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Ayala Group has turned more upbeat on the high-end property market given a recent resurgence in demand from discerning buyers, encouraging the rollout of upscale projects for the rest of this year.

“Confidence in the market has returned. [There’s] a realization that the valuations in the local property market are based on fundamentals, not speculation. Consequently, current prices reflect the true worth of property assets—which are good stores of long-term value,” Ayala Land Premier sales head Tom Mirasol said in a briefing yesterday.

“A recovery in the property market appears to have already started as early as February this year,” Mirasol said. This, he said, had been factored in by the stock market with stock prices of major publicly listed developers now going up sharply.

“All out metrics are up starting the second quarter,” he said. “The worst seems to have passed, and the markets have responded.”

As such, he said ALI was now considering raising the prices of its property units.

“They (high-end buyers) are coming back and they’re coming back in a big way,” said Bernard Vincent Dy, vice president and group head of Ayala Land Premier.

Ayala Land Premier, which sells residential units worth between P4 million and P20 million to households with a combined monthly income of P200,000 and up, has breached the P1-billion mark in reservation sales for June, up from only P400 million in January. The turnout in July is also expected to be robust, Mirasol said.

The group will begin the development of new phases of its existing projects, such as Phase 6 of Ayala Greenfield and neighborhood 7 of Anvaya Cove.

“Ayala Land’s outlook for the rest of the year is good. Continued buyer confidence combined with exciting new launches will see the company through the rest of 2009. We expect to see significant growth in the second quarter and the second half of the year. New projects continue to be planned for projects going well into 2010 and the next five years,” Mirasol said.

ALI president Antonino Aquino said of ALI’s budget for P17 billion for this year, about half will go to residential property development, a third of which will in turn go to Ayala Land Premier.

The high-end property segment accounts for 40-45 percent of ALI’s residential property sales, while the rest was split between middle-income and affordable segments under the “Alveo” and “Avida” brands, respectively.

For Prime Properties in Metro Manila, please visit www.philippinelisting.com

Source: Inquirer June 24, 2009

MANILA, Philippines—Amid a difficult economic environment, business process outsourcing firms based in the country are still expanding their operations and hiring more people.

A survey conducted by the Business Processing Association of the Philippines and Outsource2Philippines (O2P) revealed that 49 percent of BPO companies were still keen on expanding their headcount by up to 200 percent this year.

Only 6 percent said they would reduce their employee numbers, while the balance said they would either expand headcount conservatively—up to 10 percent of current total—or just retain their existing employee base.

Of the 160 survey respondents, 23 percent said their companies would boost recruitment efforts, while 20 percent said their firms would moderate recruitment activities.

A third of respondents said they were accelerating expansion, while another 26 percent said they were shelving such plans.

“It’s encouraging that, although the industry has been growing rapidly for several years, almost 40 percent of respondents indicated that their firms will still grow between 16 percent and 200 percent this year,’’ BPAP chief executive Oscar Sanez said in a statement.

He added that it was interesting to note that the global recession was not drastically slowing down BPO expansion in the country.

While the survey results were predominantly positive, 36 percent of those polled said their companies would reduce capital investments this year. A mere 9 percent said their firms would boost capital spending.

Most of the BPO firms, or as many as 66 percent, said the impact of the economic crisis was being felt primarily in the demand for services.

To counter this negative impact, 60 percent of respondents said their companies had expanded their range of services. Only 2 percent said they actually reduced the number of their service offerings.

Instead of focusing on traditional back-office services, O2P chief executive Frank Holz said BPO companies were increasingly offering high or very high value-added services.

“The fact that 69 percent of respondents said their firms are providing high and very high value-added services is actually staggering,” he said.

Thomson Reuters recently established in the country a team to support global legal content initiatives, an example of a high-value service.

“The Philippines is providing increasingly complex services for Thomson Reuters customers worldwide,” senior site officer Raoul Teh said.

