Focus on Real Estate

VOL. 4 NO. 41a December 12-18, 2011

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VOL. 4 NO. 41 december 12-18, 2011

On the cover

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Real estate investments at P4.53 billion per year

By Greg G. Deligero

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EAL estate investments in Davao City posted an average of P4.53 billion per year, according to data obtained from the Business Bureau.

From P4.516 billion in 2008, the capitalization slightly dropped to P4.515 billion in 2009 and surged again to P4.57 billion in 2010.

Of the P13.604 billion total investments in three years, 97.7 percent were made in the poblacion

2010

area, 2 percent in Talomo, while the remaining less than 1 percent are found in Agdao and Buhangin districts. Most of the property projects involved the construction of vertical and horizontal structures.

In terms of value of construction, the performance dramatically dropped from P10.84 billion in 2006 to P3.52 billion in 2007. Since then, the figures gradually improved to P5.8 billion in 2008 and P7.00 billion in 2009. In 2010, the value of construction reached P7.04 billion.

Interestingly, the number of building permits secured from the City Engineer’s Office showed a consistent increase except in 2010. Date obtained by Edge Davao showed that from 5,127 permits recorded in 2006, the number increased to 5,308 in 2007 and 5,694 in 2008. In 2009, the figures also surged to 7,778 but dropped to 5,092 in 2010, the lowest in five year’s time.

Vacation destination Meanwhile, realtors ask government to sell the country as an ideal vacation destination.

The Philippine Allied Chamber of Real Estate Brokers and Licensed Salesmen (PhilAcre) is asking the government to come up with an effective promotional program to help sell the Philippines as a vacation destination in the world as global property buyers are slowly shifting their interest to Asia.

PhilAcre president Anthony Leuterio, in a statement, said tourism and real estate go together.

“There should be a good promotional program for these sectors. A joint collaboration should be started. There are a lot of interested buyers of condominiums from the international market. The Philippines is one of their top picks,” Leuterio said.

Leuterio, who attended

the International Realtors Convention in California last month, said Filipino property sellers went on their own to participate in the event to promote tourism and real estate in the Philippines to over 20,000 property sellers nationwide.

Leuterio said international investors now, largely Americans and Europeans, are turning their attention to properties in Asia.

Condo bulk buying Bulk buying of condominium units is becoming a trend for global investors, he said.

Leuterio said investors’ interest may be snatched by other Asian countries, which are actively promoting property investments.

He said the Philippines has to compete with other countries, in terms of providing infrastructure facilities, to support the bid of becoming an international vacation destination, or even a retirement haven.

He said it has to put up more amusement parks and a good transportation system, among others.

Leuterio said tourists coming to the Philippines should also be introduced to different investment opportunities here, and condominiums are generating the most interest among international property buyers.

‘Live Your Dream’ program Some years ago, the country, through the Department of Tourism (DOT), launched the program called “Live Your Dream,” an investmenttourism strategy meant to lure foreigners, such as active retirees, to invest on vacation homes in the Philippines, which is considered the Hawaii of Asia.

Leuterio hopes this particular program will be revived as this will accelerate the growth of both tourism and real estate sectors.

[WITH PNA]

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Focus on Real Estate

Vertical communities on the rise

december 12-18, 2011 VOL. 4 NO. 41

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oung urban dwellers as well as startup families now tend to look more at the option of living in middle income vertical communities (such as condominiums) in Metro Manila that are in close proximity to the business districts.

Property analysts believe condos will take over the metropolitan areas, while subdivisions will stake their claim in the provinces.

Colliers International claims it has been observing this trend for some time now.

Paul Vincent Chua, associate director for valuation and advisory for services and head of consultancy and research of Colliers International, a leading global real estate services company, says his team had noticed since 2009 the abundance of affordable, smaller condominium units with stretched payment terms; their growth fueled primarily by the BPO industry, which has spurred the demand for condominium housing in Metro Manila.

“However, the traditional house and lot remains to be preferred, as expected, in provincial cities. Only in key cities are condominiums being

preferred over house and lot developments. There are, mainly, Metro Manila, Cebu and Davao. We also saw a decline in HLURB (Housing and Land Use Regulatory Board) licenses to sell for horizontal developments, and a huge increase for vertical developments. It won’t take long until we see former bedroom communities accept condo-living as a substitute,” Chua says.

Enrique Soriano, professor at the Ateneo Graduate School of Business and Senior adviser at Wong + Bernstein Business Advisory, says this particular asset class will likely be sustained in 2012. Just last week, Soriano called the condominium take over in the metropolis a “construction frenzy” of mid-income condominium developments.

This trend (vertical developments in key cities), he added, would also be likely seen in Iloilo, Bacolod and Cagayan de Oro as well as leisure destinations like Boracay and Baguio City.

Alejandro S. Mañalac, National Real Estate Association Chair, says subdivisions and housing, especially those targeting first home buyers, will always

enjoy high demand as long as friendly financing continues to be available.

