RP’s real estate brokers beef up info campaign on RESA Law

October 27, 2010

DAVAO CITY — The Real Estate Brokers Association of the Philippines (REBAP) Davao chapter has beefed up its campaign on the Republic Act 9646 or the Real Estate Services Act (RESA) of the Philippines to guide both the public and the brokers better understanding of the amendments of the law. REBAP Davao chapter vice president Winstone V. Pulido said they welcome the law as it will continually professional their sector.

He said with the number of unlicensed brokers operating in the island, RBAP do not have way to monitor the activities of some of these sellers.

The new law is beneficial to the buying public of transacting as they will be shielded from transacting to unregistered brokers that led overpricing of the property and engage in unethical practices.

He said the government has been taking serious steps to provide protection for property buyers and they see this as a good step for them to be encouraged to invest more in Philippine real estate.

The law states that a licensed broker is allowed to have under him only 20 sellers but the practice before the approval of the new law was many real estate projects had only one or two registered brokers with 200 to 300 sellers.

He said with RESA, the practice of real estate broker will now be regulated even as he said that a broker before he or she will be allowed to take the real estate brokers examination for licensing need to acquire 24 units under the continuing education program (CEP) and this arrangement will be honored for the 2011 examinations.

By 2012, prospective examinees need to comply 120 units under the CEP, he said.

The legitimate practitioners of brokering as a business are subjected to fees and taxes while a good number of “fly-by-night” brokers that would number to about 2,500 in Davao City alone escape government regulations and payment of taxes and fees, he said.

“And this would some up to millions of losses of government in the form of taxes as most unlicensed brokers charge 5 percent commission,” he said.

The RESA Law is in support to professionalize and regulate the practice of real estate in the country through the development of technically competent, trained and accountable real estate practitioners.

The law defines that real estate broker is a duly registered and licensed natural person who, for a professional fee, commission or other valuable consideration, acts as an agent of a party in a real estate transaction to offer, advertise, solicit, list, promote, mediate, negotiate or effect the meeting of the minds on the sale, purchase, exchange, mortgage, lease or joint venture, or other similar transactions on real estate or any interest therein.

Pulido said the REBAP supports the information dissemination campaign of the Professional Regulation Commission (PRC) and the Bureau of Internal Revenue (BIR) to reach out to as many brokers to have themselves get licensed and legalized their profession.

Pulido said although this will be a huge task ahead, the passage of the RESA Law is a good start to professionalize their sector and at the same time protect the interest of the public from unscrupulous agents.

With the real estate industry in Davao City hitting a positive growth, he said, a lot of real estate development is opening up in the city especially that there is a demand for houses here from the neighboring regions wanting to locate here.

Meanwhile, he said brokers who will attend the First Mindanao Real Estate and Housing Conference in Davao City scheduled on Oct. 5 to 6 will earn units and credited under as allowed by PRC. (PNA)


DILG urges Mindanao officials to support first real estate, housing conference in Davao City

October 1, 2010

Sept. 29 (PNA) — The Department of Interior and Local Government (DILG) is urging Mindanao officials to support the holding of the First Mindanao Real Estate and Housing Conference in Davao City on October 5 to 6 at the SM City Event Center.

Chamber of Real Estate & Builders’ Associations, Inc. (CREBA) Davao Chapter president Carlos Vargas said DILG Secretary Jesse M. Robredo encourages the island’s chief executives to participate in this activity.

Vargas said Robredo issued Memorandum Circular No. 2010-102 addressed to provincial governors, city mayors, municipal mayors, DILG regional directors of Regions IX, X, XI, XII and CARAGA to participate in this activity as it will highlight best practices in green development, community-based alternative sources of energy and green financing.

The CREBA-sponsored conference is co-hosted by DILG and the Environment Management Bureau XI with the theme “Challenges of Global Warming on the Real Estate Industry.

Green Development our contribution to our future”. He said main speaker of the conference is Dr. Michael E. Nunez, CREBA vice president for Green Technology and Sustainable Development who will discuss New Approaches to Green Technology and Sustainability in Real Estate.

Other topics include Best Practices in Green Technology where Alsons Development Corp., Uraya Land, and Kisan Lu Devt. Corporation as presentor for “Green Developer”, Adtel Inc. Member Lopez Group of Companies as presentor for “Energy Provider” while Engr. Nazario Cacayan, executive director YAMOG Inc. as presentor for “Community Based Renewable Energy Development (Micro Hydro, Solar Power, etc.)” and B. Brillo L. Reynes, DBP-Senior Vice President for “Green Financing for Developers and Local Government Units”.

