The document discusses trends in the Philippine real estate industry and outlook for 2015. Some key points: 1) The real estate market remains strong, driven by continued development of residential and commercial properties, malls, and tourism-related projects. 2) While land prices in Metro Manila have increased significantly, this is due to high demand and limited supply rather than a forming bubble. Regulators are monitoring the market. 3) Real estate development is expanding outside of Metro Manila to other cities like Cebu, Iloilo, Bulacan and Pampanga, as the capital reaches capacity. This will help drive economic growth nationally.

1. Speaker:
HON. RODOLFO G. VALENCIA
PhilRES National President
February 3 – 6, 2015, PICC, Roxas Boulevard, Pasay City
Theme: “Local Treasurers and Assessors: Rising Above the Challenges of
Local Governments’ Fiscal Accountability, Transparency and Sustainability”
DAY 3 – February 5, 2015 (Thursday), 2:00 – 3:00 p.m., Reception Hall,
Topic : Real Estate Service and
Industry Trends

2. PART ONE: THE REAL ESTATE SERVICE
1. The RESA Law
- enacted on June 29, 2009 in the 14th Congress of the Philippines
- RA 9646, “An Act Regulating the Practice of Real Estate Service in the
Philippines, Creating for the Purpose a Professional Regulatory Board of
Real Estate Service, Appropriating Funds Therefor and For Other Purposes”
Principal Author: Hon. Rodolfo G. Valencia
Co-Authors:
Hon. Raul Gonzalez, Jr. Hon. Edcel Lagman
Hon. Raul Del Mar Hon. Eduardo Zialcita
Hon. Amado Bagatsing Hon. Narciso Santiago III
Hon. Roman Romulo Hon. Mark Leandro Mendoza
Hon. Thelma Almario Hon. Victor Yu
Hon. Ma. Victoria Sy-Alvarado Hon. Mariano Piamonte Jr.
Hon. Antonio Ceriles Hon. Edgardo Chatto
Hon. Eurocino Codilla, Sr.

3. 2. Declared Policy
The State recognizes the vital role of real estate
service practitioners in the social, political, economic
development and progress of the country by -
 promoting the real estate market,
 stimulating economic activity, and
 enhancing government income from real
property-based transactions.
The State shall develop and nurture through proper
and effective regulation and supervision a crop of -
 technically competent, responsible and
respected professional real estate service
practitioners,
 whose standards of practice and service shall be
globally competitive, and
 will promote the growth of the real estate
industry.

4. 3. The Real Estate Service Practitioners
… shall refer to and consist of the following;
a. Real Estate Consultants
b. Real Estate Appraisers
c. Real Estate Assessors
d. Real Estate Brokers
e. Real Estate Salespersons

5. 4. Admission and Practice
a. Licensure Examination and Registration
b. Issuance of Certificate of Registration and
Professional Identification Card
c. Automatic Membership in the AIPO
(Accredited & Integrated Professional
Organization) of the Real Estate Service
Practitioners (RESPs)
d. Code of Ethics and Responsibilities for
RESPs
e. Continuing Professional Development
(CPD) Program

6. 5. PHILIPPINE INSTITUTE OF REAL ESTATE
PRACTITIONERS (PHILRES), INC. as the AIPO
a. Resolution No. 19 adopted on October 21, 2011 by the
Professional Regulatory Board on Real Estate Service (PRBRES)
officially recognized PhilRES as the duly accredited AIPO.
b. House Resolution No. 299 adopted on October 17, 2012 by the
House of Representatives giving recognition to PhilRES as the
AIPO.
c. Re-affirmation by then PRC Chairperson Teresita Manzala,
followed by the PRC instruction that, henceforth, licensed RESPs
seeking the release or renewal of their PRC ID Number (or license)
must first obtain a certificate of membership in good standing (or
CMIGS) from PhilRES.

