Real Estate Market Update – March 2010

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hello everyone,

hope all is well.  due to the changes made by my server now limiting the volume of email i send out, i am now sending my newsletters thru a new format whereini have consolidated my featured property, hot property and listings ( general property listing then i will send my condominium list or you may view from my website ), all of which you will find in our websites, i hope you would find this more informative and useful.  in my blogsite, i am featuring an interesting topic you will find useful, the latest of which talks about “ PROPERTY RELATIONS BETWEEN HUSBAND AND WIFE”  :

http://blog.robertgsarmiento.com

http://www.philippinecommercialproperties.com

STOCK MARKET INDEX : 3040.92

HOUSING LOANS          :  9.5% – 10% per annum

Dollar to Peso               : 46.02 to $1

Real Estate Procedures :

1) When notarizing a deed of sale contract, please bring a copy of your title ( TCT or CCT ) as it’s now a requirement by the notary public.

2) When getting certified true copies of title and tax declaration, better to get two copies as sometimes both BIR and Register of Deeds need original copies.

3) When selling a property owned by a corporation, confirm with BIR whether that property is an ordinary or capital asset as VAT applies if it’s an ordinary asset.

4) When sellling a property owned by a corporation, confirm with the assessor’s office if there’s business tax involved as it’s an additional cost for the seller.

TOP HEADLINES :

1) Jusmag property of BCDA at Taguig get four serious bids

2) Forex reserves hit all time high of Phjp 45.71B

3) SMC to build Php 300MW coal fired plant in Mindanao

4) PEZA exports climb 54% in January

5) Cebu tops Asian BPO hubs, Makati slides

6) Ayala Land to transform Iloilo property in BPO hub

7) Federal Land of George Ty to launch 8 projects this year

8) CBRE forecasts 10% in real estate industry in 2010

it’s march and the weather has been really hot as we’ve been going through el nino for quite some time now.  the effects of this is noticeable by the sizeable crops that has been been destroyed and the losses the farmers are reporting.  this will lead to inflation therefore, price increase on basic commodities such as food and other necessities will also be affected.

the latest financial crisis in greece has also affected the global stock market so naturally we too are affected and prices have again corrected as investors have shifted to a more solid investment namely, real estate.  we have seen a notable rise in investments coming in from united states, europe and some asian countries as asia is seen as the best option to shift their portfolios.  proof of this is the increase in inquiries on hotels, beach front properties, gaming industry, resorts and buidings with income from our websites, newspaper ads, friends, clients and broker networks.

philippine tourism has increased over the past years under the reign of sec. ace verano who has done an exceptional job promoting the natural beauty of our country although tourist arrivals have slowed down since the global crisis.  it’s just a matter of time for this industry to recover as most countries are now recovering from the financial crisis.  not only are these tourists coming to visit but are looking to retire here as well.  the philippine retirement authority under the tutelage of gen. Edgar b. aglipay has also done wonders in providing assistance to would be retirees.  the philippines is being dubbed as the number one place to retire !  let’s hope that this becomes a reality as one can imagine the effect this will have on our economy.

this is the year of tiger and from reseach i’ve read from credible sources, asia poses a much less hostile market and a better economic development in comparison to united states and europe.  the global economy is turning towards asia as fund managers and investors are bullish that positive growth is inevitable on this side of the world.   most of asia is already on the path of recovery with the exemption of japan.  the philippine economy remains stable inspite of the possible growth it could still attain if the government can just get its act together.  when can we possibly attain the status we used to have ? ( i remember that we were NUMBER TWO to Japan in the 60s ).  will the new president and the new government bring us to greater heights ?  will there be real change finally ?

so where are we now ?  it’s election fever and everywhere you go, people are talking about it.  surveys, television, billboards, radio ads, stickers, campaigns and parades are all over.  how does all this affect the property market ?  well, for one, election spending boosts the economy so there’s a lot of money going around.

i have had calls from property owners and buyers who are concerned about the outcome of the elections ( will there will be one and who will be the new president ) ?  will the computerization of votes be legit ?  re their properties, is it time to unload or better to hold on ?  is it time to buy or wait after the elections ?

for now, the market has been so active with inventories running low and prices going up.  there are lots of buyers although its very much a seller’s market.  i believe this doesn’t have much to do with the elections as the market has been active as early as the 3rd quarter of 2008, although there may are some exemptions, if you know what i mean.  i’ve mentioned in my previous newsletter that i still see a property appreciation of at least 10% for the year although in some sectors, that percentage has been reached so i still see further upside specially after the elections due mainly to election results and economics of supply and demand.  in addition, the scenario has really changed as the banks are now very aggressive and offer very flexible amortization schedules thus making it easier for buyers to acquire properties.

due to the sudden surge in property prices, the market has to reach an equilibrium where both buyers and sellers “in general” have to accept the current level of prices not only in residential houses and lots but in commercial and industrial properties as well.  imagine the scenario of someone trying to buy at prices at levels of three years ago and someone trying to sell not at current market but at some futuristic price !  pretty tough deal to mediate !

