Manila Real Estate News Blog

Philippine President Gloria Macapagal Arroyo just signed a new law for the regulation of all matters that are connected to real estate in Manila and in the entire country. The Real Estate Services Act (RESA) is said to have been enacted in line with the continuous growth of the country's real estate industry. The passage of the law is seen as a means to improve and develop all processes related to real estate sales, purchase, and promotions.

While the global financial crisis continues to pull down the United States' real estate industry, the crisis seems to be giving a positive effect on Manila's real estate. As developers incessantly build structures in different parts of Manila, interested tenants also continue to multiply. Whether the property is a town house, a condominium, or an apartment compound, the people's desire to acquire their own home seems to be unstoppable. As such, the government finds it timely to enact a law that will protect not only property agencies, but tenants as well.

RESA is designed to regulate and professionalize the country's real estate services. This means that everyone, including agents and brokers, are required to pass a licensure exam before becoming a legitimate real estate broker. This exam will be supervised and administered by the Philippine Regulatory Commission, the head council that administers most of the licensure examinations conducted in the Philippines. This law will also require real estate professionals to undergo continuing studies and training to ensure that they are fit to handle the job. Furthermore, the law entails a Code of Conduct and Responsibilities, which real estate professionals should know by heart.
Through this law, the Philippine real estate industry is expected to become more attractive to foreign investors, and more and more productive as time goes by.

One of the bigger property firms in the Philippines, Megaworld Corp. declared that it will be spending not lower than 22 billion pesos or 482 million dollars in more than 20 years in order to develop a property it won at a state settlement of debts.

The contract to develop a 34.5 hectare property of the state close to a swiftly growing central business district in the capital was said to be awarded by the Bases Conversion and Development Authority (BCDA). It was after the company placed the highest bid amounting to 31,111 pesos per square meter of the property.

Other huge property firms in the country also tried their luck on the tender with Filinvest land Inc. coming in second place. However, the bids placed on the property were not able to compete with the bid of Megaworld Corp. The other top Philippine property developers who bid for the property include Ayala Land Inc. and Robinsons Land Corp.

Prior to the announcement made by Megaworld Corp., it has been found that the company's shares went down 1.5 percent. There are also findings pointing that the company was underperforming a marginally firmer main index. Furthermore, the company's stock is down to almost 11 percent in the current year.

The need for services and human resource in majority of companies in the world is continually increasing. This phenomenon resulted to the heightened number of international service providers that offer answers to business processes. In the Philippines, the BPO (Business Process Outsourcing) industry has seen rapid growth since the day of its establishment.

It may not be denied that the Philippines is gifted with plenty of manpower. Many multinational companies take advantage of this fact, especially that this manpower is not merely one-skilled individuals. The manpower Philippines offers is multi-skilled, high-quality worker, and cost-efficient. These companies choose the Philippines as headquarters for other areas of their business.

In the years that the Philippines has been doing business process outsourcing with numerous countries, many have seen and felt the great potentials of Filipinos. It has even gained the country awards of recognition, stating that BPO in the country is a growing industry that magnetizes foreign investors. It leads to numerous multinational companies being persuaded to explore the ever flourishing reputation of readily available knowledge based and highly skilled Filipino laborers.

As an answer, the country's authorities continually support the BPO sector in many ways. One of these means is by creating IT sites and business parks in major locations in the country. The BPO workforce sector is not the only beneficiary of this development. As corporate districts arise, so is the real estate industry. Numerous major sites in which real estate development is incessant are in Makati, Metro Manila, The Fort, and Ortigas. Even provinces like Cebu, Cagayan de Oro, Davao City and Bacolod City are getting developments as skilled laborers from these areas are being tapped.

Predictions point that the rise in BPO industry and the real estate is going to continue in the future. Despite speculations, evidence of expansions and additions of branches point otherwise. Thus, there is no doubt that the BPO industry is that one economic change that rolled more profits even for other industry, like real estate.

A new high rise structure that will be a center of attraction is soon to rise in Makati City. The high rise development is said to be called Century City, to be erected along Kalayaan Avenue adjacent to the Bel Air Village and San Miguel Village. Like Bonifacio Global City, Century City will house luxury residential towers, shopping and entertainment centers, office spaces and private recreation spots for residents and workers.

