Philippine Real Estate News – July 2018

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Hello everyone,

Here’s some select articles about Philippine Real Estate and our Economy from various newspaper correspondents that matters for your reference.  Take note that these articles when assessed actually guides us locally what direction the economy is going, what kind of issues our government is going through and generally, and how this affects our real estate market.  News directly affects investors / businessmen on their assessment of what business decision to make, this could be from the stock market ( which is a good barometer ) to daily activities ( hiring of workers, construction supply chain, and other economic variables.

here’s an article contributed to inquirer.net by Dean of College of Law at Lyceum of University , Ma. Soledad Deriquito-Mawis :

Scale at the End of a Hilt of a Sword --- Image by © Images.com/Corbis

The Better Right

Guia is the registered owner of a parcel of agricultural land as evidenced by an Original Certificate of Title (OCT).

She sold the south portion of her land with an approximate area of 1,350 sqm to her friends, spouses Pete and Carrie.

Pete and Carrie immediately took actual possession of the land despite the fact that the Deed of Sale has not been registered with the Register of Deeds nor annotated on Guia’s Original Certificate Title. The couple started planting sugarcane on their land, and in due time, enjoyed the fruits of the labor.

Meanwhile, after the execution of the unregistered Deed of Absolute Sale, Guia ordered her son, Ed, to subdivide the land into three lots and to apply for the issuance of separate titles therefor, to wit: Lot 3-A, Lot 3-B, and Lot 3-C. Guia likewise instructed Ed to deliver the Transfer Certificate of Title (TCT) corresponding to Lot 3-C to Pete and Carrie.

Ed succeeded in canceling the original certificate title and in subdividing the lot.

The TCT corresponding to Lot 3-C was issued with Guia still as the registered owner of the land. Yet, Ed deliberately did not deliver the TCT for Lot 3-C to Pete and Carrie.

Meanwhile, the Lord called Guia to be by His side.

Unknown to Pete and Carrie, Ed applied for a loan with ABC Rural Bank and offered to secure the loan with a Deed of Real Estate Mortgage over Lot 3-C. The Bank thereafter conducted its usual credit investigation.

The Bank’s Report of Inspection and Credit Investigation stated, among others, that the land to be used as collateral was inspected and that lot is planted with sugarcane with annual yield crops in the amount of P15,000.

The Bank thereafter approved Ed’s loan application. The loan and Real Estate Mortgage were made pursuant to the Special Power of Attorney purportedly executed by Guia, the registered owner of Lot 3-C, in favor of the mortgagor, Ed.

Moreover, the Real Estate Mortgage and Special Power of Attorney were duly annotated in the memorandum of encumbrances of the transfer certificate title covering Lot 3-C.

Seven years after the unregistered sale between Guia and spouses Pete and Carrie, the couple, much to their horror, discovered from the Register of Deeds the following facts: (1) the subdivision of Guia’s lot into Lots 3-A, 3-B, and 3-C; (2) the issuance of separate TCTs for each lot; and (3) the annotation of the Real Estate Mortgage and Special Power of Attorney over Lot 3-C which is the lot they bought from Guia.

Immediately, Pete and Carrie registered their adverse claim based on the unregistered sale over Lot 3-C. The spouses insisted that they have a better right over the parcel of land than the bank. On the other hand, the Bank claims that it is a mortgagee in good faith, and thus has better right than the spouses.

Q: What is the doctrine of mortgagee in good faith?

A: The doctrine of mortgagee in good faith refers to a situation where, despite the fact that the mortgagor is not the owner of the mortgaged property, his title being fraudulent, the mortgage contract and any foreclosure sale arising therefrom are given effect by reason of public policy.

The doctrine of “mortgagee in good faith” is based on the rule that all persons dealing with the property covered by a Torrens Certificate of Title, as buyers or mortgagees, are not required to go beyond what appears on the face of the title.

The public interest in upholding the indefeasibility of a certificate of title, as evidence of lawful ownership of the land or of any encumbrance thereon, protects a buyer or mortgagee who, in good faith, relied upon what appears on the face of the certificate of title.

Q: What is the degree of prudence required of a mortgagee when he does not deal directly with the registered owner of the real property?

