By: L.W.T. Noble with Reuters, BusinessWorld
Published: June 29, 2020 | 12:02 am
Full Article: Peso to rise on rate cut
Snippets: THE PESO is seen to continue appreciating against the greenback as the surprise rate cut last week is expected to support market sentiment.
The local unit ended trading at P49.92 versus the dollar on Friday, stronger by eight centavos from its P50.00 finish on Thursday, data from the Bankers Association of the Philippines showed. The peso also appreciated by 14 centavos from its P50.06 close on June 19.
Analysts said the surprise rate cut by the Bangko Sentral ng Pilipinas (BSP) on Thursday is positive for the peso.
“[T]he impact has spilled over to the peso last Friday, fueling the currency’s strength,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in a text message.
In a surprise move, the Monetary Board slashed rates by another 50 basis points (bps) on Thursday. With this, rates on the BSP’s reverse repurchase, lending and deposit facilities were reduced to record lows of 2.25%, 2.75, and 1.75% effective Friday, June 26.
The BSP has slashed rates by 175 bps this year in a bid to cushion the impact of the coronavirus pandemic on the economy.
Source: Newsdesk, PropertyAsia.ph
Published: December 10, 2019
Full Article: Things Homebuyers Look For When Checking Out a Property
Do you just merely view a property for a good 20 minutes and you’ll be on your way to the other property? This may be relatable for some but for most people who go on property viewing, 20 minutes can sometimes never be enough to encompass your senses to immerse into a property and its entirety. After all, your hard-earned money is at stake, so the more time you allocate, the more observant you will become.
Planning on the purchase of a house can be challenging and stressful. Your budget, current status, and personal preferences must be taken into consideration. In that light, we have laid out a list of things you have to consider when checking out a property for sale. This is also to help you make the most out of your investment.
Neat, Functional Bathrooms
The bathroom is one of the most important rooms in a home. This is also the first thing for homebuyers to check out before anything else. After all, what good will a home bring without a bathroom performing its primary function properly?
Nowadays, homebuyers often prefer homes with updated bathrooms. For real estate agents, it’s important to understand the current bathroom design trends that make a home more appealing to potential homebuyers.
Location, location, location
The location of the property plays a huge role in the decision of the homebuyer. When viewing homes, homebuyers should always consider its proximity to all types of conveniences and necessities such as schools, offices, hospitals, and more.
Besides these conveniences, the homebuyer should also consider the noise level in the neighborhood.
What Other Features Are Included?
Homebuyers also look for other features and fixtures included in the whole real estate property package. These may include curtains, carpets, or old furniture from the previous owner or maybe some hardware finishes that could still be useful.
If not, we can recommend you to a hardware store in the Philippines that could help you out in adding only the best and most durable finishing touches to your home.
Look Out for Damps
Damps are often one of the greatest annoyances for homeowners and homebuyers. The main giveaway signs that a property is full of damps are the moldy smell, chipping paint, watermarked nails and ceilings. As a future homeowner, make sure to watch out for these signs
By: Luz Wendy T. Noble, BusinessWorld
Published: June 26, 2020 | 9:28 pm
Full Article: Home price growth accelerates in first quarter
Snippets: Home prices grew in the double digits in the first quarter, the Bangko Sentral ng Pilipinas (BSP) said.
According to the central bank’s Residential Real Estate Price Index home prices rose 12.4% in the January to March period, much faster than the year-earlier 3.3% pace.
The rate of growth also outstrips the 10.2% year-on-year rise recorded in the three months to December.
The index gauges the average change in home prices across building types and locations and provides the BSP an insight into the property market, bank exposure to which is regulated.
Bank lending to the real estate sector is capped at 20% of their loan portfolios, including residential and commercial properties.
Price growth for duplexes, accounting for 0.3% of new housing units reported, was 38.3% during the quarter, reversing the 8% drop a year earlier.
Condominium prices rose 23.6%, against the year-earlier rate of 10.9%.
Townhouse prices rose 5.5%, easing off from the year-earlier growth rate of 9.8%. Prices of single-detached homes increased 7%, reversing a year-earlier 1.5% decline.
Home prices in Metro Manila rose 18.3%, compared with the rate of 8.5% for homes in the provinces.
In the National Capital Region, a 28% rise in condominium prices offset the decline in prices of duplexes (-35.3%), single detached/attached houses (-6.5%), and townhouses (-5.2%).
Source: Santos Knight Frank
Published: Fri, July 20, 2018 - ReTalk Asia
Full Article: The Philippines newest leading investment destination, Cebu
Santos Knight Frank has revealed that the Philippines city of Cebu will see an unprecedented supply growth in its office market within the next 3 years.
At a glance:
Metro Cebu’s real estate market will see a leap in office stock with as much as 350,000 sqm (gross leasable area) set to open between 2018 and 2020. Representing 47% of the existing supply in Cebu, the growth reveals the long-term positive outlook of developers amid healthy demand for office space by multinational companies and BPO firms, says leading real estate service provider Santos Knight Frank.
During the first half of the year, Cebu continued to see new investments enter its booming property sector, driven a strong local economy, the presence of a skilled labour force, affordable office lease rates and enhanced international connectivity with the launch of Mactan-Cebu International Airport’s Terminal 2.
Rick Santos, Chairman and CEO of Santos Knight Frank told WILLIAMS MEDIA that "With the launch of the new airport terminal and continuous economic expansion, Cebu now has a longer runway for growth. We expect American BPO expansion to continue alongside the influx of Chinese investments as Cebu becomes an important gateway of development in the Belt and Road Initiative."