the past year, we’ve seen a big demand on the build and sell market, townhouses in particular, but houses aren’t far behind.  walk up condominiums are also popular as developers such as smdc, ayala and eton to name a few are backed up by their respective banks which offer flexible financing terms.  these can be seen by the fast take up of their new developments where terms like 20% downpayment in 36 months and balance payable in 15 years are now available.  in addition, developers like phinma properties focus their market on people qualified to use their pag-ibig housing loans.  in fact, pag-ibig has now raised their loan to Php 3M for qualified buyers.  that’s really tough to beat specially with the very low interest rates they’re offering !

office space demand remains strong but prices have corrected specifically in makati where call centers are now moving to the new wave cities such as davao, cebu, iloilo, laguna and other areas in metro manila where lease rates are cheaper.   call centers have made their move on their operations as early as four years ago as some have opted to convert warehouse spaces into office facilities and avail for cheaper rates.  the new wave cities ( actually not new anymore )  of cebu, davao, cagayan de oro, iloio and bacolod are pretty busy and the major suppliers of business process outsourcing offices such as robinson’s land, megaworld, ayala land, and eton properties have already positioned themselves for this opportunity.

luxury condominiums also continue to be in demand and units with income are becoming popular as bank financing makes it easy for the investor to have a self liqiudating investment.   again, it’s the studio and one bedroom units that’s experiencing the glut and this can be noticed even in the prime area of rockwell, makati cbd and bonifacio global city where price and terms of units both for sale and lease are being negotiated.  given this scenario, it’s a good time to shop and nibble at what the market has to offer.  there are good deals but not a whole lot as we’re far from the crisis we experienced in 1997.  even foreclosed assets of banks are very limited and what’s surprising is even properties that weren’t moving because they were either irregular shaped, perimeter or tumbok were sold

a wave of new condominium developments from paranaque, muntinlupa, quezon city, pasig, rizal, mandaluyong, san juan, and manila to name a few cities are the direct effect of the recent calamity we had where flooding even in the poshest areas of the metropolis were affected.  i actually spoke to several homeowners and employees who were affected by “ondoy” last year and the consensus i got is that most of them would like to move to higher grounds as they realize that such a calamity may and will happen again due to global warming.  by the way, a feature that is now emphasized by developers is that the parking slots are now located in the podium level rather than the basement to avoid any flood problems.  also, since buyers can’t afford to pay cash, housing loans or in house financing have become very popular as buyers prepare to secure their families from any disaster in the future.

warehousing is still in high demand as those affected by the calamity have either transferred or are still in the process of moving their operations away from flood stricken zones.  smart investors have foreseen the need for new warehouses in the areas of pasig, taguig, paranaque, mandaluyong, quezon city, marikina, rizal, cavite and laguna as early as three years ago even before ondoy and have catered to this market ahead of time.   since we service the locations of restaurants and retailers, we continue to see a huge market for office warehouse and commissaries as there’s very few inventory in the market.

finally, i’ve always emphasized that our economy is fueled by the remittances of overseas foreign workers and the business process outsourcing industries.  remittances have actually grown in comparison to last year’s figure inspite of the perception that our ofws are losing their jobs due to the global financial crisis.  i guess the figures prove that the perception is wrong and we likewise have to realize what jobs were lost by our ofws.  remember, our ofws are mostly nurses and seafarers which industries weren’t much affected by the global meltdown.   with regards to the bpos, we still expect continued growth specially in the new wave areas i mentioned earlier.  the growth won’t be as fast though due to the general market conditions globally, but rest assured they have been coming in quietly for the past year.

thanks for taking the time to read through this newsletter, hope this gives you a good perspective of our current market situation.  should you have any queries re properties you would like to sell, buy or lease, please call my office so we could talk.

i will forward my general property listings and condominium inventory soon.  best regards and God Bless.

robert

FEATURED PROPERTIES

White Plains, Quezon City – House and lot ( SOLD )

La=1148, Fa=763 @ Php 48M, 6br, 6ba, 2 storey, well maintained

http://picasaweb.google.com.ph/robertgsarmientoproperties/WhitePlainsHouse?authkey=Gv1sRgCKeAlLasrt_2ugE&feat=directlink

E Rodriguez Jr Ave, Libis, Quezon City – Commercial lot

La=540 @ Php 75T/m2

http://picasaweb.google.com.ph/robertgsarmientoproperties/ERodriguezJrLibis?authkey=Gv1sRgCJaT_dnT2OOsXQ&feat=directlink

J P Laurel, Malacanang – Commercial / Residential Property

La=1509, Fa=700 @ Php 57M, 2 storey, 4br, rare property located across Malacanang

http://picasaweb.google.com.ph/robertgsarmientoproperties/JPLaurelMalacanang?authkey=Gv1sRgCN2QlLL4yOz3Dg&feat=directlink

