philippine real estate news: 2020

ARTA says validity of electronic signatures cleared by CoA

December 21, 2020 | 7:39 pm [ bworldonline.com ]

THE Anti-Red Tape Authority (ARTA) has confirmed that electronic signatures may be used for government permits and licenses.

In a statement Monday, ARTA said it arrived at this determination after consulting with the Commission on Audit (CoA).

ARTA said it is seeking to address reluctance expressed by government agencies after the authority rolled out its guidelines on the use of digital signatures through the Philippine National Public Key Infrastructure.

CoA told ARTA that the digital signatures may be used as long as they comply with government rules and regulations, including requirements under Republic Act 8792 or the Electronic Commerce Act.

CoA has said that agencies planning to use digital signatures must hold users accountable and penalize improper use.

“At a minimum, the controls should ensure authentication of documents, non-repudiation of the signatures, and integrity of documents,” ARTA said.

The commission added that state auditors have been instructed to allow the use of such signatures in procurement-related documents.

ARTA said that although government agencies must provide digital payment options, no one should be banned from paying in cash or through check.

“Digital payments and digital signatures are two of the critical aspects that government offices should learn to embrace and adopt to enable the complete online performance of government services in their agencies,” ARTA Director General Jeremiah B. Belgica said.

“CoA’s affirmation on the validity and acceptability of these digital solutions for government services would allow agencies to decisively proceed with their automation programs.”

The Electronic Commerce Act requires electronic signatures users to have a reliable procedure in which the signing party is identified and shown to have access to the document.

“Electronic signatures shall be authenticated by demonstrating, substantiating and validating a claimed identity of a user, device, or another entity in an information or communication system, among other ways,” according to the law. — Jenina P. Ibañez

______________________________________

Developers granted 3-year extension to comply with accounting norm on borrowing costs

December 17, 2020 | 7:48 pm [ bworldonline.com ]

THE Securities and Exchange Commission (SEC) has granted property firms more time to implement an accounting standard governing the treatment of borrowing costs, citing the need to provide relief to the industry during the financial crisis.

In a memorandum circular on its website, the SEC said the extension applies to accounting treatments raised by the Philippine Interpretation Committee and the International Financial Reporting Standards Interpretations Committee concerning Over Time Transfer of Constructed Goods.

The accounting treatment of Over Time Transfer of Constructed Goods is governed by International Accounting Standard (IAS) 23 – Borrowing Costs. IAS 23 lays down how to account for borrowing costs directly incurred in building “qualifying assets” — those that take a substantial amount of time to build.

The original compliance deadline was Jan. 1, 2021, but has been moved back three years.

“The SEC believes that the deferral will give more than enough time to (the) real estate industry to further evaluate and explore options to resolve the above remaining implementing issues and help the industry to mitigate the impact of COVID-19 crisis,” the SEC said in its memorandum circular.

Property companies typically borrow to complete a development, and borrowing costs can either be expensed — going directly as a cost immediately recognized in the profit-and-loss statement — or capitalized.

The industry sent two letters to the SEC — the first in September brought up implementation issues, while a second in December sought an extension. — Angelica Y. Yang

_______________________________________

Cap on residential rent hikes to remain in force until end of 2021

December 17, 2020 | 7:50 pm [ bworldonline.com ]

WWW.NHA.GOV.PH

THE cap on residential rent increases will remain in force for another year, to the end of 2021, according to the National Human Settlements Board (NHSB).

In resolution 2020-04 published Wednesday, the NHSB said a 2% cap on rent increases applies to those paying monthly rent of up to P4,999.

The maximum rent hike is set at 7% for those paying monthly rent of between P5,000 and P8,999, and 11% for those paying between P9,000 and P10,000.

The guidelines apply to residential units occupied by the same lessee. If the unit is vacated, the lessor may set the initial rent for the next lessee.

The power to cap rent increases is conferred by the Rent Control Act of 2009, or Republic Act No. 9653, and is designed to protect low-income housing tenants. The resolution also cited the “economic and financial difficulties” inflicted by the pandemic.

Student housing landlords cannot increase rent more than once each year. The regulation also cannot be applied to new residential units constructed after the approval of the resolution.

The rent control measure was extended in 2017, and was set to expire on Dec. 31, 2020.

The trade department earlier set guidelines for rent deferrals and prohibited the eviction of residential and commercial tenants unable to pay after the end of a prescribed grace period. — Jenina P. Ibañez

_______________________________________

Floods hurt property valuations in Marikina

December 15, 2020 | 12:01 am [ bworldonline.com ]

PARTS OF Metro Manila experienced heavy flooding when a string of typhoons hit the country in November.

Sheila G. Lobien, CEO of the Lobien Realty Group, said in a statement the property valuations in flooded areas have been severely affected.

She noted land values in Marikina are around P40,000 to P70,000 per square meter (sq.m.), just below Caloocan land values of between P35,000-P65,000 per sq.m.

To compare, land valuations in Muntinlupa/Alabang are between P120,000-P140,000 per sq.m., while those in Quezon City, Ortigas and Bay City peak at P280,000 per sq.m. Property values in Bonifacio Global City and Makati City reach P350,000 and P400,000, respectively.

Ms. Lobien said property buyers should conduct due diligence when picking locations for offices and homes, avoiding areas located along fault lines, prone to flooding and other disasters.

In flood-prone areas, Ms. Lobien said cities should have a clear zoning mechanism for residential and commercial spaces.

“The government and private sector should really invest on infrastructure that will make the developments flood-ready,” she said, noting rivers should be dredged and flood control mechanisms strengthened.

