Whats New In Philippine Real Estate
Weekly Philippine Real Estate News Updates Every Weekend
On this Whats New page we make updates every week regarding the Philippine economy and real estate market, along with the Philippine Peso, Philippine interest rates, and new developements concerning the Philippine economy and real estate industry to help you as a buyer or seller make more informed investment decisions regarding your Philippine real estate investments.
February 17, 2012 - Philippine Peso Strengthens After Inflow Report; Bonds Advance
Good Philippine Real Estate Tax News
BIR: Increased Threshold for VAT Exemption
The BIR has released Revenue Regulations (RR) No. 16-2011 dated October 27, 2011 which increased the threshold amounts for VAT on the sale of residential lots and house and lots, the lease of residential units, and the threshold amount for the sale of goods and services subject to VAT.
Effective January 1, 2012, the sale of a residential lot which is PHP1,919,500.00 and below (Current - PHP1,500,000 and below), and the sale of a residential house and lot which is PHP3,199,200.00 and below (Current - PHP2,500,000) are exempt from VAT.
The lease of a residential units which is PHP12,800 and below (Current PHP10,000) shall also be exempt from VAT effective January 1, 2012.
If a person's gross annual receipts/sales on the sale or lease of goods or properties or performance of services other than those mentioned in Sec. 109 of the Tax Code does not exceed PHP1,919,500.00, (Current - PHP1,500,000) he shall be subject to 3% percentage tax instead of the 12% VAT.
Philippine Economic Headlines from the Philippine Central Bank / Bangko Sentral ng Pilipinas
Foreign Portfolio Investment Transactions for January Yield Net Inflows 02.16.2012
2011 OF Remittances Exceed 7% Growth Projection; Full-Year Level Reaches US$20.1 Billion 02.15.2012
NPL Ratio of Cooperative Banks at 8.11 Percent 02.10.2012
2nd Quarter 2011 NPL Ratio of Rural Banks at 10.42 Pecent 02.10.2012
Thrift Banks' NPL Ratio Improves Anew to 6.18 Percent in the 2nd Quarter of 2011 02.10.2012
BSP Rediscount Rates for February 2012 02.10.2012
Philippine Central Bank Key Interest Rate 4.25%
January 20, 2012 - In accordance with the Monetary Board policy decision to reduce policy rates during its 19 January 2012 meeting, the BSP rediscount rate for loans under the Peso Rediscount Facility has been set at 4.25 percent p.a. for all maturities, effective 24 January 2012. The Peso rediscount rate is based on the applicable BSP overnight reverse repurchase rate per Circular No. 679 dated 1 February 2010.
February 17, 2012 - Philippine Peso Strengthens After Inflow Report; Bonds Advance by Bloomberg
The Philippine peso advanced, paring a weekly loss, after the central bank said foreign investment increased in January. Ten-year government bonds rose.
The peso "has been stable with upward bias," central bank Deputy Governor Diwa Guinigundo told local television station PTV-4 late yesterday, adding that a stronger local currency would be beneficial for the economy. Net overseas investment in stocks, bonds and deposits rose in January from the previous month, the monetary authority reported yesterday. The peso has rallied 2.7 percent against the dollar this year.
"The peso is among the better performers in the region, supported by portfolio inflows and remittances," said Radhika Rao, an economist at Forecast Pte in Singapore. "Recent comments by officials signal that authorities will allow the currency to follow the regional bias."
The peso rose 0.4 percent to 42.660 per dollar as of 11:14 a.m. in Manila, according to Tullett Prebon Plc, paring its loss this week to 0.4 percent.
The yield on the 6.375 percent January 2022 peso bonds fell two basis points, or 0.02 percentage point, to 4.88 percent, prices at Tradition Financial Services showed. The rate dropped four basis points for the week.
Bangko Sentral ng Pilipinas cut its overnight borrowing rate to 4.25 percent from 4.5 percent last month, the first reduction in more than two years. The next meeting will be on March 1. Authorities have "policy space" as the inflation outlook remains favorable, Amando Tetangco said on Feb. 9.
A rising peso improves the attractiveness of local-currency bonds, supporting a rally in fixed-income assets, Rao said. "Bonds have been rising mostly on expectations of another central bank rate cut in March."
Philippine 2012 Forecasted Economic Growth 4.7%
The IMF or International Monetary Fund and ADB or Asian Developement Bank now expects the Philippine economy to grow by 4.7 percent this year and 4.9 percent next year 2012. According to the latest government report, the Philippine economy grew by 3.4 percent in the second quarter 2011. The report also said that the country's growth in the first quarter 2011 was 4.6 percent.
Philippine Real Estate Market Prices Forecasted to Increase 3% to 5% in 2012
The current Philippine economy, the Philippine real estate market is supporting stable to strong pricing depending upon the location.
According to Colliers International, average prices of luxury 3 bedroom condominiums in Makati, the financial capital of the Philippines, rose 1.5% quarter on quarter to PHP101,600 (US$2,300) per square meter in Q3 2010, the second quarterly increase after a 0.9% increase in Q2 2010. The average price was up by 1.9% from a year earlier, but down by 1.8% when adjusted for inflation.
Philippine real estate prices are forecasted to increase by about 3% to 5% in 2011. Makati is expected to lead the way with a 5.4% year on year increases, while prices in other key areas of Metro Manila such as the Rockwell Center and the Bonifacio Global City are forecasted to increase by about 3%.
The Philippine housing market has been in the past, and still is currently benefiting from remittances from overseas Filipinos working abroad making residental real estate investment nationwide. Philippine condominium demand is growing from employees in the rapidly expanding business-process outsourcing (BPO) industry, along with Filipino professionals and business owners nationwide who buy condos in areas where they send their children to college.
Many new house purchases are paid in cash or increasingly financing from Philippine banks and developers. New projects where pre-selling is offered is a good place to lock in equity as the project becomes developed and prices rise. For lowest-risk highest-reward Philippine real estate investments, invest in established large brand name Philippine developers than the lesser known lesser capitalized newer and smaller developers.
