer Cavite-Laguna Expressway (Calax) project will provide necessary access to growth areas in Cavite.
• With the completion of the Muntinlupa-Cavite Expressway (MCX), a toll road which connects the South Luzon Expressway (SLEx) to Daang Hari, property values in the area are foreseen to escalate rapidly. The new toll road will spur rapid development in emerging master-planned communities such as Vista Land’s Vista City and Ayala Land’s Vermosa Estate, which have the potential to establish themselves as full-blown central business districts (CBDs).

Property portal Lamudi Philippines, in its 2016 top cities list, shares eight more locations that will benefit from real estate investments.

2 Quezon City. The population of Metro Manila’s largest city is projected to grow to more than 3.5 million by 2020, with many looking into relocating there. Quezon City properties are relatively more affordable compared to Makati and Taguig, and offers plenty of options to homebuyers.

3 Makati. The country’s foremost financial and business district won’t be outdone, even if the average rental rate in its CBD is expected to decrease 3.39 percent year-on-year by the third quarter of 2016, vacancies to increase to 10.19 percent across all condo grades. Fringe areas, however, are starting to see an uptick in real estate activity, particularly Barangay San Antonio, near Ayala Avenue. “Worsening traffic conditions in Metro Manila are making these areas attractive to renters and homebuyers,” said Lamudi.

4 Taguig. “Taguig’s population is projected to reach almost one million by 2020, which will make it the National Capital Region’s fourth more populous (after Quezon City, Caloocan and Manila) and the country’s 9th. The city’s real estate sector has been on an upswing ever since Fort Bonifacio was privatized,” noted Lamudi. It added that several projects now are underway: Megaworld’s McKinley West and Ayala Land’s Arca South. Access to and from the airport (particularly Terminals 1 and 2) and to Coastal Road will also improve when the flyover connecting CP Garcia Avenue to the Moonwalk Access Road and West Service Road is finally completed.

5 Pasay. This city is gaining prominence because of: 1) Bay City—the reclamation area along Manila Bay housing the Mall of Asia Complex, Entertainment City—and Aseana City; 2) The SM group has already incorporated office and residential components in the MOA complex; 3) Federal Land is set to complete its Six Senses Residences in 2016 and its first tower in the Palm Beach project in 2017; 4) Improved infrastructure when the Naia Expressway connecting the Metro Manila Skyway to the Manila-Cavite Expressway and Entertainment City, is finally completed.

6 Bacolod. In mid-2015, Lamudi data showed that Bacolod had become among the most popular cities among online property hunters. In fact, real estate giant Megaworld announced in late 2015 that it was building two integrated townships in the city (the 50-hectare Northill Gateway and the 34-hectare The Upper East), while Ayala Land has sealed an agreement with the provincial government of Negros Occidental to build the mixed-use Capitol Central.

7 Davao. Davao remains southern Philippines’ economic and business center, and one of the most searched cities in the Lamudi website in 2015. Its population is projected to balloon to 1.83 million by 2020. Davao is also consistently among the most searched by online property hunters, and the sixth and third most searched city by property hunters based in the United States and Saudi Arabia, respectively, according to Lamudi data.

8 Cebu. Cebu City is one of Tholons’ top 10 outsourcing destinations in the world (and second in the Philippines behind Metro Manila). According to CB Richard Ellis Philippines, exciting expansions and new developments are coming in over the next few years. In 2015 alone, two new large malls opened in the city, SM Seaside City Cebu and Robinsons Galleria Cebu. SM Seaside alone has an area of 10-15 hectares devoted to commercial development, similar to the E-com office towers in the MOA complex, while Robinsons Galleria will have entire floors dedicated to BPO offices.

9. Muntinlupa. The south of Metro Manila, specifically Muntinlupa, is also projected to perform well this year, with the launch of several high-profile projects from the country’s biggest developers, one of which is Avida’s South Park District, a mixed-use development sitting on the former Nestlé plant in Alabang, in addition to the established Filinvest and Madrigal business districts. Further, in anticipation of infrastructure projects expected to ease travel to the south, property developers, including Rockwell subsidiary Rockwell Primaries, and Vista Land are now eyeing Muntinlupa as their next focus area.

Source: By: Tessa R. Salazar / http://business.inquirer.net/206043/9-trending-local-cities-this-year

Philippine year in review 2015

Strong domestic demand and increased government spending helped sustain high levels of economic expansion in the Philippines throughout 2015, though a slight slowdown was observed late in the year as demand from the country’s main trading partners eased.

While yearend data have yet to be released, estimates from the Asian Development Bank (ADB) in December project gross domestic product (GDP) growth of 5.9% — short of the 6.4% forecast earlier in the year — as a result of declining merchandise exports, which fell by 6.9% year on year in the first three quarters to $43.7 billion.

Despite the modest slowdown, the Philippine government remains confident that end-of-year spending will help boost GDP growth to 6%-6.5% by the close of 2015.

The months ahead are expected to usher in strong economic expansion, with the ADB projecting growth of more than 6% in 2016 as the government continues to increase public spending. Higher demand from India and other Southeast Asian economies is expected to offset the effects of this year’s weaker exports.

INFLATION SUBDUED, EMPLOYMENT UP
While still modest, inflation gained pace late in the year, rising to 1.1% in November, up from 0.4% in October. However, rates remain within the Central Bank of the Philippines’ target band of 0.4% to 1.2%, and well below the 3.7% registered in November 2014.

According to the National Economic and Development Authority, inflation is being driven by rising food and non-food prices stemming from higher local demand and the lingering effects of typhoon Lando, which struck the country’s shores in October.

Core inflation — which excludes energy and unprocessed food costs — edged up in the last quarter of 2015, reaching 1.8% in November, its highest level since July, but still below the 2% target set by monetary authorities.

In a research note issued in early December, Barclays predicted inflation would rise to 2.4% in 2016, due in part to a modest anticipated increase in fuel costs and the potential impact of the El Niño weather pattern on agricultural prices.

Nonetheless, the ongoing strength of the economy helped stem unemployment in 2015, with figures released by the Philippine Statistics Authority in early December reflecting a 5.6% unemployment rate as of October, down from 6.5% in July 2015.

