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More info on www.PinoyBroker.com www.PinoyBroker.com www.PinoyBroker.com Vol. XIX, No. 157 Thursday, March 02, 2006 | MANILA, PHILIPPINES Property & Infrastructure Community Innovations starts Celadon Residences San Lazaro Artist’s perspective of the Celadon Residences Community Innovations, Inc., an Ayala Land, Inc. subsidiary, recently launched its newest development, the Celadon Residences San Lazaro. Celadon Residences San Lazaro is a 4.2-hectare village 20 minutes by car from Binondo. The project is along A. H. Lacson (formerly Gov. Forbes) in Sta. Cruz, Manila. Designed to be an exclusive community, the project offers 200 Mediterranean-style townhouse units grouped in clusters. Buyers may choose from three types, with floor areas ranging from 168 to 204 square meters, depending on their needs. All townhouse unit types will have three bedrooms and pocket gardens on the ground floor that will allow homeowners the rare chance to bring in a piece of the outdoors. The added option of a guest room/home office affords the residents more space. 'OFW Phenomenon' to Continue in 2006 An article published in The Philippine Daily Inquirer, January 13, 2006 By : Tessa Salazar ------------------------------------------------------------------------ WILL OVERSEAS Filipino workers' investments in their home country continue to rise or slacken this year? Optimistic developers and real estate firms believe more money from OFWs will be pouring in. Eric Soriano, ERA Philippines country president and CEO, said home mortgage investments develop "discipline" in the form of forced savings on OFW dependents. "Our studies have shown that there is a 92 percent repayment of monthly amortizations among OFW homebuyers, a positive indicator for the industry," Soriano said. "I believe the iceberg for OFW markets is very deep," he added. According to him, statistics have shown that education and real estate are still top priorities for any OFW provider. Reinforcing OFW remittances are new money coming from balikbayans from North America and Europe . Marivic Añonuevo, vice president and head of Ayala Land Inc.'s leisure and lifestyle communities, said the number of Filipinos leaving the Philippines to work abroad continues to grow at around 12.5 percent. "Although this is really a sad phenomenon, this indicates however that the amount of dollars earned and remitted back home continues to grow. Rather than slacking off, therefore, we in ALI feel that we have only mined what we believe is the tip of the large OFW market." Danilo E. Ignacio, general manager of Robinsons Land Corp.-high rise building division, said RLC is confident that the OFW investments in real estate will remain. Jose EB Antonio, chair of Century Properties Group and Meridien Development Group, said that 30 percent of the income of OFWs in general is spent on housing, whether to buy a new home, fix present homes or pay for rent. "The quest for the Filipino dream of owning their home is foremost in the minds of OFWs. It is also worthwhile to note that the average income of an OFW has increased, as more white collar workers and technical people are working abroad," Antonio said. Soriano observed that historically, spikes in OFW remittances occur every middle and end of the year. "However, with the continuous deployment of new OFWs in existing and new geographical markets and the increase in remittance month on month, we can expect a steady stream of real estate business from the sector all throughout the year," he said. Añonuevo estimated that ALI overseas sales accounted for nearly 20 to 25 percent of the total sales volume generated by the ALI parent company, including subsidiaries such as Community Innovations Inc and LPHI. She added that recognizing this large potential, ALI has established Ayala Land International Sales Inc. Ignacio said that RLC markets selected projects internationally. "Revenues generated from our international marketing efforts account for a substantial portion of our sales. We thus intend to pursue building this segment," he said. ERA Real Estate, a multinational real estate service provider that manages Eastwood, expects to grow its OFW portfolio from 15 percent in 2005 to 25 percent this year. "The industry posted an average OFW contribution of 20 to 25 percent. My advice to developers is for them to focus on increasing their OFW portfolio by an additional 15 percent this year," Soriano said. ********* One of the reasons for buying a condo is as an investment, you either sell it or rent it out when its completed. I own a condo in Ortigas center (Megaplaza) and would like to weigh my option on either selling it or renting it out. Do you guys have any idea on where I can get information on the going rate of renting out condos in Ortigas center, in Legazpi Village, and in Bonifacio Global City. Where can I get some information on the pros and cons of renting out condos in those areas. Are there any brokers who can manage the renting out of your unit if you are not based in the Philippines. My dream is to retire and live in Manila the proud owner of 3 or 4 units that generates rental income every month. Is this a realistic scenario? Am I better off putting my money in mutual funds? Are there any factual studies on how much these condominiums in Ortigas, Makati and Bonifacio Global have increased in value over the years? Are there any projections on the value of the PROJECTS ON THE RISE in the coming years? It is encouraging to see that the major developers are continuing to build quality projects, but are buyers just buying because of emotional reasons. One of Richard Kiyosaki's advice (Rich dad, Poor Dad) is "Don't fall in love with the property". You'll either buy it for the wrong reasons or you'll have a hard time selling it when the time is ripe. I