Monday, May 20, 2019
Monday, May 13, 2019
Property investors today are not confined to investing in their own country. In today’s globalised economy it is in an investor’s best interest to find investments which can offer you the best in terms of yield and profit. In this article we will be looking into why investing in properties in the Philippines can be rewarding for you.
1. A growing Economy
Properties like everything else are hinged by a country’s economic performance. The Philippines is a country whose economy has been rising steadily ever since the year 1960.
The graph below shows us how Philippines Gross Domestic Product or GDP has risen over the years.
Source: tradingeconomics.com
The GDP Value of the Philippines averaged at 69.01 USD Billion in 1960, since then it reached an all-time high of 291.97 USD Billion in 2015.
What’s more rappler.com reports that the GDP of Philippines has grown to up to 7% in the second quarter of 2016. The Philippine economy continues to grow and shows no sign of slowing down anytime soon.
2. Good rental yield
3. High demand for housing
Philippines currently has a population of over 100 million, 44% of whom live in urban settlements or the major cities. Many local Filipinos continue to migrate from rural area to urban areas like Metro Manilla, Cebu and Makati City due to the prospects of better paying jobs, education and healthcare. This has resulted in an increased demand for houses and condominiums in the urban areas which in turn has resulted in the steady growth of the need in rental properties, and a healthy rental yield for investors.
4. Tourism hotspot
Source: tradingeconomics.com
In July 2016 tourist arrivals reached an all-time high of 560872 people. With so many tourists coming in they are going to need a place to stay. This also brings along a high yield for short term renting properties with the average condo being 40 UDS to 60 USD per night.
5. Ownership Law for foreigners
Source:https://www.iqiglobal.com/blog/heres-why-investing-properties-philippines-good-idea/
Thursday, May 2, 2019
Economics
Economic Boom Lifts More People Out of Poverty in Philippines
Go inside the global economy with Stephanie Flanders in her new podcast, Stephanomics. Subscribe via Pocket Cast or iTunes.
The ranks of the poor in Philippines are moderating as the nation sustains among the fastest economic growth in the region.
Filipinos living below the poverty line were estimated at 21 percent of the population in the first half of 2018 compared with 27.6 percent in the same period in 2015, the Philippines Statistics Authority said in a report on Wednesday. The poverty incidence, based on a survey conducted every three years, eased even as inflation accelerated last year.
Poverty declined as infrastructure projects created new jobs and the state expanded its cash handouts. “Thanks to sustained economic growth and critical and broad-based reforms and investments that have translated to employment-generation and social protection,” according to Economic Planning Secretary Ernesto Pernia.
The Philippines is working to meet its target of reducing the poverty rate to at least 14 percent by the end of President Rodrigo Duterte’s term in 2022, his spokesman Salvador Panelo said. To meet that goal, at least a million Filipinos must be lifted from poverty each year. The nation can become an upper middle-income country this year, ahead of its 2022 target, Pernia said.
Highlights
·The poverty threshold -- the minimum amount a family of five must have to meet basic food and non-food needs -- is pegged at 10,481 pesos ($201) a month in the first half of 2018. That’s 11 percent more than in the first half of 2015.
Economic Boom Lifts More People Out of Poverty in Philippines
Go inside the global economy with Stephanie Flanders in her new podcast, Stephanomics. Subscribe via Pocket Cast or iTunes.
The ranks of the poor in Philippines are moderating as the nation sustains among the fastest economic growth in the region.
Filipinos living below the poverty line were estimated at 21 percent of the population in the first half of 2018 compared with 27.6 percent in the same period in 2015, the Philippines Statistics Authority said in a report on Wednesday. The poverty incidence, based on a survey conducted every three years, eased even as inflation accelerated last year.
Poverty declined as infrastructure projects created new jobs and the state expanded its cash handouts. “Thanks to sustained economic growth and critical and broad-based reforms and investments that have translated to employment-generation and social protection,” according to Economic Planning Secretary Ernesto Pernia.