Legal content is Thomson Reuters’ most profitable division. From the Philippines, the company already provides services in other operations areas, including investment and advisory.

Source: Philippine Daily Inquirer June 16, 2009

 

Steep, gable roofs that slope daintily, perched on clustered structures shaded in organic tones and accented with ornate carvings, nestled in lush landscaping and water elements – the qualities of contemporary Thai architecture exude modern elegance while still maintaining old world charm. 

 

Yet such attractive and enduring aesthetics don’t need to be confined in a tropical beach destination. In fact, this type of architecture can blend effortlessly in a similar tropical setting like the Philippines, where residential developments for the past few years have seen a proliferation of Asian-inspired architecture.   Pretty soon, the unique and versatile Thai design will define a condominium community and set the benchmark for infusing Asian aesthetics with modern practicability. 

 

Royal Palm Residences is set to emerge in the coming months as a Thai-tropical resort village where wellness is valued along with modern day requirements for an idyllic urban address.  Developed by DMCI Homes, this distinct theme will stand out as a fresh and extraordinary residential community within Township Central – DMCI Homes’ residential enclave in Taguig City characterized by Asian-themed villages.   

 

“Architecture is influenced by way of life,” said Renz S. Raule, DMCI Homes’ Project Development Manager.   “As meditation is to Zen, while tropical resort is to Bali, health and wellness are terms often associated with the Thais.  Digging into this concept, we then associated the design intent with distinctively Thai elements, such as the traditional Thai house and its qualities, which eventually served as the central architectural inspiration for Royal Palm Residences.”

 

He also identified the characteristics of a classic Thai-inspired establishment.  He referred to the graceful slope of the gable roof and interesting roof elements such as finials and pediments as elements that are distinctively Thai in origin.  Doors and windows are characterized by carved ornamental wood panels that also help with ventilation. All the structures open into a verandah leading to a central terrace that is used for family activities or events such as weddings. The terraces are bordered by balustrades and railings which give a sense of enclosure but still admit the free flow of natural breeze.

 

“For the interiors, there are, traditionally, no suspended ceiling panels. This reduces the roof load and gives a feeling of openness.  This is further enhanced by the use of low furniture.  In terms of landscaping, Thais use floral and natural arrangements. There is a predominance of ceramic vats containing fish and lilies in addition to potted plants.  Bird cages are kept close by as well as wind chimes,” Raule added.

 

Exquisite wood carvings, gold accents, stilts over water elements, complemented by splashes of purple and gold, shades associated with Thai royalty, are likewise utilized to evoke classic Thai appeal.  Soothing light and dark earth tones dominate the development, while numerous water features create an environment truly enveloped by nature, Raule noted.

 

For Royal Palm Residences, these design influences were liberally used to simulate Thai aesthetics and sensibilities.   The characteristically graceful roofs will punctuate each building entrance and is the main character of the Grand Clubhouse.  Another traditional feature is the Entrance Pavilion which will readily impress guests who enter the development.   

 

“Royal Palm Residences’ buildings will reflect one of the most enduring forms of Thai architecture – the traditional Thai house.   It is a house on stilts standing above a water element with its distinctively steep roof, punctuated by its curved fascia descending to a flame-like accent.  Wooden ornamental brackets provide contrast and balance to the steep roof,” Raule said.  

 

Raule also explained that the exotic ambience that is associated with resort destinations like Bangkok has emerged as a strong influence for property design that is also applicable in the Philippines.  “We have the same weather conditions.  This means that architectural details can also be applied here” he said. 

 

This means that aside from its aesthetic value, Thai architecture is quite functional, adapting to weather and environment – something which the Filipinos will appreciate.  Throughout the four-hectare prime property of Royal Palm Residences, additional applications of Thai architecture will include organic elements that are in harmony with nature, along with relaxing Thai colors and landscaping elements.