“In fact, that is where the real shortage is. Affordable, family oriented condominiums will also be very popular next year. You will be seeing a lot of these types of developments in Quezon City and in the fringes of CBDs next year.

The good thing about this is that buyers of these types of projects are real end-users,” Mañalac explains.

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Focus on Real Estate VOL. 4 NO. 41 december 12-18, 2011

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We can solve all your water problems and needs from leaking faucets to distribution systems

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Camella lights up projects in Davao, Tagum T o usher in the Christmas season, Camella Davao simultaneously lit up three of its landmark developments in the city last December 8 at 7 in the evening.

“We had a grand simultaneous lighting ceremony in our major projects, Camella Northpoint in JP Laurel, Camella Cerritos in Mintal, and Camella Tagum,” said Marlon B. Escalicas, Camella Davao GM. Adding a festive flair to the ceremonial lighting was a buyers night where homebuyers enjoyed big outright discounts, lower down payment with extended terms, and freebies.

“In the spirit of Christmas, we are also giving our homebuyers the chance to win big in the “Home for the Holidays” raffle, where they can win a house and lot, Asian cruise, a brand new car and cash prizes,” said Escalicas.

To find out how to join the ”Home for the Holidays” raffle, Escalicas urges homebuyers to call the Camella offices at 222-0963, 222-5221, 222-5223 (telefax) and 09178576572, or visit them

at 2/F Delgar Building, JP Laurel Ave., Bajada, Davao City.

Camella has spent almost a million pesos to deck the well-kept surroundings of its project sites with colorful Christmas decors and sparkling lights, and the overall look will be even grander than last year.

These will illuminate

the three sites that can be seen and enjoyed by the general public as the developments are located right along major highways.

All Davaoeños and visitors are welcome to enter our developments if they want to take pictures or to simply admire our decors, added Escalicas, adding that

they hope that by lighting up their communities they are sharing the season’s spirit to everyone.

To give their homebuyers and guests a complete feel of the yuletide spirit, a choir group shall be serenading them with Christmas carols during the affair.

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Support for green technology pushed

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lawmaker said last Wednesday said that the government, through the Department of Science and Technology and the country’s top state universities, should intensify its research and development (R&D) program on the creation of new technologies on renewable energy, carbon emission reduction system and other scientific studies that would expedite the country’s full shift towards green technology.

Iloilo Rep. Jerry Trenas made this recommendation when he lauded the move of President Benigno Aquino to adopt the National Climate Change Action Plan in compliance with the country’s international commitments, especially to the United Nations Framework for Climate Change Convention.

But apart from the NCCAP, Trenas said the Philippines should not simply look at its climate change mitigation policy as a mere issue on protecting mother Earth because it is a huge investment in improving the economy as well.

“Green tech is the wave of the future. That’s where everyone’s going and the opportunities for this

field is vast and limit- composite materials that less. We’ve got to step up would soon replace tradiin our effort to discover tional building materials. new horizons in green Trenas said the utilization of new technologies technology,” Trenas said.

Trenas added that a to maximize the use of alspecial fund should be set ternative energy and the aside by the government development of new mafor research projects that terials and techniques that promote the use of locally make exclusive use of reavailable and renewable re- cyclables and biological sources that can be tapped scraps would greatly help to address the growing con- not only in protecting the cern over climate change. environment but also in Such fund can be sourced greatly improving the peofrom R&D funds and from ple’s way of life.

He cited as an exmoneys raised from carbon trading, with the specific ample the possible develobjective of developing a opment of pre-fabricated clean, renewable and in- structural foundations that finite source of energy; utilize agricultural waste alternative materials for products such as corn cobs building and infrastruc- and husks, and even posture thereby reducing the sibly water lilies, and the country’s dependence on possible development of raw materials sourced the Pasig River system as from mine extractions. a hydro-power facility.

“Since environment protec- “Apart from energy, the tion is the main objective of key areas in green technolgreen science, our goal in ogy would involve buildings, our R&D program is to sup- waste and water manageplement existing renewable ment and transportation. energy sources to reduce our We have to develop our dependence on fossil fuel own green technology in and at the same time devel- these areas using resources op materials and even addi- that are renewable and intives that can to reduce our finitely available to us here dependence on logging and in the Philippines,” he said. mine extraction,” Trenas Trenas also lauded Presisaid noted as he noted that dent Aquino’s initiative there are existing research- to increase the country’s es on the development of involvement in the glob-

al fight against Climate Change with the adoption of the NCCAP which would become the basis of any assistance that will come from industrialized countries in Europe and the US, which are largely being blamed for global warming because of massive use of fossil fuels in their industries.

The national action plan will be presented to the climate change conference to be held in Durban, South Africa, and it will be the basis of compensatory measures that rich

countries have committed to pay. Included in the national plan are the guidelines and framework on how the country can use the assistance once it is approved in Durban.