Century City's master plan is said to be an amalgamation of aspects of modern urban life making it a would-be desired location in the Metro. Property investors, businessmen and people who wish to experience the best quality life are expected to swarm in this new real estate.

One of the aspects of Century City which is considered to be its main attraction is the retail shopping experience. The center is said to host some of internationally acclaimed fashion brands. These stores will be laid out in a floor plan that will surpass most of the buildings and locations in the estate. The shopping and dining center is the magnet that will draw people into Century City.

Under construction now is the first residential tower to be called The Gramercy Residences. It drew inspiration from New York City Skyline and Spaces. It is said to be the tallest building in the metro as soon as it is finished. The building is said to have a Sky Park with waterfalls, swimming pool, and restaurants. A day care, recreation center, conference room, 24-hour service, is also said to be part of the plan.

SM Development Corp. (SMDC), owned by shopping mall tycoon, Henry Sy has recorded a net profit of 1.8 billion in the past year. The gathered profit has been found to be 31 times bigger than profits of robust real estate operations in the past year.

Joined revenues reached P5.3 billion, which is 73 percent higher than the revenues last year. This is side by side with a 36 percent year-on-year rise in gains from the property operations to 1.5 billion.

When put against an Ebitda(interest, taxes, depreciation and amortization) margin of 40 percent, the company's cash flow resulted to 2.1 billion.

SMDC claims that the rise in property revenues was brought about by the ''improved sales techniques, a line of new projects, reaching target dates of projects, and better cost control strategies. " the stability of the financial market also contributed to the successful divesting of the corporation's equity portfolio.

In the entire past year, the corporation was able to pre-sell 4, 892 residential units. This is worth about P11 billion. In the year 2008, the number of units pre-sold in the same period rose by 133 percent.

The corporation claims that the improvement in sales and revenues is a result of the hardwork of the entire corporation and the positive response of the people to the carefully-planned strategies.

Unlike what may have been expected by the majority of its population, Manila has become one of the costliest places for expatriate workers, specifically in the housing aspect. IT has been found that the real estate prices are more expensive in Manila as compared to other cities in Asia.

Despite this reality, the country remains to be at the 40th place on the list of 50 expatriate destinations, which was ranked according to rental property values.

The first in the list of costliest cities is Moscow, followed by Tokyo, Hong Kong, Mumbai, and New York, the base city utilized for the list.

Other countries who made it to top ten are Beijing, New Delhi, London, and Singapore.

The cities which broke the Philippines' record are Mexico City, Brussels, Buenos Aires, Bangkok Budapest, Stockholm, Prague, Johannesburg, and Toronto.

The rankings imposed on the list are said to be based on common rents for a certain type of unit. The range includes one- to four- bedroom units and three- to four-bedroom homes.

The survey body indicated that being on top of the list does not immediately point that property values increased. The body explained that currency fluctuations specifically those unstable in the recent months because of the world crisis, also influenced the change.

It has been said that the rent prices key cities in the region are still stable as compared to the swoop in the cities of America and Europe, the cities that account for the higher rankings on the list.

Experts did not expect that listings will increase. Most have stated that even with the decrease in property values in ASEAN, the crashing economic situation still has the probability to produce a total decrease in expat assignments in the different regions.

For this reason the ASEAN region is still foreseen as a good place to invest and grow business. Multinational companies are urged to take a peek at this region which continues to grow despite the global downturn.

With the entry of the New Year, all probable events regarding the housing market in the ASEAN are highly anticipated. In the current review, Singapore is likely to move down with the rest of ASEAN countries on the list. It may either retain its position or move up gradually.

Other experts attest that the gradual move of Southeast Asian countries on the list is most likely caused by a drastic decrease of rental prices in countries greatly affected by the economic rift.

It is also added that with the expectation that the effect of the economic downturn falling on Asia this year, the trend is most likely to stop to a level lower that Europe.

Furthermore, there exists a downward pressure on the local residential rental prices. This can lead to stagnant prices resulting from increase in developments.

Makati for instance, had its vacancies rise to 9 percent from 8.1 last year.

Unlike the apartments units, however, local luxury residences are less likely to be stagnant. It is predicted to hold its position as expat population is still significant.