Secretary General Nestor Borromeo of the Housing and Urban Development Coordinating Council (HUDCC) is invited to brief stakeholders of the agency’s priority plans and programs to be followed with a roundtable discussions on housing concerns with the government’s shelter agencies namely Housing and Land Use Regulatory Board, Pag-IBIG Fund, Socialized Housing Finance Corporation, National Housing Authority, Land Registration Authority and Environment Management Bureau.

Also invited is Davao City Mayor Sara Duterte-Carpio who will deliver a message. The manifesto for housing concerns will also be presented by CREABA to the mayor.

Davao City planning officer Roberto P. Alabado III will brief the participants of the city’s planning of Sustainable Residential Communities.

The other topics are “Basic PINOY Green Bldg. Technology” to be discussed by Jesus B. Pring, Jr., chief executive officer of AGTECHPIN, Inc., Products and Services for the Real Estate Industry and local government units (LGUs) by Simonette C. Ngosiok, SME Community Consultant PLDT SME-Nationa Vis-Min Operations, New Software for Real Estate Application by Cecille Sibayan, ABM Computech Enterprises, Inc.

The chairman of the Professional Regulatory Board of Real Estate Services Eduardo G. Ong will discuss Republic Act 9646 or the Real Estate Service Act of the Philippines. (PNA) LAP/Digna D. Banzon

More than P400-M new investments get tax incentives in Davao City

September 21, 2010

DCIPC officer-in-charge Jason Magnaye during the Davao Business Forum at the MediSpa, SM City Davao

The newest investments in Davao City valued at P441 million that passed through the Davao City Investments and Promotion Center (DCIPC) gets exemption of paying mayor’s permit and fees.DCIPC officer-in-charge Jason Magnaye said this is on top of the approved investments during the first semester amounting to P612 million.

He said they need to work hard in order to meet their target of P1.9 billion this year.

The recent approved investment is still in line with real estate where one is a subdivision project worth P119 million and the other, a commercial building for mixed use with investments at P322 million.

Magnaye also said that the earlier investments consist of two projects on real estate, one in tourism while the other in agri-business.

In the pipeline are on real estate and commercial buildings, he said.

Meanwhile, he said majority of the investments in Davao City for the past several years are in line with real property development.

He said for the past three years, projects in the city were dominated by property development getting a share of 83 percent of the total investments.

He cited that since DCIPC started in 1995, property development got the biggest chunk as it cornered 61 percent of the total investments.

On the other hand, Magnaye is optimistic of hitting their target as they incorporate service marketing in finding new investors.

Davao City Mayor Sara Duterte-Carpio also goes out of her way in meeting with prospective investors and personally discussed with them what the city can offer.

He said the mayor also conducts personal visits to and assessments of existing projects of interested investors like in Manila in order to see for herself their projects.

Magnaye cited for instance that the Mayor led a small team to conduct ocular visit to the World Trade Center (WTC) in Manila as she is interested that a developer would invest in convention center here.

Although he stressed that they cannot dictate on the kind of investments he said perhaps they could influence.

A team from WTC composed of some senior officials will be coming to Davao City by end of September to check on the city’s investment area.

“The fact that a senior official is coming over would indicate that they are interested,” he said.

Magnaye said they double up in finishing their inventory and data as to real property investments as these comprise of the common data that investors ask. The other basic data as to infrastructure and other related information are also being readied by their office, he said.

He said a series of review and assessment are being made by them to ensure that investors get relevant and appropriate data as this will help them decide in locating here.

He also said they will continue to improve on their services and reach out to other sectors as they align with the development direction of the city. (PNA)

Gov’t to focus on socialized housing projects – Binay

August 25, 2010

DAVAO CITY, Aug. 21 (PNA) — The government will further lower the interest rates of housing loans for socialized housing packages to allow more people to access housing loans, especially the informal sector at very affordable rate.

 Vice President Jejomar Binay, the country’s Housing czar, announced during the national conference of the Organization of Socialized Housing Developers of the Philippines (OSHDP) on Friday at Grand Men Seng Hotel here that studies are ongoing to lower the interest rate to 3 percent.

He said current packages offered by the government housing agency of about P400,000 with monthly amortization of P2,300 is not a realistic package for the lower sector but this can be split to packages of P200,000 or P100,000 and with the lowered interest rate the amount for monthly payment could be at P350.

The amount, he said, will only be the cost for the house and the land will be sourced out through the local government units (LGUs) utilizing some of their idle properties through usufruct agreement.

Binay said in administering this kind of project, the developers can be given incentives from the Bureau of Internal Revenue in support to the lowering of cost of business operation.