7. 5. PHILIPPINE INSTITUTE OF REAL ESTATE
PRACTITIONERS (PHILRES), INC. as the AIPO
d. Section 38, RA 9646 mandates RESPs to indicate the certificate of
registration, professional identification card, PTR number, and
AIPO receipt number, and the date of issuance and the duration
of validity on the documents he/she signs, uses or issues in
connection with the practice of his/her profession.
e. Petition for Renewal of Accreditation officially submitted to the
PRC Standards and Inspection Division on November 11, 2014
f. PhilRES Family (as of Feb. 4, 2015): 9,561 members and 53 local
chapters

8. As of Feb. 4, 2015
Chapters 53
Members 9,561

9. REAL ESTATE OUTLOOK
FOR
2015
PART TWO:

10. A QUICK LOOK AT THE
CURRENT PHILIPPINE
REAL ESTATE INDUSTRY

11. THE REAL ESTATE BOOM
SM Bay City, Manila
Araneta Center
Bonifacio Global City
Community/City Development
Greenfield District
Mckinley West Pagcor City SM Seaside, Cebu City

12. THE REAL ESTATE BOOM
Community/City Development
Watch out for development at the FTI Taguig area
AYALA ARCA SOUTH (74 HECTARES)

13. THE REAL ESTATE BOOM
Commercial Development (Office & Retail)
Century City Mall SM Aura, Global CityGreenbelt Mall
Magnolia Town CenterHigh Street South BlockAbreeza Mall, Davao City

14. THE REAL ESTATE BOOM
Commercial Development (New Office Spaces for Lease)
RCBC Corporate Center
Hanjin, Global City
Panorama, Global City BGC Corporate Center
Twenty Four Seven
Mckinley

15. THE REAL ESTATE BOOM
Residential Development (Horizontal & Vertical)
The Trump
Towers
AZURE Urban Resort
Residences
Anchor Skysuites Arya Residences Avida Towers
Centera
South Lake Village At Eton City Avida Land at Nuvali

16. THE REAL ESTATE BOOM
Entertainment Cities
Resorts World Manila
Makati Circuit
Solaire Manila

17. THE REAL ESTATE BOOM
Entertainment Cities
City of Dreams Manila

18. THE REAL ESTATE BOOM
Resorts & Hotel Development
Pico de Loro Balesin Island Club
Alphaland Marina Discovery Shores Boracay

19. 1. Queries on 2015 Property Market
a. Is it overheating?
b. Is there a glut in any of the market segments?
c. Are we ready for the Asean Economic Integration?
d. Can we compete with the more advanced real estate
markets?
e. Which investment areas should we be looking at for
real opportunities?

20. 2. Good News!
a. Philippine Property Market remains strong and
ebullient
b. Despite perceptible cooling of the market in the
emerging economics (Brazil, Russia, India, China,
followed by Indonesia, Thailand and Malaysia), the
Philippines has maintained its competitive position.
c. There is clear consensus that the Philippines can
easily recover lost ground and resume its former pace
of growth in 2015.

21. 3. Will the Bubble Burst?
a. BSP is on top of the situation.
b. Pre-emptive measures:
a.1. Mandated all commercial banks to provide adequate
capital requirements in the light of their increasing
exposure to real estate loans
b.2. Objective is to make sure banks would be capable of
absorbing risks in the event of a shock.
b.3. Will start releasing its real estate price index in 2015 to
better monitor prices, precisely to avoid possible bubble
assets from forming

22. 4. Land Values Are in Step with Market Forces
a. Market forces govern current land values and prices.
b. High demand for choice land in Metro Manila is
driving the price of land in the growth areas beyond
the 1997 level, when the Asian Financial Crisis struck.
But there are no signs of nervousness.
c. Property developers with so much confidence in the
local property market are prepared to bid high for the
limited supply of suitable and large enough land in
Metro Manila, even if this has the effect of pushing
up skyrocketing prices of land in the growth areas.

23. 4. Land Values Are in Step with Market Forces
d. Colliers International reports that two (2) parcels of
land (both 1,600 sq.m.) in Fort Bonifacio owned by
GSIS sold at a record of PhP 500,000 and P458,000
per sq.m.
e. Old abandoned JAKA Tower along Ayala Avenue
which marred the skyline of the Makati CBD for many
years is reported to have been sold to Ayala Land.
Although officially undisclosed, the amount is said to
be between P500,000 to P560,000 per sq.m.

24. 5. Boom in the Retail Market
a. Developers catering to a consumption-driven
economy.
b. In early 2013, some 170,000 sq.m. of new retail space
entered the market. Of this, some 100,000 sq.m. is
expected to have been completed before the end of
2014.
c. Some of the new malls that opened in 2014:
Fisher Mall and Fairview Terraces in Quezon City,
Century Mall in Makati, The District and Unimart
Capitol Commons in Pasig City, SM Aura in Bonifacio
Global City.

