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

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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.

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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

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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

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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.

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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.

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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.

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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

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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.

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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.