POSITIVE RATINGS OUTLOOK
The steady growth and stability of the economy prompted ratings agency Fitch to revise its outlook for the country from stable to positive in late September. The agency also affirmed the Philippines’ long-term foreign- and local-currency issuer default ratings at “BBB-” and “BBB”, respectively, maintaining the country’s investment-grade standing.

Moody’s was also optimistic about the Philippines’ economic prospects for 2016, reaffirming the country’s “Baa2” bond rating with a stable outlook in mid-October. According to the agency, the rating reflects the “resilience of [the Philippine] economy to the current headwinds buffeting neighboring countries” and expectations that the positive economic and fiscal trends will continue for the next one to two years.

BUDGET DEFICIT WIDENS
The year’s economic expansion was fueled in part by higher levels of government spending, which led to a deeper budget deficit in the latter half of the year. On the back of more than P1.82 trillion of disbursements in the first 10 months of the year, the year-to-date budget shortfall rose to P52.6 billion in October, up 56% year on year.

While outlays were higher than anticipated, government revenues were also up, with receipts rising by 12% year on year to P1.77 trillion between January and October.

In past years the government had come under fire for the relatively slow pace of spending, which often fell short of expenditure targets and delayed investment and capital projects. The late-term acceleration in public spending could help clear some of the project backlog and further stimulate the economy.

Economic activity in the coming year is also set to be fueled by presidential elections in May 2016. A recent report by Standard Chartered Bank predicted the election campaign would spur an influx of investment in the manufacturing, government services, private services, transport, communications and storage sectors, in particular.

According to the bank, the ramp up in public spending, alongside higher household consumption levels, could add between 0.1 and 0.3 percentage points to GDP in 2016.

Source: Oxford Business Group/ January 7, 2016/ http://www.bworldonline.com/content.php?section=Economy&title=philippine-year-in-review-2015&id=121092

Residential, office markets expected to continue stellar performance in ’16

WHILE 2016 has just begun, preparations are now being made to hail the Year of the Fire Monkey with a bang, when the Chinese celebrate their lunar New Year on February 8.

The whole nation is thrilled on what lies ahead this year, particularly on the political front, since this will mark the denouement of the Aquino administration and a new leadership will take over Malacañang Palace for the next six years.

With the national polls heating up, however, the economy and its growth-driving industries, especially real estate, are expected to weather the political noise.

Philippine economic development is seen in the expanding property sector as housing projects, commercial centers, workplace buildings, hotel and gaming facilities, as well as economic zones are being built one after the other not only in Metro Manila area, but also in other parts of the country.

This trend is seen to continue across all real-estate industry segments this year and beyond, most notably in the residential and office sectors.

Residential market

THE perennial housing backlog keeps on pushing the residential market’s growth, as the National Economic and Development Authority estimated the need of Filipinos for a “decent roof” is pegged at around 800,000 units per annum.

Since close to 400,000 households or almost half can still afford to buy dwelling units annually, this segment of the real estate remains the most competitive and profitable at present.

The towering heights of opportunity for both the developers and buyers still abound in vertical projects or condominiums.

In fact, the condo market accounts for the biggest share of all licenses to sell at 27 percent, according to the nine-year average of Housing and Land Use Regulatory Board (HLURB) data.

Leading the pack of developers is the SM Group, which intends to sell an annual average of 20,000 units starting 2016.

This initiative solidifies the Sy family’s market share in the condo space, said Pinnacle Real Estate Consulting Services Inc. Director for Research and Consulting Jojo Salas.

In their recent Market Insight Report, he also noted DMCI Group’s announcement that it would launch nine projects this year, with 14,000 units and estimated sales value of P50 billion.

The Consunjis also intend to generate recurring income when it launches its 36-story office project along Pasong Tamo in Makati City.

This will offer more than 40,000 square meters (sq m) of leasable area, subject to approval of permits and licenses.

Salas said the Ayala Land Group and Ortigas and Co. have packaged their housing projects with mixed-use and township developments.

Other developers are also ramping up the kick-off and completion of their projects to meet the predicted demand.

Lamudi Philippines reported that Century Property is on track to finish the construction of its luxury residential condo—the Trump Tower—by December.

Once completed, this 56-story tower in Makati City, composed of over 250 units, is the first Trump-branded condo not only in the country, but in Southeast Asia.

The property web site also revealed the scheduled opening this year of high-end 67-floor tower Shang Salcedo Place, which houses 749 units and top-class amenities.

Apart from condominiums, other residential types also offer good business and investment potentials for both the players and end-users.

Like vertical housing projects, economic housing comprises 27 percent of all licenses to sell, based on HLURB figures.

Meanwhile, socialized dwellings, as well as open-market subdivisions and townhouses account for 24 percent and 22 percent, respectively.

Pinnacle’s report shows the Ayala Group has focused on the economic housing by strengthening its projects under the Amaia brand.

It’s timely given the recent hike of the loan limit for this type of residence from P1.25 million to P1.7 million, as approved by the Housing and Urban Development Coordinating Council.

As for the socialized market, Bella Vista brand has been playing in this category, the study added.

Office segment

AS the economy surges, there’s still more room for expansion in the office sector of the real-estate industry.

Jones Lang Lasalle (JLL) Managing Director for Singapore and Southeast Asia Chris Fossick said new office supply is expected to be high in Manila in 2016 at 870,000 sq m, growing by 10 percent to 20 percent.

He said that most of the new buildings are in the central business districts (CBDs) of Makati and Bonifacio Global City (BGC) in Taguig, where there has been a shortage.

This year’s supply until 2018, however, is close to the five-year historical take-up from 2011 to 2015.

With the projected spike in the office-space inventory, a moderate hike in rental rates is likewise projected—this time at 4 percent, as 18 percent of the new supply in 2016 has been already precommitted.

This trend could still be attributed to the ever-expanding business-process outsourcing (BPO) industry, as some locators are moving up the value-chain and require more centrally located premises, Fossick said.

Based on data from the Philippine Statistics Authority, the office segment accounts for 29.4 percent of the real-estate demand in the country, largely driven by BPO at 11.3 percent.

Industry sources see the outsourcing sector to generate $25 billion in total revenues by end of the year.