__________________________________________

More property seekers eyeing house and lots

December 8, 2020 | 12:06 am [ bworldonline.com ]

MORE PROPERTY seekers are interested in buying house and lot properties as well as land-only projects due to the lockdown, online property marketplace Lamudi said in a report on Monday.

“After the experience of staying at home for a long period, property seekers appreciate larger floor areas in their property. House and lots and land-only projects have captured great interest as preferences for the living set-up tilt to horizontal developments,” Lamudi said in its third quarter report.

House and lot properties remained the most popular listing in Metro Manila in the third quarter, representing 52.95% of total listings.

Interested buyers inquired about houses the most, accounting for 43.27% of leads, compared to 31.52% for land and 17.02% for condo developments.

Quezon City topped the list of cities in Metro Manila generating the highest number of leads, with almost half of the leads in the region. The cities of Makati and Manila followed with 16.97% and 9.44%, respectively.

Outside of Metro Manila, Cagayan de Oro is experiencing a “huge demand” for houses for sale, the report said.

“Property seekers prefer the regional center to have greater accessibility to essential goods. As the national government builds more infrastructure projects, these areas will see stronger interest among property seekers,” Lamudi said.

Online searches for house and lot properties represented half of the property page views in Cagayan de Oro in the third quarter.

At the same time, Lamudi said property seekers are looking into Cebu and Davao cities as they see potential in land asset value increasing as the government develops infrastructure in those cities.

In Cebu, lot-only properties generated more inquiries with 46% of leads compared to 36.31% for houses. The same was true of Davao City, with land registering 48.55% of leads.

“This signifies that most property seekers are eager to buy lots for sale in Metro Davao, particularly in Davao City.” — Jenina P. Ibañez

_____________________________________

Why offices are likely to change, not disappear after pandemic

December 8, 2020 | 12:05 am [ bworldonline.com ]

MANY FILIPINOS were forced to work from home during the lockdown in Metro Manila. — COMPANY HANDOUT

By Arjay L. Balinbin, Senior Reporter

DESPITE THE work-from-home boom and accelerated digital transformation, offices are not likely to disappear after the pandemic, a real estate expert said.

“If I talk about the shape of the future of our offices, they are not going to disappear. The office will stay. It will stay in a different shape,” Christophe Vicic, country head of JLL Philippines, Inc., said during the recent BusinessWorld Virtual Economic Forum.

“The shape and the type of brick and mortar in real estate, such as office, residential, malls, and hotels, will change in design, in conceptual reality. The technology, the digital piece of that will be enormous because we need data to make the right decision. All of us have to consume certain data to make the right decision,” he added.

Most companies began implementing work-from-home schemes for employees when Metro Manila was placed under a strict lockdown in mid-March. Even as restrictions eased and offices reopened, companies continue to allow some employees to work from home.

Ads by AnyDigital

You can close Ad in 5 s

In its property market overview for the third quarter, JLL said the overall office vacancy rate in Metro Manila had increased to 9.7%.

“Office space in the metro continues to be underutilized as work-from-home setup remained the predominant work arrangement,” the report noted.

“The prolonged community quarantine in Metro Manila caused investors to remain in the sidelines and hold investment plans until the end of the year. Also, move-outs from POGO (Philippine Offshore Gaming Operators) players during the latter part of the quarter further increased vacancy rate in Metro Manila,” it added.

CONNECTIVITY, REMOTE WORK

PLDT, Inc. Chief Revenue Officer and Smart President and CEO Alfredo S. Panlilio said the pandemic has become an opportunity for telecommunications firms to further develop the digital ecosystem by improving connectivity and providing platforms for online payment, shopping, education, and health, among others.

He said the strong demand for internet connectivity is expected to continue even after the pandemic.

“Companies like us, PLDT and Smart, have been rethinking our office space requirement because you have to consider social distancing. I think the work-from-home setup will be part of our normal working scenario nowadays, so we would have to have connectivity not only at our corporate buildings but also at home. The strategy of how we will now plan our office space is changing, but I think there will be a combination of working from home and people going to work,” Mr. Panlilio said.

On mobility, Ting Wu, partner at McKinsey & Company China, noted that customers are becoming more “individualistic and digital” now, and there is a rediscovered appreciation of individual mobility as part of the impact of the pandemic.

JLL Philippines’ Mr. Vicic cited potential solutions for post-pandemic transit and commuting, such as dual-location strategies, extended remote working, flexible workspace solutions, and shuttle services.

“For investors and landlords, there is a need to assess parking capacity and new modes of transportation, improve sidewalk use, create new bike lanes, and enhance transit capacity and operations,” he added.

Pandemic seen to give Metro Manila a chance to correct urban planning errors

December 1, 2020 | 12:02 am [ bworldonline ]

TEMPORARY bike lanes were installed along EDSA during the lockdown, May 24. — PHILSTAR/MICHAEL VARCAS

By Cathy Rose A. Garcia, Managing Editor

THE PANDEMIC has exposed the vulnerabilities of mega-cities like Metro Manila, but it also offers a once-in-a-lifetime opportunity to correct urban planning mistakes, a top urban planner said.

Palafox Associates Founder and Principal Architect Felino “Jun” Palafox, Jr. said the pandemic is forcing cities around the world to rethink urban development for the “new normal.”

“I think cities will bounce back and bounce forward… We must learn from it. In fact with this pandemic. We are revisiting plans and programs that were not implemented. Even cities like Milan, the center of the pandemic, they are now changing urban development,” he said during a fireside chat at the BusinessWorld Virtual Economic Forum on Nov. 25.

In April, Milan unveiled the Strade Aperte plan which aimed to reduce car use by introducing bicycle lanes, wider pavements, and pedestrian and cyclist-priority streets.