 

Royal Palm Residences offers 8 mid-rise and 2 hi-rise buildings whose names convey further allusions to Thailand – Karon, Kata, Phuket, Yanoi, Nui, Pansea, Railay, Samui, Kamala and Rawai – derived from its famous beaches and island resort destinations.  Unit buyers can choose from a variety of unit types to suit their lifestyle needs: from the 38.5 sqm studio and 1-bedroom unit, 49.5 sqm 2-bedroom unit, 66.0 sqm 3-bedroom end unit, 74.5 sqm 3-bedroom inner unit and 99.0 sqm 3-bedroom tandem unit.

This medium-density development boasts of residential buildings with first-rate features and a whole plethora of active and passive amenities set amidst one-hectare of open spaces.  All these Thai-tropical resort features are combined with modern conveniences like Wi-fi access at the Grand Clubhouse, electrified security fence and professional property management services for a balance of traditional and modern cosmopolitan lifestyle. 

For inquiry, pls visit our site at www.philippinelisting.com or contact Edwin Gumba at +639195720179

MANILA, Philippines – The country’s foreign exchange reserves (GIR) would reach a record high of $39.5 billion in May as portfolio investments recovered slightly and triggered foreign exchange inflows.

Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. said in an interview that the BSP expects the gross international reserves to rise from the revised level of $39.3 billion in April to a new record high of $39.5 billion.

“Foreign exchange inflows were strong in May, especially if you look at portfolio investments,” Tetangco said. “There was one week when inflows amounted to around $500 million.”

According to Tetangco, portfolio investments into stocks and bonds were up, indicating an improvement in the risk appetite of investors who have been staying away from emerging markets for nearly a year.

The recovery of the stock and bond markets, however, could just as easily be attributed to the so-called dead cat bounce phenomenon when markets crash so badly that there would be no other way but up.

These bear market rallies, however, are notoriously unsustainable and normally serve as a prelude to more declines in the financial market.

Asked whether he thought this could be the case, Tetangco said much of investor sentiments would depend on whether the initial positive signs in the real economy could also be sustained.

“In a down market, you would usually see the improvement in the financial market first,” Tetangco said. “Then whether or not that can be sustained depends on whether the improvement in the real economy can be sustained also.”

At this point, Tetangco said there were “encouraging signs” that – while not indicating a dependable trend towards recovery just yet – could still spur positive sentiments towards the Philippine economy.

“Look at new home sales – they’re up,” Tetangco said, adding that while existing home sales remained depressed, the decline has slowed down. “Consumer confidence is up, the services sector is up and these are positive signs,” he said.

“If these positive indications in the real economy would continue, then the improvement in the financial market would also continue and we would see inflows,” Tetangco said.

But Tetangco said the BSP could not say whether the expected record high in May would be the peak or whether the reserve level could still go up even higher this year.

“We will have to see,” Tetangco said, recalling that the BSP is expecting reserves to reach $38.5 billion this year, with the balance of payments position at $700 million.

In April, however, the GIR was already at $39.3 billion, as a result of inflows from government borrowings and investments, as well as the BSP’s net foreign exchange operations and income from its investments abroad.

At the April level, Tetangco said the GIR could cover 6.3 months of imports of goods and payments of services and income. It was also equivalent to 5.6 times the country’s short-term external debt based on original maturity and three times based on residual maturity.

The gross international reserve (GIR) is the sum of all foreign exchange flowing into the country and the balance of payment (BOP) position is the remaining balance net of all external payments for debt servicing and imports.

Foreign exchange projections have been generally bleak for 2009 with the BSP expecting a zero growth in remittance inflows while market analysts and credit rating agencies projected a decline.

Despite weaker foreign exchange inflows, Tetangco said the country’s relatively robust external position would allow the economy to tolerate inflationary pressures while supporting sustainable growth trajectory.

The BOP is keenly watched by both credit rating agencies and investors since it was one of the major determinants of the country’s ability to continue servicing its external debt and other payments.

Source: Phillippine Star

 

MANILA, Philippines—If there is one single factor to which we can attribute the relative resilience of the Philippine economy through the different economic turbulences it has undergone since the 1990s, it must be remittances.

