Philippine Real Estate Blog

Camella Homes Building the Filipino Dream

2012-02-21T13:38:00.005+08:00

Click Here for Your Philippine Dream Real Estate Property

Camella Homes with 37 years of experience, is a trusted name in providing affordable housing in the Philippines. Since its inception in the 70’s under C&P Homes, Camella has expanded to 28 different provinces nationwide. It continues to be a beacon of hope for Filipinos—helping them fulfill their dreams of owning a home.

More than constructing houses, the company creates the spaces where lives are lived. Where individuals shape their aspirations and families shape their futures. Camella’s firm belief is that it builds not just a house but a home—and as such, the creation of a perfect environment for families is top priority.

Camella has always been committed to touching Filipino lives and helping achieve their dreams. Recently, Camella homebuyers shared their stories of how fulfilled they are in living out their dream in their dream home. Theirs are just some of the many heartwarming and inspiring experiences of more than 250,000 Camella homebuyers across the country.

Anchoring at Cerritos—Jesus Emmanuel Guilas, master mariner

Ten years of circling the globe as a tanker captain, Jesus Emmanuel Guilas set his anchor down at Camella’s Cerritos development in Daang Hari, Alabang, in April 2008, to locate his family permanently here and to prepare for the future of his children.

Jesus and wife Ivymarie made sure their hard-earned money was spent well on a home that had a good and secure environment for their young children, seven-year-old twin boys Andrew Per and Per Mattheiu.

It took the couple only one month to decide on making the purchase at Cerritos; though, Ivymarie relates, it took them six years to prepare for it.

“Cerritos has a quiet neighborhood,” Ivymarie says, adding it is near all the conveniences of the city, yet far enough to be peaceful.

“Tahimik at ligtas ang lugar namin [Our place is peaceful and safe],” she relates. “Simple lang pero elegante ang mga bahay dito (The houses here are simple yet elegant),” Ivymarie adds.

Ivymarie considers Camella a big help to overseas Filipinos who take extra care in spending their hard-earned money. “Kaya malaking bagay na mayroong magandang lugar tulad ng Cerritos na hindi mo panghihinayangang paglaanan ng pera [Good thing there is Cerritos, which is a wise investment],” she says. Three of her friends have also bought homes in Camella upon her recommendation.

According to Ivymarie, Vista Land gives immense support to overseas Filipinos through a very helpful sales team. “Madali silang lapitan at hingian ng tulong [They are friendly and approachable],” she says.

The Guilases’ have purchased three units from Camella Cerritos Phase 2—one unit for the family and one each for their twins. They believe it is never too early to prepare for the future.

Skipping Non-essentials—Nenita Jorquin, nursing aide-Camella Cebu

She would skip her daily cup of imported brew to save up and live out her dream—to buy her very own house. Five homes in Cebu built by Camella were Nenita’s reward for working hard in a foreign land, initially as a nanny in Singapore for a year in 1993; then as hotel employee in Hong Kong for three years; and lastly as a nursing aide in the US in 2000.

She bought her first home from Camella in Talisay in 1993, when she could only afford to buy a small unit with her Nanny’s wages. “Tingin ko’y maluwang ang bahay, at maganda pa ang presyo [The unit looked spacious and it was affordable],” Nenita explained that the monthly payments were affordable, which was a big help to an OFW like her. “Hindi mayabang ang dating pero lahat ng kailangan mo nandiyan lang [Our place is modest, yet everything you need is within reach],” she said. “Nagtiwala silang makakabayad ako [They trusted that I could make the monthly payments],” she said.

A home under the sun—Sayreville ‘Bing’ Orcullo Harris-Solariega, Davao City

Like many other brave Filipinos, Sayreville “Bing” Orcullo Harris, a single mother, tried her luck as an OFW based in Qatar and Saudi Arabia. She worked as a private nanny for seven years in the 1990s to support her family and her then young children, Marc Anthony and Kathleen. But fate had been kind to the young and adventurous Negrense. She met Australian Peter Harris, who was an engineer and oil company executive in Qatar. He was smitten by her charm. Bing saw and admired in Peter the same qualities she had: sincerity, courage and persistence. Now as Mrs. Bing Harris, she exudes the warmth of a woman fulfilled. She is presently a businesswoman, managing a travel agency and a small-scale gold mining business. Peter, is an Engineering Consultant for Petronas-Malaysia. He stays in their Solariega abode during his yearly vacation. Bing, who was born in Dumaguete City in extremely humble conditions and dared to brave foreign shores to find her place under the sun, found her sweet home. “I immediately fell in love with the place,” she said.

Solariega—coined from the word “Sola”—is a sun-blessed Mediterranean-inspired community of postcard pretty houses, quaint terracotta colored walls, stucco tile roofs, with picture windows and balconies around landscaped gardens.

Bing wanted to move from Cotabato and “walked into” Solariega. She saw the peace and beauty of the community, “I suddenly felt at home,” she exclaimed. She immediately felt that Solariega was the right place for her family, which now includes their son Joshua. “With the love and memories we have built in our home, I will stay in Solariega forever,” Bing said.

One of the first Camella homeowners—Ernie and Belen Celestino

The Celestinos looked back to their early married life and recounted their first step toward their future. In the ‘70s, Ernie and Belen Celestino worked at San Miguel Corp. (SMC) where Belen was part of the accounting department and Ernie was a salesman. As employees, they had the opportunity to avail themselves of several benefits not only for themselves but also for their family.

Belen narrated that they first wanted to purchase a lot, as they felt that they did not have the time to get into the details of building a house. It was in 1978 when they began to look for one. The couple went to various cities in the Metro but it was at Camella in Las Piñas where they felt at home. Apart from having a peaceful environment, it was the hassle-free relationship that they experienced that made them decide on Camella. Thing even went more smoothly as the couple hired Camella to construct their house. Their home was finished in 1980 and they immediately moved-in. Camella provided additional help in refining and maintaining the Celestino home in the first few years of their stay.

Today, the same house has become witness to the various changes in the Celestinos’ family life. Camille, their eldest child, is a doctor and is currently a radiologist at the National Kidney Institute. Ernesto, their second child, is a banking professional. The youngest son, Francis, is studying a multimedia course at the De La Salle-College of Saint Benilde. After they retired from SMC, the couple decided to enter into entrepreneurial and educational endeavors. Belen pursued an MBA degree at the Polytechnic University of the Philippines (PUP). She concurrently conducts integral review classes for Certified Public Accountants and teaches cost accounting at the Dr. Filemon C. Aguilar Memorial College in Las Piñas. Ernie manages their “bread house” located just in front of their home.

Well-maintained and secure are descriptions for the Celestinos’ haven. Many transportation options are available near their home. Caring for the homeowners is apparent through the different activities that the Camella Homeowners’ Association conducts. With their positive experience in Camella Las Piñas, the Celestinos are contemplating on purchasing another Camella property—particularly in Cebu where Belen hails from. Their beautiful family in their pristine house is a testament to the fact that the Celestinos found the perfect place to live and raise their children in Camella.

Camella’s Promise

Camella will continue to put the Philippines under one roof, especially going where families of overseas workers are. This is its own way of paying tribute to the country’s modern-day heroes. Camella understands their need to provide their families a peaceful and safe community while they are away from their loved ones.

In the heart of the homebuyer, Camella is the fulfillment of hopes and dreams, where life is lived each moment, each day. Here, the husband and wife come home to this haven, and raise their children in comfort, love and security. Here, they recharge, revitalize and thrive. Here, they develop relations that last a lifetime. Here, they commune with nature and appreciate its blessings. Here, they build lasting memories. Here, they belong to communities.

These are what make Camella the home brand of choice for the Filipino family. Camella have re-defined home development in the Philippines. After 37 years, its communities are now the benchmark for master-planned subdivisions and are known for expanding the boundaries of what comprise an ideal home for the Filipino. The themed homes and communities are exacting and true to each motif. Beyond the authenticity, Camella’s homes feature outstanding aesthetic design and quality, and are blueprinted with a fully-honed ability to maximize space, melding absolute functionality, practicality and artistry—dreams that have been turned into reality.

By Business Mirror

Click here to contact us on finding your Philippine dream real estate property.

Philippine Lender Buying Developer Stocks

2012-02-14T09:04:00.004+08:00

Buy Philippine Builder Stocks on Rate Cut, Rizal Commercial Says

The Philippines’s fourth-biggest lender is buying shares of the nation’s real-estate developers as the central bank may lower interest rates further to boost economic growth.

“The current interest-rate environment is quite favorable for the property sector,” Rico Gomez, who helps manage $1.53 billion at Manila-based Rizal Commercial Banking Corp. (RCB), said in a phone interview yesterday. “As long as overall market sentiment doesn’t deteriorate, we will see further gains.''

Gomez has reduced his holdings of Philippine energy and consumer stocks to buy property shares, he said, declining to identify specific companies.

The Philippine Property Index, comprising 15 of the largest developers, has rallied 17 percent this year as the Bangko Sentral ng Pilipinas trimmed overnight rates and signaled further monetary easing later in the year. It’s the best start to a year since the gauge jumped 25 percent in the same period in 2005. The benchmark Philippine Stock Exchange Index has gained 9.8 percent this year.

