Category Archives: Real Estate News

Low Pag-Ibig Interest for Housing Loans in Cebu

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The low, 6% interest in Pag-Ibig housing loan packages resulted in more Pag-ibig members and beneficiaries in Cebu and nearby provinces to build more housing units. The 6% interest rate was introduced in 2006 to make loans more affordable for families with low income. Loan packages up to Php 300,000 have a 6% interest rate, down from 9%; loan packages between Php 300,000 to Php 500,000 dropped from 10% to 7%. This results in a low monthly amortization that can get as affordable as Php 1,800 a month.

Since the drop, more low-income families (usually government employees that earn a monthly salary of Php 8,000 to Php 10,000) have benefited from the Pag-Ibig housing project. As of November 2007, the Cebu branch surpassed its target of 1,199 housing units. In Mandaue City, the housing loan program built 962 units for 971 families – 90% of their targeted 1,181 housing units.

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Real Estate: What to Expect in 2008

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The Philippine Daily Inquirer made a real estate property forecast for 2008 and it looks like we’ve got a fairly good year ahead of us. Rent for office space will continue to have strong growth, and could increase as much as 15%. The demand for this will come from the BPO sector, including call centers, but there won’t be much supply for the year 2008. Vacancy in the Makat CBD and Ortigas Center are currently at single digit levels.

Accessibility still remains a key factor for the middle-income market, and prices are based upon the units’ proximity to schools, business centers, malls, and transportation hubs. High-end developers will also test the Php110,000 per sq/m price level for projects in prime locations with premium amenities.

Cluster residential condominiums will continue to emerge to give a sense of privacy and exclusivity for buyers. There will be an additional 10% increase in 2008, depending on the location. Locations like Fort Bonifacio, however, will find it difficult to increase their prices due to larger supplies.

For the hotels and leisure sectors, expect them to cater to a broader market. There will be condominium projects that are easier to maintain and are more affordable to the middle class, such as Terrazas de Punta Fuego and Hamilo Coast. Boutique hotels will be more popular as more leisure concepts get launched. There are also going to be more hotels in the Makati CBD (Raffles and Fairmont), making it easier for travelers to book rooms in the business district.

Ultimately, the growth in real estate is due to the demand for offshore services, increase in Korean investors in the country, and an increase in Initial Property Offerings from real estate developers. As Philippine properties continue to get sold to key markets abroad like California and Dubai, the income generated here will contribute significantly to Philippine real estate.

Source: Philippine Daily Inquirer, December 29, 2007, B2-1

Philippines Involved in Tokyo Land Deal Scandal

The Philippines could get involved in a possible diplomatic scandal with Japan about a Php5 billion peso transaction that involves the development of government-owned property in the Shibuya district of Tokyo, Japan. The Nampeidei 2,488-square meter property was acquired by the Philippines as part of Japan’s World War II reparations. Currently, the Nampeidei is an embassy storage facility, but the property received an offer for commercial development so it can generate income.

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Philippine Real Estate Boom to Continue through 2008

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Now would be a great time to invest your hard-earned money in a house or condo unit of your own. The Manila Times reports that the Philippine real estate industry picked up this year due to a growing market of young urban professionals and OFWs buying property in the country. Evidence of the real estate growth is shown by the growth in Ayala Land’s residential unit bookings, with their high-end and middle market revenues growing by 18% and 42%, respectively. By the end of the month, Megaworld Corporation expects to garner Php 19B worth of residential sales, 4 billion higher than their projection early this year.

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Ayala Land’s Nuvali Evoliving

nuvaliAyala Land formally launched their biggest real estate endeavor. Nuvali is located in the old sugar estates of the Yulo family in Canlubang. NUVALI is Ayala Land’s largest, master-planned regional hub in the Philippines. “It terms of size, it’s about 8 times the size of the Makati Central Business District, and is roughly an hour away from Makati. The development is well connected but is also the gateway to Region 4 — so we feel that its size and its location will really make NUVALI a metropolis that has strong regional connections,” shares Jim Ayala, President of Ayala Land.This new endeavor in land development will triumph evoliving, or the integration of nature and man in a harmonious living environment, and provide the much needed relief for the highly congested Metropolitan Manila with its 15 million inhabitants.

All three brands of Ayala land will be building at Nuvali: Ayala Land Premier for high-end residences (through the Abrio), Community Innovations for upper middle-class homes (through the Treveia), and Avida for middle-class housing (through Avida Settings).

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