...the world's top performing home sales

Phl home prices among world’s fastest growing

            

By Louella D. Desiderio

The Philippine Star

March 23, 2014

 

MANILA, Philippines - The Philippines was among the top performers in terms of growth in housing prices worldwide, according to a survey by research house Global Property Guide (GPG).

In GPG’s global house price survey for 2013, the Philippines was the fourth top performer with the average price of three-bedroom condominium units in the Makati central business district rising 10.56 percent in 2013 following annual increases of 4.85 percent in 2012 and two percent in 2011.

“Demand remains strong, as indicated by soaring real estate loans,” the research house said.

It noted that based on data from the Bangko Sentral ng Pilipinas, the volume of real estate loans rose 38.5 percent year-on-year to P776.65 billion in September last year.

Citing real estate advisory services firm CBRE Philippines, GPG said the Philippine housing market is expected to accelerate this year, to be supported by the rising number of foreign investors as well as growing business process outsourcing industry.

The growth in the local housing market is seen amid the country’s favorable economic conditions.

 

The economy grew 7.2 percent in 2013, faster than the 6.8 percent expansion posted in 2012.

 

For this year, the government has set a 6.5 to 7.5 percent economic growth target.

Topping GPG’s list of countries with rising housing prices was United Arab Emirates with average prices of housing units in Dubai growing 21.52 percent in 2013.

This was followed by Estonia with average housing prices up 16.55 percent, while Taiwan came in third with average housing prices increasing 14.46 percent last year.

China placed fifth on the list as the average cost of housing units in Shanghai climbed 10.13 percent in 2013.

Out of the 42 countries covered by GPG’s survey, 27 markets showed housing price increases
“House prices are rising in many more countries than not, and the momentum trend is strongly upwards,” GPG said.

GPG which provides information on residential property development covers market trends in 101 countries.

 

...the PH hot properties

Foreigners flock to PHL for property investments — consultancy firm

Siegfrid O. Alegado,

GMA News

June 6, 2013

Foreigners are flocking to the Philippines for luxury residential investments amid tightening realty laws in other Asian countries, property consultancy firm CBRE Philippines said Wednesday.

Overseas Filipinos and the rising middle-class, on the other hand, continue to fuel demand for housing in the fringe areas of Metro Manila.

“The luxury residential sector will continue to pick up,” said Rick Santos, chairman at CBRE Philippines. “Foreigners are now moving from renters to buyers.”

“New restrictive property tax laws in Hong Kong and Singapore will drive more Asian residential investors to the Philippines,” he added.

While the Philippine Constitution prohibits foreign ownership of land, there is no restriction for foreigners to buy condominium units. Thus, foreign fund managers and retail investors buy luxury units by top developers here for investment purposes.

"Foreigners have opted to invest in branded condominium projects," said Santos. "And so far, they're very happy."

Early this year, Hong Kong and Singapore raised taxes for luxury homeowners and investment properties as part of their campaign against bubble risks stemming from speculative investments in the realty sector.

Investor-friendly tax laws

With tightening restrictions there, foreigners are turning to the Philippines – where tax laws are more investor-friendly and financing is relatively cheap – for secondary properties.

“Number one, it's much cheaper here from a tax perspective and cost. From a financing point of view, it's much more expensive to get financing there,” Santos said.

He noted that the Philippines' real-estate developers continue to benefit from foreign interest in branded developments.

Santos, however, was quick to add that he still doesn't see a bubble arising from such investment flows. “This isn't a bubble. This is sustainable,” he said.

“It is exciting. You will see a lot more money from mainland China, Russia, Europe, Korea and US flowing here,” Santos said.

OFWs and housing backlog

Overseas Filipino workers (OFWs) and middle-income earners support demand for residential products, particularly single-detached homes, in the fringe areas of Metro Manila

“OFWs and middle-income earners to sustain the demand for horizontal residential projects,” said Jan Custodio, CBRE Philippines' senior director for global research and consultancy.

“Economic housing will continue to observe strong take-up with its affordable prices and ample supply in the fringes of the country’s major cities,” he added.