A: In cases where the mortgagee does not directly deal with the registered owner of real property, the law requires that a higher degree of prudence be exercised by the mortgagee.

While one who buys from the registered owner does not need to look behind the certificate of title, one who buys from one who is not the registered owner is expected to examine not only the certificate of title but all factual circumstances necessary for one to determine if there are any flaws in the title of the transferor, or in the capacity to transfer the land.

Thus, where the mortgagor is not the registered owner of the property but is merely an attorney-in-fact of the same, it is incumbent upon the mortgagee to exercise greater care and a higher degree of prudence in dealing with such mortgagor.

Q: What is the degree of diligence required when the mortgagee is a banking institution?

A: Unlike private individuals, it is expected to exercise greater care and prudence in its dealings, including those involving registered lands. A banking institution is expected to exercise due diligence before entering into a mortgage contract. The ascertainment of the status or condition of a property offered to it as security for a loan must be a standard and indispensable part of its operations.

The bank cannot rely merely on the certificate of title offered by the mortgagor in ascertaining the status of mortgaged properties. Since its business is impressed with public interest, the mortgagee-bank is duty-bound to be more cautious even in dealing with registered lands. Indeed, the rule that person dealing with registered lands can rely solely on the certificate of title does not apply to banks. Thus, before approving a loan application, it is a standard operating practice for these institutions to conduct an ocular inspection of the property offered for mortgage and to verify the genuineness of the title to determine the real owners thereof. The apparent purpose of an ocular inspection is to protect the “true owner” of the property as well as innocent third parties with a right, interest or claim thereon from a usurper who may have acquired a fraudulent certificate of title thereto.

Q: Why is the degree of diligence required of bank higher than an ordinary person?

A: The required degree of diligence is higher because the banking system is an indispensable institution in the modern world and plays a vital role in the economic life of every civilized nation. Whether as mere passive entities for the safekeeping and saving of money or as active instruments of business and commerce, banks have become an ubiquitous presence among the people, who have come to regard them with respect and even gratitude and, most of all, confidence.

Q: In this case, did ABC Rural Bank exercise the required degree of diligence, prudence, and care in approving the loan application of Ed?

A: No, it did not. The Bank should have diligently conducted an investigation of the land offered as collateral. While it is true that the Bank inspected the land, it turned a blind eye to the finding of its credit investigator that the lot is planted with sugarcane with annual yield crops in the amount of P15,000.

The above fact should have immediately prompted the Bank to conduct further inquiries, especially since Ed was not the registered owner of the land being mortgaged. He merely derived the authority to mortgage the lot from the Special Power of Attorney allegedly executed by Guia. Hence, it was incumbent upon the Bank to be more cautious in dealing with Ed and inquire further regarding the identity and possible adverse claim of those in actual possession of the property.

Q: Is ABC Rural Bank then a mortgagee in good faith?

A: In view of the above, when the Bank acted with haste in granting the mortgage loan and did not ascertain the ownership of the land being mortgaged, as well as the authority of the supposed agent executing the mortgage, it cannot be considered an innocent mortgagee. Consequently, the Bank is not entitled to protection under the law. The unregistered sale in favor of the spouses Pete and Carrie must prevail over the mortgage lien of ABC Rural Bank.

(Source: Arguelles vs. Malarayat Rural Bank, Inc., G.R. No. 200468, March 19, 2014)

Ma. Soledad Deriquito-Mawis, Dean, College of Law, Lyceum of the Philippine University Chairperson, Philippine Association of Law Schools Mawis Law Office

here’s an article from manilatimes.net contributed Atty Peaches Aranas :

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A Look at the Philippines – Mexico Double Taxation Agreement :

The Bureau of Internal Revenue (BIR) has issued Revenue Memorandum Circular (RMC) No. 58, 2018 on the Agreement for the Avoidance of Double Taxation on income tax between the Philippines and Mexico, which has entered into force last April 18, 2018. The Agreement was signed in November 17, 2015 between President Benigno Aquino and President Enrique Pena Neto ofMexico and was just ratified by the Philippine Senate last February 19, 2018. The Agreement shall have effect on income that arises in the Philippines beginning January 1, 2019.