“The growth of Cebu’s property sector this year solidifies the metropolis’ position as the leading investment destination in the Philippines outside Metro Manila. With a strong economy, a large pool of talent and new infrastructure in place, Cebu is well on its way to becoming a global city," he said.
In the office market, weighted average asking lease rates increased by about 2% to PHP548.31 during 1H 2018 from PHP536.96 in 2H 2017. Done deals tracked by Santos Knight Frank were recorded with transacted rents of PHP 600 to 650 per square metre – a 9% increase from last year’s transacted rents. Meanwhile, office capital values typically range from PHP 150,000 to 200,000 per square metre.
Joey Radovan, Vice Chairman and Head of Occupier Services & Commercial Agency at Santos Knight Frank reveals: “By 2020, the greater Cebu business districts will have close to 1 million sqm of total space serving the office market. The IT-BPO industry will continue to drive commercial demand and traditional office operations will have the opportunity to upgrade to new, modern buildings for their front office needs.”
Prices across the residential real estate market have increased during 1H 2018 year-on-year. The affordable sector grew by 14.5%, midscale by 12.0% and high-end sector by 12.0%.
Buyers mostly consist of investors motivated by capital appreciation and leasing opportunities. A large volume of availed inventory was intended for employee housing of Chinese gaming companies. With the traffic congestion in the city, residential demand is also seen in city centres which are closer to offices. Buyers from South Korea, Japan and China – three of the top sources of foreign arrivals in Cebu – are reported to purchase bulk condominium units.
Tourism and hospitality
Cebu’s international visitor arrivals grew by 14% in 2017. Of the 4.9 million visitors who arrived last year, 54% were foreign guests. South Korea led the list of top sources of tourists, comprising 41.2% of foreign arrivals, followed by Japan (20.1%) and China (10.5%).
To support the influx of tourists, Cebu developers have partnered with international hotel operators to bring in leading brands such as Sheraton with AppleOne Mactan; Dusit Thani Mactan Cebu with Robinsons Land Corporation; Dusit Princess Cebu with Grand Land, Inc.and Citadines Cebu City and lyf Cebu City with Cebu Landmasters. Homegrown hotel brands such as Seda of Ayala Land Hotels and Resorts Corp. and Aruga of Rockwell are also in the pipeline.
A rising gaming destination, Metro Cebu will soon see integrated resort projects such as Emerald Resort and Casino of Udenna Development Corp. in Lapu-Lapu City, Pan-Asia Millennium Hotel and Resort’s Inc.’s casino resort in Mandaue City and the Gokongwei- owned, Universal Hotels and Resorts, Inc.’s Isla dela Victoria in Cebu’s South Road. Properties generate more arrivals in Cebu.
“The launch of Mactan-Cebu International Airport’s Terminal 2 is a particularly exciting development. While a number of cross-border transactions have recently been closed in Cebu, in particular from China, South Korea and Japan, the improvements to the airport will further increase tourism, facilitate greater inflow of capital and help continue the metropolis’ growth momentum in the coming years,” Santos added.
Emerging cities in Visayas
Migration to Cebu from other Visayas provinces has been key in driving demand across all real estate sectors. As the Cebu real estate market continues to grow, other real estate market players are setting up in the fringes of the city and other areas within the Visayas region, building more competition and facilitating growth in secondary areas. With the presence of employment opportunities in other provinces of Visayas, it is possible for the Cebu migration to decrease.
Iloilo and Bacolod are two destinations exhibiting increasing commercial and development activities, particularly the Iloilo Business Park, Bacolod Capital Corporate Center and Bacolod Capital Central Mall.
By: Patricia Bation, DotProperty.com
Published: Fri, July 20, 2018
Full Article: Why invest in Cebu?
Cebu has the nickname “Queen City of the South” for obvious reason. It’s one of the most prosperous localities in the country with its glowing economy. Add to the charm of Cebu is that it hasn’t lost its provincial charm with its beautiful beaches and natural resources. Cebu is considered an investment hub as developed as Metro Manila. Below are some of the reasons why you should be excited about investing in Cebu.
The Mactan-Cebu International Airport is currently under major makeover. When it’s done, Cebu’s very own airport will have more lavish amenities that will impress future tourists and investors. Having its own airport means that Cebu is very accessible to people both local and foreign. It is also a famous trans-shipment port of imports and exports.
Great labor force
Cebu is home to hundreds of tech and BPO related companies. It has one of the most productive labor forces in the country. It also ranked 8th at the Top 100 Outsourcing Destinations in the World. Finding a job or getting employees in Cebu will never be a problem.
Cebu is a regular magnet for tourists. Foreign and domestic arrivals are estimated to be 1.6 million per year. Aside from the enjoyable climate, Cebu is known for gorgeous town tours, diving destinations, canyoneering spots, and lovely beaches. Because of this, rental properties both luxurious and cheap are all over the city.
Cebu is far from the quaint locale that it used to be. Today, the Queen City of the South is bustling with cosmopolitan life. Malls and entertainment centers are everywhere. There are also bars, clubs, and restaurants that keep the night life exciting and vibrant.
The city prides itself for being one of the most peaceful areas in the Philippines. Crime incidents in Cebu remain lower than 1.1% on an average.
Increase in Local Migration
The domestic migration in Cebu just keeps on getting higher and higher. Migration brought 5.2% increase in population annually. This means that the need for residential properties are also increasing. According to a study, 60% of the local population prefer renting rather than buying a property.