Trumps Eye More Philippine Projects

Manila (Philippine Daily Inquirer/ANN) - Two sons of American tycoon Donald Trump flew in from New York yesterday for the groundbreaking of Trump Tower Manila, a luxury tower to be developed by Century Properties Group and the first of what is hinted to be a series of property projects involving the Trump brand in the Philippines . This will not be our last project in the Philippines . We’re looking forward to rolling out a couple of things," Donald Trump Jr. said in a press briefing. He hinted that talks have started with the Antonio family-led Century group for follow-up projects.

Trump Tower Manila is a US$150-million, 56-storey residential development project of Century with the brand name and mark under license from the Trump. It will rise in Century City , the Century group’s 3.4-hectare flagship development along Kalayaan Avenue in Makati City in Metro Manila.

Century founder and chairman Jose Antonio said this project was very relevant in assisting the positioning of greater Metro Manila as a ¿cosmopolitan¿ city. He noted that cosmopolitan cities elsewhere in the region like Hong Kong, Shanghai and Singapore had captured a lot of investments and having a quality development and a strong brand should groom Metro Manila into a better position.

Quality will always be remembered long after the price has been forgotten," he said.

The residential units in Trump Tower Manila is selling at an average 200,000 pesos ($4,700) a square metre. Based on the size range of between 57 and 400 square metres, the smallest unit is priced at 11.4 million pesos (269,000) and the biggest at 80 million pesos ($1.8 million). The units will be turned over to buyers by 2016.

Robbie Antonio, Century managing director, said 70 per cent of the 222-unit residential development had already been sold since the project was launched in September 2011.

The fact that a Trump-branded development is rising in the Philippines is a testament to the increased confidence of the international sector in our country’s potential to become a world-class destination. As a standard bearer of excellence in residential living, Trump Tower Manila also positions the Philippines as the ideal place of residence for global citizens," the younger Antonio said.

We are overwhelmed with the tremendous success of this project in such a short time. Trump Tower Manila has already received accolades even prior to breaking ground, which is an incredible accomplishment further showcasing the strength of the local market and its increasing demand in the ownership of luxury real estate," Eric Trump said.

He added that the design of Trump Tower Manila was such that the Trumps wanted to have the best building not only in the Philippines but in Asia and the world."

SAMUEL LAO BLOGSITE: Developer aims for middle

SAMUEL LAO BLOGSITE: Developer aims for middle

Healthy economic signs boost real estate sector

By Ehda M. Dagooc (The Freeman) 

CEBU, Philippines - As real estate products such as house and lots and condominiums become more affordable, it is no longer far-fetched for Filipinos to realize their dream of having their own properties, even for the ordinary wage-earners.
 Economist Eduardo R. Banaag, Jr., projected that in the next few years, more Filipinos will be able to own homes, even cars, as banks now ease up requirements for consumer loans to attract more borrowers.
Banaag said economic indicators have reflected the improving purchasing power of the average Filipino, which has in turn encouraged banks to offer attractive consumer loan packages.
He added that the real income of Filipinos has increased by 53 percent in the last five years in terms of per capita income, which has encouraged more developers to build subdivisions to take advantage of the increasing appetite for consumer loans.
The good economic fundamental of the Philippines, which also brought down a stable and lower interest rates, has further widen the doors for consumer credit offers, attracting more Filipinos to buy properties, may it be for personal keep or for investment purposes.
The low single-digit interest rate according to Banaag is expected to sustain in the long term, unless there is an adverse intervention in the economic development of the country, including external factors.
In general, he said interest rates will continue to settle, which in fact may be one of the lowest level in the last couple of years. Thus, he suggested that today is the right time for people to avail of the loans offered by banks.
Aside from the growth of BPO (Business Process Outsourcing) employment, tourism, and other industries, the sustained income of OFWs, despite the struggling economies of United States, and Europe also bolstered the improvement of Filipinos’ income.