The Bangko Sentral announced last week that monthly remittances in March reached an all-time high of $1.47 billion, 3.1-percent higher than last year’s figure for the same month, and 11-percent higher than that for the previous month. With the current global economic turmoil, the common expectation has been for a dramatic slowdown and possible downturn in this valuable source of foreign exchange inflows. And yet the dreaded reversal has not happened, eight months after the Lehman Brothers collapse, widely regarded as the key trigger for the financial meltdown. Have the naysayers been wrong all along, and the “prophets of boom” been right on this one?

Half right

Actually, both sides have been half right, so far. Compared to the 14-percent annual increase posted for the full year in 2008, the March figure brings the cumulative 2009 growth to a mere 2.7 percent. Still, these inflows from overseas Filipinos increased significantly, indicating some degree of resilience in the face of global economic challenges. And this is in spite of the fact that the traditional host economies to our OFWs have actually been hit harder. A recent paper by the Migration and Remittances Team of the World Bank cites five reasons why global remittance flows have historically been resilient during economic downturns in host countries.

First, remittances do not just come from new migrants, but from the cumulated flows of migrants over the years. Thus, they argue, remittances will continue to increase as long as migration flows continue. However, this seems to presuppose that most migrants stay on a long-term basis. But OFWs are still mostly contract workers under time-bound contracts. It would thus be useful to examine how the proportion of our permanent vs. temporary migrants has been changing through the years, as half of our remittances now come from the US, where Filipino migrants tend to stay put, unlike in, say, the Middle East. In any case, what matters is whether net migration (new deployments minus returnees) continues to grow, especially lately—and available data are not very clear or up-to-date on this.

One-shot rise?

Another reason cited is related to the above: Because of rising anti-immigration sentiments and tighter border controls, especially in the US and Europe, migrant workers appear to stay longer—and they are likely to continue sending remittances.

A third reason given is that migrants continue to send remittances even when hit by income shocks, inasmuch as remittances are a small part of migrants’ incomes. This may be true in the case of permanent Filipino migrants, especially in the US and Europe. But OFWs on contracts and separated from their families probably send the bulk of their incomes home, making their remittances much more sensitive to income shocks. Again, the net outcome would depend on the relative proportions of permanent vs. temporary Filipino migrants.

The fourth reason cited is that when migrants are in fact forced to return due to economic difficulties in their host countries, they take back their accumulated savings, leading to a one-shot rise in remittances. The authors believe this to have been the case in India during the Gulf war of 1990-91 which forced a large number of Indian workers there to return home. And even when they stay on, the “safe haven” or “home-bias” factor can lead them to send home more remittances for investment purposes during an economic downturn in the host country. This is a plausible explanation for permanent Filipino migrants, who have in fact been buying up more condos and other real properties lately, explaining why the real estate industry continues to boom.

Fiscal stimulus

This raises the question on whether the surge in March (uncharacteristic for this time of year, by the way, as March has traditionally been a seasonally slow month for remittances) may simply be the effect of repatriated savings of returning displaced Filipino migrant workers. If true, it would be premature to rule out a fall in remittances based on the positive March figures. Thus, the outlook for the year remains highly uncertain.

Finally, the paper argues that the large fiscal stimulus packages being undertaken by several high-income host countries in response to the financial crisis could actually benefit migrant workers along with native ones. The BSP cites data indicating that 756,000 job orders had been placed with POEA in the first two months of the year alone. Others point to the special attractiveness of Filipino workers abroad compared to other nationalities, as an argument why Filipino jobs abroad are not likely to be hit as hard as those of migrant workers from other countries.

So where does all this lead us, in terms of outlook for the year? I’d say it remains up in the air, and as I keep saying lately, the best we can do is be prepared for the worst while praying for the best.