Total housing needs for 2013 can reach 646,128 units, of which 57 percent will come from new households who can afford to own or rent, CBRE data showed. — KBK, GMA News

 

 

...the new Manila's CBD

ALI Investing P65B In QC CBD

10-Year Development

By JAMES A. LOYOLA

July 5, 2012

Manila Bulletin

MANILA, Philippines – Ayala Land Inc. (ALI) is investing P65 billion over the next 10 years for the development of the Metro Manila’s next central business district (CBD) in Quezon City (QC) called Vertis North beside its Trinoma mall.

In a press briefing, ALI president Antonino Aquino said half of the budget will be for office buildings while the other half is for retail spaces, residential condominiums and hotels.

He added that the integrated urban development masterplan calls for the construction of 45 towers on a 29-hectare lot owned by the National Housing Authority (NHA).

“Quezon City is fast becoming a center of gravity for economic developments as it works to be at par with international business standards,” said Aquino.

ALI will invest an initial P12 billion for the launch of Phase 1 of Vertis North which will mark the
 development of its office, retail, and hotel components within a 7-hectare land area, which is expected to be completed in the next three to four years.

This initial phase will put up a total gross floor area of 220,000 square meters, including business process outsourcing (BPO) establishments, hotel, and retail shops.

It will also generate close to 200,000 jobs during its entire development phase, 35,000 of which will be filled during the development stage of Phase 1.

Meanwhile, the national government, through NHA, also eyes to gain P11 billion worth of housing investments through its partnership with Ayala Land at Vertis North.

This will further boost the government’s efforts to reduce the national housing backlog, as it stands to benefit close to 50,000 families, said NHA general manager Chito Cruz.

Vertis North is strategically located at the northern tip of Quezon City as it is the convergence point of commuter rail lines and three major road arteries, particularly the Epifanio de los Santos Avenue (EDSA), Mindanao Avenue, and North Avenue.

It also serves as the gateway to the North given its connection to the North Luzon Expressway (NLEx). Ayala Land intends to capitalize on this huge upside by bringing an intermodal transport terminal facility at Vertis North.

...the Nikkei awardee

Gawad Kalinga’s Tony Meloto bags Nikkei Prize for outreach work in slums

INQUIRER.net

 Thursday, May 26th, 2011

Tony Meloto’s Gawad Kalinga has served as a template for volunteer-driven, low-cost housing for the poor in developing countries.

 

 

Antonio Meloto, 61, Chairman of Gawad Kalinga, a  joint Catholic church-private sector advocacy group,  received  an award on Thursday from the Nikkei Asia Prizes for 2011, for his commitment to improving the living conditions of the poor.

Nikkei  Inc., the sponsor of the Nikkei Asia Prizes, which publishes Japan’s leading business newspaper, named Meloto as an awardee for his work in slum areas in the Philippines, Indonesia, Cambodia and Papua New Guinea,  namely  the building of over  200,000 homes in 2,000 communities in these developing countries.

The Nikkei Asia Prizes, which are awarded each year, are designed to recognize outstanding achievements that improve the quality of life in Asia and contribute to regional stability. Nikkei established the awards in 1996 in commemoration of the company’s 120th anniversary.

The Nikkei Asia Prizes are awarded annually in three areas of achievement: regional growth, science, technology and innovation, and culture.

Meloto snagged the award in the category of regional growth.

In the science, technology and innovation category, Wu Maw-Kuen, 61, Director of Institute of Physics, Academia Sinica, Taiwan received the award in honor of his achievements in the area of superconductivity research, such as the discovery of a substance that has an electrical resistance of zero even at a high temperature of minus 200 degrees Celsius. He has also contributed greatly to advancement of science and technology in Taiwan.

Bao Ninh, 58, Vietnamese novelist, won the culture prize. He authored the novel “The Sorrow of War,” a story based on his military service experience. He popularized Doi Moi (renovation) literature both at home and abroad.

Winners of the Nikkei Asia Prizes  may be an individual, group or organization in any Asian nation except Japan. Japanese individuals, groups or organizations are not eligible since the purpose of the awards is to promote understanding within Japan of other Asian nations.

...the dream builder

Building homes, building dreams

 

By JORDAN C. TAN

February 27, 2011

 

 

The volunteers at work (photo by EDWARD LLANES)

MANILA, Philippines – There are lessons learned in school and some that are better learned outside. This I found out when I joined a group of youth volunteers for Habitat for Humanity, a non-profit organization that rehabilitates simple, decent houses with the help of homeowners (known as home partner) families, volunteer labor, and donations of money and materials.