The agreement is properly called a “double taxation agreement” or DTA but is more popularly known as a “tax treaty”. Before we go into the salient provisions of the Philippines-Mexico DTA, it would be worthwhile to know what is a DTA, and what is its purpose.

Let us assume that Mr. X, a Philippine citizen, provides consultancy services to a company in Mexico. Without going into the details of the Philippines-Mexico DTA, we can safely say that any income received by Mr. X for service rendered, may potentially be subject to Philippine taxes (Mr. X being a Philippine citizen) and Mexican taxes (as the income is derived, or has its source from Mexico). As the same income is subject to tax under two separate jurisdictions, “double taxation” arises. Thus, a DTA is an agreement signed by two countries to avoid, or if not, minimize double taxation.

The benefits that a DTA brings, especially to international trade, cannot be overemphasized. From our illustration above, the effects of double taxation, if left unchecked, will be to hamper the efficient flow of cross-border transactions. Specifically, Mr. X will feel safer in transacting business in the Philippines to avoid contending with potential tax issues from two separate tax jurisdictions. Countries (aka “contracting states”), in this case, the Philippines and Mexico, will then find it to their best interest to enter into and conclude as much DTAs as they can to address the issues of double taxation.

With that, we look into the salient provisions of the Philippines-Mexico DTA:

Dividends shall be taxed at the following rates:

5 percent if the beneficial owner is a company that directly holds at least 70 percent of the capital of the entity paying the dividends;

10 percent if the beneficial owner directly holds at least 10% of the capital of the entity paying the dividends;

15 percent in all other cases.

Save for a few exceptions, interest shall be taxed at 12.5 percent if the beneficial owner is a resident of the other contracting state.

Royalties shall be taxed at 15 percent if the beneficial owner is a resident of the other contracting state.

In the sale of shares or other participation rights, a transaction shall be exempt from capital gains tax if the sale takes place between affiliated companies to the extent that the consideration received by the transferor consists of shares of stock of the transferee, or of another company that owns at least 80 percent of the voting rights and value of the transferee, provided certain conditions are met.

The gains from the sale of shares, interests, or other rights in the capital of a company shall be taxable, if the seller has held, together with related persons, at least 20 percent of the capital of the company at any time during the 12-month period preceding the sale.

here’s an article from manilastandard.net from correspondent, Julita G. Rada

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Manufacturing rises for for 5th straight month

Manufacturing posted its fifth straight double-digit growth in May, on a strong production of food, petroleum products, and transport equipment, data from the Philippine Statistics Authority show.

The Monthly Integrated Survey of Selected Industries showed that the volume of production index rose 19.8 percent in May, following a 0.6-percent drop in the same month last year.  The growth, however, was slower than the 29-percent expansion in April.

The value of production index also recovered with a 21.3-percent growth in May from a 2.6-percent decline a year ago.

Economic Planning Secretary Ernesto Pernia said optimistic business sentiment and stable consumer confidence would likely support the further growth of the manufacturing sector in June.

“Higher demand due to school enrollment and harvest periods, expansion of businesses and new product lines, and ongoing rollout of public infrastructure projects are anticipated to further increase manufacturing production,” Pernia said.

Data showed that of the 14 major sectors that exhibited increases in the volume of production in May, seven sectors registered strong growth, led by printing with 117.8 percent.

Other significant increases were reported by petroleum products (33.3 percent), food manufacturing (32.5 percent), miscellaneous manufactures (19.2 percent), textiles (18.8 percent), electrical machinery (17.4 percent) and rubber and plastic products (12.6 percent).

Meanwhile, the 21.3-percent growth in value of production index in May was brought about by the expansion in 13 major sectors led by printing, with 107.2 percent.

Pernia said the manufacturing sector was also expected to benefit from the recently-ratified free trade agreement between the Philippines and the European Free Trade Association.

“This will provide additional boost to economic activities between the country and the EFTA member states,” Pernia said.

Once the FTA comes into force, the EFTA member states will accord duty-free market access to all industrial and fishery products from the Philippines.

“Despite the optimism, the government must not waiver in addressing factors that may hamper growth, including rising trade tensions and higher interest rates. Enhancing the production capacity of enterprises and addressing infrastructure gaps to decrease production costs will be important,” Pernia said.