These predicted impacts on rent are said to be felt this early part of the year, if the rift continues.

Just this January, the renowned property developer DMCI Homes launched the Fairview Project, a mid-rise condominium located right across a popular mall in Fairview. The project is a comfortable living space that offers exceptional amenities and home environments. It is also near schools, business districts and churches in Lagro and Novaliches areas.

The prime location allows the Fairview Project access through various routes, so getting to where you have to be needn't be a problem. By 2013, Fairview will be more accessible than ever due to the expected completion of MRT 7, the transit line of which will pass through Regalado and Quirino Highways, and will end at San Jose Del Monte City, Bulacan. This development will make the Fairview Project the gateway to Northern Metro Manila.

DMCI Homes' Fairview Project is comprised of 500 quality units, designed according to the needs of different lifestyles in mind. The architecture is uniquely Neo-Asian, described as the modern interpretation of traditional Asian elements. The aesthetics extends to the greens and outdoor components of the property. This is a distinct design in Fairview, as no other residential development features this type of architecture. It will definitely stand out in the Quezon City landscape.

Because it's a DMCI Homes endeavor, the Fairview Project assures buyers of high-quality homes. As the builder of the country's numerous landmarks, DMCI Homes' 55-year construction heritage speaks of unparalleled commitment. The Fairview Project undoubtedly is a good investment. Homeowners and future buyers will enjoy fast real estate value appreciation because of excellent maintenance of the property management team. And because of its good location, buyers can also lease their units out.

The Fairview Project will be offering bigger condo unit sizes: two-bedroom and three-bedroom units ranging from 50 to 60 square meters. This is a far cry from what competitors offer, which averages 31 square meters. Future residents can expect better building features like landscaped atriums with natural lighting and ventilation, single-loaded corridors and balconies in all units.

Future unit owners of the Fairview Project will be guaranteed maximum living space, as the structure only has a density of about 250 units per hectare, half that of the competitor average. As with other DMCI Homes projects, different payment schemes will allow owners the utmost convenience and ease.

DMCI Homes is the country's premier triple A builder - developer that brings serviced, themed communities within reach of urban families who once had limited residential options, but still aspire to achieve a comfortable, enriching quality of life proximate to their place of work.

The Green Revolution has arrived in Manila. More and more businessmen around the world are going green with their products and materials and it has now found its way to the country. Contractors and builders in Manila are now offering Green Walls and Green Roofs, which are made of environmentally friendly materials, which gives developers a chance to build Manila real estate projects in a greener and less harmful manner.

It is said that the Green Roof is made from a hundred percent recycled plastic and has the capability of being completely covered with plants. With plants covering the roof, it would mean a cooler climate inside the property, hence less energy consumption, less rain water runoff, helps reduce air pollution, reduce effects of UV rays and even act as a sound buffer hence less noise.

The Green Wall on the other hand is similar to the roof. It is made in a similar fashion and has the same ability to grow plants on them, so it carries the same advantages of the Green Roof.

Big or not, rich or poor, each and every country can help in the fight against Global Warming. In this case, Manila real estate is about to go green for the city, nation and world.

Eton Properties unveils a new project called 8 Adriatico. The project is a Condominium building located in Malate, Manila. Company owner Lucio Tan gives investors a new opportunity to earn the big money right in the heart of Malate, Manila. At the same time, it is a perfect spot to live for those working around the Metro Manila area particularly Makati City, Ortigas and Manila.

The picture to the right shows the floor plan for the new project.

Ayala Land Inc, one of the biggest real estate developers in Manila, claims to have sold well over a billion dollar's worth of lots over a single weekend in one of their latest development projects located at the southern part of Metro Manila called Santierra.

Senior Vice President of Ayala Land, Rex Mendoza, said that Filipino migrant workers were among those who made purchases. The residential project covers a total of 77 hectares and only phase 1 was opened during the weekend. It covers 125 lots.

Initially, the company offered a hundred lots only but more were added due to strong demand, Rex said.

Prices of the lots range from six hundred to twelve hundred square meters for PHP12,200 to PHP15,200 per square meter.

The residential project is designed in a similar fashion with Urdaneta and Dasmariñas villages in Makati City. And like those villages, which are beside the Central Business District, Santierra will have its own commercial space in the form of Nuvali.