Our destination: A Habitat site in Calauan, Laguna.
 

It all started a few days before the build.  At first, I thought it was quite ironic that I’d be going to help build homes with other volunteers because the week prior, my school had organized the same activity in the same place but I was not able to go (and to think that I already had work gloves and hard hats for my brother and myself).
 

On the road to Calauan, I kept thinking about the tasks that might be assigned to me and was even questioning myself if I could actually build a house.
 

On arrival at the site (we were among the early birds), we were introduced to the youth council organized by a group of dedicated youth whose aim is to be able to gather 1,000 youths from different schools, colleges, and universities to help out in building for Habitat.
 

The parade of volunteers soon began and I saw Senator Chiz Escudero; Bibeth Orteza, writer and wife of Carlos Siguion-Reyna, who wore a pair of different colored espadrilles to symbolize her being a cancer survivor; Feli Atienza, wife of TV personality Kim Atienza; Cristalle Belo, daughter of dermatologist Vicki Belo; Yolanda Hadid, the current girlfriend of musician David Foster; Felix Ang, president of CATS motors; Jim Fuentebella, Corporate Marketing VP of Max’s Chicken; Mons Romulo-Tantoco, daughter of Foreign Secretary Alberto Romulo, actor Derek Ramsay, and many more.
 

Ayala Land Chairman Fernando Zobel de Ayala led the pack of volunteers and we were assigned to work on Houses 9 and 10. The day began with us moving the Concrete Interlocking Blocks, CIB for short, from the outside to the middle of the house.  The CIB blocks look like Lego pieces and this made it easy to determine if you were attaching the blocks correctly.  Habitat for Humanity is the first in the country to be using these blocks in their construction.  Moving the bricks was surely a back-breaking task and we worked like a production line passing the blocks from one point to another until it reached the middle.
 

After moving the blocks, we made the base walls of the house.  It was very fun to see the blocks interlock with one another as we erected the walls.  We then proceeded to the station where the job being done was grouting.  This was the task I enjoyed the most because it was fun to stuff the CIB’s interlocking holes with grout and make sure that they’re completely stuffed.
 

Under the heat of the noontime sun, there we were, interlocking CIB blocks and grouting. Our respite came in the form of a lunch break of Max’s fried chicken and Krispy Kreme donuts.


As builders for a day, I realized that young as I am, it made me very happy to know that I was able to give back to the community in my own little way.  I also realized that community service doesn’t have to be very big and grand for it to have an impact on people’s lives.  We were only able to build a part of the house but this little act of ours already had a very big impact on another person’s life.
 

Second, I realized that the youth is indeed the future of a nation.  The youth council who took part in the build proved this.  Third, I realized that a construction worker’s job is not an easy one.  Upon experiencing first-hand the kind of work that they do, my perception of them has changed a lot.
 

Finally, I realized that there are some people who are truly dedicated to doing their part for the community.  There was a foreign volunteer whom we saw who still worked to finish the house he started even though everyone was happily having their lunch.
 

I enjoyed building homes and giving back to the community.  I also enjoyed the chance to bond with my brother, my cousin and the people from Manila Bulletin. I also interacted with a lot of people whom I have never before met in my life.  And finally, I also learned a lot, not only technical stuff like building homes but also realizations that greatly changed my perception of things and helped me become a better person.This made the experience in building for Habitat truly worthwhile and unforgettable.  I wish that in the future, I might be able to go back there again and continue my service to the community.

...the big city

Binay shows Makati dev't

 

Manila Bulletin

February 2, 2011

 

 

MANILA, Philippines – Vice President and Housing and Urban Development Coordinating Council (HUDCC) Chairman Jejomar C. Binay expressed his confidence that the Philippines can emerge as a model for sustainable urban development and management.

In his talk before World Bank (WB) staff during the Sustainable Development Network (SDN) annual meeting in Washington DC on Tuesday (United States time), Binay used Makati as an example of how to plan and implement programs and projects that are mindful of sustainable development.