Given the top figure, the BPO industry is projected to soon overtake dollar remittances by overseas Filipino workers, most likely in two years, according to an HSBC economist in a recent briefing. Job-wise, it is targeted to hit 1.3 million full-time employees in 2016, which translates to 5.2-million-sq-m office requirement.

Hence, the industry is now gearing up the “Next 10 Cities,” such as Baguio, Davao, Dumaguete, Iloilo, Lipa, Metro Bulacan (Baliuag, Calumpit, Malolos City, Marilao and Meycauayan City), Metro Cavite (Bacoor City, Dasmariñas City and Imus City), Metro Laguna (Calamba City, Los Baños and Sta. Rosa City), Metro Naga (Naga City and Pili), and Metro Rizal (Antipolo City, Cainta and Taytay).

Investment opportunities

AT the start of the new year, many of those planning to move to a new home or considering buying a property must be wondering what 2016 could bring to them.

In view of this, Lamudi Philippines takes a look at what are potentially good real-estate investment deals in the market today.

For one, Strata-titled offices are a good take, according to the real-estate portal.

Contrary to the BPO office towers constructed and rented out by property developers to outsourcing firms, they can be purchased by individual investors and buyers to lease to companies.

For those who want to diversify their investment portfolios, this property type makes a good business sense since there is a lack of supply of office space in the metropolis, particularly in major CBDs, placing an upward pressure on rental fees.

What’s more, the decreasing land-bank options in Makati City, BGC and Ortigas Center are also raising capital values of office buildings, based on Colliers International’s third quarter 2015 report.

Some of the strata-titled developments now available in the market are Alveo Financial Center along Ayala Avenue, which has 363 units and sells on average P223,000 per sq m; The Stiles in Circuit Makati (also of Alveo Land), with 283 units for P198,000 per sq m; Century Spire in Century City (Century Properties), with 283 units for P203,000 per sq m; Capital House in BGC (Avida Land), with 222 units for P142,000 per sq m; One World Place in BGC (Dai-ichi Properties), with 283 units for P136,000 per sq m; and Parkway Corporate Center in Alabang (Filinvest Land), with 390 units for P168,000 per sq m.

Apartments and townhouses are also worth investing in as they are two of the most searched property types by Filipinos at present.

Location-wise, suburban areas like Quezon City, Parañaque and Las Piñas are a top choice among the would-be investors.

Such properties are very in demand among renters, most especially for starting families, since they provide bigger spaces than condos yet they are cheaper than standalone houses.

A three-bedroom door apartment in Parañaque, for instance, averagely costs P3.5 million to P4 million, or charges P18,000 to P25,000 as monthly rent.

Because land values in Metro Manila are costly and constantly rising, real-estate developers are setting their sights outside for their next big-ticket township projects.

Among these developments include the Azure North in San Fernando, Pampanga, where Century Properties plans to duplicate the success of the same project in Parañaque; and Ayala Land’s Alviera in Porac, Pampanga; and Vermosa in Laguna and Cavite.

These developers are banking on their previous success to push these projects forward and all look to perform well in 2016, according to Lamudi Philippines.

Residential lots in subdivisions are also highly sought after given their rapid value appreciation.

Property values in the 62-hectare township called Alabang West of Global-Estate Resorts Inc., to wit, increased from P47,000 per sq m to P56,000 per sq m, or 19 percent  in the 11 months since its launch.

Around 80 percent of the 788 residential lots in this project have been already taken up.

While there is a bit slide in the mid-condo market due to massive supply, high-end vertical housing developments, especially larger ones, are projected to perform well both in capital appreciation and rental rates.

Colliers said that vacancy level is lowest for upscale condos in Makati City, which is expected at 5 percent to the third quarter of 2016.

This could be attributed to Metro Manila’s leasing market, driven primarily by expatriates and the BPO sector.

JLL reported that luxury condo rents in the metropolis keep on growing, though modestly, due to strong demand also from expatriate employees of multinational corporations.

Source: by Roderick Abad – January 4, 2016 http://www.businessmirror.com.ph/residential-office-markets-expected-to-continue-stellar-performance-in-16/

SM Prime plans to continue developing SM North Edsa

MALL operator SM Prime Inc. said it will continue to develop its first mall in the country—SM City North Edsa in Quezon City—as it continues to be its flagship mall despite building other bigger shopping malls in the country.

SM Prime Holdings President Hans Sy said the retail landscape in the last 30 years “has become more global and competitive where technology has forever changed the way we live and do things.”

“They said that SM City [North Edsa] would not succeed, but the mall was an instant success,” Sy said.

From a footprint of only 125,000 square meters on opening in 1985, it has grown in size to almost 498,000 sq m. 

From its original shoe-box design, the mall now draws an average foot traffic of 420,000 shoppers a day.

The company said its 30-year-old mall, which is also one of its biggest malls in terms of gross leasable area, will continue to grow “like a vibrant city as it adds more office spaces and a hospitality complex, a unique combination of high-end retail, dining and green spaces, highlighted by a series of five office towers connected by pedestrian sky bridges.”

The mall has gone through several redevelopments which began with the Car Park Plaza in 1988, the SM Annex in 1989, the Block in 2006, The Annex and Interior Zone in 2008, the Sky Garden in 2009 and Northlink in 2010.

In the past years, SM Prime also built new spaces for various concepts such as for business-process outsourcing (BPOs) companies and other private offices to further feed traffic into its malls, especially during weekdays. 

The North Link is a six-story building, while SM Cyber West Avenue is a 15-story building. Both buildings are meant for the BPOs, and are linked via bridge way to the mall.

It also built Grass Residences, a five-tower residential condominium building which stands on a 5-hectare property within the SM City North Edsa Complex.

“We have changed the Filipino lifestyle forever. Our malls are indeed as they are called—cities, places where families and friends gather to shop, eat out, have fun, and even do their business transactions and hear Mass. We have become part of the lives of millions of Filipinos,” Sy said.

Source: by BusinessMirror  / http://www.businessmirror.com.ph/sm-prime-plans-to-continue-developing-sm-north-edsa/

BORACAY COULD BECOME THE NEXT RESIDENTIAL HOTSPOT

BORACAY, one of the country’s most popular vacation destinations made famous the world over for its white sand beaches and tropical lifestyle, is now an emerging residential property hotspot, according to top property listing site Lamudi Philippines.