He said the LGUs will identify the land and put in the roads and they will provide the financing for the construction of houses.

He admitted, however, that there are not enough funds in the government for socialized housing except that of Pag-IBIG Fund even as he said that because the Fund is already tax-exempt, the P2.5 billion savings could be used for projects under socialized housing.

Vice President Binay also addressed the luncheon General Membership Assembly of the Davao City Chamber of Commerce and Industry (DCCCII) where he said the relationship between government and the private sector is both through cooperation and coordination.

He said business is a continual dealing with the future and they deal not only with communities but the customers and consumers.

“As head of HUDCC, I also ask you to consider investing in building of homes and we should not only build houses for families but homes for families where their bodies could rest, their spirit soar and find love and peace,” he said.

He said this dream could not be possible without the help of the local government units of finding areas where these projects can immediately take off.

“We need to sustain this confidence and we need to show this to the world,” he said. (PNA) scs/Digna D. Banzon/lvp

Big demand for socialized housing, backlogs continue to grow in the country

August 21, 2010

“There is really a big demand for socialized housing and the backlogs continue to grow in the country’s housing business, according to the Organization of Socialized Housing Developers of the Philippines (OSHDP).

OSDHP press relation officer Santiago F. Ducay, however said they are hoping the new administration responds quickly to issues– citing for instance that new housing czar Vice President Jejomar Binay vowed to look into the possibility of lowering further interest rates to make housing more affordable.

Ducay said the current interest rates for socialized housing of a package of P400,000 is about six percent.

He said the current backlog by accumulation through the years is at 3.8 million and as the population grows at 2.8 percent about 900,000 new housing units are needed annually. Of the 900 thousand units, 70 percent of this is for socialized housing.

“If the government build 200,000 for socialized housing, the private sector match this with the same number or about 400,000, there’s still a backlog of 500,000,” he said.

Meanwhile, Ducay said their organization supports the call of President Simeon Benigno Aquino III to fight corruption. He said they respond to the challenges of the Aquino government in fleshing out and flushing out corruption in the construction agency.

Linda A. Tan, national president of OSHDP said they had been true to the call and in fact dropped one developer from their rooster for engaging in activities contrary to their principles of sound business operation.

Tan also heads RJ Lhinet Development Corporation, a builder of medium rise buildings and condominium in the National Capital Region (NCR).

Tan was in the city for a two-day housing convention which opened Thursday and ends Friday at the Grand Menseng. Tan said OSHDP polices its ranks and closely monitor their members.

The OSHDP, she said has to date 150 members. Before a developer is accepted, he has to pass a thorough screening and assessment by looking at one’s background and tract record.

Tan said Congressman Rodolfo G. Valencia, House Committee Chair on Housing and Urban Development disclosed he is filing a bill so that the Social Security System will be compelled to implement 30 percent of its investible fund to be dedicated to housing as stipulated in its charter.

She said when this will materialize, there will be more funds for socialized housing and citing the statement of Congressman Valencia that because Pag-IBIG Fund is now tax exempt perhaps the savings of P2.5 billion could be used to fund socialized housing projects.

“It has been the clamor of our sector for the government for sustainable funds to be made available for socialized housing developers,” she said.

On the other hand, Ducay said Congressman Valencia is also supporting the proposal of the housing sector for the creation of the Department of Housing.

The creation of the housing department will upgrade the Housing Urban Development Coordinating Council (HUDCC) to a department status.

“Right now processing of projects is quiet difficult as they deal with different shelter agencies. But if there will be a single department, transaction will be uniform with requirements and procedures,” he said.

The Land Use Law is equally important because developers will have concrete guide how and where to locate subdivisions especially so that lands in the provinces are mostly for agriculture and tourism.

In this aspect, Davao is a focused location city because it is ready with its city/municipal land use plan. All this specific concerns needed in the housing projects, will now be acted upon by the Department of Housing, the body that will regulate and issue policies related to housing.

The other concern that Tan raised is for socialized housing developers to be exempt of cash advances when utilities such as light and water will be introduced to the subdivision.

Tan said for the installation of power in the project site would cost them about P120,000 per post. If there will be more than 10 posts, the cost would be P1 million or more and the return of investment will take long because the refund will only be made when connections are tapped and the utility company starts to earn.

She said they do not expect overnight change but they are willing to cooperate with the government to polish and straighten out policies, so that socialized housing is acted upon and more poor people will have access to housing projects at cheaper cost. (PNA) LOR/Digna D. Banzon/lvp

Homebuilder offers high-end living @ affordable rates

August 4, 2010

by Prix D. Banzon
Davao City  — The Chula Vista Residences is now ready to accept buyers wanting to experience high-end living with acquisition cost at affordable rate.