The country’s financial system is carrying excess liquidity of at least P1.7 billion, and this has to be disposed to the system to further boost the economy.
Among other attractive sources of disposing this money is through loans, in both consumer and corporate loans, Banaag said.
Consumers will be able to get cheaper interest rate loan deals from banks, while corporate clients likewise are offered good rates for capitalization requirements such as real estate development projects, among others.
Last year, growth for real estate loans in the Philippines grew by 20 percent, Banaag said this figure is seen to grow further this year, while more banks are actively creating different packages for consumers partnering with real estate developers. (FREEMAN)

Socialized condos in urban areas

Creba Speaks

By CHARLIE A.V. GORAYEB

MANILA, Philippines — The Housing and Land Use Regulatory Board (HLURB) is one of several agencies of government undertaking a revisiting of its policy through the reform of the implementing guidelines governing the modes of compliance to Section 18 of R.A. 7279 or the Urban Development Housing Act (UDHA).

We, in the Chamber of Real Estate & Builders’ Associations, Inc. (CREBA), adhere to our position that any form of alternative compliance should serve to make it easier and attractive for the private sector to comply, and still be able to attain its social objectives.

CREBA commends the HLURB for providing developers more avenues to comply with the law, and at the same time effectively uphold its mandate to deliver housing units for the marginalized beneficiaries.

A World Bank report showed that the Philippines has one of the highest rates of urban growth in the developing world – 5.1 percent in the last four decades. About 60 percent of the population is currently urban, data from the United Nations said.

The Greater Metro Manila area has over 12 million people. This accounts for 36 percent of the total urban population. An additional 10 percent of the urban population are situated in the next four largest metropolitan regions as identified by NEDA: Metro Cebu, Metro Davao, Metro Cagayan de Oro and Metro Angeles.

CREBA has presented a package of proposals for the private sector to efficiently do its share in helping address the staggering 3.7-million units housing backlog.

One of these is to urge government to encourage the construction of socialized and low-cost residential condominiums with a minimum floor area of 20 sqm, and the project is located in urban or urbanizing areas.

We invite the government to consider this type of development as an alternative mode of compliance to the balanced housing requirement of the UDHA with all the applicable incentives as provided by existing laws.

These include income tax holidays, exemption from VAT, and such other incentives for BOI-registered projects.

Projects may come in either of the following packages: (1) Socialized five-story walk-up condominiums with a maximum ceiling price of P750,000 per unit; or (2) low-cost six to 12-story condominiums with elevator with a maximum ceiling price P1.2 million per unit.

This targets the urban dwellers who prefer locations near urban development centers, where walking or short travel from place of residence to work, education, and other purposes is vital to the budget. At the same time, this will provide low-income earners access to safe and decent shelter in the city that they can eventually own.

Building vertical residential communities is as timely as it is extremely necessary to start creating opportunities out of the growing scarcity and increasing cost of land in the cities.

With a burgeoning population of close to 100 million as of 2010, which is growing at the rate of 1.9 percent every year, it is easy to infer the enormity of the demand for social and other basic services in the next few decades.

Along with food and clothing, shelter is considered one of mankind’s most basic needs. But the land under our feet cannot be multiplied to match our needs. To optimize the use of land and multiply its benefits, we must plan ahead and begin building vertical communities where families can grow and thrive as a social unit, now before it’s too late.

In order to realize the effective increase in the annual housing target of at least 300,000 new houses annually, government must rationalise the incentives program for housing. This will ensure that all incentives offered by specific agencies are synchronized and are easy to avail of.

To assist the private sector in fulfilling its role in the production and delivery of socialized housing units, the government must perform its mandate as catalyst for growth and national development.

It must therefore eliminate red tape, particularly in the Bureau of Internal Revenue (BIR) where documentary requirements are duplicated and provisions of related laws are ignored. This has been one of the biggest stumbling blocks to socialized and low-cost housing delivery. What is needed is less bureaucracy.

That means, quicker release of the necessary licenses and permits, more loanable funds from government financing institutions, and better incentives for real estate developers. There should also be a clear identification of lands that may be set aside for residential, agricultural, commercial, industrial, and other equally vital uses that are already governed by various existing laws

Ty realty firm eyes low-cost projects

Philippine Daily Inquirer

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MANILA, Philippines—Federal Land Inc., the property arm of tycoon George Ty, plans to venture into low-cost housing by selling residential units priced below P1 million by next year, thereby catering to a broader segment of the Philippine population.

“Our subsidiary, Horizon Land, is considering that,” Federal Land president Arthur Ty said in a recent talk with reporters. “We’d like to look into that. Tie up with the bank on assets they have depending on location.”

Ty was referring to the group’s banking arm Metropolitan Bank and Trust Co., which also has a thrift bank unit, Philippine Savings Bank.

