Property market in Metro Manila seen to stabilize

PROPERTY developers are gearing up for the launch of more real estate projects this year after a contraction was seen in 2015, with the Metro Manila market expected to stabilize after a period of “correction,” real estate advisory firm Colliers Philippines said in a briefing in Makati City on Wednesday.

Julius M. Guevara, head of advisory services at Colliers Philippines, said the total number of licenses to sell issued by the Housing and Land Use Regulatory Board (HLURB) increased 77% to 85,470 in the first quarter -- a turnaround from the 48% contraction to 48,411 a year ago -- as growth was seen across all segments except for farm lot and industrial. 

HLURB now requires developers to start selling a project within a year from obtaining the licenses unlike in the previous years when there were no restrictions on the timing of the launches, Mr. Guevara said.

“This now more indicative of the plans of developers. It means when they get the license, they will pursue the project soon.” Mr. Guevara said.

Last year, the total licenses to sell issued by the HLURB dropped 14.5% to 410,834 from 480,743 in 2014.

The condominium market in Metro Manila exhibited continued growth, with low-cost condominiums surging 181% to 1,365; mid- and high-end condominium rising 18% to 12,805; and commercial condominium inching up 2% to 991 after a two-fold surge to 972 a year ago.

The number of units applied for by developers to comply with the balanced housing unit requirement was a major contributor to the growth, climbing more than four times to 9,104 from 1,772 in the same period last year. 

Other segments that registered robust growth included open market housing, up 232% to 11,904; socialized housing, up 81% to 6,816; and economic housing, up 445% to 13,845.

Real estate firms are projected to sell roughly 30,000 units in Metro Manila this year, a decline of 6.25% from the 32,400 units sold in 2015, Mr. Guevara said.

“I think this year, the property market will stabilize then we will see steady growth. The numbers we are seeing is reflective of end-user demand so the launches will continue,” Mr. Guevara said.

The residential market in Metro Manila has been contracting since 2013 after take-up hit a high of 52,500 residential units in 2012, according to data from Colliers.

Land values in the country’s major business districts continued to go up and are projected to grow between 5%-7% over the next 12 months, Colliers said. 

On a quarterly basis, land values increased by 0.4% to P502,000 per square meter in Makati, 0.4% to P418,400 per sq.m. in Fort Bonifacio, 4.6% to P123,000 per sq.m. in Alabang and 0.2% to P180,000 per sq.m. in Ortigas.

source:  Businessworld

DBM increases fees for govt workers attending seminars

BUDGET Secretary Florencio B. Abad has increased the maximum registration fee to be shouldered by the government for state employees participating in conventions, seminars and other conferences.

Under National Budget Circular 563, the maximum registration fee the government will shoulder was increased to P2,000 per day for each participant, from the previous amount of P1,200.

The registration fee to be shouldered by the government is for “conventions, seminars, conferences, symposia and such other activities conducted by non-governmental organizations or private institutions for a fee, as part of the human resource development program of the government.”

Under the circular, authorized participants are also entitled to travel expenses and allowances for out-of-town conventions.

However, membership fees of government officials and employees in private organizations shall continue to be shouldered by the concerned member and cannot be charged to government funds.

Only institutional membership fees, wherein the government agency itself is the member, may be charged to public funds.

The circular also clarified the types of conventions being covered: “For purposes of this circular, conventions, seminars and the like shall refer to those conducted basically for purposes of sharing, discussing or disseminating ideas or information on the developments in a particular field or fields of interest and/or for common appreciation and resolution of certain issues.”

“It includes, but is not limited to, those conducted by professional organizations or groups of common interest where government employees are members. It excludes those conducted for training purposes where participants are expected to gain or strengthen skills and technical or management expertise in their areas of endeavor,” the circular added.

source:  Business Mirror

‘Use idle public, private lands for socialized housing in NCR’

The joint committees on housing and urban development of Congress have urged the government to use public and private idle lands for socialized housing programs to erase the housing backlog in the National Capital Region (NCR).

This proposal was the initial result of the ongoing National Housing and Urban Development Summit conducted by the  House of Representatives  Committee on Housing and Urban Development and the Senate Committee on Urban Planning and Shelter and Resettlement.

Data from the House Committee on Housing and Urban Development showed that there are 584,425 informal settler families (ISFs) in Metro Manila, while the housing backlog is estimated at 5 million units.