“Other cities in the past, every time there is a pandemic, they improve. when there was cholera in Paris and London, they fixed their sewerage system so there was clean water and sanitation. In the US, when there was a cholera epidemic, they created Central Park and more open spaces,” Mr. Palafox said.

15-MINUTE CITY

Mr. Palafox lamented the lack of public parks and open spaces in Metro Manila, saying cities should be more walkable and bikeable.

“Open spaces are the lungs of the city. What we are pushing for is the 15-minute city… Neighborhoods where one can work, live, dine, shop and learn with healthcare and wellness centers should be within the 15-minute walk or ride,” he said.

Paris Mayor Anne Hidalgo earlier this year proposed the “ville du quart d’heure” — the quarter-hour city — where offices, shops, health facilities, and parks will just be a 15-minute walk or bike ride away. She also proposed creating bike lanes and removing parking spaces for cars.

Mr. Palafox believes Metro Manila can still implement similar measures to ease congestion. Several mayors in Metro Manila have implemented bike lanes in their cities during the lockdown.

“I’ve also been proposing for our congested cities to have elevated walkways and bike lanes in EDSA or congested areas that do not have wide sidewalks… This will have vendors in the area, so that all hours of the day, you feel safe. With vendors, there are more eyes on the public realm, so you feel safer,” he said.

At the same time, Mr. Palafox said the pandemic also gives the Philippine government an opportunity to balance national development.

“The primacy of Metro Manila is wrong. A primate city is more than 10 times the second largest city… Makati, Ortigas and Fort Bonifacio, these are areas with big concentrations of jobs and economic activity but they are surrounded by low-density, gated communities. So the employees of these job centers are edged out of the housing stock around the centers. We can correct that and maybe these CBDs, after this pandemic, should build more affordable housing for workers so they become part of the city,” he said.

It would be ideal to have more integrated, mixed-use developments within the cities, Mr. Palafox added.

CLIMATE CHANGE

Climate change is another problem being faced by cities, especially in the Philippines. Two super typhoons (Rolly and Ulysses) caused heavy flooding in parts of Luzon island.

“Metro Manila used to be the Pearl of the Orient Seas, now it is an example of how not to develop a city, how not to do it,” Mr. Palafox said.

“Zoning should be changed so the projects face the waterfront. Waterfront is an amenity, and our country has the fifth longest coastline in the world… Unfortunately in our country, we treat the waterfront, our waterways as the garbage and sewerage system.”

The Philippines has a total coastline of 36,289 kilometers, according to the Environment department.

Mr. Palafox said the government should make preparations to address potential disasters, since it is “90% cheaper, less expensive to address the hazards before they become disasters rather than post-disaster rehabilitation.”

“This crisis, we can get inspired by the best practices in the world and we can correct the mistakes we made,” Mr. Palafox said.

DoubleDragon files REIT application with SEC

November 24, 2020 | 12:05 am [ bworldonline.com ]

DDMP REIT, Inc. has submitted an application to the Securities and Exchange Commission (SEC) for a real estate investment trust (REIT) offer.

The firm, formerly known as DD Meridian Park Development Corp., on Monday submitted to the SEC its REIT plan to sell to the public 5,942,488,469 common shares at P2.25 apiece, with an over-allotment option of up to 594,248,847.

The shares include existing common shares offered by DoubleDragon Properties Corp., Benedicto V. Yujuico and Teresita M. Yujuico.

The company will not receive proceeds, but total proceeds to be raised in the sale of offer shares will be around P14.7 million. Selling shareholders will receive a net of P14.2 million, with the full exercise of the over-allotment option.

The offer shares will represent around 36.67% of the issued and outstanding capital stock of the company after the offer is completed, assuming that the over-allotment option is fully used.

Shares amounting to 17,827,465,406 will be outstanding after the firm offer.

The company’s property portfolio includes three commercial properties with six office towers that have retail businesses – DoubleDragon Plaza, DoubleDragon Center East, and Double Dragon Center West. — Jenina P. Ibañez

_____________________________________

Makati seen to lag in recovery of rent, residential prices

November 20, 2020 | 12:32 am [ bworldonline.com ]

A rebound in rents and residential prices in Makati City is seen by the third quarter of 2022. — REUTERS

RENTS and residential prices in the Philippines are expected to start recovering by 2021, except in Makati City which may continue to see a decline for a longer period, a recent survey of real estate agents found.

In a Property Survey and Index Q4 2020 report, published by real estate technology group Juwai IQI on Thursday, 192 real estate agents in the Philippines were surveyed and found to anticipate a bounce back in the industry by next year.

On a nationwide basis, residential prices are expected to grow 2.3% by the third quarter of 2021, and by 16.9% by the third quarter of 2022.

However, Makati City will continue seeing a 2.3% decline in residential prices over the same period next year, and will only record a growth of 14.8% by the third quarter of 2022.

“After Makati City CBD (central business district) residential prices rose nearly 132% in the nine years to 2018, the capital city market is now weaker than much of the rest of the nation. The industry expects this weakness to continue, with Makati City prices and rents trailing the national trend over the next two years,” Juwai IQI said.

The national residential rent rate is expected to improve by 1.9% in the third quarter of 2021, and by 13.2% in the third quarter of 2022. However, Makati City is seen to post a decline of 6.6% next year, before growing 12.3% in 2022.

“Several factors are probably at play with the lower price expectations in the capital city. COVID (coronavirus disease 2019) has cut foreign buying, the majority of which is focused on the capital city. Also, the price lag is a continuation of the trends from earlier in the year,” Juwai IQI Group Co-Founder and Executive Chairman Georg Chmiel said in an e-mail to BusinessWorld.