Source: Inquirer May 17, 2009

The mark of independence among today's young and single professionals involves financial stability and living away from the family nest to pursue total maturity and personal fulfillment.  Living with friends or colleagues may sound practical but for the driven urban worker wanting to savor an aspirational lifestyle, the physical manifestation of independence can only be realized by having a home of his own - hence the term bachelor's pad.

Modest income-earning professionals can find an affordable and upgraded way of life at Rosewood Pointe's studio units - a modern contemporary development designed to provide a conducive home environment for young and single yuppies, or even starting couples.

Dubbed as the only Neo-Asian condominium that adheres to the core value of gentleness, the distinct appeal of Neo-Asian architecture provides residents a relaxing ambiance through the liberal use of earth tones such as brown and beige to evoke a warm and idyllic mood setting. Such attributes establish a more hospitable environment for stressed workers, allowing them to create open relationships with other residents who come from similar backgrounds.

 A total of 58 studio units are presently available at Rosewood Pointe's Ivory Tower - prized properties that come with such advantages like a balcony feature, with typical area size of approximately 28.5 sqm composed of dining and kitchen area, hall, bedroom, toilet & bath plus balcony. Studio units are ideal for young single professionals who are active and always on the go. 

The units are relatively affordable too.  With a price range from P 1.55M to P 1.76M, the single professional can afford to make his first valuable investment through flexible financial terms so that he can still enjoy the perks of a mobile lifestyle.

The Ivory Tower is the latest and final building component to complete the charming Rosewood Pointe development. It consists of a total of 314 units allotted on 21 floors - 18 residential floors with the top three floors showcasing bigger sized, penthouse units. Three lower floors are allotted for unit owner's parking needs. 

Purchasing a studio unit also affords buyers an attractive variety of condo amenities and building facilities, among them a hotel-like lobby that provides a grand welcome; a lovely Podium Garden where they can lounge around freely and chat with friends; a balcony for all units that unveils scintillating views of Ortigas Center and Bonifacio Global City; the DMCI Homes signature provision of single-loaded corridors that allow natural light and ventilation; a central promenade garden found every five floors; and commercial units on the ground and 2^nd floor levels.

A Sky Lounge will also be opened at the Ivory Tower - a facility for the exclusive use of Rosewood Pointe residents which has recently emerged as a staple provision at DMCI Homes projects.  The Sky Lounge, which is located at the top- most floor, functions as a communal lounge area for residents where they can drink their morning coffee, have intimate meetings or hold social gatherings, or simply a quiet venue to enjoy the panorama of the metro.

Rosewood Pointe is strategically located near C-5 road in the progressive city of Taguig. It is just a few minutes away from economic hubs of Bonifacio Global City and Makati Central Business District- close to popular malls, classy restaurants, exclusive shops, top schools, state-of-the-art hospitals and the domestic and international airports.

DMCI Homes is the country's first triple A builder/developer that offers modest income earning families optimum value for their money by providing homes with exceptional features and amenities, world-standard level of craftsmanship borne out of more than 50 years' experience in the construction and development industry.

For inquiries on Rosewood Pointe and other DMCI Homes projects, please call 8210909 or visit http://rosewood.philippinelisting.com .

Source: 4/24/2009 Construction Phil Star
4/25/2009 Construction Manila Times

MANILA, Philippines -- Global financial services giant JP Morgan is telling investors to fatten their exposure in the Philippines, saying the country’s prospects are boosted by low interest rates, a strong peso, reforms in the power sector, an encouraging mining industry, and government mega-infrastructure spending.

JP Morgan is keeping its “overweight” call on the Philippines and advises investors to increase their holdings in the country, JP Morgan Securities (Asia Pacific) Ltd. chief Asian and emerging markets equity strategist Adrian Mowat said after an investor conference late Thursday.

It was JP Morgan’s first investor conference in the Philippines since the 1997-98 Asian economic crisis affected the country. The conference attracted around 80 fund managers, mostly from abroad.

“Now, investors are waking up to this market and people are increasingly going to a plane and coming back to Manila,” Mowat said.