The central bank reduced the rate to 4.25 percent from 4.5 percent on Jan. 19 after two increases in 2011. The authority still has monetary “policy space” for further easing as the inflation outlook remains favorable, Governor Amando Tetangco said last week. Yields on Philippine 10-year bonds reached a record low 5.08 percent on Feb. 9 on expectations the bank will trim rates when it meets on March 1.

Inflation Target

“If the central bank cuts rates further, property stocks can replicate the return in 2009,” Gomez said.

The property-stock index surged 73 percent in 2009, the sharpest annual gain based on data going back to 1995, as the benchmark overnight interest rate was lowered to 4 percent from 5.5 percent at the end of 2008.

Inflation (PHC2II) will be within the government’s target of 3 percent to 5 percent in 2012, the National Economic and Development Authority said Feb. 10. Inflation eased to a 13- month low of 3.9 percent in January.

The gap between inflation and interest rates may encourage investors to put money into real estate, according to Gomez.

“With the low real interest rate, there are investors who will invest in real assets as they seek ways of protecting their money,” he said.

Investors should favor developers that hold a “significant” land bank over those with sizeable portfolios of condominiums because of the possibility of an “oversupply” in residential towers, Gomez said.

Property prices increased in parts of Metro Manila last year even as borrowing costs rose. Land values in Makati and Ortigas, two major commercial and business districts in the capital, rose at least 2.8 percent in the third quarter from a year ago, Philippine Daily Inquirer reported on Feb. 9, citing central-bank data.

By Bloomberg

Philippine Stocks Hit New Highs

2012-02-07T10:27:00.005+08:00

The local stock index surged to a new record high, breaching 4,855 in early trade on Monday as an upbeat US jobs data added to the market’s strong momentum, but it pared down gains at closing due to intra-day profit-taking.

The Philippine Stock Exchange index rose by 1.2 percent, or 57.76 points, to close at 4,816.33. It went up by nearly 2 percent in morning trade, powered by banks and conglomerates whose respective counters jumped by 3.2 percent and 1.8 percent. These sectors are both seen as a proxy to how the domestic economy will perform.

Banks were boosted by expectations of higher earnings from loan growth this year and were likewise aided by the Bangko Sentral ng Pilipinas’ decision to cut the reserve requirement by 3 percentage points in lieu of a tighter definition of the formula in computing such reserves.

Fund manager Gus Cosio, president of First Metro Asset Management Inc., said that while the market’s view on the reserve requirement move was mixed, the impact would be favorable on banks that have room to expand their balance sheet by growing their loan book. At the same time, he said big-ticket infrastructure projects in the pipeline this year would benefit consumers and thereby benefit banks.

BDO, Security Bank and Metrobank gained in heavy volume. Cosio noted that Security Bank was the best performing bank for the day (up 6.4 percent) as investors anticipated growth in earnings from an expanded distribution network following its acquisition of Premiere Development Bank.

Asked about the PSEi’s softening after hitting new all-time highs in the morning, Cosio noted that with the trading hours extended into the afternoon, day traders have become more active in intra-day plays.

All counters ended in the green except for the mining/oil counter, which slightly declined.

Value turnover was heavy at P8.96 billion. There were 112 advancers that overpowered 59 decliners while 36 stocks were unchanged.

Other stocks that aided the PSEi’s rise were PLDT, AGI, ALI, AC, AEV, Cebu Air, AP and DMCI. Stocks that gained in heavy volume were GMA Holdings, Puregold and Petron.

LMG and Chemphil went on voluntary trading suspension amid ongoing talks to bring in a new investor.

By Philippine Inquirer

Philippine Central Bank Policy Set For Growth

2012-01-31T07:10:00.006+08:00

Tetangco says monetary policy to remain slanted for growth.

Monetary authorities vowed to put in place accommodative policy settings to boost domestic output after the economy grew by a slower 3.7 percent last year from 7.6 percent in 2010.

Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. said in a text message to reporters that monetary authorities would also assess the growth prospects of the country’s major trading partners including European countries as well as the US.

“For our part, the BSP will assess the growth prospects of our major trading partners and their impact on our own domestic growth and inflation dynamics. We will continue to ensure that policy settings are appropriately accommodative of non-inflationary growth,” he added.

He pointed out that last year’s lower gross domestic product (GDP) growth could be attributed to the slackening economy of advanced economies led by the US as well as lower spending by the Aquino administration.

“The full-year GDP growth is lower at 3.7 percent, following the continued weakness in our trading partners and the slowdowns in government spending which was in fact needed as the government put in place new governance standards in spending,” he said.

The BSP chief believes that spending by the Aquino administration would recover this year.

“With the accelerated spending program now on under the new governance procedures, the government should derive more bang for each buck that is spent,” he said.

Last Jan. 19. the BSP slashed interest rates by 25 basis points to help boost the economy and at the same time support market confidence. This brought the overnight borrowing rate to 4.25 percent from 4.50 percent and the overnight lending rate to 6.25 percent from 6.50 percent.

The benign inflation outlook gave monetary authorities some scope for a reduction in policy rates to help boost economic activity and support market confidence. The BSP has set an inflation target of three percent to five percent between 2011 and 2013.

Earlier, Tetangco said the decision of the US Federal Reserve to keep short-term interest rates close to zero at least through late 2014 on concerns about the pace of economic recovery would give BSP enough flexibility to ease its policy stance to support domestic growth.

By PhilStar

Foreign Investors Unaffected by Impeachment Trial

2012-01-24T07:40:00.004+08:00

Foreign investors unaffected by impeachment trial, say experts.

First good news: Manila has just been upgraded in commercial investments prospects this year. Second good news: International property investors are not at all bothered by the ongoing impeachment trial proceedings in the Senate.

In an exclusive Web interview with Urban Land Institute trustee and South Asia chair Simon Treacy in the office of ULI Philippines founding chair Carlos Rufino on Dec. 14, 2011, he stated that he was aware of the showdown between Malacañang and the Supreme Court Chief Justice. He stressed that this political issue would not affect the perception of foreign property investors.

“In majority of countries, I think people look at these headlines every day, they look beyond that and people such as investors as well as these respondents are interested in the Philippines increasingly.”

Inquirer Property reported last week that the Philippines has been an increasingly important destination for property investments. Manila was upgraded in commercial investment prospects by two ranks in the Emerging Trends in Asia Pacific 2012 (a real estate forecast jointly published by the Urban Land Institute and PricewaterhouseCoopers).

Manila’s improvement—from the 20th to 18th for this year—was largely due to the expected continued growth in the gross domestic product of the Philippines.

“A new government and a surge in foreign investment in the business process outsourcing market—back office and call centers, for the most part—have helped the commercial real estate market, boosting the city’s 2012 investment prospects,” the report stated.

Covering 21 markets in the Asia Pacific, the Emerging Trends ranking is based on the opinions of more than 360 respondents composed of internationally renowned real estate professionals, including investors, developers, property company representatives, lenders, brokers and consultants.

Included in the 52-page report, however, has been the six-place slide of Manila in terms of development, falling to 17th in rankings.

Inquirer Property asked local property analysts their own take on the possible implications of the ongoing Senate impeachment trial, and their responses were mixed.

Enrique Soriano, a professor at the Ateneo Graduate School of Business and senior adviser at Wong+Bernstein Business Advisory, said that generally, the impeachment pro ceedings was a political and legitimate exercise and, therefore, should not in any way affect a country’s real estate ranking.

“However, for third-world and emerging economies like the Philippines where foreign direct investments, image and political stability play crucial roles in shaping the investment climate, the present impeachment (proceedings) against the CJ will likely have a direct impact on our real estate index,” Soriano said.

“Politics and business in this country are inextricably linked, and therefore a direct correlation exists. For foreign property investors, vectors of entry in a host country entail not just a full diagnostic of the economic picture but also a thorough understanding of the political risk index, both incumbent and future national complications,” he added.

Two Sides

David Leechiu, country head of Jones Lang LaSalle, explained, “There are two sides to the coin here. The first side, if you look at the last 10, 12 years, despite all the political havoc we went through from the time of Presidents Estrada, Arroyo, with all the coup dé tats, rallies, bombings, the BPO (business process outsourcing) has flourished. Twelve years ago, there were a thousand employees in the BPO industry. Today there are about 620,000 people.”

He said, “There are some industries and some companies that have adapted to that. So we can say despite all our political problems, we’ve been fine in attracting these industries, but what is the cost? The cost is that our credibility as a political institution needs a lot of restoration, and so how the world will see this thing is going to depend on how we conduct ourselves and whether it will stand scrutiny from the international community.”

Liu Chui added: “Now if we have credibility, then what that will translate for us is that dramatic opening of the Philippines to the world. Because of our political situation, we have been one of the lowest recipients of world direct investments. Yes, the 12-year period hasn’t stopped the BPO industry from growing. The 12-year political strife has not stopped the overseas remittances from flowing, (but) it has come at a cost of foreign direct investment of progress.”