The Philippines is working to meet its target of reducing the poverty rate to at least 14 percent by the end of President Rodrigo Duterte’s term in 2022, his spokesman Salvador Panelo said. To meet that goal, at least a million Filipinos must be lifted from poverty each year. The nation can become an upper middle-income country this year, ahead of its 2022 target, Pernia said.
Highlights
· The poverty threshold -- the minimum amount a family of five must have to meet basic food and non-food needs -- is pegged at 10,481 pesos ($201) a month in the first half of 2018. That’s 11 percent more than in the first half of 2015.
· Filipino families with incomes below the poverty line were estimated at 16.1 percent in the first half of 2018 . That’s less than 22.2 percent in 2015.
· Subsistence incidence or the ratio of Filipino families with incomes below the food threshold of 7,337 pesos a month was estimated at 6.2 percent. That compares with 9.9 percent in 2015.
· Poverty incidence was highest in the Autonomous Region in Muslim Mindanao in the south and lowest in Metro Manila.
Get More
· The International Monetary Fund forecasts that the Philippines will grow 6.5 percent this year and 6.6 percent in 2020.
· Self-rated poverty rose in the third quarter of 2018 with more than half of Filipino families considering themselves poor, according to a Social Weather Stations poll
— With assistance by Siegfrid Alegado, Claire Jiao, and Andreo Calonzo
https://www.bloomberg.com/news/articles/2019-04-10/economic-boom-lifting-more-people-out-of-poverty-in-philippines
PH scores another ratings upgrade from S&P
Standard & Poor’s Ratings Services has upgraded Philippines ratings to “BBB+,” the country’s highest credit rating in history. AP PHOTO/HENNY RAY ABRAMS
MANILA, Philippines — The Philippines earned an upgrade to ‘BBB+’ — its highest credit rating in history — from global debt watcher Standard & Poor’s, which cited the country’s strong growth trajectory, healthy external position, and sustainable public finances.
Now standing two notches above the coveted investment grade rating, this development will likely translate to lower borrowing costs from the international market for both the government and private corporations. This, in turn, translates to cheaper financing options for the domestic market that could help boost the economy further.
“We raised the rating to reflect the Philippines’ strong economic growth trajectory, which we expect to continue to drive constructive development outcomes and underpin broader credit metrics over the medium term,” S&P said. “The rating is also supported by solid government fiscal accounts, low public indebtedness, and the economy’s sound external settings.”
Previous to Tuesday’s upgrade, the Philippines received its first investment grade rating from another international debt watcher, Fitch Ratings, in 2013.
“Credit belongs to President Duterte’s strong leadership and his 10-point economic program,” Finance Secretary Carlos Dominguez III said in a text message to the Inquirer.
Bangko Sentral ng Pilipinas Governor Benjamin Diokno said the upgrade was “well deserved” and showed that the administration’s economic team “is working in the right direction.”
“But we know the job is not done,” he said. “We will continue to work unceasingly until we get an A-rating.”
S&P also gave the country a “stable” outlook which, it said, “reflects our view that the Philippine economy will maintain its strong momentum over the medium term, in combination with contained fiscal deficits and stable public indebtedness.”
“We may raise the ratings over the next two years if the government makes significant further achievements in its fiscal reform program, or if the country’s external position improves such that its status as a net external creditor becomes more secure over the long term,” the credit watcher said. “We may also raise the ratings if we find that the institutional settings in the Philippines have improved markedly.”
“We may lower the ratings if the government’s fiscal program leads to much higher-than-expected net general government debt levels, or if real GDP growth declines significantly,” it, however, warned.
In deciding to raise the country’s rating to two notches above investment grade, S&P said the country’s economy is “growing at a consistently faster pace than that of its peers,” and that this growth rate should continue over the forecast period as long as the current level of investments are maintained.
S&P noted that Philippine economy is among the fastest growing in the world on a 10-year weighted average per capita basis, which is a reflection of its supportive policy dynamics and improving investment climate.
“The country has a relatively diversified economy with an increasingly strong track record of high and stable growth,” the credit watcher said. “We estimate gross domestic product per capita will rise to almost $3,400 in 2019. We project GDP per capita growth will average approximately 4.9 percent per year over 2019-2022, based on balanced contributions from private consumption and investment growth.”
