For latest update on real estate
development and its RA 9646, the Real Estate Service Act of 2009, visit
www.ra9646.com.
Sunday, July 22, 2012
More Filipinos working abroad - NSO
MANILA BULLETIN - The total number of overseas Filipino workers (OFWs) from
April to September 2011 jumped by 10 percent to 2.2 million from the 2
million recorded in the previous year, the National Statistics Office
(NSO) reported Tuesday.
FTI Sale Attracts 7 Firms
Philippine Star — The country’s seven largest real-estate
developers are competing for the prime 74-hectare Food Terminal
Incorporated (FTI) state-property in Taguig City, the Department of
Finance (DoF) announced over the weekend.
The finance department, through the Privatization and Management Office (PMO), said that representatives from Robinson’s Land Corporation, Empire East Land, Ayala Land Incorporated, Rockwell Land Corporation, Century Properties Group Incorporated, SM Land Incorporated and Filinvest Land Incorporated attended the pre-bid conference held last Friday.
“Parameters of the sale such as the minimum target selling price and pre-qualification requirements were detailed [last Friday],” PMO said.
The finance department said that the seven local property developers will outbid each other for the agro-industrial property, which has a floor price of P10.2 billion. Proceeds from the sale will go to the Department of Agrarian Reform for the Comprehensive Agrarian Reform Program and to the Department of Agriculture.
PMO will hold the public bidding for the sale of FTI on August 8, which aims to generate a surge in economic activity in the area, improve transportation linkages and boost employment opportunities.
PMO said all interested bidders were also given bid packets detailing Asset Specific Bidding Rules to ensure a transparent and competitive bidding process.
In its efforts to minimize delays to complete the transaction seamlessly, PMO will be conducting a workshop to help bidders prepare for the submission of bid envelopes to prevent technical violations.
“Following the last failed bidding of the 103-hectare FTI Complex in October 2009, the government has been working diligently to design a plan that would optimize the use of the parcel,” Karen Singson, PMO chief said.
With that, the government has decided to sell only 74 hectares of the total 103-hectare FTI complex. The remaining land parcels of the complex will be used for other purposes. Some parcels are owned by the National Food Authority.
“PMO continues to coordinate with other government agencies to ensure that the privatization of FTI complements the broad array of infrastructure building and agriculture initiatives of the government,” she added.
Ongoing projects in the complex include the construction of a five-hectare Integrated Bus Terminal under the Department of Transportation and Communication (DOTC) and the Department of Public Works and Highways (DPWH).
The finance department, through the Privatization and Management Office (PMO), said that representatives from Robinson’s Land Corporation, Empire East Land, Ayala Land Incorporated, Rockwell Land Corporation, Century Properties Group Incorporated, SM Land Incorporated and Filinvest Land Incorporated attended the pre-bid conference held last Friday.
“Parameters of the sale such as the minimum target selling price and pre-qualification requirements were detailed [last Friday],” PMO said.
The finance department said that the seven local property developers will outbid each other for the agro-industrial property, which has a floor price of P10.2 billion. Proceeds from the sale will go to the Department of Agrarian Reform for the Comprehensive Agrarian Reform Program and to the Department of Agriculture.
PMO will hold the public bidding for the sale of FTI on August 8, which aims to generate a surge in economic activity in the area, improve transportation linkages and boost employment opportunities.
PMO said all interested bidders were also given bid packets detailing Asset Specific Bidding Rules to ensure a transparent and competitive bidding process.
In its efforts to minimize delays to complete the transaction seamlessly, PMO will be conducting a workshop to help bidders prepare for the submission of bid envelopes to prevent technical violations.
“Following the last failed bidding of the 103-hectare FTI Complex in October 2009, the government has been working diligently to design a plan that would optimize the use of the parcel,” Karen Singson, PMO chief said.
With that, the government has decided to sell only 74 hectares of the total 103-hectare FTI complex. The remaining land parcels of the complex will be used for other purposes. Some parcels are owned by the National Food Authority.
“PMO continues to coordinate with other government agencies to ensure that the privatization of FTI complements the broad array of infrastructure building and agriculture initiatives of the government,” she added.
Ongoing projects in the complex include the construction of a five-hectare Integrated Bus Terminal under the Department of Transportation and Communication (DOTC) and the Department of Public Works and Highways (DPWH).
For latest update on real estate
development and its RA 9646, the Real Estate Service Act of 2009, visit
www.ra9646.com.
Monday, July 9, 2012
S&P Upgrades Philippines’ Credit Rating
Asia News Network - The Philippines’ image got a boost yesterday after Standard and
Poor’s (SandP) raised the country’s credit rating by a notch, citing the
government’s declining debt burden and other favourable developments on
the economic front.