Going down-market has been a common strategy among big property developers in recent years given the huge backlog of demand for affordable housing in the country alongside the highly liquid financial system.

Bulk of Federal Land’s condominium projects in Metro Manila currently sell high-rise residential units at an average price of P5 million although it also has projects offering units priced at P2 million and below in certain areas like Marikina, Paco (Manila) and Cavite.

The property company is upbeat on the real estate industry despite headwind from the United States and Europe.

“Interest rates, while rising, remain low. There’s nothing right now or in the foreseeable future that indicates that they will go up,” said Jose Mari Banzon, company executive vice president and general manager.

“Remittances continue to be strong, fueling a lot of the real estate sales now. Until those show signs of abating, we think that the market continues to be strong. We haven’t felt any slowdown,” Banzon said, adding that the business process outsourcing sector was continuing to grow.—Doris C. Dumlao

Low-cost houses coming up for Payatas residents

Hans Joshua Dantes

Philippine Daily Inquirer

THE QUEZON City government will provide low-cost houses to informal settlers in Barangay Payatas to move the families away from dangerous areas like sidewalks, roadways and flood-prone waterways.

A memorandum of agreement was signed Thursday by the city government with the Pag-ibig Fund and Habitat for Humanity for the low-cost housing project.

Mayor Herbert Bautista led the signing, along with Pag-Ibig Fund chairperson Darlene Marie Berberabe and Habitat for Humanity managing director Ricardo Jacinto.

The project will be built on a 1.58-hectare site in Barangay Payatas not only for informal settlers but for homeless public school teachers as well.

This will form part of the city government’s Housing Board shelter plan for Quezon City, Bautista said in a press conference.

The members of the Housing Board are: Bautista, Vice Mayor Joy Belmonte, the Urban Poor Affairs Office and urban poor groups Alyansa ng Maralita sa Nova and Urban Poor Council Leaders of Quezon City.

Firm budgets P200M for 2 projects

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By Katlene O. Cacho

A NEW player in the real estate industry in Cebu will be investing P200 million for the development of two housing projects this year.

Softouch Property Development Corp. (SPDC) said they are optimistic about business prospects because of the robust growth in the real estate industry, particularly in the demand for housing.

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SPDC president Manuel Dy said they will be building houses in Barangay Sudtunggan, Lapu-Lapu City and Barangay Jugan in Consolacion this year.

Dy is the owner of MDR Microware Sales Inc., a supplier of computer parts, computer accessories and peripherals in Visayas and Mindanao. He said he diversified his business by venturing into real estate because of the robust growth of the industry in the past years.

SPDC started its operations in 2009. Its first project was Softouch Subdivision in Upper Cala-joan in Minglanilla.

Market feedback

Last Saturday, the company launched its second project called Anami Homes, a mid-range development in a 10-hectare property in Barangay Sudtunggan in Lapu-Lapu City.

According to Ely Jumao-as, Softouch general manager, the company will initially develop 1.3 hectares of the property, which will have about a hundred houses. He said they will first look at the market’s feedback before expanding.

Anami Homes features four model Asian contemporary house units like townhouses with or without a terrace and single detached houses with or without a terrace with prices ranging from P1.7 million to P3 million.

Among the subdivision’s amenities are a multipurpose hall and a covered basketball court. The company hopes to complete development in the first quarter next year and residents can start moving in the middle of next year.

“This project specifically targets the middle-class, start-up families, employees and overseas Filipino workers,” Jumao-as said.

He said people now prefer owning homes rather than renting houses because of affordable rates and good payment schemes.

Apart from the Anami Homes, the company will also develop a 2.1-hectare property in Consolacion into an economic-housing project starting November this year. The project will have about 250 house units.

Growth

According to National Economic Development Authority Director General Cayetano Paderanga, real estate and private construction will continue to remain upbeat this year, given the bright prospects in the property market like office, residential, retail and hotel/leisure submarkets.

Jumao-as said they are optimistic on the real estate industry despite the presence of big players in the market today because of the robust growth of commercial establishments and manufacturing industries in Cebu.

“The company is open to build condominiums or beachfront communities depending on the needs and opportunities in the market. But what we are focusing now, since we are a new player in the industry, is to build the company’s brand by delivering affordable yet high quality houses to the Cebuano market,” Dy said.

Published in the Sun.Star Cebu newspaper on September 20, 2011.