25. Fisher Mall, Along Quezon Ave., Quezon City
Fairview Terraces, Quezon City
Century City Mall, Makati City
New Malls in Metro Manila

26. SM Aura, Bonifacio Global City

27. 5. Boom in the Retail Market
d. International brands are coming in from everywhere
– North America, Europe, Asia, Australia, Middle East,
and fuelling greater spending by the consumers in the
country.
e. In 2014 alone, more than 250 international
establishments under coffee and restaurants, luxury
and business, and mid-range fashion retailers entered
the Philippines. In mid-October, Swedish retailer
H&M unveiled its 3,000-sq.m. flagship store at SM
Megamall with four more branches set to open
before year’s end.

28. 5. Boom in the Retail Market
f. Sudden proliferation of convenience stores all over the
metropolis and into the secondary cities in the
provinces.
In 2012, according to a Wall Street Journal report, only
7-Eleven and Mini Stop controlled the convenience
store market. In recent months, they have been
joined by Family Mart, All Day, Circle K, Alfamart, and
Lawson.
The current forecast is for the number of convenience
stores to double from 2,000 today to about 4,000 in
four years.

29. 6. Real Estate Development is Less and Less
Metro Manila-Centric
a. Metro Manila has breached its carrying capacity and
it is time to push development to other areas. It now
appears that it is the real estate developers that are
making this happen.
b. There is growing consensus that “the Philippines is
(now) becoming less Metro Manila –centric, and real
estate developments have started to move outside
the capital”

30. 6. Real Estate Development is Less and Less
Metro Manila-Centric
c. There is free opportunity to ensure that the new project
master plans will be harmonious with the Comprehensive
Land Use and Development Plans of the host cities or
provinces or regions where the new projects are being put
up. Hopefully, there are honest-to-goodness CLUPs and
CDPs that will serve as framework for the emerging urban
development projects.
d. Cebu and Iloilo in the south, and Pampanga and Bulacan
in the north, seem to have been chosen by Megaworld,
Ayala Land and Century Properties to be the sites of the
country’s next-wave cities and critical catalysts of
economic growth.

31. 7. Tagaytay City – A Case in Point
a. Among the big players who have launched their own
projects in this resort city are the SM Group, HPI,
Megaworld, Ayala Land, Vista Land, Robinsons Land,
and Cityland
b. Records show that total inventory of projects in
Tagaytay for a period of three years amounted to
P28.59 Billion. In 2013, after three years, only
P10.972 Billion of inventory remained.
In other words, sales have been brisk at about P 829
Million a month, or P6.8 Billion a year.

32. 7. Tagaytay City – A Case in Point
c. Condominium projects appear to be the leading
development (80% of inventory), as dictated by the
market demand.
d. Market observers say that the prospects for 2014 and
2015 could be even better.
e. But development seems to be happening without
reference to a master plan. Traffic is becoming a major
problem going to and around the city. Some of the
structures are downgrading the natural scenic beauty of
Tagaytay which was the best attraction in the first place.

33. Wind Residences , 15.45 has., (SMDC), 3250 units
Project Development in Tagaytay City
Tagaytay Highlands, 1,290 has., (Highland Prime, Inc.) Summit Ridge, Robinsons Land
Sky Ranch (SMDC)

34. Kasa Luntian , (Alveo - Ayala)
Project Development in Tagaytay City
Twin Lakes, 1,149 has., (Megaworld) Prime Residences, (Cityland)
Serin West (Avida – Ayala)

35. 8. Tourism, Gaming and Leisure as
Drivers of New Real Estate
a. Philippine tourism and hospitality industries are being
developed to rival Macau and Las Vegas, with
humongous and instant investments into the country.
b. PAGCOR’s Entertainment City complex in Paranaque City
will see the opening of its second integrated resort this
year – the City of Dreams Manila.

36. 8. Tourism, Gaming and Leisure as
Drivers of New Real Estate
c. This follows Solaire Resorts & Casino of Bloomberry
Resorts Corp. which opened in 2014, and will be
followed by the opening of the Okada Group’s Manila
Bay Resorts in 2015. The Resorts World group has
broken ground on its second property in the complex,
and the plan is to complete it by the 4th quarter of 2018.
d. PAGCOR is looking at $ 7 Billion in gaming revenue by
2019.