Lamudi said more and more property seekers, including local buyers and foreign retirees, seek to permanently live on the island.

“Although tourism remains the biggest draw of Boracay, which encourages companies in the hospitality and tourism industries to continue investing in the island, interest in residential properties has also risen,” said Lamudi

It said interest in residential properties in Boracay is driven by factors such as its year-round pleasant climate, buoyant real estate market, and its record-number of foreign visitors.

Lamudi added that the continued development of the Caticlan airport, which is set to be operational in 2016, is also attracting investors into the residential market.

The airport will reportedly offer 50-minute flights from Manila, two-hour hour flights from Hong Kong, and four-hour flights from Singapore.

“The increase in accessibility that will result from the opening of the new airport provides the opportunity to better explore those options,” said the property listing site.

Contrary to the common misconception that Boracay is already overcrowded and congested with commercial and hospitality establishments, Lamudi said there are still several sections of the island that remain untapped and can be developed.

“While the island is already considered by real estate experts as a residential real estate hotspot, the relative rawness of the island is still factored into its current property values, making the present the ideal time to invest in a Boracay home,” said Lamudi.

It added: “Values of properties in Boracay are expected to go up, especially when the island’s current developments are completed and followed by new ones.”

Source: by CATHERINE TALAVERA, REPORTER / http://www.manilatimes.net/boracay-could-become-next-residential-hotspot/233609/

Oakwood taps Cebu market

By Katlene O. Cacho

Thursday, April 19, 2012

MANILA - based high-end serviced apartment facility Oakwood Premier Joy Nostalg Center Manila is tapping the Cebu market for its weekend business.

In an interview yesterday, Oakwood Premier director of sales and marketing Anna Fernandez said they hope to get a good chunk of Cebuano guests to increase their leisure traffic.

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“Although we are positioned as a corporate hotel, a bigger portion or 65 percent of our clients are considered short-staying guests who stay three to four nights. They boost the hotel’s leisure traffic,” Fernandez said during the company’s media briefing held in Radisson Blu Hotel Cebu.

She said the company also eyes the expat market and key executives of BPO companies.

“Some of our corporate clients in Manila are from the BPO industry and we observed that these companies also have sites here, so we are also hoping to get a chunk of this market when they come and visit Manila,” Fernandez said.

Oakwood Premier’s top clients are corporate executives from the United States, Australia and Singapore.

Luxury, style

Oakwood Premier is the high-end product category offered by Oakwood Asia Pacific, a division of US-based Oakwood Worldwide.

Oakwood Premier is designed for international travelers “who demand luxury and style.” According to the company, the facility combines “impressive apartments with amenities and services of luxury hotels.”

Its premier facilities are located in Bangkok, Beijing, Guangzhou, Jakarta, Manila, Mumbia, Pune, Seoul and Tokyo.

The Oakwood Premier Joy Nostalg Center Manila, which opened in September 2009, has 223 rooms of studios and suites. It has 56 studios (41 square meters); 143 deluxe one-bedroom suites (85-94 sqm); 24 two-bedroom suites (130 sqm); nine three-bedroom suites (182 sqm) and one presidential suite (282 sqm).

Among its amenities are a 25-meter lap pool, business center, two function rooms that can accommodate up to 150 people; three meeting rooms; recreation and fitness facility. Each room is also equipped with a kitchen and modern entertainment showcase.

To attract more guests, Oakwood Premier Manila general manager Rick Erdos said they will be maximizing the use of social media such as Facebook and Twitter to further strengthen the company’s presence in the country.

“We are driving on a new direction to compete head-on with our competitors. The hotel will be introducing new ideas and concept in all of our amenities particularly in the food and beverage,” Erdos said.

According to Fernandez social media works best in supporting the promotional activities for the hotel’s food and beverage but the hotel still banks on traditional media like print and radio for marketing and promotions of their rooms.

Fernandez said Oakwood Asia Pacific is also eyeing some locations for possible expansion in the Philippines. “Oakwood Asia Pacific is aggressively expanding and Visayas is one of the key locations they are looking into,” she said.

Occupancy

Oakwood Premier has an average of 85 percent occupancy in the first quarter of this year. Fernandez said that is already a good indicator of the hotel’s performance for the entire year.

“The market demand in the hospitality industry is increasing, especially in Metro Manila,” she said.

Other products of Oakwood Asia Pacific are Oakwood Residences and Oakwood Apartments.

Other products in the pipeline are Oakwood Premier Resorts and Oakwood Resorts brands.

According to the company, the Oakwood brand has grown to be the largest service apartment operator in the world with close to 25,000 apartments throughout North America, Asia and Europe, and a multinational client base that includes 80 percent of the world’s largest companies.

Published in the Sun.Star Cebu newspaper on April 20, 2012.

Taft City Hall didn’t require a traffic plan

THE developer of the Horizons 101 condominium project in General Maxilom Avenue said there was no traffic plan because the Cebu city government didn't require one. Vincent Tomaneng, lawyer of developer Taft Property Development Corp., said this as he clarified that they haven't applied for permits for Tower 2 yet. He said they secured permits for Tower 1, the project being developed, whose excavation wall partly collapsed last week. Invest Cebu Medical Tourism, click here Engineer Josefa Ylanan, chief of the Office of the Building Official (OBO), confirmed that Mayor Michael Rama recently issued an order requiring traffic plans from developers of high-rise buildings in traffic-prone areas. The Cebu City Integrated Traffic Operations Management (Citom) earlier said they received a resolution from the City Council to conduct a traffic impact assessment on the second phase of Horizons 101. That’s when Citom chairman Sylvan Jakosalem experssed concern about adding pressure on worsening traffic on Gen. Maxilom Avenue and other narrow streets in uptown Cebu City, where he said there was no budget for road widening. Jakosalem said a comprehensive traffic study has to be made first. Plans for the two towers of Horizons 101 provide for 1,500 condominium units in the tallest buildings to be erected in Cebu City. “Mayor Michael Rama issued the order recently. If there is no traffic plan, then there's no locational clearance and no building permit,” Ylanan of OBO said. She said this order caused the suspension of work on a major store in Mambaling, Cebu City. Ylanan said both structures of Horizons 101, a project of Taft Property Development Corp., didn't have traffic plans because there was no order yet from Rama requiring developers to make one. The issuance of the building permit was based on the National Building Code. Ylanan said it's a “general” code and there's no amendment by the city government requiring a traffic plan for high-rise buildings. Ylanan said there's no coordination between her office, Citom and the City Planning and Development Office. “For all contractors, it's mandatory to verify the area before they proceed to excavation,” she said. She also said the rehabilitation plan submitted by Taft Property on the collapsed retaining wall on Tower 1 of its project is much clearer. Taft Property public relations officer Cerwin Eviota said Tower 1 is presently their concern. “This (Tower 2) is still hypothetical. Tower 2 is just a dream. It has not even reached the drawing board,” Eviota said. Correspondents Tweeny M. Malinao and Jessa Chrisna Marie J. Agua