“(Makati City) has had a tremendous run-up in prices in recent years, and is now taking a breather. Potential buyers aren’t sure if they can still expect the rapid price gains of recent past, so many more are willing to sit on the fence until they have a better expectation for gains or can get a better bargain,” he added.

Meanwhile, the improvements in rents and residential prices in the rest of the country will depend on “a return to near normalcy,” Mr. Chmiel said. “Economic growth, employment, construction, and foreign travel will all bounce back and drive new buyer interest.”

The survey also found that most real estate agents expect foreign investors to be the primary source of buyers next year. They also expect to see demand from local investors, local buyers that are upgrading their properties, and first-time local buyers.

Among the foreign buyers, most are expected to come from Mainland China, followed by Hong Kong, Taiwan, America and Singapore.

“The industry believes that foreign buyer demand remains relatively robust. Approximately half of all agents in the survey report that mainland Chinese are likely to complete more transactions in the fourth quarter than earlier in the year — both nationally and in Makati City,” it said.

Most of these transactions will be driven by offshore gaming companies, while others by retirement-driven motivations.

The strong demand for residential properties in Makati City, the Bay Area, Ortigas, and Quezon City last year was attributed to the influx of Chinese nationals employed by Philippine Offshore Gaming Operators (POGOs).

However, more POGOs are exiting the country due to the pandemic, slowing demand and the Chinese government’s crackdown against offshore gambling. — Denise A. Valdez

_____________________________________

Vista Land plans REIT offering, sees recovery signs as income falls

November 17, 2020 | 12:07 am [ bworldonline.com ]

FacebookTwitterLinkedIn

VILLAR-LED Vista Land & Lifescapes, Inc. is keen on doing a real estate investment trust (REIT) offering for some of its leasing assets to improve its financial position during the coronavirus pandemic.

In a statement on Monday, the property developer said it is “seriously looking at the possibility of doing a REIT with our 1.5 million square meters GFA (gross floor area) leasing portfolio.”

It noted 15% of its leasing portfolio is made up of office spaces occupied by business process outsourcing tenants, which have remained operational throughout the past months of the lockdown.

The rest are from malls, which Vista Land said are occupied mostly by tenants offering essential services.

“Rest assured that Vista Land is continuously making the necessary adjustments to operate effectively in the new normal and is strengthening our financial and operational positions to be able to address the needs of all our stakeholders,” Vista Land President and CEO Manuel Paolo A. Villar said in the statement.

Also on Monday, the company reported that its earnings in the nine months through September dropped 39% to P5.5 billion. It recorded consolidated revenues of P25.7 billion, down by 25% from the same period last year.

Without disclosing details, it said its third quarter-performance improved against the previous quarter, as activity started picking up when the government relaxed quarantine rules beginning June.

“This pandemic continues to impact our performance, both on our leasing and residential businesses. However, as mentioned before, we are glad to have seen encouraging signs of recovery when the economy started to reopen last June,” Vista Land Chairman Manuel B. Villar, Jr. said in the statement.

The company plans to launch more residential projects in the fourth quarter to add to the five projects that it launched in the past nine months, which were valued at P5 billion.

It is allocating P25 billion for capital expenditures this year, of which some 71% has already been spent.

Shares in Vista Land closed at P3.82 each on Monday, up four centavos or 1.06% from the last session. — Denise A. Valdez

____________________________________

SEC waives fines for missed, late corporate reports

November 11, 2020 | 12:08 am [ bworldonline.com ]

THE Securities and Exchange Commission (SEC) will not be fining companies that were not able to comply with deadlines to file regulatory requirements during the lockdown.

The corporate regulator issued Memorandum Circular No. 31 on Nov. 5, which was uploaded on its website Monday, to waive supposed penalties for violations incurred in the past months.

These include the late and non-filing of General Information Sheets, Audited Financial Statements and other reportorial requirements that the SEC asks from regulated firms.

The non-imposition of fines will apply for violations falling between Sept. 14 and Dec 19. Otherwise, the SEC will continue to implement corresponding fines and penalties.

The regulator said the circular is in line with Republic Act No. 11494 or the Bayanihan to Recover as One Act, also called Bayanihan II, which was signed into law on Sept. 11.

The law provides that the SEC and other regulatory agencies should “desist from imposing fines and other monetary penalties for non-filing, late filing, failure to comply with compulsory notification and other reportorial requirements relating to business activities and transactions… during the community quarantine.”

The SEC noted the relaxation of rules will also cover all foreign corporations except on matters relating to securities deposits and change of resident agent.

The circular takes effect immediately.

Prior to the signing of Bayanihan II, the Philippine government enacted Republic Act No. 11469 or the Bayanihan to Heal as One Act in March, which similarly sought to offer relief for SEC-regulated entities.

Accordingly, the SEC issued memorandum circulars that extended submission deadlines for reportorial requirements, on top of requiring grace periods for loans due during the strict lockdown.

Parts of the Philippines, including Metro Manila, remain under community quarantine due to the continuing spread of the coronavirus disease 2019. As of Monday, a total of 398,449 infections have been recorded by the Health department from the start of the outbreak. — Denise A. Valdez

______________________________________

Robinsons Land plans REIT offering in 2021

November 6, 2020 | 5:35 pm [ bworldonline.com ]

By Denise A. Valdez, Senior Reporter

Robinsons Land Corp. (RLC) is forming a real estate investment trust (REIT) company for some of its office assets, with plans for its listing at the stock exchange next year.

“To create further opportunities for growth, RLC is looking to list a REIT company for some of its office assets in CY (calendar year) 2021. It plans to infuse a significant number of its existing office buildings into the new REIT company,” it said in a statement Friday.

The Gokongwei-led property developer currently has 25 office buildings in its portfolio, equivalent to more than 600,000 square meters (sq. m.) of net leasable area.