SandP, one of the major international credit rating firms, raised the country’s long-term foreign currency rating from BB to BB+, just one notch below investment grade.
Long-term foreign currency rating is one of the guides used by foreign investors in making investment decisions, such as whether or not to buy bonds sold by a government or do business in a country.
SandP assigned a “stable” outlook on the latest credit rating. This means the rating is likely to remain the same within about a year until a new review is done.
In a report released last night, SandP said its decision was based partly on the government’s improving debt profile.
Over the years, the government has gradually been trimming its debt burden—the proportion of its outstanding debts to the country’s gross domestic product (GDP)—through measures that improve tax and revenue collection.
The debt-to-GDP ratio, one of the key indicators closely monitored by credit rating firms, improved from 84 per cent in 2004 to only about 50 per cent to date.
“The foreign currency rating upgrade reflects our assessment of gradually easing fiscal vulnerability, as the government’s fiscal condition improves its debt profile and lowers its interest burden,” SandP said.
Moreover, the credit rating firm cited the Philippines’ much improved level of foreign currency reserves, which it said made the country able to meet its liabilities to foreign creditors and bond holders.
Record reserves
The country’s reserves of foreign currencies, called the gross international reserves (GIR), reached a record high of about US$77 billion earlier this year.
The GIR indicates a country’s wealth of foreign exchange and determines its ability to pay for imported goods, pay debts to foreign creditors and engage in other commercial transactions with the rest of the world.
The amount is enough to cover over 11 months’ worth of imports and is equivalent to about six times the foreign currency-denominated debts of government and private entities in the Philippines.
The country’s foreign exchange reserves have risen over the years, thanks to sustained growth in remittances from overseas Filipino workers, foreign investments in the country’s business process outsourcing sector and foreign portfolio investments.
“The rating action also reflects the country’s strengthening external position,” SandP said.
BSP pleased
Governor Amando Tetangco Jr. of the Bangko Sentral ng Pilipinas (Central Bank of the Philippines) was pleased with the credit upgrade by SandP.
Tetangco said the move of SandP came with the improved appetite of foreign portfolio investors for peso-denominated stocks and bonds. Increased purchases of peso-denominated portfolio instruments led the peso to hit a four-year high of 41.72 to a US dollar on Tuesday.
He said the international financial community was recognising favourable economic developments in the Philippines.
2nd fastest in Asia
In the first quarter of the year, the Philippine economy, as measured by the gross domestic product (GDP), grew by 6.4 per cent from a year ago. This was faster than the 4.9 per cent recorded in the same period last year.
The latest GDP growth of the Philippines was the second fastest in Asia for the first quarter after China’s 8.1 per cent.
SandP, one of the major international credit rating firms, raised the country’s long-term foreign currency rating from BB to BB+, just one notch below investment grade.
Long-term foreign currency rating is one of the guides used by foreign investors in making investment decisions, such as whether or not to buy bonds sold by a government or do business in a country.
SandP assigned a “stable” outlook on the latest credit rating. This means the rating is likely to remain the same within about a year until a new review is done.
In a report released last night, SandP said its decision was based partly on the government’s improving debt profile.
Over the years, the government has gradually been trimming its debt burden—the proportion of its outstanding debts to the country’s gross domestic product (GDP)—through measures that improve tax and revenue collection.
The debt-to-GDP ratio, one of the key indicators closely monitored by credit rating firms, improved from 84 per cent in 2004 to only about 50 per cent to date.
“The foreign currency rating upgrade reflects our assessment of gradually easing fiscal vulnerability, as the government’s fiscal condition improves its debt profile and lowers its interest burden,” SandP said.
Moreover, the credit rating firm cited the Philippines’ much improved level of foreign currency reserves, which it said made the country able to meet its liabilities to foreign creditors and bond holders.
Record reserves
The country’s reserves of foreign currencies, called the gross international reserves (GIR), reached a record high of about US$77 billion earlier this year.
The GIR indicates a country’s wealth of foreign exchange and determines its ability to pay for imported goods, pay debts to foreign creditors and engage in other commercial transactions with the rest of the world.
The amount is enough to cover over 11 months’ worth of imports and is equivalent to about six times the foreign currency-denominated debts of government and private entities in the Philippines.
The country’s foreign exchange reserves have risen over the years, thanks to sustained growth in remittances from overseas Filipino workers, foreign investments in the country’s business process outsourcing sector and foreign portfolio investments.
“The rating action also reflects the country’s strengthening external position,” SandP said.