Remittances up 5.8%: BSP

By Katlene O. Cacho

Monday, April 16, 2012

MONEY sent home by overseas Filipinos rose to $1.6 billion in February, posting a year-on-year growth of 5.8 percent, according to records of the Bangko Sentral ng Pilipinas (BSP).

The BSP said the bulk of the total cash transfers, at 76.1 percent or $1.2 billion, were sent by land-based workers while 23.9 percent or $0.4 billion came from sea-based workers.

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Top ten source countries of cash remittances are US, Canada, Saudi Arabia, Japan, UK, Singapore, United Arab Emirates, Italy, Germany and Hong Kong. Banks said these countries account for 86.3 percent of total fund transfers.

The cumulative remittances for the first two months of 2012 reached $3.1 billion, higher by 5.6 percent than what was recorded in the same period last year.

Manpower demand

The BSP said the continued inflow of overseas Filipino remittances is supported by the sustained demand for Filipino manpower in various foreign labor markets.

Latest data from the Philippine Overseas Employment Administration (POEA) showed that for January to March, job orders for professional and technical, service and production workers increased by 24.6 percent to 200,010 for postings in Saudi Arabia, UAE, Qatar, Taiwan, Kuwait, Singapore and Hong Kong.

The lifting of the ban imposed by POEA on deployment to Nigeria, Libya and South Sudan, following improved security conditions in these countries, could provide additional employment prospects abroad for Filipino manpower.

The BSP said local banks and other financial institutions continued to expand their presence abroad to serve the remittance needs of Filipino workers.

Universal bank United Coconut Planters Bank (UCPB) said in a statement that it has been forging tie-ups with both internet- and office-based remittance companies to boost its operations.

UCPB, which hopes, to achieve a P4 billion net income this year, will bank on creating more technology-driven products while expanding its loan portfolio, remittance business, fee income and branch network to drive revenue growth.

The bank will also open five new branches this year as part of its efforts to reach out to more clients.

“The improved accessibility of remittance centers, and the wider array of financial products on offer, supported the increase in remittances and encouraged more overseas Filipinos to send money to their families and other beneficiaries in the Philippines,” the BSP said.

Published in the Sun.Star Cebu newspaper on April 17, 2012.

FLI plans BPO component

Mia A. Aznar

Sunday, April 15, 2012

AS it topped off the first building of its condominium project at the South Road Properties, Filinvest Land Inc. (FLI) also announced plans to include four office buildings to house business process outsourcing companies in the area.

Tristan Las Marias, FLI first vice president, said that if the City Government approves, the four buildings will offer 40,000 square meters of office space. Each building will be five storeys.

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He admitted the BPO complex was not in the original plans for its joint venture with Cebu City, Citta de Mare, the master-planned community that includes San Remo Oasis.

However, he believes the condominium units will attract rentals from BPO employees, which would delight investors who purchased units to attract the rentals market.

Cebu City Mayor Michael Rama welcomed the proposal, saying the real intention of the SRP is to create job generating developments. A BPO complex such as what FLI is planning could easily employ 30,000, he said.

Officials said San Remo Oasis, a cluster of five-storey buildings, is the more affordable option at Citta de Mare, second to Amalfi Oasis which is for the high-end segment.

It offers studio, one-bedroom and two-bedroom units ranging from P1 million to P2.5 million and 22 to 45 square meters.

Las Marias said the first batch of residents are expected to move in. He also assured that the promised amenities, such as the swimming pool, clubhouse and parks, will be finished when residents move in.

Meanwhile, the proposed BPO complex is expected to be completed in 12 months.

Las Marias said Citta de Mare was envisioned to be a residential housing community that is “unique and the first of its kind in terms of lifestyle, location and amenities.”

It follows a seaside resort concept, with 10 hectares set aside for a 1.8 kilometer promenade and shopping complex, amusement center and amphitheater with a laser light show each night. They will hold a groundbreaking ceremony for this area next month.

FLI considers Citta de Mare the “biggest and grandest” of its eight developments in Cebu.

Published in the Sun.Star Cebu newspaper on April 16, 2012.

Realtor bullish about demand

By Mia A. Aznar

Thursday, April 12, 2012

IF AN industry player is to make an assessment, Cebu will be home to more foreign retirees in the coming years.

As Cebu promotes itself as a second home destination, four condominium towers have already sold out to foreigners even before completion, said Realty Options president and chief executive officer Samuel Lao.

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Lao, who is also past president of the Society of Cebu Realty Firm Inc., revealed that a four-tower project by Megaworld in Lapu-Lapu City has been sold to Japanese and European retirees.

Lao, who was a guest speaker at Tuesday’s 888 News Forum, said the units were marketed outside of the country to retirees seeking more bang for their buck.

He said three of the towers were sold to Japanese retirees while the fourth tower was
marketed to Europeans.

He noted that European retirees can enjoy much of their retirement pensions in Cebu because of a lower cost of living compared with European cities. He said the average monthly pension of 1,000 to 1,500 Euros a month, about P60,000 to P90,000, goes a long way if spent here.

Lao said that with the help of the Philippine Retirement Authority, Cebu will attract more tourists, especially retirees.

This, he said, will further drive growth for the local real estate industry. He credits the real estate boom in Cebu to the continued remittances from overseas Filipino workers, increased tourism activities and the continued rise of business process outsourcing.