37. SOURCE: http://www.pagcor.ph/the-manila-bay-resorts.php

38. Manila Bay Resorts
Owner/Developer: Tiger Resort, Leisure
and Entertainment, Inc.,
(a subsidiary of Universal
Entertainment Corp., led by Japanese
tycoon Mr. Okada Kazuo)
• a 44-hectare facility with ongoing
construction
• to rise within the Entertainment City
complex in Paranaque City come 2015.
• The 30,000 sq.m-casino alone, to open
24/7 and expect 20,000 daily guests,
will have more than 500 table games
and 3,000 machines to offer,
• its man-made beach resort will boast
an impressively looking 100-meter
diameter indoor Glass Dome.

39. 9. New Townships & the Transformation of
Cities into Business Landscapes
a. Government and private sector efforts are changing the
urban landscape through expansion of the property market
as a result of improved public infrastructure, political stability,
control of inflation and keeping interest rates low.
But, clearly, it is the private sector that is leading the effort.
b. Best evidence is the push for the development of new
townships and the continuous transformation of cities into
business landscapes – where pocket developments are
planned and built for self-contained communities in
accordance with the live-work-study-play paradigm.

40. Watch out for development at the FTI Taguig area
AYALA ARCA SOUTH (74 HECTARES)
Transformation of Cities into Business Landscapes
The 74-hectare parcel of
land at the FTI area was
sold to Ayala Land, Inc.
(ALI) for Php24.3 Billion
recently or around
Php33,000 per square
meter,
The project will be a
highly-connected
master-planned business
and residential district
designed to be the
“gateway to the south.”

41. 10. The New Paradigm for New Communities
a. New fact of urban living: Filipinos have accepted the
new community paradigm of live-work-study-play.
b. Thus, thousands upon thousands of OFWs and BPO
workers are buying into communities where residences,
office buildings and facilities, retail outlets, and even
schools are designed side by side and in harmony with
each other.

42. 10. The New Paradigm for New Communities
c. More and more foreigners are also buying into these
communities:
Expatriates in the employ of outsourcing and offshoring
(O&O) companies that favor the Philippines as the
location for their business.
Citizens from other countries who are actively
participating in the ASEAN economic integration
program and come to the Philippines to work, study,
play, or simply live.

43. 11. Business Process Opportunities are
Driving the New Developments
a. O&O and BPO investors and locators are clear targets of
the new townships, which are pre-selling strongly.
These projects can be seen across CBDs – Bayshore in
Pasay City; City Gate in Makati City, Uptown Bonifacio,
McKinley West, and Arca South in Taguig City; Woodsite
City and Capitol Commons in Pasig City, and Vertis North
in Quezon City.
b. O&O and BPO companies will continue to bank on the
country’s cost efficiency and skilled labor force. Thus,
they are looking for office space in many urban centers
of the country.

44. 11. Business Process Opportunities are
Driving the New Developments
c. Demand for office space is very strong among central
business districts (CBDs) and other major growth
centers of Metro Manila, like Makati City, Bonifacio
Global City, Ortigas Center, Alabang and Pasay City. The
only recent exception has been Quezon City.

45. 12. The Response of Developers
a. Developers, such as SMDC, Vista Land, Ayala Land,
Megaworld, Federal Land, and Century Properties have
been quick to see the possibilities of a more vigorous
industrial sector and are now keen on putting up
developments in areas outside Metro Manila where
these industries are locating.
b. Such upbeat economic trends are a consistent boost to
the high-end to mid-market demand for luxury, high-
end, affordable and mid-market townships and
condominiums. It is the demand for these
developments that have essentially overpowered the
fears of a property bubble in the residential sector.

46. 13. The Philippines Will Continue to be a Bright
Spot In the Regional Property Market
a. The real property market in the Philippines is not only
alive and well. It is vigorous, ebullient and competitive.
b. With greater improvement in our overall infrastructure
development, basic urban services, more efficient and
dependable mass transport systems, and more
transparent and accountable governance, the Property
Market will thrive and grow even more in the
foreseeable future.

47. 14. Conclusion
Without any doubt, the Philippines will
continue to be one of the brightest spots
in the Asian Regional Property Market.
The year 2015 will contribute further to
our country’s emerging role.

48. Thank you!
Realtor/Developer
Licensed Real Estate Broker,
Licensed Real Estate Appraiser
Licensed Real Estate Consultant