BSP pleased
Governor Amando Tetangco Jr. of the Bangko Sentral ng Pilipinas (Central Bank of the Philippines) was pleased with the credit upgrade by SandP.
Tetangco said the move of SandP came with the improved appetite of foreign portfolio investors for peso-denominated stocks and bonds. Increased purchases of peso-denominated portfolio instruments led the peso to hit a four-year high of 41.72 to a US dollar on Tuesday.
He said the international financial community was recognising favourable economic developments in the Philippines.
2nd fastest in Asia
In the first quarter of the year, the Philippine economy, as measured by the gross domestic product (GDP), grew by 6.4 per cent from a year ago. This was faster than the 4.9 per cent recorded in the same period last year.
The latest GDP growth of the Philippines was the second fastest in Asia for the first quarter after China’s 8.1 per cent.
For latest update on real estate
development and its RA 9646, the Real Estate Service Act of 2009, visit
www.ra9646.com.
Macau gaming firm Melco teams with Philippines’ richest man in $1 billion casino project
Washington Post — Macau
gambling company Melco Crown Entertainment is teaming up with the
Philippines’ richest man to develop a $1 billion casino resort in Manila
in a sign of the industry’s plans for rapid expansion in Asia.
Melco said late Thursday that it would develop the project with three companies controlled by Philippine tycoon Henry Sy. Melco is jointly controlled by Lawrence Ho, who is the son of Macau casino king Stanley Ho, and James Packer, the son of late Australian media magnate Kerry Packer.
Melco has signed an agreement with Sy’s investment holding
company SM Investments Corp., his property developer Belle Corp. and
Belle subsidiary PremiumLeisure and Amusement Inc.
The Philippines’ casino regulator has already issued a provisional gambling license to the group for the casino, which will include a hotel and shopping and entertainment facilities, and will be located in a middle-class suburb on Manila Bay. A regular license will be issued once certain conditions are met.
Melco expects to invest up to $580 million. The Manila project would be the company’s first outside Macau, the world’s most lucrative gambling market, where it operates two casinos and is developing a third.
In Manila, Philippine President Benigno Aquino III’s spokesman said the resort will be a full-service complex that will provide other entertainment apart from a casino.
“It’s not promoting gambling, per se,” spokesman Edwin Lacierda said. “The plan for the entertainment city is more than just gambling.”
Leaders of the Roman Catholic church had earlier spoken out against the project, saying it would promote a “culture of gambling” in the conservative, majority Roman Catholic Philippines.
High-rolling Chinese gamblers have powered Macau’s gambling revenue growth. Last year, the semiautonomous Chinese region raked in $33.5 billion in casino revenue, up 42 percent over the year before and more than five times the amount on the Las Vegas Strip.
Melco said it wanted to expand in the Philippines because the country is a popular tourist destination and close to major sources of tourists including South Korea, Taiwan, Japan and China.
The company said it wanted to “take advantage of the anticipated growth in the leisure and tourism industries in the Philippines, which will cater to an increasingly affluent and growing Asian middle class who continue to seek new travel destinations and experiences.”
Japanese slot machine tycoon Kazuo Okada is also developing a casino resort in Manila.
The Asia-Pacific region will be the world’s fastest growing casino market from 2011 to 2015, according to a report last year by consulting firm PricewaterhouseCoopers, which also forecasts that it will overtake the United States next year to become the world’s biggest market. PWC forecasts that Philippine casino revenues will more than double to $1.2 billion in 2015 from $558 million in 2010.
Melco said late Thursday that it would develop the project with three companies controlled by Philippine tycoon Henry Sy. Melco is jointly controlled by Lawrence Ho, who is the son of Macau casino king Stanley Ho, and James Packer, the son of late Australian media magnate Kerry Packer.
The Philippines’ casino regulator has already issued a provisional gambling license to the group for the casino, which will include a hotel and shopping and entertainment facilities, and will be located in a middle-class suburb on Manila Bay. A regular license will be issued once certain conditions are met.
Melco expects to invest up to $580 million. The Manila project would be the company’s first outside Macau, the world’s most lucrative gambling market, where it operates two casinos and is developing a third.
In Manila, Philippine President Benigno Aquino III’s spokesman said the resort will be a full-service complex that will provide other entertainment apart from a casino.
“It’s not promoting gambling, per se,” spokesman Edwin Lacierda said. “The plan for the entertainment city is more than just gambling.”
Leaders of the Roman Catholic church had earlier spoken out against the project, saying it would promote a “culture of gambling” in the conservative, majority Roman Catholic Philippines.