By Philippine Inquirier

Philippine Real Estate Upgraded Internationally

2012-01-17T13:03:00.006+08:00

Philippines Upgraded in International Property Investors’ Report Card

How time flies, and circumstances change. In 2011, the local property industry received sobering news that Manila had been ranked “below fair” to “abysmal” by foreign property investors, according to the Emerging Trends in Real Estate Asia Pacific 2011 survey conducted by the prestigious Urban Land Institute (ULI). Global real estate investors then gave Manila 4.56 points out of a possible 9.

But in the latest report, the ULI Emerging Trends 2012 Asia Pacific upgraded Manila from the bottom of the list to No. 18 in Investments.

The 2012 ULI study said Manila’s progress in commercial investment prospects boosted its ranking from 20th place in the 2011 survey to 18th place (out of 21) for the 2012 report. It also said that “a new government and a surge in foreign investment in the business process outsourcing (BPO) market—back office and call centers, for the most part—have helped the commercial real estate market, boosting the city’s 2012 investment prospects.”

Included in the survey are 360 international renowned real estate professionals, including investors, developers, property company reps, lenders, brokers and consultants.

Simon Treacy, the South Asia head of the Urban Land Institute, told Inquirer Property that several factors were instrumental in the two-place improvement, including the new leadership in government—the promise of change, skilled people, opening up of markets and the “very exciting” demand in the business process outsourcing (BPO) market.

He said, “The world is starting to understand that the Philippines is back in the game.”

Fast-Emerging Market

The ULI study is a publication of ULI and Pricewaterhouse-Coopers. It described the Philippines as a “fast-emerging market.” Part of the report read, “In the past, perceived problems with bureaucracy and corruption have deterred foreign investment—‘The Philippines is on our do-not touch list,’ one fund manager commented—but a recent change in government has now improved political stability and created a more pro-business environment. Rapid growth in the BPO sector—currently responsible for 90 percent of office take-up in the country, according to investment bank CLSA—has led to mushrooming demand for office space. According to one locally based investor, ‘The Philippines is doing 300,000 square meters per year, and we’re thinking maybe 360,000 may not be unachievable.’”

The report also said, “As with most developing markets, foreign investment in real estate is regulated. Foreigners are barred from taking a majority interest in land, although (unlike in India) they may own buildings or leaseholds relating to it. Banks are willing to provide 60 to 65 percent LTVs, and interest rates are described as ‘very livable: fixed-term five-year money is available at something like 6.5 percent to 7 percent.’

“Bureaucracy continues to be an issue, but interviewees compare the Philippines favorably to other emerging markets in terms of transparency and, perhaps most significant, the availability of options for existing investments in the rapidly evolving BPO sector, which in the voice segment is now larger than that in India.”

The ULI study about the Philippines concludes: “The fact that so many multinationals are now setting up their own in-house facilities increases opportunistic possibilities because ‘if you have a multinational-profile tenant roster, then you can attract (core) funds.’ Investors are looking for returns of 20 percent plus, according to one fund manager, whereas ‘if you buy the building from me and it’s 100 percent or 95 percent occupied, you might be looking at a 10- to 12-percent return.’”

By Philippine Inquirer

Philippine Bank Chief Sees Easing by End March

2012-01-10T07:47:00.004+08:00

Amando Tetangco Philippine Central Bank Chief

The Philippine central bank chief said he anticipates easing monetary policy this quarter should Europe’s sovereign-debt crisis further the growth outlook, prompting Philippine Stocks to climb as bonds erased losses.

“Given benign inflation conditions and a favorable inflation outlook, we have room to support domestic activity should the global economy deteriorate significantly,” Governor Amando Tetangco said in an interview in Manila today, ahead of a policy meeting this month. “The Bangko Sentral ng Pilipinas is prepared to employ policy tools as may be appropriate to boost domestic economic growth as long as current readings on price and financial stability will allow.”

Philippine inflation (PHC2II) at an 11-month low has widened the scope for Tetangco to join counterparts in Indonesia, Thailand, and Australia in cutting interest rates to protect growth. Bangko Sentral held off from lowering borrowing costs last year as Asia-Pacific policy makers juggled the need to guard against price pressures with containing the threat to their economies from faltering global demand.

“In a world where exports are going be soft in the first half of the year, it makes sense for the central bank to lower interest rates to boost private investment, consumption,” said Matt Hildebrandt, a Singapore-based economist at JPMorgan Chase & Co. “Inflation looks pretty subdued at this point and a rate cut can come as early as this month.”

Bonds Recover

A report tomorrow may show Philippine exports fell for a seventh month in November, all nine economists predict in a Bloomberg News survey.

Benchmark bonds due January 2022 erased losses after the report. The yield was unchanged at 5.2 percent, according to 3:17 p.m. prices at Amstel Financial Services, after rising 0.05 percentage point earlier. The Philippine Stock Exchange Index (PCOMP) surged to a five-month high, climbing 1.3 percent at the close of trading today. The gauge rose 29.28 points in the last 10 minutes of trading, according to data compiled by Bloomberg.

Bangko Sentral kept its benchmark interest rate (PPCBON) unchanged at 4.5 percent for a fifth meeting in December after two increases earlier in 2011. It also raised the reserve requirement twice, bringing the ratio to 21 percent. Policy makers next meet to decide on borrowing costs on Jan. 19 and March 1.

The monetary authority may cut its benchmark policy rate or reduce banks’ reserve ratio as it forecasts inflation this year and next will average closer to the low-end of a 3 percent to 5 percent target, Tetangco said today.

Keeping Low Rates

“With this inflation outlook, one can expect the low interest-rate environment to continue,” he said. “As a result of that, we should also expect an increase in investment that would support growth.”

Inflation eased to 4.2 percent in December, a report showed last week. Money supply growth (PHMS3YO) slowed to a three-year low of 6.9 percent in October, the latest data show.

Philippine President Benigno Aquino is increasing spending this year to a record 1.83 trillion pesos ($41 billion) by building roads, bridges and schools as he seeks to bolster growth to as much as 8 percent annually. The government also plans to offer as many as 16 projects to investors this year, compared to one contract awarded in 2011.

Bidding for Projects

“You have a good combination of an accommodative monetary policy courtesy of a favorable inflation outlook and expectations, and expansionary fiscal policy,” Tetangco said.

Ayala Corp., leading a consortium that won a contract last month to build a four-kilometer, four-lane paved toll road leading to provinces south of the capital, may bid for two road projects and a contract to run an airport, Managing Director Eric Francia said Dec. 15.

Aquino has won sovereign-rating upgrades from Fitch Ratings and Moody’s Investors Service after intensifying efforts to narrow the budget gap from a record 314 billion pesos in 2010, and Standard & Poor’s raised its outlook on the country’s debt rating last month.

The Philippines’ $200 billion economy expanded 3.2 percent in the third quarter from a year earlier, holding near the 3.1 percent pace in the previous three months that was the slowest since 2009.

By Bloomberg

Philippines Sees Speedier Project Offerings

2012-01-04T11:27:00.003+08:00

By Bloomberg

The Philippines pledged to speed up a proposed offering of infrastructure projects to investors as President Benigno Aquino seeks investments to shield the economy from a global slowdown.

The government may offer eight to 16 of the so-called public-private partnership projects worth as much as 142 billion pesos ($3.2 billion) this year, Cosette Canilao, executive director of the program, said in an interview in her Manila office yesterday. One contract was awarded last year, against an earlier estimate of as many as 10. San Miguel Corp., Ayala Corp. (AC) and Metro Pacific Tollways Corp. are among companies that have expressed interest in some of the projects, she said.

“If we are able to prove that the government is consistent with its policies in bidding out PPP projects, it will be a great boost in our efforts to attract investments,” Canilao said. “We enhanced a lot of the processes and policies regarding PPP. I’m confident 2012 will be a busy year for us.”

Aquino has unveiled $16 billion of projects as he tries to attract capital to a nation that has lured less foreign direct investment than Southeast Asian neighbors. Further delays in the program may undermine his goal to create jobs and boost growth to as much as 8 percent annually.
Faster Growth

“The government took a bit of time to put together the structure under which the PPP will be carried out,” said Prakriti Sofat, a Singapore-based economist at Barclays Capital. “But with the systems now in place we expect a pickup through 2012. Rising infrastructure spending will over time help boost potential gross domestic product.”

The peso dropped to a 10-week low last month as Europe’s debt woes threaten to push the world into another recession, prompting funds to sell emerging-market assets. The currency gained 0.4 percent to 43.76 per dollar yesterday, according to Tullett Prebon Plc. The yield on benchmark bonds due September 2016 climbed to a three-week high, according to Tradition Financial Services.

The government last month awarded to a consortium led by Ayala Corp. a contract to build a four-kilometer, four-lane paved toll road leading to provinces south of the capital after the company submitted the higher bid of 902 million pesos.

The projects this year include a plan to develop a water source for the capital, build three airports, more than 9,000 classrooms, and a 13.4 kilometer highway connecting two expressways, Canilao said.