S&P also cited the country’s unemployment rate, which has been declining for a few years, signaling the economy’s strengthening labor market even as the working-age population continues to grow.
https://business.inquirer.net/269537/ph-scores-another-ratings-upgrade-from-sp?fbclid=IwAR3Pi731a3ZYSavM-je-z5n_FKtmYaQTFlfG0ERi_35cBwF-6GX2LXS27ew#ixzz5mZVbdO5g
Wednesday, May 1, 2019
Verano By Grand Taipan Bags 2 Awards from Property Guru
Grand Taipan President Joeben Tai (left) receives the award for Best Condo Architectural Design, from Christophe Vicic, country head of Jones Lang LaSalle Philippines Inc. and member of the panel of judges.
VERANO Greenhills, a new residential condominium project on Annapolis St. in Greenhills, San Juan by developer Grand Taipan, has won two prestigious awards—for architecture and interior design—from the 2018 Property Guru Philippines Property Awards.
Grand Taipan has tapped the services of two world-class firms to make sure that Verano Greenhills will be an establishment designed for utmost class and comfort. Asya Design, the country’s premiere architectural firm, lent its expertise in architecture; while Hirsch Bedner Associates, the world’s leading hospitality design firm, helped the Grand Taipan property in bringing its vision of a modern and sophisticated residential community to life.
Tuesday, April 30, 2019
Japanese Debt watcher raises PHL outlook to " POSITIVE "
Japanese debt watcher raises PHL outlook to ‘positive’
THE Philippines is closer to securing a single-A credit rating from Japanese Credit Rating (JCR) Agency, after the debt watcher raised its outlook on the country to BBB+ positive from BBB+ stable.
In a statement, the government’s Investor Relations Office (IRO) said JCR upgraded the outlook on the Philippines because of the “government’s twin efforts to accelerate infrastructure development and boost revenues through tax reform.”
“JCR’s BBB+ rating with positive outlook is just one notch away from a single-A credit rating… A single A credit rating will place the Philippines on the radar screen of even more portfolio investors, given that some institutional investors have a policy of investing only in bonds issued by A-rated sovereigns or corporate entities,” the IRO said.
The JCR report was quoted as saying “infrastructure development has accelerated under the Duterte administration amid expanding expenditures based on its Public Investment Program and improved budget execution rate brought by budget reforms.”
Under the “Build Build Build” program, the administration has committed to to spend up to P8 trillion on priority infrastructure projects up to 2022, when President Rodrigo R. Duterte ends his six-year term.
The Japanese debt watcher also cited the government’s tax reform efforts. “As part of its efforts to secure the necessary financial resources for such expanding expenditures, the government has been vigorously pursuing its comprehensive tax reform program (CTRP),” it said.
Mr. Duterte has so far signed two tax reforms into law, the Tax Reform for Acceleration and Inclusion (TRAIN) Act and Tax Amnesty Act. Other key tax measures, including the Tax Reform for Attracting Better and High-quality Opportunities (TRABAHO) bill, are still pending in Congress.
Finance Secretary Carlos Dominguez III said the JCR’s positive outlook is a “recognition of the Duterte administration’s aggressive yet prudent economic policy of spending big on infrastructure modernization while maintaining fiscal discipline.”
“The Philippines’ robust economy is sustainable over the long haul, in part, because of the BSP’s commitment to maintain price stability and the soundness of the banking and financial system,” Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said.
“The BSP will continue to provide an enabling environment for sustainable, robust, and more inclusive economic growth by staying committed to its price and financial stability mandates,” Mr. Diokno added.
JCR also noted that the robust banking system is providing support to sustainability of the country’s economic growth. It cited the banking system’s low exposure to bad debts, with the non-performing loan (NPL) ratio at 1.8%, and sufficient capitalization, with the capital adequacy ratio at 15%, in 2018.
The Philippines currently has investment-grade credit ratings from Moody’s Investors Service, Fitch Ratings and S&P Global Ratings. — RJNI
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