Over the weekend was also the inauguration of its Grand Entrance Gate and Guardhouse at Cabantian, Buhangin, Davao City where the ribbon cutting ceremony was led by Pag-IBIG Fund vice president for Southern Mindanao operations Jose W. Banzon, Jr. and Hemeni Land Corporation (HLC) vice pesident and chief operations officer Andrea Leah V. Romero with HLC officer-in-charge Abigail Tao and Pag-IBIG Davao branch manager Rodrigo Suemith.

The project consists of 430 house and lot packages in an 8.5 hectares property where it is equipped with amenities like club house, swimming pool, sports facilities and parks and playgrounds.

Romero in her briefing said it also has concrete roads and excellent drainage system with perimeter fence and 24-hour guarded gates. Supply of water and power is excellent tapping both the Davao City Water District and Davao Light and Power Company, Inc. processing plants and others businesses.

She said they have designed seven model houses of either bungalow type and two-floor housing units for the buyers to choose from depending on their need.

“We do not impose on them and it’s always the buyer’s choice considering that our aim is to build a community where families could experience the vibrant and rich scenery of the place,” she said.

She said their company has been proactive in all its design features to give homeowners an ideal living environment.

Romero said the Chula Vista is intended for the middle income group who has the capacity to acquire property estimated to cost at close to two million pesos for the house and lot package.

With their initial offering she said about 40 percent of the site already has confirmed reservations of mix buyers and a good number of them are overseas Filipino workers.

“We also noticed that 80 percent of those who placed inquiries with us are Pag-IBIG Fund members who are interested to acquire property through the government financial institutions,” she said.

Pag-IBIG Fund offers among others house and lot package with a much lower interest rates based on the following bracket, over P1 million to P1.25 million at 9.5 percent interest rate, over P1.25 million to P2 million at 10.5 percent and over P2 million to P3 million at 11.5 percent.

Maximum amortization period of 30 years for a package of P1 million carries a monthly amortization of P7,689.13, P1.25 million at P10,510, P2 million, P18,294.79 and P3 million at P29,708.

Romero said they noticed that more Pag-IBIG Fund members are interested especially with the lowering of interest rates of real estate loan with the Fund.

Meanwhile Romero said they also partner with private banks like Banco de Oro and they intend to team up with Metrobank and Union Bank.

Chula Vista Residences is developed by HLC Group which is backed by over 25 years of experience and numerous successful housing projects and real property developments in Davao City, Tagum City, Panabo City, Digos City, Butuan City, Sto. Tomas, Davao del Norte.

Like the other developers, HLC also caters to buyers from out-of-town cities and provinces within Mindanao.

She said home buyers would prefer their locations nearer to their place of work and these are also the market that they cater. Transportation cost is also a big portion of the day to day expense of the workers that is why they want to cut on travel from home to work.

As this developed she said their company is working on a low cost housing project within a 40 hectares property at the northern portion of the city in Malagamot, Panacan, Davao City.

The HLC Group is optimistic of the real property business this year that matches with the government planners’ projection that in Davao City real estate will still be the driving businesses in the economy this year. (PDB)

Housing developers hold national confab in Davao City on Aug.19-20, 2010

August 4, 2010

Manila (PNA) – The Organization of Socialized Housing Developers of the Philippines (OSHDP) will hold its first ever National Convention on Aug. 19 – 20 at Grand Men Seng Hotel in Davao City, OSHDP president Linda A. Tan said Friday.

OSHDP is an assembly of private developers and allied interests nationwide involved in the development of socialized and low-cost housing.

Through the years, OSHDP has gained recognition from both the government and the private sector for successfully carrying its advocacies.

To boost the momentum and the gains that the housing sector has achieved in pump-priming the economy, the OSHDP Convention will focus on the theme: “Sulong Pabahay, Ginhawang Buhay”, A Stronger OSHDP – Government Partnership in Leaping Forward Through Socialized Housing.

The event will serve as an avenue for newly appointed government officials to share their views and their agency’s policies and programs affecting the sustainability of the real estate and housing sector.

All major stakeholders in the housing industry are invited to attend. The convention is expected to provide participants with excellent opportunity to be updated on relevant shelter issues, share insights and network with like-minded professionals in the real estate business.

The convention coincides with the week-long local celebration of the Kadayawan Festival in Davao City.

As such, participants are encouraged to extend their stay in Davao for a weekend of fun and entertainment. Separate local festivities and activities are being arranged specifically for convention delegates. (PNA)