From 1970 to 2010, the Philippines attracted $33.98 billion of foreign investment, according to the United Nations Conference on Trade and Development. That compared with $322.13 billion for Singapore and $108.87 billion for Thailand.

The Philippines’ $200 billion economy expanded 3.2 percent in the third quarter, holding near the 3.1 percent pace in the previous three months, the slowest pace since 2009.

Merry Christmas from Philippine Real Estate

2011-12-24T11:17:00.004+08:00

Peace On Earth and Goodwill to All!

Wishing you and yours a very Merry Christmas

Philippine Economy Remaining Strong Resilient

2011-12-14T08:27:00.006+08:00

Philippines Seen to Remain More Resilient than Peers in Asia

British banking giant Standard Chartered sees the Philippines staying “more resilient” than other Asian economies in 2012 on the back of strong domestic demand and investment.

In its global outlook titled “Global Focus—2012 Fragile West, resilient East,” a chapter on the Philippines said Stanchart was expecting the domestic economy to grow by 3.8 percent for the full year and by a modest 3.2 percent next year, as the Western economic outlook deteriorates further.

The country’s gross domestic product is seen growing at a faster clip of 5.3 percent in 2013 and 5 percent in 2014.

The easing of inflation next year is also seen giving the Bangko Sentral ng Pilipinas more room to cut rates if external headwinds intensify. But Stanchart said that given that the current policy rate of 4.5 percent was already low, it was not expecting more than 50 basis points of interest rate cuts next year.

“The main pillars of support for the economy in 2012 will be private consumption and government spending and investment. Consumption will continue to be supported by solid inward remittances from overseas workers. Government spending/investment is expected to gather pace, after falling short of expectations in 2011, as public-private partnership (PPP) infrastructure projects get underway in 2012,” the research said.

The bank said there were likewise growing downside risks, both onshore and offshore.

“The export sector is unlikely to recover until at least the second half of 2012 as external demand takes time to resume; manufacturers are also recovering only slowly from the supply-chain impact of the Japanese earthquake,” the research said.

Stanchart expects exports—especially of electronics, which accounted for 60.4 percent of the 2010 total receipts.

The research noted the launching of the governments P72-billion fiscal stimulus plan in October to contain the negative impact of the escalating economic crisis in the West.

“We expect some tail effects to carry over into 2012, helping to stimulate economic growth,” it added.

“Inflationary pressure is likely to ease in 2012 as the impact of higher oil and food prices—the two main drivers of inflation in 2011—dissipate further, partly on the back of weakening global demand,” it said.

On the fiscal side, Stanchart said the government debt burden should continue to decline gradually following the government’s adoption of a zero-based budgeting method to manage expenditure. It noted that the country’s public debt ratio was low among Asian peers, at 44 percent of GDP.

“The government needs to stay on the fiscal consolidation path by improving the efficiency of tax collection and revenue generation, and by better utilizing government spending to fuel economic growth,” it said.

By Philippine Inquirer Business News

Philippines Annual Inflation Rate Slowing

2011-12-08T08:24:00.004+08:00

BSP Open to 2012 Easing as Inflation Slows

The Philippines' annual inflation rate slowed more than expected in November, and the central bank said on Tuesday it was willing to ease monetary policy early next year if the outlook for growth worsened.

Some analysts are betting on cuts of as much as 50 basis points in interest rates in the first half of 2012 as moderating inflation pressures give authorities the leeway to focus on boosting growth, which has lost significant momentum this year.

"As the favorable inflation outlook provides us flexibility, we are open to possible easing early next year, especially if our own growth prospects continue to be subdued," Governor Amando Tetangco said in a text message to reporters.

Annual headline inflation in November was 4.8 percent, lower than October's rate of 5.2 percent and market forecasts of 5.0 percent, based on a new series using 2006 prices.

The old series based on 2000 prices showed annual inflation at 4.7 percent, slowing from October's 5.3 percent. The central bank is using this series to measure its 2011 target of keeping inflation between 3 and 5 percent -- which will be met as the 11-month average is 4.5 percent.

While risks to inflation were tilted to the downside, Tetangco said the central bank was watching geo-political developments and their impact on commodity prices, capital flows and inflation.

Tetangco told Reuters in an interview on Monday meeting this year and next year's growth forecasts would be a challenge, and there was scope for monetary and fiscal policy to support the economy, with inflation expected to moderate.

Tetangco said monetary easing could be an interest rate cut, a reduction in the reserve requirement ratio, or both.

Annual GDP growth unexpectedly slowed in the September quarter on weak exports and state spending, raising doubts the 2011 growth target of 4.5 to 5.5 percent would be achieved.

At a Dec. 1 policy review, the central bank held interest rates at 4.5 percent, saying it needed to see a continuous moderation in inflation before it considered reducing rates.

"Inflation would continue to just slow in the coming months providing policy flexibility to the central bank, and given the external headwinds we are looking for the central bank cut interest rates by 25 basis points in the first quarter and another one in the second quarter," said Prakriti Sofat, economist at Barclays Capital said.

The next policy meeting is on January 19.

The central bank raised interest rates in March and May, and then raised bank reserve requirements in June and July, bringing banks' reserve requirement ratio back to the pre-global financial crisis level of 21 percent.

The last time it cut interest rates was in July 2009.

By ABSCBN

Filipino-Americans Investing in the Philippines

2011-12-06T08:35:00.006+08:00

Fil-Ams Now Looking to Invest in Philippines

How exactly are Filipino-Americans faring in the midst of the bleak economic scenario and political gridlock in the United States?

Based on the 2010 survey of the US Census Bureau, there are now roughly 2.5 million documented Filipino-Americans comprising some 0.8 percent of the US population. Filipinos are the third-largest Asian-American ethnic group in America after the Chinese (3.3 million) and Asian Indians (2.8 million).

I got a firsthand account of the plight of our countrymen when I stayed with some relatives and friends in time for the upcoming Thanksgiving holidays in the US. I can only commiserate with how bad it has turned out for those who migrated to this proverbial “land of milk and honey” hoping for a better life for their families.

Like most Americans, Filipino-Americans have not been spared from the unemployment crisis now gripping the US. A big number of them, mostly highly educated and with a good work ethic, have fallen prey to the trend of corporate America to resort to downsizing and mass layoffs to keep overhead costs down.

Those who managed to hold on to their jobs are forced to receive lower pay. Companies struggling to stay afloat are slashing down the regular 40-hour workweek to as little as 30 hours, with some firms even opting for a three- to four-day workweek, to avoid paying benefits like health and medical insurance for their employees.

Filipino-Americans in California getting the regular minimum wage rate of $8 an hour compensate for their diminishing income by acquiring two or more part-time jobs just to survive and keep up with daily expenses.

The unemployment scenario has also had the chilling effect of stripping Filipino-Americans of their health-care benefits. Very sad, indeed, considering that a number of retirees and senior citizens have taken residence in the US. The ones I talked to said they were now going for fewer medical checkups and visits to the doctor.

The moribund health-care industry has also reduced the number of workers in that field. In particular, Filipino doctors and nurses, once worth their weight in gold, are now out of job. Some doctors, dentists even, are now working as nurses because fewer patients are going to doctors. Health- insurance benefits are shrinking, and funds from the private sector and city/state coffers are being cut.

According to the US National Council of State Boards of Nursing, only 4,350 Filipino nurses took the exams in the first three quarters of 2011 compared to 7,780 Filipino nurses in the first three quarters of 2010, or a 4-percent decline.

The scenario in the housing market is just as bleak. Many homeowners have chosen to just “walk away” or to simply abandon their homes because they could not afford to keep up with mortgage payments. The number of bank foreclosures on real-estate property is still rising, with no end seemingly in sight.

To illustrate: a friend who bought his home for $585,000 was faced with the prospect of paying a monthly amortization rate that had suddenly become much higher than the value of his property. Per his computation, it was no longer worth buying the house because the $3,200 monthly payment was not commensurate with its actual value. His house was now worth $250,000 or less than half its original price.

So he opted to short-sell the property, or to sell it at a lower price than what he got it for. He cut his losses, figuring he could still squeeze something out of the property and use the money to pay off his bank loan. Others would call this a strategic default. Trust Filipinos to be level-headed and clear-eyed when it comes to facing their financial problems.

This friend of mine is now leasing a house for about $1,200. Not a bad idea, considering it is much bigger than his old home, with a swimming pool, to boot! Take note also of the low monthly rent. There simply is nobody willing to buy the house; very few have the money during these difficult times.

However, there are some lucky ones. I know of a couple that applied for a loan-restructuring plan. The bank agreed to modify their monthly amortization, taking note of their diminished circumstances but good credit standing. The bank lowered their monthly payments from $3,200 to $1,300, and extended their payment period.

But cases like this are few and far between. Not everybody is fortunate enough to wangle this good a deal from the bank. Another couple, both with high-paying jobs but with the same predicament, did not get approved by the bank. And to think husband and wife belonged to a much higher income bracket!

One immediate consequence of the economic whiplash in the US is that more and more Filipino-Americans are now organizing and joining “Occupy Wall Street” rallies against what they consider the ugly side of voracious capitalism.