Pernia said providing workers with the required knowledge and skills would further support the growth of the industrial sector.

here’s an article from businessinquirer.net correspondent, Ben O. de Vera

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Tax Amnesty terms set; Program to start in April 2019

Finance Secretary Carlos G. Dominguez III yesterday unveiled the details of the planned and much-awaited tax amnesty program aimed at shoring up revenues to help fund the massive infrastructure projects of the Duterte administration.

“This year, we hope to improve further our revenue collections with a proposed tax amnesty program. The program will help clear the dockets as well as enable the transfer of stranded real properties so that they can be made economically useful,” Dominguez said in a speech before the Rotary Club of Manila.

In particular, the Department of Finance is proposing an estate tax amnesty where the government will collect only 6 percent of the net undeclared estate tax for those who died prior to Jan. 1, 2018, Dominguez said.

He said that estate tax used to be up to 20 percent.

The department is also proposing proposing a general tax amnesty on all unpaid internal revenue taxes excluding internal revenue taxes arising from importation and customs duties, Dominguez added.

The Finance chief said they also wanted to offer amnesty on tax delinquencies, at a rate of 50 percent on basic tax, excluding interest charges and surcharges.

“For those already facing criminal cases in court, we are proposing a rate of 80 percent of the basic tax,” he added.

Dominguez earlier said the government was eyeing to implement the much-awaited tax amnesty by April next year to coincide with the deadline of filing income tax returns.

Tax amnesty forms part of tax reform package “1B,” an offshoot of the Tax Reform for Acceleration and Inclusion (TRAIN) Act signed by President Duterte last December.

Besides a general tax amnesty, package 1B also includes estate tax amnesty, higher motor vehicle user’s charge, bank secrecy relaxation and automatic exchange of information.

Tax package 1B was a result of the Senate’s removal of the tax administration measures from the original first tax reform package passed by the Lower House last year under House Bill No. 5636.

Finance Secretary Carlos G. Dominguez III yesterday unveiled the details of the planned and much-awaited tax amnesty program aimed at shoring up revenues to help fund the massive infrastructure projects of the Duterte administration.

“This year, we hope to improve further our revenue collections with a proposed tax amnesty program. The program will help clear the dockets as well as enable the transfer of stranded real properties so that they can be made economically useful,” Dominguez said in a speech before the Rotary Club of Manila.

In particular, the Department of Finance is proposing an estate tax amnesty where the government will collect only 6 percent of the net undeclared estate tax for those who died prior to Jan. 1, 2018, Dominguez said.

He said that estate tax used to be up to 20 percent.

The department is also proposing proposing a general tax amnesty on all unpaid internal revenue taxes excluding internal revenue taxes arising from importation and customs duties, Dominguez added.

The Finance chief said they also wanted to offer amnesty on tax delinquencies, at a rate of 50 percent on basic tax, excluding interest charges and surcharges.

“For those already facing criminal cases in court, we are proposing a rate of 80 percent of the basic tax,” he added.

Dominguez earlier said the government was eyeing to implement the much-awaited tax amnesty by April next year to coincide with the deadline of filing income tax returns.

Tax amnesty forms part of tax reform package “1B,” an offshoot of the Tax Reform for Acceleration and Inclusion (TRAIN) Act signed by President Duterte last December.

Besides a general tax amnesty, package 1B also includes estate tax amnesty, higher motor vehicle user’s charge, bank secrecy relaxation and automatic exchange of information.

Tax package 1B was a result of the Senate’s removal of the tax administration measures from the original first tax reform package passed by the Lower House last year under House Bill No. 5636.

Package 1B will add about P40 billion in revenues.

The DOF was optimistic tax reform package 1B would be passed by Congress in the third quarter.

He said another reform that the DOF was proposing was to treat value-added tax (VAT) “purely as a consumption tax.”

“As such, it will be collected at the point of consumption or sale, and it will be refunded when the consumption is done outside the Philippines. VAT exemptions should not be granted as investment incentives,” he said.

In general, “the tax reform program will assure us of sufficient revenues to fund the infrastructure modernization and expand social services,” Dominguez said.