If it successfully lists, RLC would be the second company to do a REIT offering in the Philippines, following Ayala Land, Inc.’s listing of AREIT, Inc. last August.

Aside from RLC, DoubleDragon Properties Corp. also announced a plan to do REIT listings annually from 2020 through 2025 for some 200,000 sq. m. of leasing assets every year.

REITs are the latest product offering of the Philippine Stock Exchange to boost activity in the stock market. It allows investors to earn dividends from specific revenue-generating properties of developers.

EARNINGS PLUNGE

Meanwhile, RLC reported its third quarter earnings plunged 78% to P717 million, from the P3.31 billion it reported in the same period last year.

Despite the decline, RLC said it saw signs of recovery as its third quarter bottomline improved 38% from the P518 million it recorded in the second quarter.

For the January-to-September period, the company booked a net income of P4.4 billion, about 40% lower from the P7.31 billion it posted last year. Consolidated revenues also fell 11% to P20 billion.

RLC said the softer revenue decline is due to its development portfolio, which grew by 33% to P9.84 billion, accounting for 49% of its consolidated revenues. This partly offset the 33% revenue decline in its investment portfolio to P10.17 billion.

By business segment, commercial centers added P4.8 billion revenues, halving the P9.7 billion revenues it reported the same period last year. This is due to fewer operating tenants and lower foot traffic at its malls because of lockdown restrictions.

Office buildings generated P4.34 billion revenues, up 20% from a year ago, due to the sustained demand from business process outsourcing and locators looking for flexible workspaces.

The residential segment posted P9.75 billion in revenue, growing 36% year-on-year, on the back of sustained take-up that reached P5.96 billion. RLC noted it was able to launch P10-billion worth of new projects this year.

RLC’s hotels and resorts booked P856.4 million in revenues, dropping 49% from the P1.69 billion it reported a year ago.

Revenues from its operational industrial facilities doubled to P164 million, while recognized revenues from commercial and industrial lot sales stood at P85 million.

“We are encouraged by the steady recovery of our businesses on the back of improving trends seen on a quarterly basis, as well as in October. Increasing customer engagement and the sustained interest from external partners give us confidence that business will continue to pick up in the coming months,” RLC President and CEO Frederick D. Go said in the statement.

“For the remainder of the year, we will continue to focus on operational recovery while implementing strict safety protocols,” he added.

RLC’s capital expenditures reached P10.41 billion for the nine-month period, about 43% of its P24-billion allocation for the year. This went to land acquisitions and the development of malls, offices, hotels and warehouse facilities. The company also spent on the construction of local residential projects.

Shares in RLC gained 40 centavos or 2.44% to close at P16.80 each on Friday.

_______________________________________

South Luzon seen as an emerging residential hotspot outside the capital

October 30, 2020 | 12:01 am [ bworldonline.com ]

Seafront Residences, AboitizLand’s beachside development in San Juan, Batangas, is the perfect location to work remotely with beautifully-designed homes by Budji+Royal and stunning views of Tayabas Bay and Mt. Banahaw. (Actual Photo)

Along with the new normal, the pandemic continues to reshape market preferences in real estate, as the industry shows continued resiliency. Industry watchers are seeing a growing shift from the metro to less-dense locations, made possible by online modes of working, learning, and commerce. Even vacation properties, which used to be regarded as secondary homes, are now being considered as principal residences in the post-pandemic era.

Property listing site Lamudi reports that 83% of respondents on its site have been considering properties away from central business districts. Coincidentally, a similar shift is seen in house type preferences, as house-and lot units have become more attractive to property seekers.

AboitizLand, the Aboitiz group’s real estate arm, sees opportunities in these trends with its South Luzon properties Seafront Residences and The Villages at Lipa benefiting in increased market interest.

After two decades of developing Cebu’s premier developments, AboitizLand began its national expansion in South Luzon in 2017 with Seafront Residences, a 43-hectare premier seaside community in San Juan, Batangas. After launching several communities in Central Luzon for the next three years, it continued its growth in the South with a fully-integrated community, The Villages at Lipa in Batangas.

South Luzon sees steady economic growth

Low density condominiums with just 10 units in each building allows safe and relaxed seaside living only in Seafront Residences. (Artist’s Perspective)

The economy of Region IV-A, comprising Cavite, Laguna, Batangas, Rizal, and Quezon (CALABARZON), has remained decidedly resilient, growing by about 6.3 percent a year from 2016 to 2018, making it one of the fastest growing centers in the country.

Contributing to the growth are infrastructure projects slated to be completed by 2021, such as the North Luzon Expressway (NLEX)-South Luzon Expressway (SLEX) Connector Road. Aiming to cut travel time between the two expressways to just 20 minutes, this project stokes demand for industrial space and complementing residential and commercial properties.

Home to next wave cities Dasmariñas in Cavite, Sta. Rosa in Laguna, and Lipa in Batangas, South Luzon also attributes its growth to the industrial segment, attracting global players with its robust information technology and manufacturing industries. This constant progression has buoyed demand for integrated communities and standalone residential developments in the region.

Integrated, future-ready communities

AboitizLand’s The VIllages at Lipa boats of signature features like diamond parks and greenbelts — natural green open areas in a network of walkable spaces and amenities. (Artist’s Perspective)

One such example of a development is AboitizLand’s The Villages at Lipa. Nestled inside LIMA, the Aboitiz group’s industrial-anchored township seen to be the next leading mixed-use economic center in the south, The Villages at Lipa provides families with a complete township lifestyle, complemented by LIMA Technology Center, The Outlets at Lipa, LIMA Exchange, Aboitiz Pitch, LIMA Business District, and academic institutions. Situated in Lipa and Malvar, Batangas, the 49-hectare community is far enough from congested megacities but close enough to be able to drive to the familiar sights and sounds of Metro Manila.