Originally from New York, this movement has found a lot of adherents in San Francisco. The call to moderate the greed of the 1 percent of economic society, or those big business and investment banking, has resonated with Filipino-Americans struggling to keep body and soul together here in the Bay Area.

Filipino-Americans are now rethinking their options in terms of livelihood opportunities for their families. They are wracking their brains and thinking of what goods to send back home to augment their income. Not a few intimated to me that they also plan to invest in real-estate in the Philippines rather than in the United States. They think they have a much higher chance of making money. Which is why they ventured to go to America in the first place.

More on this in our column next week.

By Business Mirror

High BPO Demand Spurs Construction Frenzy

2011-11-29T13:46:00.006+08:00

BPO Demand High Top Developers in Construction ‘Frenzy’

Exactly 35 days before 2011 bids adieu, Inquirer Property has asked analysts to assess the performance of the Philippine real estate industry in 2011. Their unanimous reply:

It has been a banner year for the business process outsourcing (BPO) sector.

The mid-income condo development is in the midst of a “construction frenzy.”

The demand for spaces in the Makati, Bonifacio Global City and Ortigas central business districts was even higher this year compared to last year.

The emerging growth centers like Eastwood and Bonifacio Global City have “arrived” this year.

Leading global real estate services company Colliers International, which claims its research team had been tracking all the residential condominium developments in Metro Manila since 2008, said that in 2010 preselling activities were able to sell 36,000 units, and that in 2011 that number is projected to be surpassed by more than 11 percent to breach the 40,000 units sold mark.

This was revealed by Paul Vincent Chua, associate director for valuation and advisory services and head of consultancy and research.

Top 5

“There are a lot of developers who performed well this year, however, in terms of condominium units sold in Metro Manila, SM Development Corp. remains to be number one. The top five include developers Ayala Land Inc., Century Properties, DMCI and Megaworld,” said Chua.

Enrique Soriano, professor at the Ateneo Graduate School of Business and senior adviser at Wong+Bernstein Business Advisory, also cited Megaworld, ALI, SMDC and Robinsons Land Corp. (RLC) as the top-performing developers in 2011.

Soriano also added that the property sector in 2011 “was single-handledly fueled by private initiatives.”

Soriano also observed “no movement in the high-end condominium segment, and aggressive construction frenzy in the mid-income condo segment representing 80 percent of all residential developments in 2011.”

4% vacancies

Chua said that in terms of commercial space uptake, the demand from the BPO sector is still remarkably high.

“If you look at vacancies in Makati, Bonifacio Global City, and Ortigas, the average vacancy for the third quarter is now less than 4 percent compared to the same period last year, which had an average vacancy rate of more than 6 percent. Even with the (addition of a) number of planned office developments in the next couple of years, we expect vacancies to remain low as the demands for these spaces are still very high.”

Soriano said the industry’s strength was “focused on the vertical developments and the BPOs and the emergence of new growth centers following the success of Eastwood and BGC.”

But have there been any downsides to this year’s flurry of developments? “The singular focus on the mid-income segment, and neglecting other asset classes,” replied Soriano. He reasoned, however, that the property sector was just keeping up with “unmet demand, fueled by buyer demand, especially (from) overseas Filipino workers (OFWs) and overseas Filipino expats (OFEs).

Morale booster

The positive analyses for 2011 and the strength of the Philippine real estate industry this year come as a morale booster, coming at a time when the city of Manila has recently been tagged as “below fair” to “abysmal” by foreign investors in the Emerging Trends in Real Estate Asia Pacific 2011 survey conducted by the Urban Land Institute.

Global real estate investors, who participated in the survey, gave Manila a score of 4.56 points out of a possible 9. Topping the survey in the Asia-Pacific region was Singapore with a score of 5.96 points, followed by Shanghai with 5.87, Mumbai with 5.79 and Hong Kong with 5.70.

Chua countered that the Philippines has been one of the few countries in Asia where foreign land ownership is limited to 40 percent. He urged the sector to look at the brighter side, particularly the lower rental rates compared to other Asia-Pacific countries.

He pointed out that for the office sector alone, with 25 Asia-Pacific cities covered by Colliers International, Makati City offers the third lowest rent, ranking No. 22 on the list with an average net rent of $21.48/square feet. The city that commands the highest rent, Hong Kong, has an average net rent of $185.91/square feet. Looking at the capitalization rate or prime yield of these cities, Makati ranked second with 9.77 percent, following topnotcher Mumbai with 10.6 percent.

Soriano said the low ranking was a wake-up call, and that the Real Estate Investment Trust law must now be implemented in the country, citing Hong Kong, Thailand, Singapore and Malaysia significantly benefiting from REIT. He added that implementing REIT would open more opportunities for investment.

By Philippine Inquirer Business News

OFWs Come Home for High Paying Jobs

2011-11-25T09:27:00.004+08:00

While many continue to seek greener pastures abroad, some overseas Filipino workers (OFWs) are going against the tide to take up job offers at home.

One such OFW is Malaysia-based computer whiz Arlene Teodoro who packed his bags and flew home to the Philippines this year.

Forced to leave his family and friends in 2008 in search of a decent job overseas, the 35-year-old bachelor is back for good because his skills are suddenly in big demand amid a business process outsourcing boom.

“Nothing compares to being back in the Philippines,” said Teodoro, who was part of a 30-strong computer science class at a Manila university in the early 1990s, most of whose members also went overseas to find work.

“When I was working abroad, I’d use up all my vacation leaves to attend family events and reconnect with my family,” he said.

Teodoro now earns about P130,000 a month as a business intelligence analyst for a US data mining firm, which uses powerful software to predict such key measures as future sales and trends for clients.

Big multinationals from aircraft manufacturers to retail chains are increasingly using these sophisticated tools, and the Philippines and India offer the most cost-efficient locales for such labor-intensive tasks, he said.

The main advantage of the two countries is their large English-speaking populations.

Data mining is just a small part of the outsourcing phenomenon in the Philippines that has emerged from virtually nothing 10 years ago to become one of the country’s most important economic planks and sources of jobs.

The Philippines has for decades suffered an exodus of people who have headed overseas to escape dire economic conditions, with one quarter of the population currently living on a dollar a day or less.

Nine million, or 10 percent of all Filipinos, now live overseas, performing low-skilled jobs such as maids and sailors, but also working as nurses, engineers and IT specialists.

Modern-day heroes

OFWs sent $18.17 billion back to the Philippines last year, equivalent to 10 percent of the country’s gross domestic product (GDP), and their importance to the nation is such that they have earned the nickname: “mga bagong bayani,” or “modern-day heroes.”

The exodus, however, has also led to a massive brain drain and caused social disruption as families are torn apart, with one or both parents going overseas and leaving their children at home with relatives.

But now the rise of outsourcing is giving many Filipinos a chance to stay home.

The outsourcing workforce grew about 10 percent this year to 600,000, and is expected to expand to 900,000 employees by 2016, according to the Business Processing Association of the Philippines.

More than 60 percent of the outsourcing jobs are in call centers with Filipinos fielding telephone inquiries from or selling products to customers across the globe.

P20,000 a month

Although these employees are the lowest-paid in the sector, an entry-level call center job still pays between P14,000-P20,000 a month.

This is roughly equivalent to what a Filipino maid would typically earn in a wealthier Asian country such as Singapore, or a seaman’s starting salary in the global merchant fleet.

The local outsourcing industry is also increasingly attracting work for higher-paying skills such as data warehousing, accounting and medical transcription, as well as creative work ranging from webpage design to animation and video games.

“Before, it was the call center boom in the Philippines, but now it’s more of really specialized skills,” Teodoro said.

The Philippines has risen to have the second biggest outsourcing sector in the world behind India partly because it has a huge English-language workforce.

Filipino workers are also particularly prized in the United States and other Western nations because of their familiarity with their culture, a legacy of the Philippines’ history as a former US colony.

A pleasant experience

“We have had expats telling us that working with Filipino teams is a very pleasantly unique experience, which they have not had elsewhere in the world,” said Gillian Joyce Virata, a senior executive director of the industry association.

The government has also sought to amplify the country’s natural advantages by offering significant tax breaks for outsourcing firms and easing labor laws, such as one that used to bar women from working past midnight.

The industry association said outsourcing would generate revenues of $11 billion this year, up from $8.9 billion in 2010, and continue to grow by at least 15 percent annually to hit $20 billion by 2016.

This would place the outsourcing industry’s revenues almost on a level with the money sent home by overseas workers.

‘A very big support’

“This industry has provided a very big support to the economic environment of the Philippines in the past decade,” Trade Secretary Gregory Domingo told an outsourcing forum recently.

Apart from the direct benefits of employing people, Domingo credited the industry with a wide range of other knock-on effects such as increased car sales and the explosion of 24-hour convenience stores.

Outsourcing has also begun to transform Metro Manila’s skyline, with skyscrapers rising to cater to big foreign banks and technology companies that have set up shop with workforces that run into the tens of thousands.

“The contribution of this industry cannot be overstated,” Domingo said.

