Transcript A Look at the Philippines

ASIA/PACIFIC & INTERNATIONAL REAL ESTATE
7. A Look at the Philippines
Page 129
Slide 6-1
Geography
Page 130
Slide 6-2
Philippine Diaspora
12 million Overseas Filipinos (OF), Overseas
Filipino Workers (OFW)
Workers’ remittances $20.1 billion, 13% of
GDP
2nd largest Asian-American group in U.S.
California, Hawaii, Illinois, New Jersey, New
York, Washington, D.C., Texas, and Florida
Median household income of $78,000
Page 131
Slide 6-3
Philippine Economy
Exports to: China, United States, Singapore,
and Japan
 Agricultural
 Industrial
 Mining
Infrastructure impedes development outside
metro areas
Tourism potential
Page 133
Slide 6-4
Overtaking India
English-speaking workers
Service attitudes
Low wages & office rents
Makati City, Manila,
Quezon City, Cebu City
The Big Story
Business Processing
Centers
Page 133
Driving office space,
residential, retail
development
Slide 6-5
Two Trends
Seat leasing
Serviced offices
 Turnkey
 Furnished office spaces
 Fully equipped call
center operation base
 All expenses non-rent
expenses included
 Company only needs to
supply the workers
 May furnish support
staff
Page 134
Slide 6-6
BERDE
Building for Ecologically Responsive
Design Excellence
Philippine Green Building Council
Local green building rating system
Patterned after LEED
Page 135
Slide 6-7
Foreign Ownership of Real Estate
Cannot own land
Condos okay if no more than 40% foreign
occupancy
Single-family home okay but not the land
Foreign natural heirs of a Filipino citizen may
inherit, cannot sell to foreigner
Corporations less than 40% foreign
ownership may acquire land
Page 135
Slide 6-8
Homeownership
Influx of expatriates and retirees keeps
market active
government encourages return of
expatriates, those with family ties
Citizenship Retention and Reacquisition Act
Special Resident Retiree’s Visa
Page 135-136
Slide 6-9
Luxury condos
 2–3 month’s rent deposit
 Rent paid in advance, postdated checks
Standard rental
 2 month’s rent deposit
“Customs of the place “
Rental Property
Page 136
Slide 6-10
Real Estate Professionals
in the Philippines
National licensing
Challenge to develop the real estate
management skills
Chamber of Real Estate and Builders
Association
Page 137
Slide 6-11
Names
Initial Contact and
Introductions
Business Cards
Negotiations and Decisions
Demeanor
Doing Business in
the Philippines
Beyond the Basics
Page 141-143
Social Etiquette
Slide 6-12