Second homes on the rise

Opportunities also abound for investors in the market for what used to be considered second homes. With buyers wary of current stock values, relatively stable real estate investments are becoming more attractive.

With work-from-home arrangements becoming the norm, property seekers are more discerning of amenities as people look for home features that allow them to achieve work-life balance while in quarantine.

Seafront Residences provides the attractive prospect of relaxed living by the sea. AboitizLand’s premier beachside community is master-planned by Florida-based DPZ, thought leaders on new urbanist communities, and features designer homes by Budji+Royal. With access to balconies and azoteas, and the many creature comforts of a highly amenitized community, having a stunning view of Tayabas Bay and Mt. Banahaw is now possible even while working remotely.

For those who are looking for apartments living outside the city, Seafront Residences also offers Seafront Villas, a collection of low rise and less dense condominiums with just 10 units in each building. Within a short walk from the beach, lots are also available for those that plan to have houses built or for property appreciation.

Green, less dense spaces preferred

Environmentally-conscious developments will also become more attractive to people who look towards low-density areas that offer house-and-lot type properties with generous green, open spaces, making social distancing norms possible.

Both Seafront Residences and The VIllages at Lipa communities are characterized by signature features like diamond parks and greenbelts — natural green open areas in a network of walkable spaces and amenities.

Developers adapt to shifting market needs

Aiding the shift towards these growth centers are property developers adjusting to consumers’ needs with a pivot towards digital and contactless selling, adjusted payment terms and discounts, as well as banks offering low-interest rates to ease homebuyers into investing during a pandemic.

AboitizLand is one of the first developers to respond to changing market needs by taking their operations online and offering end-to-end, digital-based homebuying. As a result, a strong sales take up was seen during the second and third quarters of the year, beating the company’s last year sales figures for the same quarters.

Know more about how life is better at AboitizLand through its contactless homebuying service. To learn more about Seafront Residences and The Villages at Lipa, along with the rest of their residential properties, visit their website at www.aboitizland.com.

For over 25 years, AboitizLand has stayed true to its promise of creating better ways to live through its thriving master-planned communities. A subsidiary of the Aboitiz Group, it is built on a firm foundation with a hundred-year heritage of advancing business and communities. For more information about AboitizLand, visit www.aboitizland.com.

--------------------------------------------------------------------------

Coronavirus pandemic pushes millennials to home ownership

November 4, 2020 | 12:31 am [ bworldonline.com ]

By Denise A. Valdez, Senior Reporter

MAE E. DIZON (not her real name), 24, bought a P2-million house and lot in Cavite province at the height of the coronavirus pandemic in June as an investment after getting a hefty performance bonus from her company.

“Before the pandemic, I planned several out-of-the-country trips,” she said in a Messenger chat. “The money I originally allotted for those went to the house.”

Ms. Dizon, who works as a trainer at PruLife in the financial district of Taguig City, is part of a growing number of young property buyers who now spend less on travel and leisure and take more interest in the liquid real estate market.

With massive joblessness, wage cuts and business failures, one would expect people to be more cautious about making the biggest investment of their lives — buying a house.

House prices have been falling as the world goes through the worst global economic crisis since the Great Depression in the 1930s, causing some nations to enter into either a recession or depression

Residential prices are expected to drop by 13% by yearend, as vacancy increases to 15.3% amid subdued demand for completed projects, property consultancy firm Colliers International Philippines said.

Phinma Property Holdings Corp.’s clients aged 20 to 30 years rose significantly during the health crisis, according to Chief Executive Raphael B. Felix.

“One reason is because their spending patterns changed,” he said in a Zoom Cloud Meetings call. “There are travel restrictions, so they can save a lot more.”

Twenty-five-year-old Jon Michael V. Mendoza’s savings grew during the lockdown, having skipped going to the beach or weekend parties simply because there were none.

After getting a job promotion in May, he bought a condominium unit in Pasig City. He’d been looking at property ads on social media, and he bought it because opportunities were too good to pass up.

“Condominium prices went down,” Mr. Mendoza said in a Messenger call. “I was comparing current rates with what I was given when I talked to agents last year. Prices really fell.”

While residential take-up slowed by 28% to 24,900 units in the nine months through September, sales remain good considering the current conditions, said Joey Roi H. Bondoc, research manager at Colliers.

“We still attribute the good sales performance during the period to attractive payment terms offered by developers,” he said in an e-mail. “We see these flexible schemes being extended to buyers of mid-income to ultra-luxury projects.”

During the lockdown, two-thirds of the buyers of Imperial Homes Corp., which develops solar-powered houses, were millennials, Chief Executive Officer Emma M. Imperial said at a recent virtual roundtable discussion.

“The performance of sales with the millennials coming in just shows that they like sustainability products right now,” she said. “Before the pandemic, the millennials did not care about investing in houses. They cared about buying cars or even buying their gadgets.”

Aside from the extra savings and flexible payment terms, changing living situations caused by the pandemic have pushed the younger generation to look for property.

When the entire Luzon island was locked down in mid-March to contain infections, Odessa Louise V. Mauricio, 24, went back to her family’s house in Caloocan City and left her condominium unit in Bonifacio Global City.

“It was nice for a few months,” she said in a Messenger chat. “But then it came to a point when it was tiring to be in a house where there’s so much going on.”

She has since gone back to her condo unit. “It’s hard when you have people knocking and the dogs barking,” she said of her family home. “Plus, there’s no sunlight there.”