“Thirty percent of incremental revenues generated from the tax reform law will be used to pay for social services. There will be larger allotments for improving public health, upgrading our educational system and providing conditional cash assistance for the poorest of the poor. This, after all, is what modern governments are about: looking after the welfare of their people and providing them effective protection. Meanwhile, about 70 percent of the revenues raised from the new law will be directed to infrastructure modernization,” the Finance chief said.

Besides the TRAIN law, up to five more tax packages, including pending legislation on corporate income taxation reform coupled with the rationalization of fiscal incentives, will be pursued by the Duterte administration.

here’s an article from manilatimes.net correspondent, Antonio P. Contreras :

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Land Tenure Issues in Boracay

THE Boracay controversy may just prove to be an opportunity to demonstrate not only proper tourism governance, but also how land tenure can be instrumental in the development of the island.

Prior to 2006, the entire island of Boracay was considered as unclassified public land and was therefore legally and technically owned by the state. In the same year and vested with the power to classify lands of the public domain, then President Gloria Macapagal-Arroyo issued Proclamation1064 where 400 hectares of the island were classified as reserved forest lands, and the remaining 628.96 hectares as agricultural land, and hence could be alienated and disposed of. Alienable and disposable land can be privatized and titled in accordance with the procedures provided for by law.

Technically, therefore, all claims of ownership, and transactions that purportedly established such ownership prior to Proclamation 1064 are deemed without basis, for it is not possible to title, more so sell and transfer, land that is under the public domain.

On October 8, 2008, the Supreme Court issued two resolutions, G.R. 1677007 (Department of Environment and Natural Resources et al v Yap et al) and G.R. 173775 (Sacay et al v. DENR) which upheld the constitutionality and legality of Proclamation 1064. The same rulings also upheld the fact that prior to them, the entire Boracay island was unclassified public land which could not be titled or privatized. These rulings were later affirmed in 2016 in G.R. 192132 (Heirs of Maravilla v. Tupas).

In G.R. 167707/G.R. 173775, the high court ruled that “Where the land is not alienable and disposable, possession of the land, no matter how long, cannot confer ownership or possessory rights.” With the issuance of the proclamation, all private land claims within the 400 hectares of land declared as reserved forest are thus deemed void. The court further ruled that the proclamation did not automatically grant ownership rights to occupants of those remaining 628.96 hectares that have been classified as agricultural land. Only those private claimants who can present proof of open, continuous, exclusive and notorious possession of their lands since June 12, 1945 can apply for judicial confirmation of their imperfect titles.

Except for one claimant, no one from among the current residents of Boracay could present these as proof. Thus, technically all of their land claims are legally mere rights of possession, and not rights to a title. Thus, it is only the indigenous Atis who were granted a Certificate of Ancestral Domain Titles (CADT) over a 2.1-hectare land in 2011 under Republic Act (RA) 8371, or the Indigenous People’s Right Act of 1997, that would have a legally unassailable claim to their lands.

But even the court did not totally close the possibility of qualified possessors and occupants gaining titles when it said that “lack of title does not necessarily mean lack of right to possess.” The court provided current occupants of Boracay a way out when it said that: “… those with lawful possession may claim good faith as builders of improvements. They can take steps to preserve or protect their possession. For another, they may look into other modes of applying for original registration of title, such as by homestead or sales patent, subject to the conditions imposed by law.”

This particular ruling of the court now provides an opportunity for government to impose as a requirement, if not an incentive, for those who would like to apply for the issuance of a title compliance with environmental rules. Conversely, occupants who have not shown a track record of good faith, in blatantly disregarding environmental and other related laws, and have contributed to the aggravation of the current woes in the island, can then be declared as ineligible for the grant of a title.

Even those who are currently occupying land classified as reserved forests but have already made substantial development for tourism purposes can have a legal remedy. They can apply with the DENR for the issuance of a Forest Land Use Agreement for Tourism Purposes (FLAGT), which is good for 25 years, renewable for another 25-years. The process would then require them to submit a development plan and would be under the constant monitoring of the DENR for compliance. A FLAGT can be cancelled when its recipient violates its terms.