A report from the Cebu Investment Promotions Center (CIPC), which was taken from Colliers International’s Cebu Real Estate Market Report, stated that Cebu had 4,511 residential condominiums as of December 2011. The same report stated that 2012 will add 1,317 units while 1,961 units will be added in 2013.

The growth of business process outsourcing (BPO), Lao said, has allowed more buildings to be built and given residents more job opportunities. He added that the presence of all these companies is attracting residents from other provinces to migrate, fueling the need for more residential spaces.

“All this money is circulating in Cebu.”

Lao also said that entrepreneurs have cashed in on the phenomenon by buying more properties and leasing them to tenants because it earns more for them than just parking their money with the bank.

“In fact, we are even seeing new players in real estate. Instead of just buying one or two units from new developments, local entrepreneurs are becoming developers themselves.”

Published in the Sun.Star Cebu newspaper on April 12, 2012.

City Hall stops excavation for twin 50-storey condos

	4/11/2012
There was a loud crash past 1 p.m., then the second floor of the house tilted. “My nephews thought there was an earthquake because the house moved,” said 29-year-old house renter Jonah Pacheco in Cebuano. The two boys, an uncle and a teenage neighbor, were lucky to get out alive. Invest Cebu Medical Tourism, click here A meter away, a retention wall collapsed in the excavation site for a twin 50-story condominium project of Taft Property in barangay Cogon Ramos, Cebu City. Eight other houses of light materials near the edge of the excavation pit also collapsed. No one was injured as most of the occupants were out at work. The Office of the Building Official (OBO) under the Cebu City mayor's office immediately issued a cease-and-desist order stopping excavation work until safety measures are in place and an investigation is made. Cebu City Administrator Jose Marie Poblete said the order was issued against Taft Property Venture Development Corp. whose management promised to pay for the damaged houses. Poblete, who is a civil engineer and lawyer, said the “weight” and “strength” of the “retaining wall” may have been inadequate. The excavation, part of the foundation of the tower condominiums, appear deep enough to fit a three-story building at 30 meters tall and 15 meters wide. Lawyer Vincent Tomaneng, Taft Property spokesman, said the company will undertake “corrective measures” and send experts to prevent further damage. He identified the contractor for the excavation work as ASDEC Corp., a Manila-based firm. “We are doing everything we can. We will take care of the families affected. . . We will shoulder the necessary expenses,” said the lawyer. “We conducted a soil test before we did the excavation.” The twin condominium towers called Horizons 101 is designed to be the tallest commercial building in Cebu City when completed, even higher than the Crown Regency hotel a few blocks away. The concrete wall was a “slope protection structure.” Cogon-Central Ramos barangay captain Omar Durano said 20 affected families in eight houses in the Dela Rama Compound near the excavation site were relocated to pension houses in Cebu City paid for by Taft Property. The houses were about one meter away from the excavation wall that crumbled. Sitio Sta. Teresita has about 1,500 residents and is the biggest sitio in the barangay, said Durano. Other residents living within 15 meters from the excavation wall have to move out as a preventive measure, said Alvin Santillan, head of the Cebu City Disaster Risk Reduction Management Council. A cordon was already set up around the site when Cebu Daily News visited. “May’ gani naa ko sa gawas (Good thing I was outside the house.),” said Pacheco, who rents a two-story house beside the wall. Pacheco said that she's lived in the house in sitio Sta. Teresita for more than 20 years. She was chatting with neighbors in a sari-sari store three meters from the house when the wall collapsed. Pacheco recalled hearing a loud crash. Her elder brother Jade and her two visiting nephews aged 17 and 9 together with an 11-year-old neighbor were watching television in the bedroom on the second floor. The boys quickly locked the bedroom door and hid under the table. Jade, 37, later led them out to safety. “They panicked. I was worried because the appliances were left on. I told my brother to turn off the electric switch,” Pacheco said. The house is still standing but appears tilted. When the second floor slanted, Pacheco said her washing machine and gas stove were thrown down the pit. The house renter said she belatedly noticed cracks in their concrete floor last February, something she linked to the excavation work in sitio Teresita, which started August last year. She said she didn't immediately notice the cracks because the floor was covered with a carpet. Pacheco said the family complained to Taft Property about the cracks and the company repaired them. Excavation work at the site went on 24 hours a day, a noisy operation that would make her house shake, said Pacheco and several neighbors. “Naanad nalang mi (We just got used to it),” Pacheco said. “Nakuyawan pud mi pero kumpiyansa lang (We got scared but we were just complacent about).” /Rhea Ruth V. Rosell, Correspondent

Martinez: Develop the whole province, not just Metro Cebu

By Grace Melanie I. Lacamiento (The Freeman) Updated April 11, 2012 12:00 AM

CEBU, Philippines - “Develop the entire province of Cebu, not just metro Cebu or other urbanized cities,” an official said.

Stating that Cebu City is already concentrated in its limited landscape, Bogo City Mayor Celestino “Junie” Martinez Jr. noted that putting up a highway that would connect Cebu City to the northern and southern parts of the province would enable the countryside to taste the growth and development of the whole province.

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The highway, he added, can promote the convenience of migration and can save time since it would be more accessible and speedy. For instance, a trip of 3 hours or more from Cebu City to Bogo can be shortened to 30-40 minutes through the proposed highway.

Martinez also encouraged the provincial and national government to initiate the move to bring forth such advancement in the countryside, resulting to the addition of jobs offered, prevention of traffic, lesser congestion and more economic opportunities in the rural areas.

“I feel disgusted. Why are we just talking about metro Cebu? Why not the whole province of Cebu,” he said during the 888 News Forum at the Marco Polo Plaza Cebu yesterday.

Instead of just the mere “Suroy-suroy sa Sugbo”, he said that focusing more on infrastructures leading to beach resorts and golf courses in various areas can uphold the entire province to be a more visible and possible tourist destination.

Martinez said they are planning to open up a new parking area that can accommodate their clients since the parking space in Bogo City, particularly in Gaisano Bogo, is an issue after all. Attending to such problem, he added, can also attract more investors and business establishments such as malls, hotels and banks, to be established in the area.

“Imbis mamalit ngadto (Gaisano), mo-adto nalang og laing lugar. If you cannot influence the decision of businessmen, let the local government do the move,” he said.