In April, she closed a deal to buy a yet-to-be-built condominium unit in Pasig City. She said she doesn’t regret her decision, adding that having your own house is ideal if you work from home.

The coronavirus pandemic, which has sickened almost 400,000 and killed more than 7,000 people in the Philippines, is shaping how the younger generation is spending money for the future, Mr. Felix of Phinma Properties said.

“This pandemic gave this generation the realization, ‘Well, there’s only so much community that we can have. We also need a place of our own,’” he said.

He added that the growth of the shared economy in recent years might have seen its limits during this crisis, as people try to distance themselves from potential carriers of the virus.

Property has also become a more viable option for investment because of its expected appreciation over the years, Mr. Felix said.

“One of the things that this generation may have come to realize is that real estate is the safest investment,” he said. “The stock market is volatile. Interest rates are plummeting. Money markets are giving you nothing.”

Colliers advises property developers to continue building projects within integrated communities because buyers will prioritize living spaces with easy access to essential goods and services.

“We encourage developers to highlight the integrated features of their residential projects because this is likely to be among the major considerations of unit owners post-lockdown,” Mr. Bondoc said.

“The pandemic gave me more time to really consider my decision,” Ms. Dizon, mentioned at the outset, said in mixed English and Filipino. “I had planned to buy a house but not this soon.”

___________________________________________

Office supply gap seen in Davao

October 27, 2020 | 12:05 am [ bworldonline.com ]

LEAN S. DAVAL JR

By Denise A. Valdez, Senior Reporter

NO NEW OFFICE space will be added to Davao City’s supply for at least three years, property consultancy firm JLL Philippines said.

In a recent briefing on its Davao real estate market overview, JLL Philippines said there is a projected gap in new office supply until 2024, giving property developers an opportunity by expediting ongoing projects.

“Beyond 2020, there’s an absence of supply for the next three years. Most of the office developments that we’ve seen are estimated to complete post-2023. That’s around 155,000 square meters of office projects in total, and that’s certainly going to create a bit of dearth,” JLL Philippines Head of Research Janlo de los Reyes said.

“It’s going to leave a limited amount of available office space in the market for the next three years. That will mean even though there’s a higher vacancy at this current time, we expect that the market will recover by next year,” he added.

The vacancy rate for office leasing in Davao stood at 22.2% as of the third quarter. “(This is) reflective of the softening of office demand, which has characterized the leasing market across all geographies in the Philippines in the last few quarters,” Mr. De los Reyes said.

He noted the coronavirus pandemic, which affected operations for all types of businesses, pushed companies to reassess entry and expansion plans.

While these plans may remain on the back burner until the end of the year, Mr. De los Reyes said demand may start picking up by 2021 on improving economic conditions.

“Even though it’s a gradual recovery, definitely a lot of this (vacant) space is being absorbed by the occupiers as demand confidence resurges in the next couple of years. And that’s going to put a lot of pressure in terms of supply,” he said.

The supply gap in the near term may also push some developers to tighten construction schedules, hoping to capture firms looking to locate in Davao.

“That sends an opportunity to some developers to maybe reevaluate their completion dates and project plans to take advantage of that recovery of the demand, and at the same time, the lack of competition that we’re going to face within the next three years,” Mr. De los Reyes said.

The Davao office market primarily grew because of offshoring and outsourcing locators in 2010, but it has diversified in recent years. Traditional businesses and flexible workspaces have taken a larger share of the market starting 2016.

“That’s a good thing because now you have a more diversified profile of demand drivers for the city… This trend is something that we can expect in Davao City for the next couple of years,” Mr. De los Reyes said.

Aside from the coronavirus pandemic, he said the eruption of Taal Volcano in January pushed businesses to start looking at alternative locations and more satellite offices outside Metro Manila.

“Definitely there’s a lot of opportunities that are still remaining in Davao. (Its pipeline of) infrastructure development,… coupled by the lack of office development in the next couple of years, presents an opportunity for a lot of players,” Mr. De los Reyes said.

_______________________________________________

Makati passes right-of-way ordinance for subway project

October 25, 2020 | 6:29 pm [ bworldonline.com ]

THE Makati City government has passed an ordinance authorizing the acquisition of right of way covering the underground portions of nine roads affected by its subway project with Philippine Infradev Holdings, Inc.

The roads that will be affected by the project, according to Makati City’s Ordinance No. 2020-204 approved on Oct. 21, are: Sen. Gil Puyat Avenue, South Avenue, J.P. Rizal Avenue, J.P. Rizal Extension, Pablo Ocampo Sr. Extension (Vito Cruz Extension), Kalayaan Avenue, Epifanio de los Santos Avenue (EDSA), C-5 Road (Carlos P. Garcia Avenue), and San Guillermo Avenue.

The city ordinance said subsurface right of way needs to be acquired for the “staging, construction, operation, maintenance and development of the Makati Subway Project.”

It said the nine roads are in the road and bridge inventory of the Department of Public Works and Highways (DPWH) and fall under the jurisdiction of the department.

“Considering the importance of acquiring the easement of right of way of the subject roads for the benefit of the citizens of Makati, the City Government of Makati is constrained to acquire, through voluntary agreement or expropriation proceedings, an easement of right of way of the subject roads,” it added.

It cited Section 19 of the Local Government Code of 1991 or Republic Act No. 7160 as authorizing expropriations if needed.

Makati City said it has entered into negotiations with and made a “valid and definite offer” to the DPWH for the acquisition of right of way.

Philippine Infradev is building a $3.5-billion subway that will traverse the central business district of Makati City. The project will have 10 stations across a 10-kilometer line.

In September, the company signed a $1.21-billion engineering, procurement and construction contract with China Construction Second Engineering Bureau Co. Ltd. for the subway project.