It is also perhaps an opportune time to rectify the anomaly of limiting the Atis only to its current village measuring a mere 2.1 hectares, which is also the lot awarded to it under their CADT. Under the IPRA Law, even public lands, which include forest lands, can be covered by a CADT. Expanding their CADT to include even portions of the forest reserves, would not only grant the Atis more space to pursue their own developmental purposes. It would also entitle them to the payment of royalties for whatever income is derived from the use of such lands by private parties allowed by the government. It also makes the Atis an active participant in the development of the island, considering that any development within those areas will require their active participation, and even consent, through the issuance of free, prior and informed consent (FPIC) as required by law.

President Duterte has floated the idea of placing the portions of Boracay that are classified under Proclamation 10640 as agricultural land, under the Comprehensive Agrarian Reform Program (CARP). While this may be legal, current realities of the island may not allow for such an option considering that except perhaps for the Atis, there are no qualified farmer beneficiaries in the island. The so-called “agricultural lands” classified in the proclamation are now considered as residential and commercial in character.

What could, however, be done is to implement the spirit of the agrarian reform law, where there is a tacit intent to make land distribution and titling within the 628.96 hectares of alienable and disposable lands as a vehicle to achieve social justice and equity. The small, local, qualified and responsible long-term residents should have first priority over the big capitalists who are not from the island.

Certainly, equity and social justice would favor the indigenous Atis, and long-term local residents, who value the island as their home, over the interests of those who would just look at the island as a piece of real estate.

here’s an article from malaya.com.ph correspondent, Jimmy Calapati :

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Inflation Hits New 5 year High

Inflation increased faster last month, hitting its highest in more than five years due to higher prices of food, non-alcoholic and alcoholic beverages and tobacco.

Inflation stood at 5.2 percent in June from May’s 4.6 percent, and more than double than the 2.5-percent level in the same month last year.

The rate exceeded the 4.3 to 5.1 percent forecast range for the month of the Bangko Sentral ng Pilipinas (BSP).

The government said the higher inflation was primarily brought about by higher annual rate posted in the heavily-weighted food and non-alcoholic beverages index at 6.1 percent.

Faster annual increments were also registered in the indices of alcoholic beverages and tobacco; housing, and other utilities; transport and education.

Core inflation, which excludes selected food and energy items, escalated by 4.3 percent last month, almost one percentage point faster than May’s 3.6 percent growth.  Last year, it was just at 2.1 percent.

The Philippine Statistics Authority PSA) said the country’s food alone index went up 5.8 percent in June 2018 compared with  5.5 percent in the previous month and 3.1 percent in June 2017.

PSA  said  rice, corn, flour, bread, meat and vegetable posted higher prices.

Higher-than-expected

Nestor Espenilla, BSP Governor, said June’s level “is a setback” and reaffirmed the central bank’s  commitment to “ensure that inflation returns to within the target… as soon as possible.”

The BSP has set a range of between 2 and 4 percent as its average inflation target for this year and next year.

As of last month, the full-year average has exceeded that target, reaching 4.3 percent.

After keeping interest rates steady since June two years ago, the Monetary Board last month  tweaked the country’s key rates as inflation continue to haunt the economy amid continuous growth.

“We will review and update our situational assessment and forecast inflation path. This will shape the strength and timing of our next monetary policy response to firmly anchor inflation expectations,” Espenilla said.

The Monetary Board’s next meeting is scheduled next month, August.

Joey Cuyegkeng, ING Bank Manila’s senior economist, said a response may be necessary before the August meeting.

“The high inflation point for June would likely require further monetary policy response as early as the August meeting.  Real policy rate is deeper in the red indicating that a more aggressive economic policy response would be needed,” Cuyegkeng said, adding that real policy rate is now -1.7 percent from -0.4 percent only in January.

Economists at Nomura expect a third 25-basis point hike at the central bank’s next policy meeting and are not ruling  out further increases later this year.

A slip in timing Ernesto Pernia, socioeconomic planning secretary, said “there may have been a little bit of slip in timing in increasing of policy rates.”

“That will be a decision to be made by the BSP. We don’t want to preempt what they’re thinking of,” Pernia said when asked if the Monetary Board should further hike the policy rate.

Pernia said while the GDP growth is going to be “good” for the second quarter, it would be better with lower inflation.

He said  he “did not expect inflation to spike in this manner due to faster price increases in major commodities like food, fuel, and transport.”

Pernia, however, said  inflation is “kept at bay” and will be within the  Development Budget Coordination Committee’s  revised range of 4 to 4.5 percent for 2018.