Astoria Plaza, Ortigas Center, Pasig – Condominium

Fa=220 @ Php 18M, 3br, 3ba, 2 parking slots, bi-level, penthouse

http://picasaweb.google.com/robertgsarmientoproperties/AstoriaPlaza?authkey=Gv1sRgCL2Dj8_yhYaI_wE&feat=directlink

Paranaque – Townhouse

La=41, Fa=110 @ Php 2.9M, 2br, 2ba, attic, brand new

http://picasaweb.google.com/robertgsarmientoproperties/MarianoTownhouseParanaque?authkey=Gv1sRgCL_ChaDY7MjfiAE&feat=directlink

Wack Wack Apartments, Mandaluyong – Condominium ( SOLD )

Fa=88 @ Php 4.2M, 1br, 1ba, parking, living / dining room

http://picasaweb.google.com/robertgsarmientoproperties/WackWackApartments?authkey=Gv1sRgCLm47YehkqKPdA&feat=directlink

Icon 1, Bonifacio Global City – Condominium

Fa=95 @ 11.5M, 2br, parking, corner unit, golf course view

http://picasaweb.google.com/robertgsarmientoproperties/Icon2br?authkey=Gv1sRgCN6robKbsuPXPg&feat=directlink

Bauan, Batangas – Industrial lot ( HOLD )

La=17,000 @ Php 7,500/m2, commercial / industrial, along national highway w seafront frontage

http://picasaweb.google.com.ph/robertgsarmientoproperties/BauanBatangas?authkey=Gv1sRgCLDrkoCxjZr4Ig&feat=directlink

Ramon Magsaysay Blvd, Manila – Commercial lot w / building

La=1026 @ Php 42M, 2 structures ( 1830m2 & 1256m2 ), formerly NSO office

http://picasaweb.google.com.ph/robertgsarmiento/RamonMagsaysay?authkey=Gv1sRgCLn9wZ7k7-TEvwE&feat=directlink

HOT PROPERTIES

EDSA, Makati – Commercial lot w/ building ( UNDER NEGOTIATION )

La=1182, Fa=1400 @ Php 70M, highly commercial property along EDSA

http://picasaweb.google.com/robertgsarmientoproperties/Edsa?authkey=Gv1sRgCMvEn5Oz3fuY_wE&feat=directlink

Bel-Air, Makati – House and lot

La=770. Fa=650 @ Php 55M, 2 storey, 5br, den, w/income of Php 200T/mo

http://picasaweb.google.com.ph/robertgsarmiento/BelAirHouseAndLot02?authkey=Gv1sRgCIrAp_vFn4zMHg&feat=direc

Annapolis Wilshire Plaza, San Juan – Office unit

Fa=88 @ Php 4.5M, improved office unit, furnished

http://picasaweb.google.com/robertgsarmientoproperties/AnnapolisWilshire?authkey=Gv1sRgCOCGjrn-ysf4_AE&feat=directlink

South Luzon Expressway, Calamba, Laguna – Industrial / Commercial lot

La=34,210 @ Php 70M, prime commercial / industrial, below market

http://picasaweb.google.com/robertgsarmiento/SouthLuzonExpresswayLaguna?authkey=Kjn24L_PaKQ

Greenmeadows Subdivision, Quezon City – House and lot

La=805, Fa=600 @ Php 48M, 2 storey, 5br, den, garden

http://picasaweb.google.com.ph/robertgsarmiento/GreenmeadowsHouseAndLot?authkey=Gv1sRgCPHCq-2W3pfLWA&feat=directlink

St Ignatius Village, Quezon City – House and lot

La=440, Fa=600 @ Php 17.5M, 4br, 3ba, office

http://picasaweb.google.com.ph/robertgsarmiento/StIgnatiusHouseAndLot02?authkey=Gv1sRgCM3S5pi19PD6UA&feat=directlink

Lantana Lane Townhomes, New Manila, Quezon City

La=100, Fa=380 @ Php 19M – Php 25M

http://picasaweb.google.com.ph/robertgsarmientoproperties/LantanaLaneModelUnit?authkey=Gv1sRgCLTH8Zj5rafAdg&feat=directlink

Robert G. Sarmiento Properties
Professional Affiliation :
Real Estate Broker’s Association of the Philippines
President, Greenhills Chapter, 2008 – 2009
02 5148481 ( direct line )
+63 2 7235405 ( trunkline )
+63 2 7251832 ( telefax )
+63 920 9064829 ( mobile )
email : [email protected]
blogsite : http://robertgsarmiento.wordpress.com
website : http://www.philippinecommercialproperties.com
website : http://bestcondos.wordpress.com
website : http://philippinewarehouses.wordpress.com
website : http://groverockwell.wordpress.com
website:  http://www.rebapgreenhills.com

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