Originally scheduled for completion in 2025, the subway is expected to carry about 700,000 passengers daily and reduce road traffic in the business district. — Arjay L. Balinbin

______________________________________________

AREIT to buy The 30th in Pasig City

October 23, 2020 | 6:22 pm { bworldonline.com ]

The 30th is a shopping mall and office building located in Pasig City. -- Company handout

By Denise A. Valdez, Senior Reporter

AREIT, Inc. is buying Ayala Land, Inc.’s (ALI) 76,000-square meter (sq.m.) commercial center in Pasig City to expand its portfolio.

In a disclosure to the exchange on Friday, ALI’s real estate investment trust (REIT) said its board of directors has approved the P5.1-billion acquisition of The 30th in Meralco Avenue, Pasig City.

The 30th is a three-year-old commercial development along Meralco Avenue with a fully-occupied office building and an amenity retail podium.

Full ownership of the building and leasehold over the land will be bought by AREIT from ALI. The acquisition will be funded through debt, marking the company’s first debt in its record.

With the transaction, AREIT is set to increase its gross leasable portfolio to 246,000 sq.m. from 170,000 sq.m. at present.

“Simultaneous to the acquisition of the building by AREIT, (Ayala Land) will assign the long-term land lease to AREIT. AREIT (will) lease office spaces to tenants, and the retail podium to Ayala Land, under a fixed lease as operator of the retail spaces,” it said.

The acquisition of new assets is expected to boost AREIT’s net income and dividends in 2021. It also bought an office building in Cebu City last September using P1.45 billion from its public offering proceeds.

In a separate disclosure on Friday, AREIT said its board of directors has approved the issuance of retail bonds and/or corporate notes with the goal of raising up to P6.4 billion. The facility will have a maturity of up to 10 years and will support the company’s asset acquisitions.

The board likewise approved establishing bank credit facilities up to P12 billion.

AREIT currently has four properties in its portfolio: Teleperformance Cebu, a 12-story office building in Cebu City; Solaris One, a 24-story commercial building in Makati City; Ayala North Exchange, a two-tower mixed-use development in Makati City; and McKinley Exchange, a five-story commercial office in Makati City.

It conducted a P12.33-billion initial public offering (IPO) in August, marking the country’s first REIT listing in history. As required by REIT guidelines, AREIT must reinvest its offer proceeds to the Philippines within a year from its IPO.

Shares in AREIT at the stock exchange shed five centavos or 0.19% to close at P25.65 each on Friday.

______________________________________

ANNOUNCEMENT : Publication of Applicants for Various Professional Regulatory Boards

Posted on 21 October, 2020

PRESS RELEASE

13 October 2020

The Professional Regulation Commission hereby publishes the list of the following applicants/nominees for the purpose of inviting anyone to inform the Commission of any derogatory information against any of them which may render him/her unfit for the position as Chairperson/Member of the Professional Regulatory Board:

1. For possible appointment as Chairperson/Member of the Professional Regulatory Board of Forestry:

For Chairperson:

NERIA A. ANDIN (reappointment)

For Member:

1.   ROBERTO R. ARAÑO
2.   ARTURO STA.ANA CASTILLO
3.   SEGUNDINO U. FORONDA
4.   BRESILDA M. GERVACIO
5.   ROBERTO V. OLIVIA

2.   For possible appointment as Member of the Professional Regulatory Board for Master Plumbers:

1.   ROBERT JAY A. CAMPOSANO
2.   JAIME JAJAY E. CRUZ
3.   JILOME T. MENDOZA
4.   SAMUEL M. PAETE
5.   BERNARDO M. TERROBIAS

3.   For possible appointment as Member of the Professional Regulatory Board of Mining Engineering:

1.   Engr. NONITA S. CAGUIOA
2.   Engr. GRACIANO M. CALANOG, JR.
3.   Engr. ROLANDO R. CRUZ
4.   Engr. FELIZARDO A. GACAD, JR.
5.   Engr. ARMANDO L. MALICSE
6.   Engr. CONSTANCIO A. PAYE, JR.
7.   Engr. JEGIE T. PEREDA
8.   Engr. RAMON N. SANTOS

4.   For possible appointment as Member of the Professional Regulatory Board of Real Estate Service:

1.   CECILYNNE R. ANDRADE
2.   MARIA TERESITA B. CANLAS
3.   JESSIE B. DOCTOLERO
4.   KEROVYN W. KIMBUNGAN
5.   VINIA V. LAPUZ
6.   ELMER L. LOREDO
7.   JOSEFINO D. MANHILOT
8.   NICANOR S. TUMALIUAN, JR.

_____________________________________

Filinvest expands Cebu flagship project

October 20, 2020 | 12:03 am [ bworldonline.com ]

THE FILINVEST Group is expanding one of its flagship projects, City di Mare, in Cebu City to adapt to the changing needs of consumers amid the “new normal.”

In a statement, Filinvest said it recently acquired an additional 9.6 hectares of land to be developed into a mixed-use project with residential, office, commercial, and retail components in South Road Properties, Cebu.

“With this new land bank, City di Mare will further foster a live-work-play lifestyle in the community,” the company said.

City di Mare already has residential buildings that are ready for occupancy, such as Sanremo Oasis and Amalfi, as well as a lifestyle complex IL Corso by Filinvest Lifemalls. It also features a park where residents and visitors can enjoy the outdoors while practicing social distancing.

To address the changing needs of the community, the company is building a pedestrian bridge with a bike lane that will connect City di Mare to IL Corso. It also plans to add a mixed-use block that will feature a school/university, office buildings, and retail area.

________________________________________________

REAL ESTATE NEWS / Archives