By Philippine Inquirer Business News

Philippine Banks Net Income Increase

2011-11-23T09:10:00.003+08:00

Philippine Banks’ Net Income up 12% in First 9 Months

Universal and commercial banks posted yet another double-digit income growth rate by the end of the third quarter, buoyed partly by earnings from increased lending operations.

The combined net income of the large banks amounted to P69.63 billion in the first three quarters of the year, up by 12 percent from P62.03 billion in the same period in 2010, data from the Bangko Sentral ng Pilipinas showed.

Data further showed that profit growth was driven largely by “interest income,” which consisted mainly of earnings from lending to corporate and individual borrowers.

Income from interests, mainly those charged to borrowers, less expenses for interests paid to depositors, amounted to P145.18 billion, rising by 6 percent from P136.52 billion over the same period.

Banks have been lending more in 2011 compared with 2010, thanks to growing resources of banks largely supported by rising deposits from the public.

According to monetary officials, the increase in the amount of savings placed by individuals and corporate entities in banks reflects both the generally rising income levels and the confidence of the public in the country’s banking sector.

Officials said credit growth has grown by nearly 20 percent in 2011, accelerating from about 10 percent last year as banks generated more resources.

But while lending is rising much quickly this year, there are suggestions for banks to extend credit at an even more accelerated pace. This is because banks are believed to have much more resources that they can lend to help boost growth of the economy further.

Industry data showed that banks have about P1.6 trillion in combined deposits to the special deposit account facility of the BSP. This facility gives banks a 4-percent interest, which industry players consider decent and at the same time virtually risk-free.

The BSP agrees with the comments, saying there is indeed more room for banks in the country to lend more.

Nonetheless, the regulator stressed the importance of maintaining prudent lending standards to ensure that faster rise in credit would not result in an increase in defaults, which would hurt banks’ financial standing at the end of the day.

The loans-to-deposit ratio of universal and commercial banks in the country is estimated to be around 70 percent. Analysts said banks could afford to lend some more until reaching a ratio of about 90 percent, which would still be comfortable according to standards observed in banking sectors abroad.

Industry players, however, said they would like to lend more but would like to do so for credit-worthy investment projects.

Economists said banks in the country should be encouraged to lend more to help accelerate the growth of the overall economy, which grew by only 4 percent in the first semester compared with the over 8 percent in the same period in 2010.

The government is eyeing a growth of between 4.5 and 5.5 percent for 2011.

By Philippine Inquirer Business News

Philippines Arrests Arroyo in Hospital on Poll Fraud Charges

2011-11-21T07:57:00.002+08:00

By Bloomberg

Philippine police arrested former President Gloria Arroyo in a Manila hospital on charges of election fraud, preventing her from again attempting to leave the country after the top court granted her permission to do so.

Arroyo was served the arrest warrant privately in her room at St. Luke’s Medical Center where she’s being treated for high blood pressure, police Senior Superintendent James Bucayo said in a televised briefing today. She will be detained once her condition improves, he said.

President Benigno Aquino gave instructions to treat Arroyo, 64, with “utmost respect” and ordered that the former chief executive can be held either in the hospital or at home, Justice Secretary Leila de Lima said in a separate briefing.

The arrest is the latest development in Aquino’s efforts to keep Arroyo in the country to face corruption charges as she fights to seek medical treatment abroad. The Supreme Court, where 12 of 15 judges were named by Arroyo, gave the ex- president permission to travel overseas on Nov. 15.

This is a “small victory but the real test is whether the government can score a conviction,” political analyst Benito Lim of the University of the Philippines said by phone today. “Eventually, this will reach the Supreme Court and Aquino must be trying hard to find a way to overcome the fact that the judiciary is loaded with Arroyo appointees.”

Fraud Charges

The Commission on Elections earlier today filed charges of electoral fraud against Arroyo before the Pasay court. With the arrest warrant, Arroyo can no longer leave the country, Supreme Court spokesman Midas Marquez said.

Aquino, who won office last year on an anti-corruption campaign, said in October that charges against Arroyo will be filed this month. Former president Arroyo faces allegations she pocketed more than a billion pesos ($23 million) from a government contract in 2007 and that she and her husband Jose Miguel rigged past elections.

The Philippine police filed a plunder complaint in September against Jose Miguel before an anti-graft body for the alleged irregular sale of helicopters. Arroyo’s eldest son, Juan Miguel, and his wife face tax evasion cases.

Estrada Arrest

Prosecuting former presidents is not uncommon in the Philippines, with Arroyo herself having led the indictment, arrest and imprisonment of her predecessor, Joseph Estrada. Estrada, convicted of plunder and sentenced to life imprisonment in September 2007, was freed from years of house arrest after Arroyo pardoned him that same year.

The late dictator Ferdinand Marcos and his wife Imelda also faced corruption charges after he was toppled by a street uprising and his family was forced into exile in 1986. Imelda has never been jailed.

Aquino has said his predecessor’s problems with her parathyroid glands don’t require treatment abroad and offered to fly in specialists for Arroyo.

If Arroyo were out of the country, she would be unable to enter her plea once indicted by the state, Tomas Prado, national secretary of the Integrated Bar of the Philippines, said this week. “Without arraignment, there can be no trial.”

The Supreme Court had blocked some of Aquino’s efforts. In October 2010, it ruled he couldn’t fire officials Arroyo appointed shortly before her term ended and two months later struck down a presidential order creating a “truth commission” to investigate her. Chief Justice Renato Corona, who voted to lift the travel ban, was Arroyo’s chief of staff.

By Bloomberg

USA to Give Philippines More Defense Support

2011-11-18T06:23:00.001+08:00

Secretary of State Hillary Clinton pledged the U.S. will bolster the Philippines’ naval defenses as its Southeast Asian ally presses China to back off claims in disputed waters rich in oil and gas.

A defense treaty between the U.S. and the Philippines needs to be upgraded, a move that will require providing “greater support for external defense, particularly maritime domain awareness,” Clinton said today in Manila. A Chinese Foreign Ministry spokesman said outside involvement only complicates the dispute over the South China Sea.

“External forces’ intervention is not beneficial to solving the problem,” Foreign Ministry spokesman Liu Weimin said at a briefing in Beijing. “It will complicate the problem and increase the difficulty of the problem.”

Clinton spoke hours before President Barack Obama and Australian Prime Minister Julia Gillard announced a defense agreement that will deploy American Marines at Australian bases next year. Clinton and Obama both pledged sustained leadership in the Asia-Pacific, with Clinton saying it was important for the U.S. to assert that it’s a power in the region.

“Big Thumb”

“Our goal is to try to work with our partners like the Philippines to make sure that everyone is growing in a balanced way and that there isn’t kind of a big thumb on the scale, if you will, that pushes development or strategic issues like what happens in the oceans one way or another,” she said in response to a question at a town hall meeting about China’s influence in the region.

The U.S. is working with the Philippines to improve its ability to cope with maritime challenges, an Obama administration official told reporters yesterday en route to Manila. Measures include providing a second destroyer to Benigno Aquino’s government after selling one in May, the official said, speaking on condition of anonymity.

Speaking with Philippine Foreign Secretary Albert del Rosario, Clinton said there is no room for intimidation in resolving maritime claims in the South China Sea. While the Obama administration takes no position on the claims of various countries in the area, any resolution must be peaceful, she said.

The Philippine government seeks a peaceful resolution to the disputed claims in the South China Sea, del Rosario said. In June, the U.S. Navy conducted joint exercises with the Philippines off Palawan Island.

Speaking yesterday, del Rosario called for Southeast Asian leaders to play a “decisive role” in brokering a resolution with China over disputed areas of the South China Sea. He said the 10-member Association of Southeast Asian Nations should facilitate talks between claimants with the eventual goal of establishing a Joint Cooperation Area.

The bloc is meeting in Bali this week for a regional summit that will include Obama and Chinese Premier Wen Jiabao.

By Bloomberg

Philippine Peso Falls Bonds Gain

2011-11-14T07:45:00.006+08:00

By Bloomberg November 11, 2011

Philippine Peso Drops a Second Week as Exports Fall; Bonds Gain

The Philippine peso declined for a second week as the outlook for economic growth dimmed following a report that showed exports contracted. Bonds gained.

Overseas sales fell 27.4 percent in September from a year earlier, the biggest drop since April 2009, according to yesterday’s official data, which sent the currency to a three week low. A cut in borrowing costs in the Philippines can’t be ruled out given the possible impact from the debt crisis in Europe, said Marcelo Ayes, senior vice president at Rizal Commercial Banking Corp. in Manila.

“The concern has clearly shifted to growth everywhere, which means the outlook on interest-rate differentials with the U.S. is narrowing and that’s why currencies in the region are weak,” said Ayes. “I see further weakness in the peso because of a very uncertain euro-zone situation.”

The peso declined 0.9 percent this week to 43.28 per dollar at the close in Manila, according to Tullett Prebon Plc. It rose 0.2 percent today. Ayes predicted the currency will weaken to 43.50 by year-end.