Citing data from the Department of Interior and Local Government and Housing Urban Development Coordinating Council, panel chairman Rep. Alfredo B. Benitez of Negros Occidental said 1,234.85-hectare government-owned properties are currently being occupied by ISFs, while 2,185 hectares of public properties are available for housing programs.     Benitez added there are also 2,401.72-hectare private lands that are now being occupied by ISFs in the NCR.   “We are proposing the construction of medium rise or 4- to 5-story buildings [with estimated 100,000 to 150,000 units],” he said.

Benitez said the proposal is not just for ISFs, but can also be availed by low- and middle-income earners.

He said affordable housing provides a more “cost-effective” solution to address homelessness in the Philippines. “For many decades the housing backlog has been increasing for just only one reason—affordability. People don’t own a house and lot or a housing unit because they cannot afford it,” Benitez said.

Meanwhile, he said the culmination of the National Housing and Urban Development Summit will be held on April 4.

Benitez said more results and recommendations addressing the country’s housing problems will be presented during the event.

“The housing challenge in the Philippines has been largely attributed to the increasing housing backlog, bloating number of informal settler families in the urban centers and the lack of availability of affordable housing unit for majority of the Filipinos from the low- to middle-income segments,” he said.

“All of these not only reflect the widespread poverty in the country but also, the inability of the government to reverse the housing backlog for many decades now,” Benitez added.

source:  Business Mirror

Housing best investment tool of a lifetime

Is it still wise for the average Filipino family to invest in their own home? For the newly inducted officers of the country’s largest housing development association, real estate is still one of those enduring investments that Filipinos can always rely on.

“Owning your own home, for instance, has long been considered a fundamental component of achieving one’s dream. Moreover, stable economic growth, low-interest rates, increasing home investment of overseas Filipino workers (OFWs), continuous growth of foreign investment, expansion of the off-shoring and outsourcing industries, and the influx of expatriate workers continue to drive the steady demand in the local property market and have combined to shape the property boom that is changing the skyline not only of Metro Manila but of the provincial cities as well,” said Rodel Racadio of Camella Homes, who now is the national president of the Subdivision and Housing Developers Association Inc. (SHDA).

Preferred

Armenia Ballesteros of SM Development Corp., who now is SHDA chair, noted that with many young professionals pouring into the growing business process outsourcing (BPO) industry, new development located closer to work (convenience and less time spent on commuting) are becoming more attractive.

Industry experts believe that the sector, which contributes to 6 percent of the country’s GDP (gross domestic product) growth, is expected to hit its target of $25.5 billion (P121.5 billion) and 1.4 million people employed by year-end.

Even with the expected flat growth in remittances or money sent home by OFWs amid the prolonged low oil prices that already are impacting on the economies in the Middle East (resulting in salary cuts as well as layoffs of thousand of OFWs in the region), the new SHDA officers are confident that remittances of other professionals, especially those in the medical care and services-related firms, will help cushion the impact as they will not be too affected by the low oil prices and the geopolitical tensions in the Middle East.

In 2015, cash remittances from OFWs reached $25.8 billion, 4.6 percent higher than the $24.6 billion recorded in 2014.

Ballesteros said: “The OFWs, those in the BPO industry and tourism, shall remain the country’s key growth drivers. They will continue increasing affordability of homes through generating better-paying jobs, and finally, prudential measures that are being practiced by the financial sector providing ample check and balance to ensure market stability.”

Aside from Racadio and Ballesteros, other SHDA officials who took their oaths were Fely Ramos of Fino Property Ventures, 1st VP; Rene Ledesma Jr. of Ledesco Development Corp., 2nd VP; John Paul Dy of Prominence Properties Inc., corporate secretary; Jonathan Lu of PA Alvarez Property and Development Corp., national treasurer; Jeffrey Ng of Cathay Land Inc., auditor; Eduardo Alunan of Alunan Realty Inc., PRO; and board of governors composed of former SHDA chair Ricky Celis of Amaia Land Corp.; Eleuterio Coronel of Filinvest Development Corp.; Noel Gonzales of CHMI Land Inc.; George Siy of Convergence Realty Development Corp.; Renato Tan of RJ Lhinet Development Corp. and Wilfredo Tan of Hausland Development Corp.

source:  Inquirer

Customs misses 2015 revenue target

For the 5th straight year, the Bureau of Customs fails to achieve its full-year goal

Despite an increase in revenue collection, the Bureau of Customs (BOC) has been consistent in missing its annual target.