Furthermore, to be in line with other urbanized cities such as Cebu City, Mandaue City, Cordova and Lapu-Lapu, Martinez said that they are already working out on the rehabilitation of the roads in the northern part of the province, from Carmen to Daanbantayan, and will be made more accessible soon.

While Samuel Lao, past president of The Society of Cebu Realty Firms Inc., suggested that the government and the private sector can merge in promoting the big master plan of Cebu as a business and financial zone. — Grace Melanie I. Lacamiento

He also commended that Cebu has entrepreneurial government leaders, dynamic business chambers and active non-government organizations that are considered as assets and wealth of the province.

“Let’s come together and promote Cebu as one. We have to market Cebu as the second home and industrial hub, not just among other provinces and cities in the country but also among other countries in the world,” Lao stated.

He cited that the different areas of Cebu is ideal for several economic zones such as the southern part as a tourism and residential area, the northern and western side as the industrial zone while the eastern part of Cebu is good for retirement facilities and health.

Lao added that development in Talisay City and traffic congestion in Consolacion and Liloan must also be given attention for Cebu to have a bigger picture of its strong direction towards economic growth. — (FREEMAN)

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Starting May 05, 2011, more SRRV options will be made available for you to choose from on how to Retire in the Philippines through the SRRV Products. You can choose from the SRRV SMILE, the SRRV CLASSIC, SRRV HUMAN TOUCH, and the SRRV COURTESY. Please refer to the table below for the requirements and the qualifications for each program Kindly coordinate with PRA thru email add inquiry@pra.gov.ph for complete details on the requirements for each SRRV option. IMPLEMENTING DETAILS OF PRA PRODUCTS (As of May 05, 2011) REQUIREMENTS SRRV SMILE SRRV CLASSIC SRRV HUMAN TOUCH SRRV COURTESY 1. Age and Visa Deposit 35 Years Old & Above - US$20,000.00 NOTE: Additional Visa deposit - US$15,000.00 per dependent in excess of two (2). 35 - 49 Years Old - US$50,000.00 50 Years Old & Above: Without Pension - US$20,000.00 With Pension - US$10,000.00 NOTE: Additional Visa deposit - US$15,000.00 per dependent in excess of two (2). Show proof of monthly pension remitted to the Philippines (US$800.00 for single applicant and US$1,000.00 for married couples)* 35 years old & above = US$10,000.00 NOTE: Retiree must: Be shown to have a pre-existing condition (except contagious diseases) and in need of medical care and services. Show proof of monthly pension remitted to the Philippines equal to at least US$1,500.00. 35 Years Old and above for Former Filipino citizens = US$1,500.00 50 Years Old and above for Ambassadors / Retired Diplomats who served in the Philippines = US$1,500.00 NOTE: Additional Visa deposit - US$15,000.00 per dependent in excess of two (2) except for Former Filipinos. 2. Convertibility of Deposits LOCKED-IN in the bank. Inconvertible into investment. Intended for end of term needs and obligations of retiree. Withdrawable upon cancellation of SRR Visa. May be converted into investments. Total amount of Investment must be at least US$50,000.00 for conversion to be allowed. NOTE: For investment in condominium or long-term lease of House and Lot, units must be Ready For Occupancy. Same conditions prescribed under SMILE enrolment program. May be converted into investments. NOTE: For investment in condominium or long-term lease of House and Lot, units must be Ready For Occupancy. 3. Application Fees US$1,400.00 for the Principal US$300.00 for each Spouse/Dependent NOTE: One-time payment only. US$1,400.00 for the Principal US$300.00 for each Spouse/Dependent NOTE: One-time payment only. US$1,400.00 for the Principal US$300.00 for each Spouse or Dependent NOTE: One-time payment only. US$1,400.00 for the Principal US$300.00 for each Spouse/Dependent NOTE: One-time payment only. 4. Monetary Obligation/s US$360.00 Annual PRA Fee (APF) for Principal, Spouse, and (1) Child upon enrollment and every year thereafter. US$100.00 for each dependent in excess of two (2). US$360.00 Annual PRA Fee (APF) for Principal, Spouse, and (1) Child upon enrollment and every year thereafter. US$100.00 for each dependent in excess of two (2). NOTE: Previous fees, i.e. Visitorial Fee, Harmonization Fee & Management Fee are deemed waived. US$360.00 Annual PRA Fee (APF) upon enrollment and every year thereafter. NOTE: To cover one (1) dependent only. 1. US$10.00 Annual PRA Fee (APF). 5. Depository Bank PRA Designated Banks PRA Designated Banks PRA Designated Banks PRA Designated Banks 6. Bank Account Name 1. PRA 1. PRA 1. PRA 1. PRA 7. Documentary Requirements Duly accomplished SRRV Application Form. Original Passport with Valid Entry Visa Medical Examination Clearance Police Clearance and National Bureau of Investigation (NBI) Clearance ID Pictures - twelve (12) pieces of 2"x2" Additional Proof of Relationship for joining SPOUSE / CHILD. NOTE: All documents obtained / issued abroad must have an English translation and duly authenticated by the Philippine Embassy / Consular Office. Duly accomplished SRRV Application Form. Original Passport with Valid Entry Visa Medical Examination Clearance Police Clearance and National Bureau of Investigation (NBI) Clearance ID Pictures - twelve (12) pieces of 2"x2" Additional Proof of Relationship for joining SPOUSE / CHILD. Pension Documents* NOTE: All documents obtained / issued abroad must have an English translation and duly authenticated by the Philippine Embassy / Consular Office. Duly accomplished SRRV Application Form. Original Passport with Valid Entry Visa Medical Examination Clearance Police Clearance and National Bureau of Investigation (NBI) Clearance ID Pictures - twelve (12) pieces of 2"x2" Health Insurance Policy Pension Documents Additional Proof of Relationship for joining SPOUSE / CHILD. NOTE: All documents obtained / issued abroad must have an English translation and duly authenticated by the Philippine Embassy / Consular Office. Duly accomplished SRRV Application Form. Original Passport with Valid Entry Visa Medical Examination Clearance Police Clearance and National Bureau of Investigation (NBI) Clearance ID Pictures - twelve (12) pieces of 2"x2" Additional Proof of Relationship for joining SPOUSE / CHILD. NOTE: All documents obtained / issued abroad must have an English translation and duly authenticated by the Philippine Embassy / Consular Office. 8. Payor 1. Principal Retiree or his Authorized Representative. 1. Principal Retiree or his Authorized Representative. 1. Principal Retiree or his Authorized Representative. * With Pension Scheme

Placing money on real estate: A good investment for the future

Tuesday, 28 February 2012 19:24 Marianne T. Escanilla / Special Features Writer

NOWADAYS, most Filipino professionals are studying their options on investing their hard-earned money. With the favorable economic state of the country, they are starting to be smart in deciding as to where they will place their savings. One great way to invest money into is through buying real-estate properties.