Indonesia unexpectedly lowered its benchmark rate to 6 percent from 6.5 percent yesterday, narrowing the gap with the Federal Reserve’s near-zero rate and the Philippines’ 4 percent.

The Philippine central bank will consider weakness in trade and developments in the euro-region economies during its next meeting on Dec. 1, Governor Amando Tetangco said yesterday. Deputy Governor Diwa Guinigundo said Indonesia has “different economic and financial dynamics” to the Philippines.

Government bonds rose today, sending yields on the 6.375 percent notes due January 2022 down six basis points, or 0.06 percentage point, to 5.715 percent, Tradition Financial Services data showed.
Lending Growth

“The Philippines has sufficient flexibility to keep rates steady,” Guinigundo said in a text message yesterday. “The economy has sufficient traction to grow.”

The projected expansion this year should be “within reach,” Economic Planning Secretary Cayetano Paderanga told reporters today in Manila, without elaborating. The government cut its 2011 growth forecast last month to a range of 4.5 percent to 5.5 percent from the 5 percent to 6 percent assumption used in computing this year’s budget.

Money-supply growth slowed to 7.4 percent in September from a year earlier, the central bank reported today. Bank lending, excluding deposits with the central bank, rose 21.7 percent in the same period, the fastest pace since February 2009, today’s report showed.

Foreign Ownership of Philippine Real Estate & Assets

2011-11-11T09:31:00.006+08:00

Foreign Ownership of Philippine Real Estate & Assets

Foreigners can protect their Philippine investments into Philippine real estate and other investment assets. We provide Foreign Nationals various ways from Retirement Investment Visas to Philippine Incorporation services so they can protect their Philippine investment interests. More information on our services is provided below, and or contact us with your specific requirements so we can provide you all options that best suit your needs.

Options Available To Provide Complete Benefits & Protection

For foreigners retiring, investing and doing business in the Philippines requires more than one of these options below in conjunction together to best accomplish the total task required by each foreign real estate buyer, retiree, and investor.

Right To Own Philippine Real Property

Currently the general rule is that only Filipino citizens and corporations or partnerships at least 60% Philippine owned are entitled to acquire land in the Philippines. As an exception to this rule, an alien acquisition of Philippine real estate is allowed in the following cases. Acquisition before the 1935 constitution. Acquisition thru hereditary succession if the foreign acquiree is a legal heir. Purchase of not more than 40% interest as a whole in a condominium project. Purchase by a former natural born Filipino citizen subject to the limitations prescribed by law. A Filipino who is married to an alien retains their Philippine citizenship, unless by their act or omission they are deemed to have renounced their Philippine citizenship.

Pending Legislation To Provide Foreigners 100% Ownership

Rumor has it that the Philippine Government is considering 100% ownership of Philippine real estate land for foreigners. If and when this happens we will post it here. In the meantime, the information below will provide more insight as to how a foreigner can hold title to Philippine real estate with the most benefits and lowest risk possible.

Special Visas for Foreigners Investing in the Philippines

There are different visa options available to foreigners that allow foreign investment of Philippine land and real estate properties. Having the proper Philippine visa in conjunction with your specific requirements is just one step to securely holding title to Philippine real estate as a foreigner. Contact us with your specific requirements so we can provide you with the options that best suits your needs. For Philippine visa and immigration issues only, go to the Philippines Government Bureau of Immigration web site for more information on Philippine Visas. http://www.immigration.gov.ph/. We process all types of Philippine visas from retirement visa, investors visas, working visas, resident alien visa, and others.

Foreign Ownership as a Philippine Corporation

The typical common way for foreign nationals to best protect themselves in purchasing and investing in Philippine real estate is for the Foreign national and or foreign corporation to create a Philippine corporation to hold title. This allows the Philippine corporation of a foreign national or foreign corporation the lowest investment risk and more control of their Philippine real estate investments, and other Philippine investment assets. Foreign nationals, and corporations may 100% own a Philippine condominium or town home without the need of forming a Philippine Corporation. For private land, residential home with land lot and or commercial building with land lot ownership the foreign national and or corporation forms a Philippine Corporation to take ownership of the property. A Philippine Corporation with Foreign Nationals as required by Philippine law will be a maximum of 40% foreign owned, and a minimum of 60% Filipino owned. A foreign national may be the sole person on the Philippine corporation bank account once after the Philippine corporation has been created provided the foreigner has the proper Philippine Visa status, and power of attorney agreements. This structure allows the foreign national total control over the funds derived and paid out from the Philippine Corporation and from the income or sale of the asset or real estate property within the corporation. This method is by far the most complete and secure way for foreigners to purchase and hold Philippine real estate assets.

Form a Philippine Corporation to hold Title

We provide our foreign national clients Philippine incorporation services. Most incorporations are simple and affordable to process depending on the type of corporation to be formed. Different types of corporations have different rules, regulations, and minimum capital funding requirements. Typical incorporations to hold Philippine real estate may be a "General Real Estate" or "Trading or Marketing Company" or something similar to be able to buy, hold and sell Philippine real estate property. Corporations can be formed to conduct business in the Philippines as well. The first step to forming a Philippine Corporation is having Philippine incorporation partners you can trust to be team players with you in your Philippine investment plans. Many times the Philippine incorporators will be Philippine family, relatives, friends, business associates whom the foreign national can trust to be a part of the Philippine corporation. With additional separate legal enforceable agreements such as a power of attorney and other types of agreements, Philippine incorporators become silent partners and team players with foreign investor partners wishing to make Philippine investments without having their investments at risk in case of unforeseen events or changes in their investments plans. Contact us with your specific requirements to learn more about our Philippine Incorporation Services and how we help protect our foreign clients Philippine investments interests. We only provide legal means for foreign investors to protect their capital, and interests in Philippine investments. We provide these services that follow Philippine investment laws, rules, regulations, and do not provide any services to anyone that violate these or to perform money laundering. We comply with and follow the international money laundering rules and regulations.

New Dual Citizenship Laws Affecting Property Ownership

Dual citizenship is now newly available for the following. Dual citizenship means having two citizenships and passports from two different countries. Former Philippine citizens born in the Philippines, but that have immigrated to another country and obtained citizenship of that country. Dual citizenship allows the citizenship holder full rights of possession of Philippine real estate property. Click the following link for more information on Philippine Dual Citizenship.

Foreigner Married to a Philippine Citizen

If holding title as an individual, a typical situation would be that a foreigner married to a Philippine spouse citizen would hold title in the Philippine spouses name. The foreign spouse name cannot be on the property Title but can be on the contract to buy the property, and should be to document the process taken to obtain such asset. In the event of death of the Philippine spouse, the foreign spouse is allowed a "reasonable" amount of time from the Philippine government to dispose of the property and collect the proceeds or the property will pass to any Philippine heirs and or relatives. As a foreign investor caution should be taken upon considering and taking title to Philippine real estate in this manner. In the event of problems with the Philippine spouse and the investment assets in the Philippine spouse name, the foreign national may not have many rights to the assets or any at all. There have been many cases where the foreign spouse intrusted all of the Philippine assets to the Philippine spouse, then there was a split in the relationship and the foreigner lost his invested monies. We don't want our foreign clients becoming another victim of this. Contact us before choosing this option so we can provide you other options and let you make the decision.

Foreign Leasing of Philippine Real Estate Property

A foreign national and or corporation may enter into a lease agreement with Filipino landowners for an initial period of up to 50 years, and renewable for another 25 years. Or lease the property in your Philippine Corporation name for an unlimited period of time.

Former Philippine Citizens

"Balikbayan", which is a former natural born Filipino citizen, and now is a citizen of another country is entitled to own for residential purpose 1,000 square meters of residential land, and one hectare of agricultural or farm land. For business purpose 5,000 square meters of urban land or three hectares of rural land. This is one option for Balikbayans to take ownership of Philippine real estate but the better option that provide less restrictions and more benefits is to form a Philippine corporation.

Philippine Real Estate Sales Transaction & Closing Costs

Buyers transaction or closing costs include the following. Documentary Stamp Tax - P5.00 per P1,000 of contract price, or zonal value or fair market value, which ever is higher. Transfer Tax - P5.00 per P1,000 of contract price, or zonal value or fair market value, which ever is higher. Registration Fee - P1.50 per P1,000 of contract price, or zonal value or fair market value, which ever is higher. The seller is responsible for transaction closing cost of capital gains tax. This is Philippine Real Estate Law.

Philippine Law Real Estate Acquisition and Disposition Definitions

Acquisition is the act of procuring or getting a hold of real estate property. Disposition is the manner of alienation, transfer of possession and ownership thereof as prescribed by the Philippine law. The acquisition and disposition of real estate is embodied in written agreements or contracts voluntarily entered into and subscribed by the selling and buying parties thereof, before a public officer designated as the Notary Public of the City or Province where the subject property is located. Thereafter, the instrument embodying the particular real estate transaction is required by law to be recorded in the Registry of Deeds in the City or Province where the real estate property is involved and located. The Philippines uses the "Torrens" system of real estate ownership. See below for more information.