According to President of Ayala Land Antonio Aquino, they will spend around five billion pesos on the project.

Ayala Land Inc is also responsible for developing Makati, Canlubang, Bonifacio Global City, Alabang and the Cebu Business Park.

Major sugar corporation Roxas and Co Inc. plans on developing four real estate projects in the next few years. All four properties are worth P1 billion. The projects include a P300 million luxury residential and resort complex to be built in Tagaytay City. The complex will include 60 open lots and 20 house and lot units priced initially at less than P 10,000 per square meter. Company chairman Pedro Roxas has categorized their future real estate developments as residential, commercial, and tourist-related.

Included in their Makati real estate plans is a 7-story hotel within a Metro Manila business district. Guests will be charged P 3000 a night. P300 million is estimated for the hotel project. According to Roxas and Co. president Francisco Del Rosario Jr., this will jumpstart the company's plan of setting up similar hotels in other key area in the Philippines. Manila real estate has much to look forward to in terms of competition and options for future residents.

Del Rosario envisions Roxas and Co. to eventually rise as one of the country's major property developers in the next five years. They have included the residential segment in their focus because of the high demand for housing projects and tourist establishments. A commercial center spanning 3.2-hecatres and a 27-hectare residential area in Nasugbu, Batangas are also in the works. Roxas and Co. has covered significant regions in the country with all these projects.

Not losing sight of its initial priorities, Roxas and Co. still plans to further develop its ethanol and sugar businesses. A P1.5 billion bioethanol plant in Negros Occidental is expected by February 2010. The new plant's capacity will be at 30 million liters per year or 100,000 liters per day. Roxas and Co.'s ethanol and sugar businesses play a key role in the businesses' overall growth.

Though expected to be on the rocks these days, Manila real estate business is actually booming. Despite the recession in America and the increase of 135 percent in prices, it is predicted that all properties would be sold this year. People from all walks of life seem to be magnetized by the grandeur of these structures that they are expected to sell like pancakes before the end of the year.

From analysis of consumer market, the main attractions are believed to be the grandly built manila homes. Bungalows with vast lawns, two-stories with a stunning view outside continually attract prospective buyers. Aside from these, condominium units as well as townhomes offering stability and convenience are also looked for by clients. These, combined with the advertising strategies of the sellers, work together to move the business forward.

Giving away of fliers, building to building direct advertising are only few of the said strategies that work. However, what really draws the clients is the unique offer of most sellers, the feature that contradicts the uniformity in style of some Manila real estate. All clients are told that getting a property of their own will unleash their creativity and personality, producing a home that may look like others' outside yet truly unique inside. They can renovate and redecorate, strengthen walls and improve floors. Whatever pleases them, only a personal abode is sure to give it.

The uniqueness and privacy that apartments and dorms cannot give are the edge of today's Manila real estate. People are given the chance to live out their illusions through owning a home, creating their own relaxing retreat within the bounds of its four walls. It makes them feel warm and cozy. Continually feeding these attributes will assure that this market is going nowhere else but uphill.

With the growing awareness of the people as regard the changing climate and global warming, it was not immediately noted that even architecture and construction will be affected by left and right proposals of using eco-friendly materials. However, developers are also concerned with the environment as it is their main merchandise. Thus, modern day Makati real estate and other properties in and out of the metro are going green.

Although several people might find the idea of "green" architecture a difficult venture for construction companies, the advent of natural construction materials like bricks and cement made out of fly ash suggests otherwise. In fact, the change from conventional construction to environment-friendly architecture is no longer a long swim to the banks.

In the world market, companies that manufacture and sell "green" construction materials are popping out like mushrooms. Some conventional materials manufacturers are even shifting to this business as it is believed to boom in the coming years. This does not only make construction of green buildings possible, it makes it easy and affordable.

Manufacture of green construction products is cheaper compared to the creation costs of conventional cement and bricks. It is noted that the energy needed in making these materials is 85% lesser than in making the traditional ones. This fact points to cheaper payment for energy consumption and bigger profit from promotion.
While the green buildings are still not as copious as structures made of traditional materials, it is believed that soon the cities will be lined with these environment-friendly infrastructures. Provincial subdivisions and townhomes, as well Manila real estate are foreseen to go completely "green" in the near future.