High-rolling Chinese gamblers have powered Macau’s gambling revenue growth. Last year, the semiautonomous Chinese region raked in $33.5 billion in casino revenue, up 42 percent over the year before and more than five times the amount on the Las Vegas Strip.
Melco said it wanted to expand in the Philippines because the country is a popular tourist destination and close to major sources of tourists including South Korea, Taiwan, Japan and China.
The company said it wanted to “take advantage of the anticipated growth in the leisure and tourism industries in the Philippines, which will cater to an increasingly affluent and growing Asian middle class who continue to seek new travel destinations and experiences.”
Japanese slot machine tycoon Kazuo Okada is also developing a casino resort in Manila.
The Asia-Pacific region will be the world’s fastest growing casino market from 2011 to 2015, according to a report last year by consulting firm PricewaterhouseCoopers, which also forecasts that it will overtake the United States next year to become the world’s biggest market. PWC forecasts that Philippine casino revenues will more than double to $1.2 billion in 2015 from $558 million in 2010.
For latest update on real estate
development and its RA 9646, the Real Estate Service Act of 2009, visit
www.ra9646.com.
Monday, July 2, 2012
BSP keeps close watch on real estate loans
INQUIRER - The Bangko Sentral ng Pilipinas said Monday it was now keenly
monitoring real-estate lending by banks following concerns that the
recent spike in loans could trigger a price bubble, especially in
middle-income housing market.
BSP Deputy Governor Nestor Espenilla Jr. said current levels of real-estate lending so far did not clearly indicate that an asset price bubble was starting. However, he said the trend of rising loans called for a close monitoring.
In fact, Espenilla said the central bank was mulling over what potential measures to implement to control bank lending in a manner that would avoid price bubble.
The BSP earlier reported that the exposure of the banking industry to the real-estate sector reached its highest level at the end of the first quarter due mainly to record-high loans extended by the banks to support purchases of residential and commercial real properties.
Documents from the central bank showed that at the end of March, outstanding real-estate loans extended by thrift and universal and commercial banks amounted to a record high of P524 billion. This was 21 percent up from P433.05 billion as of the same period last year. Of the latest outstanding real-estate loans, 5.11 percent were non-performing. Loans become non-performing if these remain unpaid for at least 30 days from the due date.
Regulators said the non-performing loans (NPL) ratio for real-estate loans could still be considered comfortable, but this was higher than the average NPL ratio for all types of loans, which was only 2.3 percent as of end-April, according to central bank data. This indicated that defaults on real-estate loans were more rampant than those on other types of loans.
Of the outstanding real-estate loans as of end-March, P232.57 billion was accounted for by loans supporting purchases of residential properties. This level was up 21 percent from P192 billion as of the same period last year.
Demand for real properties is being supported by the continued increase in remittances from overseas Filipinos. Supply of credit is also robust because banks remain awash with cash. This liquidity is being boosted largely by growing deposits from the public.
BSP Deputy Governor Nestor Espenilla Jr. said current levels of real-estate lending so far did not clearly indicate that an asset price bubble was starting. However, he said the trend of rising loans called for a close monitoring.
In fact, Espenilla said the central bank was mulling over what potential measures to implement to control bank lending in a manner that would avoid price bubble.
The BSP earlier reported that the exposure of the banking industry to the real-estate sector reached its highest level at the end of the first quarter due mainly to record-high loans extended by the banks to support purchases of residential and commercial real properties.
Documents from the central bank showed that at the end of March, outstanding real-estate loans extended by thrift and universal and commercial banks amounted to a record high of P524 billion. This was 21 percent up from P433.05 billion as of the same period last year. Of the latest outstanding real-estate loans, 5.11 percent were non-performing. Loans become non-performing if these remain unpaid for at least 30 days from the due date.
Regulators said the non-performing loans (NPL) ratio for real-estate loans could still be considered comfortable, but this was higher than the average NPL ratio for all types of loans, which was only 2.3 percent as of end-April, according to central bank data. This indicated that defaults on real-estate loans were more rampant than those on other types of loans.
Of the outstanding real-estate loans as of end-March, P232.57 billion was accounted for by loans supporting purchases of residential properties. This level was up 21 percent from P192 billion as of the same period last year.
Demand for real properties is being supported by the continued increase in remittances from overseas Filipinos. Supply of credit is also robust because banks remain awash with cash. This liquidity is being boosted largely by growing deposits from the public.
For latest update on real estate
development and its RA 9646, the Real Estate Service Act of 2009, visit
www.ra9646.com.