BOC data show that the revenue-generating agency failed to attain its P436-billion ($9.24 billion) revenue goal in 2015 after it only collected P366 billion ($7.76 billion) – a shortfall of P70.56 billion ($1.45 billion) for the year.

Last year’s deficit was the 5th time in a row that the BOC missed its target.

The BOC's collection report also showed that 11 of the country's 17 ports missed their targets. The oil ports of Batangas and Limay posted the highest collection shortage during the period.

The Port of Limay fell short of its P45.27 billion ($959 million) target by P23.21 billion ($492 million), while Batangas only collected P82.32 billion ($1.7 billion) of its P96.03-billion ($2.04 billion) target.

The Port of Manila only collected P58.78 billion ($1.25 billion) out of its P73.07-billion ($1.55 billion) target.

The Manila International Container Port (MICP) and the Ninoy Aquino International Airport (NAIA) fell short of their targets by P13.31 billion ($282 million) and P3.58 billion ($75.9 million), respectively.

Also failing to meet their targets were the ports of San Fernando, Tacloban, Aparri, Subic, and Cagayan de Oro.

The Office of the Commissioner collected a tax expenditure fund (TEF) of P8.38 billion ($177 million), P1.62 billion ($34.3 million) short of its P10-billion ($212 million) target.

But the ports of Legazpi, Iloilo, Cebu, Surigao, Davao, and Clark exceeded their revenue goals.

Cebu, with a revenue target of P15.61 billion ($330 million), collected P16.49 billion ($349 million). Income generated by Davao amounted to P11.68 billion ($247 million), which is P980 million ($20 million) over its target of P10.70 billion ($226.9 million).

Iloilo achieved a surplus of P956.9 million ($20 million), Clark with P85.3 million ($1.8 million), Surigao with P6.4 million ($135,693), and Legaspi with P142.3 million ($3 million). – Rappler.com

Reserves increase at end-2015

THE COUNTRY’S reserves rose at the close of 2015 on the back of higher income realized by the Bangko Sentral ng Pilipinas (BSP) from its investments, among others, but still fell short of the regulator’s yearend projection.

The BSP yesterday said in a statement that the Philippines’ gross international reserves (GIR) stood at $80.614 billion at end-December, higher than the downward-revised $80.173 billion recorded as of November’s close.

This is also better than the $79.54 billion in reserves logged at end-2014.

However, the end-2015 GIR figure was a shade lower than the BSP’s downward-revised projection of $80.7 billion in gross reserves at yearend.

The GIR is composed of central bank assets held in different currencies, gold and special drawing rights (SDR), as well as foreign exchange deposits of the government and state-run firms and income from its overseas investments. It indicates a country’s capability to pay for imports and service foreign debts.

The central bank said the improvement in reserves was “due mainly to the national government’s (NG) net foreign currency deposits as well as the BSP’s foreign exchange operations and its income from investments abroad.”

“These inflows were partially offset by payments made by the NG for its maturing foreign exchange obligations,” the BSP added.

The end-2015 GIR level remains “ample,” the central bank said, as it can cover 10.3 months’ worth of imports of goods and payments of services and income.

The reserves are also equivalent to 5.5 times the country’s short-term external debt based on original maturity, and four times based on residual maturity, the BSP said.

The BSP considers reserves adequate if the level can finance three months’ worth of imports or cover 100% of the country’s foreign liabilities.

Central bank data showed that income from foreign investments went up to $71.723 billion at the year’s close from $70.752 billion at end-November. This was also higher than the $69.96 billion recorded at end-2014.

Reserve positions in the fund also ticked up to $438.6 million from $434.9 million at end-November. However, this was less than the $570.6 million seen the year prior.

Gold holdings also crawled higher to $6.702 billion from $6.7 billion the month previous, but stayed below the $7.483 billion recorded at end-2014.

On the other hand, the BSP’s foreign exchange stock declined to $588.1 million from $1.124 billion the month prior, but was higher than end-2014’s $300.2 million.

SDRs were flat at $1.161 billion at end-December from the November level. However, the end-2015 total was lower than the $1.226 billion seen twelve months prior. 

source:  Businessworld

Only 25% of Filipinos financially literate – S&P

Global survey highlights financial inclusion challenges

Only 25 percent of Filipino adults are financially literate, a Standard & Poor’s (S&P) Ratings Services survey found, highlighting the challenges facing the goal of boosting access to financial services.