“You live in a relative world when you look at emerging markets,” he said. “The Philippines started performing only in August last year. The reforms in the power sector are all relatively new, the movement in onshore bond yields is relatively new.”

JP Morgan Securities Philippines Inc. head of equity research Kelly Lim-Bate said there were four key drivers that would keep investors glued to the Philippine growth story this year.

She said these were a strong peso because of the country’s similarly robust balance-of-payments position; interest rates that would continue to be low and in turn spur loan growth; the government’s P1.7-trillion infrastructure spending program; and foreign direct investments coming back into the country, specifically in manufacturing, power and mining.

Source: Inquirer dated May 19, 2009

Banks see downtrend in loan delinquency

Local economy still unaffected by credit crunch

MANILA, Philippines—Big Philippine banks saw a surprise downtrend in loan delinquency in the first quarter, suggesting that the local economy remained resilient so far to credit stresses that have bludgeoned financial institutions in the United States and elsewhere in the world.

“Defaults are declining surprisingly,” said Pascual Garcia III, president of the country’s second largest thrift bank Philippine Savings Bank.

Garcia said PSBank’s loan delinquency had gone down by more than 1 percent since end-2008, which was better than expected given expectations of a tougher economic environment this year.

In explaining the decline to his bank’s board of directors, Garcia said it must be partly because the inflation rate, or the rate of increase in average consumer prices, had gone down sharply from last year when the rice crisis as well as skyrocketing global oil prices caused a double-digit price upsurge.

“There are no massive job losses so the impact of the global crisis is limited so far,” said Garcia, who is also president of the Chamber of Thrift Banks.

PSBank, the first publicly listed bank to release its first quarter results, saw a decline in non-performing loans (NPL) as a ratio of total loans to 5.4 percent from 6.2 percent. It also earlier reported a 21-percent rise in net profit.

Teresita Sy-Coson, chair of the country’s biggest commercial bank Banco de Oro Unibank, said the trend of declining loan delinquency may be an industry-wide phenomenon. She said BDO, which has yet to release its first quarter results, has seen an improvement in its NPL ratio in the first three months.

“It’s probably because with the limited market right now, there’s a flight to quality, so you get the better ones (borrowers),” Sy-Coson said in a separate interview.

“And when you have (loan) growth, the other negative items will be less. So if even if NPLs were maintained at the same level in peso terms, when you grow loans, the ratio improves. I think all of us are seeing that,” she said.

Based on the latest report from the Bangko Sentral ng Pilipinas, the NPL ratio of commercial banks stood at 3.73 percent of total loans as of end-February. This was favorably lower than the 3.82 percent in end-January and 4.68 percent in February last year.

The country’s third largest bank, the Ayalas’ Bank of the Philippine Islands, also reported that its net 30-day NPL ratio declined to 3.26 percent in March from 3.94 percent a year ago.

The improvement in NPL loan ratio, aided by an expansion in loans booked, is also being felt by smaller commercial banks.

“The Philippines is different from other markets. Outside, nobody wants to lend because they were traumatized (by the US subprime crisis). But here, there’s so much liquidity in the market and every one is fund-raising and getting them. It’s trickling down even to the small entrepreneurs,” said Jaime Gonzales, chair of Export and Industry Bank.

Gonzales said this might be due to two key economic drivers that have so far bucked pessimistic expectations—business process outsourcing and overseas employment.

Aurelio Montinola III, president of BPI (which reported an 86-percent rise in first quarter profit), said his banks’ strong results affirmed the resilience of the local economy, the strength of the bank’s franchise as well as the value of efforts to diversify revenue base and improve credit risk profile.

“However, we acknowledge the severity of the present crisis and that the local economy and the banking industry remain vulnerable to a further deterioration in global economic activity. Signs of stabilization overseas appear tentative and can not be construed as the beginning of an enduring recovery,” said Aurelio Montinola, BPI president and head of the influential Bankers Association of the Philippines.

Source: Inquirer