“While inflation (may) peak in the third quarter and taper off by October, the government needs to adopt necessary measures,” he said,  adding  he hopes  the peaking has happened already.

Pernia also stressed that while they recognize the public sentiment on rising prices, “the TRAIN (Tax Reform for Acceleration and Inclusion)  Law increased the take-home pay of 99 percent of income tax payers. And this should help in coping with the rising prices of goods.”

“An important and urgent challenge to manage inflation is actually the need to increase the supply  of goods and services, especially food—in particular, rice, which takes up a large chunk of the food budget of poor families. When demand outweighs supply, naturally prices go up.”

“Thus, we view with urgency the need to initiate measures that will boost the productivity of our agriculture sector and address the high cost of bringing agricultural products to markets. These may not produce immediate results but are crucial in managing inflation over the longer term,” Pernia said.

Trade Secretary Ramon Lopez said the 5.2-percent inflation recorded in May “reflects the higher prices of products especially  the non essentials like alcoholic beverages and tobacco because  of purposive excise tax.”

Lopez said inflation is also affected by other essentials such as transportation,  education housing utilities.
and agriculture products like corn vegetables and meats which were affected by supply

Faster in Metro Manila

PSA noted that inflation in the National Capital Region (NCR) accelerated by 5.8 percent from 4.9 percent in May and 3.1 percent in June 2017.

Contributing to the uptrend were higher annual hikes recorded in the indices of food and non-alcoholic beverages; housing, water, electricity, gas, and other fuels; furnishing, household equipment and routine maintenance of the house; transport; communication; and education.
Inflation in areas outside NCR also moved faster at 5.1 percent in June from 4.6 percent the previous month and 2.3 percent last year.

Higher inflation were posted in all the regions except Region IV-B (MIMAROPA). The highest annual rate of 7.7 percent was observed in the Autonomous Region in Muslim Mindanao while the lowest was seen in Region III (Central Luzon) at 3 percent.

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Here’s commercial property values of some select areas in Metro Manila as of July 2018 ( based on actual transaction, take note that Market Value is based on actual transaction and not on Indicative Asking price and that in the residential sector, market values should be based on land alone, if the property has a decent improvement, that is priced separately ! ).  I will be finalizing this commercial property value list soon and will soon blog about both the residential and industrial sector as well.

PHILIPPINE REAL ESTATE MARKET VALUES : July 2018

Commercial Lots

Aseana Park , Pasay                275T/m2 to 330/m2

Bonifacio Global City              700T/m2 to 950T/m2

Ortigas Center                          450T/m2 to 550T/m2

Filinvest Corporate City          225T/m2 to 250Tm2

Madrigas Business Park          175T/m2 to 200T/m2

Ayala Avenue                            800T/m2  to 900T/m2

Salcedo Village                         425T/m2 to 550T/m2

Legasp Village                           450T/m2 to 575T/m2

Ortigas Ave, San Juan             275T/m2 to 325T/m2

Pioneer Area, Mandaluyong   150T/m2 to 180T/m2

Quezon Blvd, QC                      200T/m2 to 235T/m2

Commonwealth Ave                45T/m2 to 60T/m2

Binondo, Manila                      250T/m2 to 300T/m2

Malate,  Manila                        250T/m2 to 300T/m2

Banawe Avenue                       135T/m2 to 150T/m2

Roxas Boulevard                     250T/m2 to 300T/m2

Visit www.robert gsarmiento.com or www.robertgsarmiento.org  for blogs, news, case studies and property listings which you may find informative.

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Finally, should you have a property for SALE or LEASE, let me know if our office could be of assistance.

Thank you.

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Visit www.robert gsarmiento.com or www.robertgsarmiento.org  for blogs, news, case studies and property listings which you may find informative.

Subscribe to my daily postings by filling in your email address at the SUBSCRIBE section located at the mid right hand portion of the webpage of www.robertgsarmiento.org

View properties you are looking for by using the SEARCH engine ( highlighted in Green on the right hand corner of the webpage ).

Finally, should you have a property for SALE or LEASE, let me know if our office could be of assistance.

Thank you.

robert
Robert G. Sarmiento Properties
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