From affordable housing woes to a lag in office space supply, here are last week’s top stories.
Keep up with the news on the Philippine property market with MyProperty.ph’s regular updates. Last week, Colliers Philippines announced that more should be done to make housing more affordable to Filipinos; all systems are go for Clark Green City; the government is aiming to complete five more public-private partnership (PPP) projects by June 2016; and more.
PH office property sector must learn from India, says JLL
According to Jones Lang LaSalle (JLL) India COO Ramesh Nair, the office real estate industry of the Philippines is about eight years behind India in terms of supply. While India is at 40 million square meters of office stock at present, the Philippines is currently at 9 million square meters, which is where India was in 2007 and 2008, Nair explained. The COO believes that there is a need to develop factors such as technical education, business parks, and foreign direct investment to bring the country at par with India. He also noted how India has shifted its focus to the more technical aspect of business process outsourcing (BPO), an industry that largely propels both countries, as this service is what global companies are seeking when looking for offshore destinations.
Business Mirror; February 9, 2016
Lawmakers: HGC rejection of settlement offer is ‘anti-Filipino’
Home Guaranty Corporation (HGC) recently rejected a Php5 billion offer from real estate developer R-II Builders, Inc. over the Smokey Mountain Development and Reclamation Project (SMDRP), a move that solons are seeing as anti-Filipino. According to Ako Bicol partylist representative Rodel Batocabe, the offer could have potentially stopped the drain of HGC’s coffers and could have ended the 14-year-old legal dispute over the SMDRP’s asset pool. On the other hand, HGC acting president Corazon Corpuz said the rejection was due to the offer being too low.
Manila Bulletin; February 9, 2016
Many Filipinos still can’t buy affordable housing, says Colliers PH
According to a statement from real estate advisory firm Colliers Philippines, making affordable homes available to aspiring Filipino homeowners remains to be a challenge. Colliers Philippines head of advisory services Julius M. Guevara believes that developers are seeing the need to provide more reasonably priced dwellings, given the slowing of condo developments, as well as the dip in unit sales. But one significant key in helping Filipinos afford homes, he said, is to “strike the ideal financing structure” through lower interest rates, extended payment terms, and relaxed financing requirements as provided by the Pag-IBIG Fund.
Business World; February 11, 2016
Full steam ahead for Clark Green City
Now that the Bases Conversion and Development Authority (BCDA) has secured the support of the Tarlac community, it will start the development of Clark Green City. The 9,450-hectare project to rise in the Clark Special Economic Zone, said BCDA president and chief executive director Arnel Paciano Casanova, will help local farmers and residents in terms of economic opportunities, job generation, and access to education. Casanova explained that the BCDA had been in talks with the Tarlac locals since 2012 and have ensured that the community is involved in the development process through transparency and cooperation.
The Philippine Star; February 12, 2016
Aquino administration to complete 5 PPP projects by June
PPP Center executive director Cosette Canilao announced that the government is planning to finish five PPP projects before the end of the Aquino administration in June. These projects, said to be worth a total of Php40 billion, include the Muntinlupa–Cavite Expressway; the PPP for School Infrastructure Project Phase 1; and the Automatic Fare Collection System project. According to Canilao, the Ninoy Aquino International Airport (NAIA) Expressway Project will be completed by April. May 2016 is the targeted completion date for Phase 2 of the Department of Education (Dep-Ed) classroom construction, she added. This year also saw the start of construction of the Mactan-Cebu International Airport (MCIA) Passenger Terminal Building, while the Light Rail Transit (LRT) Line 1 extension to Cavite will start by May or June this year.
Interaksyon; February 12, 2016