Trenas also cited the Aquino government’s groundbreaking partnership with the Albay provincial government headed by Gov. Joey Salceda for the creation of a Climate Change Academy in Albay to elicit a higher level of climate change consciousness among media practitioners and eventually the general public.

Trenas said that with the entire world embracing green technology, in the next 10 years and beyond, it will be the single biggest sector in terms of employment generation and would likely take over much of the manufacturing and industrial sector.

“Green technology is here and it is our future. If we want to save the planet and ensure a brighter tomorrow for our children and their children after them, we should start investing on green technology,” Trenas said.

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Focus on Real Estate

december 12-18, 2011 VOL. 4 NO. 41

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VOL. 4 NO. 41 december 12-18, 2011

Commercial complex at Northpoint to rise

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ORTHPOINT of the Camella Communities is not just a condominium project. It will likewise feature a commercial complex.

Marlon Nino B. Escalicas, general manager of Camella Davao, bared that the company will soon develop the 2.8-hectare property into a lifestyle commercial center.

This developed as the group of Antonio R. Floirendo Jr. of the Anflo Investment and Management Corp. is sprucing up the old mansion, the so-called “iconic white house,” within the property to turn it into a Japanese themed fine-dining restaurant.

The mansion was owned by

a Scottish who died without heirs.

The company is set to open the restaurant sometime during the Christmas season.

However, officials of Floirendo said the company is still finalizing the specifics of the restaurant as they are also renovating the restaurant in its Pearl Farm marine which will be a Spanish-themed one.

The condominium project will also have coffee shops, other restaurants, a spa and another building for condotel.

Escalicas said the company has also started its second building as those who have bought units in the first buildings have already relocated.

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THE BUSINESS PAPER EDGEDAVAO

REAL ESTATE 101

eal estate is “Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; (also) an item of real property; (more generally) buildings or housing in general. Also: the business of real estate; the profession of buying, selling, or renting land, buildings, or housing.”

A condominium, or condo, is the form of housing renure and other real property where a specified part of a piece of real estate (usually of an apartment house) is individually owned while use of and access to common facilities in the piece such as hallways, heating system, elevators, exterior areas is executed under legal rights associated with the individual

ownership and controlled by the association of owners that jointly represent ownership of the whole piece. Colloquially, the term is often used to refer to the unit itself in place of the word “apartment”. A condominium may be simply defined as an “apartment” that the resident “owns” as opposed to rents.

Green building (also known as green construction or sustainable building) refers to a structure and using process that is environmentally responsible and resource-efficient throughout a building’s life-cycle: from siting to design, construction, operation, maintenance, renovation, and demolition. This practice expands and complements the classical building design concerns of economy, utility, durability, and comfort. Although

new technologies are constantly being developed to complement current practices in creating greener structures, the common objective is that green buildings

are designed to reduce the overall impact of the built environment on human health and the natural environment. [Source: Wikipedia]

Lawmaker seeks green building technologies in the Philippines

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oncerned about the alarming effects of climate change, Camarines Sur Rep. Diosdado Macapagal Arroyo is proposing the institutionalization of cutting-edge advanced energy and green building technologies in the country.

“The country should prepare the next wave of design and construction professionals to improve the energy efficiency and productivity of our nation’s buildings,” stressed Arroyo, author of HB 5220, now pending in the committee on Higher and Technical Education chaired by Rep. Juan Edgardo Angara.

HB5220 is entitled an “Act Authorizing Higher Education Curriculum Development and Graduate Training in Advanced Energy and Green Building Technologies.”

Arroyo recalled that during the latest Annual General Membership Meeting of the Philippine Green Building Council (PhilGBC) held in Makati City, British experts from building and design companies shared their latest and most innovative environmental technologies with local counterparts.

“Part of its global commitment to address alarming trends of climate change, the United Kingdom was reportedly seeking to bring to countries like the Philippines cutting-edge environmental technologies particularly in building designs,” Arroyo said.

Dato, together with Pampanga Rep. Gloria Macapagal Arroyo, is proposing that such initiative be worked out by mandating the Department of energy (DOE) to partner with the Commission on Higher Education in awarding grants to university programs related to design and construction of high performance buildings.

High-Performance Building means a building that integrates and optimizes all major highperformance building attributes, including energy efficiency, durability, life-cycle performance, and occupant productivity.

Arroyo cited John Chick, director of UK Trade and Investment (UKTI), as saying that technology sharing is timely since the PhilGBC is currently working on a set of standards for the Philippines called Building Ecologically Responsive Design for Excellence (BERDE).

Arroyo’s HB 5220 specifically states that in awarding grants, the DOE should give priority to university programs in design, architecture, landscape architecture, and city, regional, or urban planning.

“This would improve the ability of Filipino engineers, architects, landscape architects, and planners to cooperate on the incorporation of advanced energy technologies during the design and construction of buildings,” Arroyo pointed out.