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In 2011, the property sector has regained confidence after falling behind in the past years. Coming into the year, the sector promises to be stronger with numerous communities being developed by large-scale and small-scale developers in the country. Urban and rural developments emerged to provide excellent and yet affordable homes for Filipinos. With the continuous upswing of the industry, it can be surmised that putting money on properties in real estate can be advantageous on the investors’ part.

Though there are risks when investing on properties and is still under scrutiny because of the past downturn in the industry, these will make sense when one already understands the impact of being able to invest on properties, as land values appreciate over time. With this, one should also be equipped with awareness on the fundamentals of investing on real estate property.

Paramount in considering buying a property is its location. This is deemed to be one of the general principles in house-hunting. Accessibility to place of work, institutions, schools and proximity to general establishments are factors that make a locale favorable.

A home purchase is the largest investment most families undertake. When one settles in a community of choice, the resident gains a stake in its future, its plans and problems. Choosing a home in the heart of the metropolis provides close proximity to shopping areas and convenient transportation.

Another factor to take into account in buying a property is the reputation of the home builder or developer. Don’t just take other people's words on builder excellence. Check and see as many houses it has built, or projects it has developed. Security of the place should also be considered.

The most important consideration when buying a property is financing. A rule of thumb in financing is that monthly amortization payments should not exceed 30 percent of a family’s income per month. You don’t want to lose your investment on foreclosure.

There will always be queries that will rise when investing. Questions on assurance would always be one, but as of the present, positive indicators on the country’s real-estate industry and its consistent gain of strength in the past year could be a big factor for one to decide on investing their money on properties. As with other good investments, one has to take calculated risks to realize the quest of a good future and a better life.

Real-estate industry showing signs of oversupply; ‘careful monitoring’ needed

Tuesday, 27 March 2012 17:48 Jennifer A. Ng

THE World Bank is urging the national government to “carefully monitor” the real-estate industry as the country’s real-estate market may be showing signs of oversupply, which could jack up vacancy rates and mute rental growth starting this year until 2014.

In a special section in the Philippine Quarterly Update (PQU), the World Bank said that this year until 2014, an average of 470,000 sq m of new office spaces are lined up. However, only around 250,000 to 300,000 sq m are expected to be taken up and will cause higher vacancies and lower rental rate growth.

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“The Philippine real-estate market today is largely driven by BPOs [business-process outsourcing firms] and remittances and less on investors seeking higher returns. Borrower leverage is low and banks have more prudential measures in place. Overall, systemic risks are fairly low, although the residential segment may face downside risks arising from oversupply, hence, the need for careful monitoring,” said the World Bank.

The World Bank also said the average new condominium supply for 2011 to 2015 is around 26,000 units. This is more than five times the average in the period covering 1999 to 2010. Last year alone, the rental space supply in major residential districts in Metro Manila increased by about 53 percent to 6,000 units.

With this, some real-estate developers are offering discount rates of up to 40 percent on selected units, which narrows the profit margins of developers. In 2011, the bank noted, the average price of luxury three-bedroom condominiums in the Makati Business District posted a growth of only 4 percent.

While growth in the BPO industry’s demand for space will continue, the World Bank warned that other factors like the unrest in the Middle East, reduced overseas Filipino worker (OFW) deployment to Saudi Arabia, the crisis in the US and Europe, and reduced private spending due to higher oil prices could slow real-estate demand.

However, the World Bank said the real-estate industry does not yet “pose systemic financial risks at the moment.” It explained that the commercial property sector, as of September 2011, only accounts for two-thirds of the bank’s outstanding loans and the residential sector accounts for the balance and are lower than during the global financial crisis.

It can be noted that the 2009 global financial crisis, which stemmed from subprime loans in the US, was deemed the worst global economic crisis since World War II. The 1997 Asian financial crisis also stemmed from problems in the real-estate sector in Thailand.

“Given the limited leverage, the property sector on the aggregate does not pose systemic financial risks at the moment,” said the World Bank.

Meanwhile, the World Bank said the Philippine government needs to increase its revenues. It reiterated its call to strengthen tax administration and push for the immediate passage of the tobacco and alcohol excise, and fiscal incentives bills are steps in the right direction.

External risks such as slow global economic growth due to the crisis in the US and Europe and a possibility of slower domestic demand due to lower remittances will make higher public spending necessary to meet the growth objectives of the government this year and in the coming years.

“Accelerating structural reforms to enhance global competitiveness will improve the level and quality of employment in the country,” said Karl Kendrick Chua, World Bank country economist and main author of the report. “Moreover, successful implementation of these reforms would allow the country to take advantage of new opportunities arising from the global economic rebalancing and attract more investments as multinational companies relocate to other countries given rising production costs in China and other middle-income countries.”

The bank said appropriate fiscal and monetary policy responses are expected to boost growth to 4.2 percent and 5 percent in 2012 and 2013, respectively.

This, the bank said, assumes sustained growth in consumption and some improvement in investments and exports.

World Bank lead economist Rogier J.E. van den Brink said employment prospects this year will see some improvements, given higher public spending and continued growth in some industries.

“Higher infrastructure spending is expected to create tens of thousands of new jobs in the construction and trade subsectors, while continuous growth of the BPO industry is expected to generate 100,000 new jobs this year. However, structural reforms are needed to create more and better jobs in the year ahead,” said Van den Brink.

Prepared by the World Bank’s Poverty and Economic Management (PREM) team, the PQU provides updates on key economic and social developments as well as policies in the Philippines. It also presents findings from recent World Bank studies on the country.