Housing Body Tightens Pre-Selling Regulations
MANILA BULLETIN — Amid reports of some housing projects'
"pre-selling scams," the government will crack down on real estate
developers who have allegedly duped unsuspecting buyers of their money
for non-existent houses or condominium units.
Real estate developers who lack the funds to build their projects usually resort to pre-selling of units, which is an accepted practice in the industry.
Such practice in turn enables homebuyers to purchase the property at a cheaper value at the date set by the developer.
Mounting complaints on undelivered projects from homebuyers, however, prompted the Housing and Land Use Regulatory Board (HLURB) to tighten its rules to prevent the scams and protect buyers.
HLURB Chief Executive Officer Antonio Bernardo, in a statement issued Monday, said the agency is now requiring real estate developers, brokers and contractors to strictly comply with rules on requisite permits before they can sell housing units.
Bernardo earlier met with officers of the Subdivision and Housing Developers Association (SHDA) and discussed the various complaints of homebuyers.
The HLURB is the national government agency tasked to regulate the real estate industry.
Bernardo noted that some developers market lots or housing units of their projects even without having complied with certain HLURB requirements.
For his part, Vice President Jejomar C. Binay, concurrent head of the HLURB, in his capacity as chairman of the Housing and Urban Development Coordinating Council (HUDCC) said that the law has set certain guidelines to safeguard the interest of the buying public.
“Some developers offer attractive and lower prices and incentives to prospective buyers during the pre-selling stage. This is done to ensure a successful marketing strategy while at the same time avoid paying a premium for the cost of developing and completing the project,” Binay said.
He reminded developers that under Presidential Decree 957, or the “Subdivision and Condominium Buyer’s Protective Decree,” a project developer, owner or dealer may not sell any subdivision lot or condominium units unless it first obtains a license to sell from HLURB.
The same law defines “sale” or “sell” as “every disposition, or attempt to dispose, for a valuable consideration, of a subdivision lot, including the building and other improvements thereof, if any, in a subdivision project or a condominium unit in a condominium project.”
Binay said this mode of disposition includes a contract to sell, a contract of purchase and sale, an exchange, an attempt to sell, an option of sale or purchase, a solicitation of a sale, or an offer to sell, directly or by an agent, or by a circular, letter, advertisement or otherwise.
Meanwhile, the SHDA promised to cooperate with HLURB and to remind its members to comply with the rules on registration and issuance of license to sell for residential subdivision or condominium project.
Real estate developers who lack the funds to build their projects usually resort to pre-selling of units, which is an accepted practice in the industry.
Such practice in turn enables homebuyers to purchase the property at a cheaper value at the date set by the developer.
Mounting complaints on undelivered projects from homebuyers, however, prompted the Housing and Land Use Regulatory Board (HLURB) to tighten its rules to prevent the scams and protect buyers.
HLURB Chief Executive Officer Antonio Bernardo, in a statement issued Monday, said the agency is now requiring real estate developers, brokers and contractors to strictly comply with rules on requisite permits before they can sell housing units.
Bernardo earlier met with officers of the Subdivision and Housing Developers Association (SHDA) and discussed the various complaints of homebuyers.
The HLURB is the national government agency tasked to regulate the real estate industry.
Bernardo noted that some developers market lots or housing units of their projects even without having complied with certain HLURB requirements.
For his part, Vice President Jejomar C. Binay, concurrent head of the HLURB, in his capacity as chairman of the Housing and Urban Development Coordinating Council (HUDCC) said that the law has set certain guidelines to safeguard the interest of the buying public.
“Some developers offer attractive and lower prices and incentives to prospective buyers during the pre-selling stage. This is done to ensure a successful marketing strategy while at the same time avoid paying a premium for the cost of developing and completing the project,” Binay said.
He reminded developers that under Presidential Decree 957, or the “Subdivision and Condominium Buyer’s Protective Decree,” a project developer, owner or dealer may not sell any subdivision lot or condominium units unless it first obtains a license to sell from HLURB.
The same law defines “sale” or “sell” as “every disposition, or attempt to dispose, for a valuable consideration, of a subdivision lot, including the building and other improvements thereof, if any, in a subdivision project or a condominium unit in a condominium project.”
Binay said this mode of disposition includes a contract to sell, a contract of purchase and sale, an exchange, an attempt to sell, an option of sale or purchase, a solicitation of a sale, or an offer to sell, directly or by an agent, or by a circular, letter, advertisement or otherwise.
Meanwhile, the SHDA promised to cooperate with HLURB and to remind its members to comply with the rules on registration and issuance of license to sell for residential subdivision or condominium project.
For latest update on real estate
development and its RA 9646, the Real Estate Service Act of 2009, visit
www.ra9646.com.
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