“The improvement of our constituents’ quality of life is at the core of our efforts in urban renewal and development,” he said.

The Vice President also underscored the need to build a stronger partnership with local government units (LGUs) in order to stimulate economic growth and alleviate poverty.

“I envision complementation of efforts and collaboration in urban strategies where both the national government and LGUs focus on making pro-poor policies a priority,” the Vice President said.

He added that the government must act not only to foster awareness and enroll participation, but also to engage stakeholders and empower communities over the long term.

“We must ensure that the planning is people-centered so that no one is left behind. We must reach out and talk to the grass roots as well as build the capabilities of those closer to them, the LGUs,” Binay said.

The World Bank requested Binay to talk on urban development, recognizing his role as former mayor of Makati and as HUDCC chairman.

His talk was preceded by a keynote address on disaster risk management to World Bank officers and representatives during the same SDN meeting. (JC Bello Ruiz)

...local investment

Filipinos working abroad fuel real estate boom at home

By Mynardo Macaraig
Agence France-Presse
12/15/2010

MANILA—The Philippines' famous diaspora of overseas workers is fuelling a boom in the real estate market back home as they snap up houses and apartments to safeguard their futures.

Property prices have recovered strongly since the global financial crisis of 2008, with investments from the nine million Filipinos toiling away in foreign lands a significant factor, industry figures say.

"Overseas workers are moving the market. Properties now are selling and when there is demand, prices go up," Emily Duterte, head of the Real Estate Brokers Association of the Philippines, told AFP.

Industry sales nationwide this year are estimated to hit 300 billion pesos (6.9 billion dollars) compared with about 100 billion each in 2009 and 2008, according to Claro Cordero from Jones Lang La Salle, a global real estate consultancy firm.

"Nobody thought there would be such a quick recovery from the slump that began in 2008," said Cordero, research head of the company's Philippines' branch.

Filipino workers abroad have a reputation for working as lower-paid employees, such as construction workers, maids, sailors, and janitors.

But their sheer magnitude—they account for about 10 percent of the Philippine population—mean they have long been a major force in the economy.

In 2009, they sent home 17.3 billion dollars, making up more than 10 percent of the nation's gross domestic product, according to government data.

And Filipinos are increasingly moving into higher-paid sectors, such as medicine, engineering, and the media.
Overseas workers usually opt for houses costing about two million pesos (45,000 dollars), humble by foreign standards but well in the middle-class bracket for Filipinos, according to Duterte from the brokers' association.

Fifty-year-old merchant seaman Rodolfo Oliverio has spent most of his working life outside of the Philippines but he is an active player in the domestic real estate market.

Oliverio has used his overseas earnings to buy two small houses in the heart of Manila for his wife and children to live in, and he is paying for a third he recently bought just outside the nation's capital.
"If you work here, nothing will happen. The salaries are too small. The only way to afford a house is to become an overseas worker," Oliverio told AFP while on his annual vacation in Manila.
"Naturally, among overseas workers, the most important thing is a house and lot."

Oliverio said that as a ship's bosun—the crew's foreman—for a foreign company, he earned about 82,800 pesos a month, roughly four times more than he could earn doing the same job with a local cargo line.

With his salary, he said he was confident he could afford the repayments on his third house, a middle-class 42-square-meter (452-square-feet) place south of Manila which cost a little over 1.5 million pesos.
Industry observers said Oliverio's real estate goals were typical of many overseas workers.

"Most have left families back home so they want to have a home for their families. Their children, their parents, these are the ones who stay in the houses they buy," said Duterte.

Filipinos have traditionally preferred living in houses, no matter how small, over apartments, but living overseas has started to change preferences.

Overseas workers have revitalized the condominium market, said Manuel Serrano, head of the Chamber of Real Estate and Builders Association.

"In the beginning, they were more interested in house and lots but in the last two years, the tempo has changed. The demand now is for condos," Serrano told AFP.

"Most of these people have gotten used to the lifestyle abroad and, in condos, they don't have to worry about doing a lot of cleaning, gardening, and watering of plants."

Even for the traditional housing market, living overseas has changed the tastes of many Filipinos.

"A lot of developments are incorporating designs that are inspired by architecture worldwide, with a Mediterranean or an American feel," said Jones Lang La Salle's Cordero