An S&P Global Financial Literacy (FinLit) Survey conducted last year found country financial literacy rates ranging from 13 percent to 71 percent among 143 economies, with Yemen at the bottom and Denmark, Sweden and Norway sharing the top spot.

Globally, only one in three adults, or 31 percent, showed an understanding of basic financial concepts such as numeracy, risk diversification, inflation and compound interest (savings and debt.)

“Although financial literacy is higher among the wealthy, well educated, and those who use financial services, it is clear that billions of people are unprepared to deal with rapid changes in the financial landscape,” the survey said.

“Governments are pushing to increase financial inclusion by boosting access to bank accounts and other financial services but, unless people have the necessary financial skills, these opportunities can easily lead to high debt, mortgage defaults, or insolvency,” it added.

“This is especially true for women, the poor, and the less educated—all of whom suffer from low financial literacy and are frequently the target of government programs to expand financial inclusion.”

The survey involved interviews of over 150,000 adults in more than 140 countries.
Data was collected in 2014 as part of the Gallup World Poll and analytical support was provided by researchers at the World Bank and the Global Financial Literacy Excellence Center at George Washington University.

The Philippines accompanied the West Bank and Gaza, Burundi, Vietnam, Bolivia, Turkey, India, Jordan, Honduras, Romania, Macedonia, Uzbekistan, El Salvador, Sierra Leone, Sudan, Iran, Kosovo, Nicaragua, Bangladesh, Kyrgyz Republic, Cambodia, Nepal, Armenia, Haiti, Tajikistan, Angola, Somalia, Afghanistan, Albania and Yemen in the bottom 30 in the survey.

Among the Southeast Asian countries included in the survey, Singapore scored the highest with a financial literacy rate of 59 percent. Cambodia was the lowest at 18 percent and the only other economy to score lower than the Philippines was Vietnam at 24 percent.

A respondent was judged as financially literate if he or she could correctly answer three out of four financial concepts detailed via five multiple-choice questions:

• On risk diversification: “Suppose you have some money. Is it safer to put your money into one business or investment, or to put your money into multiple businesses or investments?’

• On inflation: “Suppose over the next 10 years the prices of the things you buy double. If your income also doubles, will you be able to buy less than you can buy today, the same as you can buy today, or more than you can buy today?”

• On numeracy: “Suppose you need to borrow $100. Which is the lower amount to pay
back: $105 or $100 plus 3 percent?”

• On compound interest: “Suppose you put your money in the bank for 2 years and the bank agrees to add 15 percent per year to your account. Will the bank add more money to your account the second year than it did in the first year, or will it add the same amount of money both years.”

• Also on compound interest: “Suppose you had $100 in a savings account and the bank adds 10 percent per year to the account. How much money would you have in the account after five years if you did not remove money from the account? More than $150, exactly $150, less than $150, don’t know?”

The correct answers, in order, are multiple businesses/investments, the same as you can buy today, $100 plus 3 percent, more money in the second year and more than 150.

Of the region’s economic powers, China scored 28 percent, Japan 43 percent and South Korea 33 percent. The survey also found that younger Asians were more likely to be financially adept than older respondents.

“While the array of financial products available in Asia continues to grow rapidly, S&P’s FinLit Survey suggests that most consumers lack a general understanding of credit, compound interest and other key concepts,” the ratings firm noted.

Citing China, credit card ownership in the country was said to have nearly doubled since 2011 yet less than half of the respondents could not correctly answer the survey questions on interest.

“We are committed to creating stronger financial markets all over the world,” said Courtney Geduldig, executive vice president of Public Affairs at McGraw Hill Financial, parent of S&P Ratings.

“We believe there are correlations between financial literacy, financial access, and the strength of markets. Addressing financial literacy is a key strategy in building stronger, more accessible and sustainable markets around the globe,” he said.

Matthew Bosrock, executive managing director and head of Asia-Pacific for Standard & Poor’s Ratings Services, said: “Understanding concepts like interest, inflation and the importance of savings are at the core of economic development.”

“A lack of basic financial understanding is one of the factors obstructing faster growth in Asia. This survey gives policymakers the tools to identify the gaps in education and also a chance to improve access to financial products,” he added.

source:  Manila Times