don't know how right he is but it is a point to consider before investing. The idealist in me would love to see my country get back on its feet and become a developed country. If I can contribute a little by investing in the philippines then it is perfect. The realist in me sees the corrupt government system and the political decay eating up our country. RP ON VERGE OF BIGGEST REAL ESTATE BOOM IN 30 YEARS An article published in The Philippine Daily Inquirer, December 18, 2005 By : Gil C. Cabacungan Jr. ------------------------------------------------------------------------ The Philippines is on the cusp of what could be the country's biggest property boom in nearly three decades fueled by money from overseas Filipinos, investments from businessmen and increased government spending. Albay Rep. Joey Salceda said “We are at the threshold of the biggest real estate boom since 1997.” Since the Asian financial crisis brought the property sector into a long swoon in 1997, the industry has been on a slow but steady climb in the last few years. Salceda expected the property boom would be broad-based –from residential houses and condo units to office towers, leisure facilities hotels. Frederick Go, executive vice president of Robinsons Land Corp., agreed the future of real estate was “bright” with dollars from overseas Filipinos expected to spur the industry's growth next year. Tapping OFW Market At least $1 billion in remittances from Filipinos living or working abroad flow in every month (not counting the dollars sent through informal channels), and Go expects them to spend these dollars buying new houses for their families, high-end condos or resort homes for their own use. Robinsons Land was one of the first firms to tap the overseas market, which now accounts for roughly a third of its sales. Go said buyers, especially OFWs, were now more discerning of the properties they buy largely because of their exposure to superior standards in First World countries. Federal Land Inc. president Alfred Ty said the anticipated property boom would be different from that of the past decades. Demand for Quality “There is an underlying flight to quality in the growing demand for property,” Ty said. Buyers are more knowledgeable now than they were before and they will go to developers that have a long track record, that build classy units whatever the market level and deliver their products on time.” “With people looking for more quality products, we think the industry's growth will be sustained. The 33-year old property arm of the Metrobank group has been one of the fastest-growing developers of high-rise towers in the country. It has sold two residential towers in Makati City in just three years and delivered the units on time, in sharp contrast to previous property booms that were long on pre-selling but short on delivery of actual units. Gov't Role Despite its political troubles, the Arroyo administration has also contributed to setting the stage for a surge in property demand, Salceda said. Aside from keeping interest rates low through prudent debt management, Salceda said the government was poised to further kick up interest in the real estate sector by jacking up its capital spending by 52 percent next year-the first time in five years that it would be boosting investments in infrastructure. “This should make the 4.2 million housing backlog a real demand,” Salceda said. Hot Demand for Office Space Aside from houses and residential condos, another hot factor in the property sector is the rising demand for office space, with vacancy rates dropping from their peak of 60 percent to between 9 and 15 percent at present. CB Richard Ellis, the worlds largest real estate advisory firm, said robust demand for office space was being driven mainly by relocations of multinational corporations and embassies from Grade B and C buildings and by continued demand from new and expanding call centers, business process outsourcing (BPO) providers, and information technology companies. Bulls Running “Despite medium-term domestic economic concerns, the outlook for the office property sector remains bullish,” CB Richard Ellis said. “Limited supplies of suitable Prime/Grade A office space in the Makati CBD will keep vacancy levels in the single digits for the near and medium term while lease expirations in 2006 will be closely watched as they are expected to impact the amount of available space.” The property adviser noted that demand was not confined to Makati and Ortigas. “Tight supplies of suitable existing office space in Metro Manila is forcing call centers and BPOs with large space requirements to consider locating to areas outside the major central business districts,” said CB Richard Ellis, citing the rising trend toward the construction of more build-to-suit buildings (specially in Alabang and Fort Bonifacio), and the conversion of shopping malls and other types of retail establishments to space suitable for call centers. Leisure and Hotels The property sector is also humming in the leisure and hotel business, with average occupancy rates improving to nearly 75 percent this year from less than 50 percent a few years ago, the highest growth being registered in deluxe suites, according to CB Richard Ellis. Tourism arrivals are on track to hit 2.66 million this year (up by 6 percent from last year), with tourism revenues expected at $2.2 billion (up by 14 percent from last year). With international arrivals predicted to rise by 15 percent next year (in line with the government's goal of having 5 million tourists by 2010), CB Richard Ellis noted an increasing number of foreign investments going into building deluxe hotels and resort facilities. “Out of 7,000 plus islands, only one-fourth are currently developed and many hospitality-related facilities need refurbishment or have yet to be built,” it said.