Torrens System of Real Estate Ownership

An adapted form of the "Torrens" system of land registration is used in the Philippines. The system was adapted to assure a buyer that if he buys a land covered by an Original Certificate of Title (OCT) or the more familiar Transfer Certificate of Title (TCT) issued by the Register of Deeds, the same will be absolute, indefeasible and imprescriptible. The registered owner will never lose his ownership to squatters no matter how long such land was illegally occupied.

Condominium Residential Commercial Development Ownership Law

Presidential Decree No. 957, which regulates the sale of subdivision and condominium developments, and providing penalties for violations thereof. The National Housing Authority has exclusive jurisdiction to regulate real estate trade and business, a function, which is presently exercised by the Housing and Land Use Regulatory Board (HLURB). Certain conditions are required before a license to sell condominium development units and or subdivision development lots and homes is issued to a Filipino or Foreign owned individual or corporation. The requirements include a certificate of registration, a performance bond, and an approval of the building plans and specifications. Violation of these rules could mean fines, cancellation of license and or imprisonment.

Click the Links Below for More Information and Resources

Philippine Incorporation Services

Philippine Immigration & Visa Services

Philippines Retirement Investing & Doing Business

2011-11-10T10:33:00.006+08:00

Retiring Investing & Doing Business in the Philippines

For expatriates, foreigners and Filipino Baligbayans planning a retirement, investing, and or doing business in the Philippines there a various ways to best accomplish these tasks for each retiree, investor, and business owners specific situation and requirements. From forming a Philippine Corporation, to the various Philippine Visas available to retire, invest, do business and work in the Philippines there are various ways to accomplish these for maximum benefit, lowest risk, and cost effectiveness.. See the following links for more information retiring in the Philippines, investing in the Philippines, and doing business in the Philippines to securely perform these tasks.

Options Available To Provide Complete Benefits & Protection

For foreigners retiring, investing and doing business in the Philippines requires more than one of these options in conjunction together to best accomplish the total task required by each foreign retiree, and investor.

Contact Us With Your Specific Wishes & Requirements

Contact us with your specific requirements so we can provide options that address the best most cost effective way to accomplish your specific requirements with the most benefits, and lowest risk.

The Total & Complete Solution - Philippine Incorporation

The most cost effective and securest way for foreigners to retire in the Philippines, hold Philippine real estate title, and to conduct business in the Philippines is by Forming a Philippine Corporation. This method provides the most complete benefits and lowest risk of any other method available currently. We provide Philippine Incorporation Services for those wishing to do such. Contact us with your specific requirements so we can recommend the best options for your particular situation.

Retiring In The Philippines

Through the Philippine Retirement Authority or PRA, foreign retires can avail of The PRA's Philippine's Special Resident Retiree's Visa or SRRV. One requirement of this program is that a investment amount is required depending upon your age to be qualified for the PRA. The investment amount varies depending upon your particular situation. Compare this to forming a Philippine Corporation. Forming a Philippine Corporation may provide similar or more benefits at a lower cost than compared with the PRA program, but it really depends on the retiree's specific circumstances and requirements. Contact us with your specific requirements so we can best provide you all the options available to you.

Philippine Board of Investments BOI Investors Visa

The Special Investor's Resident Visa SIRV, issued by the Philippine Board of Investment or BOI in pursuant to the provisions of the Omnibus Investments Code of 1987, as amended and these implementing rules and regulations, shall entitle the holder to reside in the Philippines for an indefinite period as long as the required qualifications and investments are maintained as provided for in Article 74 of the Code. The visa when issued by the Philippine Embassy or Consulate shall be issued with the following notation: Special Investor's Resident Visa under the Omnibus Investments Code of 1987.

Investing In The Philippines

For foreign investors wishing to invest in Philippine assets such as a business and or Philippine real estate, investors visas are available from Philippine Immigration. Restrictions do apply so contact us or Philippine Immigration for more information on obtaining an investors visa. An investors visa is one option combined with forming a Philippine Corporation to invest and do business in the Philippines. Foreign investors wishing to invest in publicly traded companies on the Philippine Stock Exchange may contact a Philippine Stock Broker to open a stock investment trading account. Any foreign individual or corporation may open an account with a Philippine stock broker without restriction.

Doing Business In The Philippines

For foreign investors wishing to conduct business in the Philippines as a Philippine Company the best way is to form a Philippine Corporation. See our Philippine Incorporation Services Page for more information on forming a Philippine Corporation and or contact us with your specific requirement.

Click the Links Below to Review More Information and Resources

Philippine Real Estate Foreign Ownership Laws

Philippine Incorporation Services

Philippine Immigration & Visa Services

Philippine OFW Families Not Saving Investing Enough

2011-11-09T09:08:00.009+08:00

Only 2 of 10 OFW Families Invest or Save

Despite the availability of assistance programs and light payment or investment schemes, only two overseas Filipino worker (OFW) households out of 10 choose to invest or save the remittances they regularly receive.

Based on a study made by The Nielsen Co., only around 17 percent of households said remittances go to savings and investments, while a whopping 96 percent of OFW households spend it on basic needs, such as food, utilities, bills, rent and education.

Only 2 percent use remittances to pay for loans.

The 17 percent of households who save their money put their remittance on savings, invest on household appliances, insurance, real estate, a car or in business, and buy lottery tickets.

“The other thing we’re seeing is their economic classification has improved dramatically since five years. So they are becoming a larger part of the middle class. So I think based on the two studies we’ve seen, if the OFWs handle their resources well, chances are they will improve the level of their [income],” Nielson Managing Director Jay Bautista said on Wednesday.

Based on the company’s latest OFW survey, around 48 percent of OFW families belonged to the DE class, or the low-income class, while 39 percent now belonged to the C2 or lower-middle class segment. Those who belonged to the upper middle class or C1 and the elite or AB class both increased to 8 percent and 5 percent, respectively.

In Nielsen’s 2007 OFW survey, majority of OFW families—or around 66 percent—belong to the DE class and only 23 percent belonged to the C2, or lower middle class segments. Those who belonged to the C1 and AB class only accounted for 7 percent and 4 percent, respectively.

Meanwhile, the Nielsen survey also showed that even with the Japan and the Middle East and North Africa crises in the first part of the year, OFWs remittance remained steady.

While this does not prove that OFWs were not affected by these crises, Bautista said OFWs found a way to be more creative in sending their remittance and many chose to stay despite the difficulty of the situation. This enabled them to keep sending remittance amid the crisis in the countries they work in.

“I think they were affected [by the crises], it’s just that the resiliency of the Filipino tends to kick in so some of them didn’t want to go home despite the violence. Some of them found creative ways of addressing the situation,” Bautista said.

In 2010 OFWs sent a total of $18.7 billion worth of remittances.

With deployment steady and the January to June 2011 remittance figure already way above the half-year level last year, Bautista said this year is bound to be another growth year for remittances.

Government figures showed that for the January-to-June period, OFWs already sent $11.3 billion worth of remittances, despite the global crises, which initially was expected to cut remittances in 2011.

Economists believe that while June remittances were high due to the opening of classes, the US credit downgrade and the overall weakness in the global economy are likely to cause remittances to dip.

By Business Mirror

Save and Invest in Philippine Real Estate Assets for Income

Contact us on how to invest in Philippine real estate to receive on-going investment rental income.

Website: http://www.real-estate-ph.com

Email: mail@real-estate-ph.com

Chance to Win a Philippine House Car or Asian Cruise

2011-11-08T12:00:00.012+08:00

Camella Homes Win A New House New Car Asian Cruise Promo

Get A Chance To Win a Brand New Camella Home or a New Ford Fiesta Automobile or an Asian Cruise

Purchase a Camella Home between October 01 and December 31, 2011 and have a chance to win either a Brand New Camella Home, or a Brand New Ford Fiesta Automobile, or a Asian Cruise.

For more information and to qualify:

Website: http://www.real-estate-ph.com

Email: mail@real-estate-ph.com

BIR Increased Threshold Amount for VAT Exemption on Real Estate

2011-11-04T12:11:00.007+08:00

The Bureau of Internal Revenue (BIR) has released Revenue Regulations (RR) No.16-2011 dated October 27, 2011 which increased the threshold amounts for VAT on the sale of residential lots and house and lots, the lease of residential units, and the threshold amount for the sale of goods and services subject to VAT.

Effective January 1, 2012, the sale of a residential lot which is PHP1,919,500.00 and below (Current – PHP1,500,000 and below), and the sale of a residential house and lot which is PHP3,199,200.00 and below (Current– PHP2,500,000) are exempt from VAT.

The lease of a residential units which is PHP12,800 and below (Current - PHP10,000) shall also be exempt from VAT effective January 1, 2012.

If a person’s gross annual receipts/sales on the sale or lease of goods or properties or performance of services other than those mentioned in Sec. 109 of the Tax Code does not exceed PHP1,919,500.00, (Current- PHP1,500,000) he shall be subject to 3% percentage tax instead of the 12%VAT.

For more details, please see link below:

ftp://ftp.bir.gov.ph/webadmin1/pdf/60762RR%2016-2011.pdf

Website: http://www.real-estate-ph.com

Email: mail@real-estate-ph.com