What "CNN International" says about the Philippine Real Estate Market...
The Philippines stands strategically at the crossroads of Asian and international trade, making it an important port of call for both the East and the West. It is within the immediate reach of its Asian neighbours, 2 hours by air from Taipei and Hong Kong, and 4 hours from Tokyo and Seoul. The Philippines is one of the fastest growing economies in Asia. Moreover, the abundance of highly-skilled, English-speaking workers presents investors the opportunity to readily begin business operations. The government’s progressive economic policies have resulted in a most hospitable business climate for local and foreign investors. Generous tax incentives and simplified investment procedures assure investors of highly attractive returns on their investment.
The Philippines is blessed with an abundance of disciplined and well-trained personnel who can effectively meet the most demanding requirements. Philippine Universities and other institutions of higher learning are known to produce proficient managers, engineers, technicians, and support staff, who are generally fluent in English, well-educated and technically competent. Moreover, their high productivity and low turnover ensure business momentum.
Because of the growing population of the Philippines the demand for housing has continued to rise which guarantees a steady stream of interested buyers and tenants as a home is always a rewarding investment as it gives one a sense of pride and ownership. Real estate in prime locations is always an excellent collateral security against loans, and allows financing to be secured anytime. Property in projects that are being sold pre-development generally appreciate in value when the project is finished. Property in projects that are near malls and other such high traffic areas are very easy to rent out.
The US Dollar has a higher investing value because of its 125% increase vis-à-vis the Philippine Peso. Property developments are designed using international standards and concepts, of which the majority are developed near Shopping Malls, Schools, Hospitals and Churches for example. Because of the effects of the 1997 Asian economic downturn, prices are very affordable with many different payment options and financing terms being offered by both large and smaller developers respectively. Static's show that Philippine property appreciates at an average of 10% per year, which is higher than the US property market, thus giving a far higher return on your investment.
Exemption from corporate income tax up to eight years. After an initial 8-year period, a minimum corporate tax of only 5% of gross income, instead of the normal 34% of net income.
Duty free importation of capital equipment, construction materials as well as raw materials used in production.
Tax credit for import substitution.
Exemption from wharfage dues, export tax impost, fees.
Tax credit on domestic capital equipment.
Tax and duty-free importation of breeding stocks and generic materials.
Tax credit on domestic breeding stocks and genetic materials.
Additional deduction for training expenses (labour and management).
Additional deduction for labour expense (50% of wages corresponding to increment in number of direct labour subject to certain conditions).
Permanent resident status for foreign investors and immediate members of the family.
Employment of foreign nationals.
Exemption from SGS inspection.
Simplified import-export procedure.
National Flag: Land Area: 300,000 sq. km. (Archipelago of 7,100 Islands) Coastline: 36,289 Kilometres Geography: Three main island groups: Luzon, Visayas & Mindanao Capital: Manila (Land area - 38.3 sq. km) Political System: The 1987 Constitution provides for a presidential system of government with a bicameral parliament and three (3) equal branches: executive, legislative and judiciary. Population: 76.5 Million (As of May 1, 2000) Projected Population: 82.7 Million (2004) Population Density: 255 persons/sq. km. (As of May 1, 2000) Population Growth Rate: 2.31% (1990 - 2000) Labor Force Population Rate: 68.9 (April 2004) Employment Rate: 86.3 (April 2004) Literacy Rate: 94.6% of total population - among the highest in the world Number of Graduates Annually: Secondary school, over one million, college level, 350,000 Languages Spoken: Filipino, English and other regional dialects Ethnic Profile: Christian Malay 91.5%, Muslim Malay 4%, Chinese 1.5%, others 3% Major Religion: 85% are Roman Catholics, the rest are Protestants and Muslims Climate: Tropical with temperatures ranging from 23-32 °C. Two distinct seasons: Wet (June to October) & Dry (November to May) Currency Unit: Philippine Peso Business Hours: 0800-1700 (Private/Gov't Offices)
Time Zone: GMT +8 hrs. Average Flying Hours:
Tokyo 3:35 Hong Kong 1:20 Jakarta 4:25 Kuala Lumpur 3:30 Paris 16:40 New York 17:30 Singapore 3:00 Sydney 7:40 Shanghai 2:20 Seoul 4:00 San Francisco 11:50 Frankfurt 13:00 Taipei 1:20 Bangkok 3:00 Brunei 2:30 Viet Nam 2:30 Brussels 14:16 London 14:00 GNP: 6.1% (1st Sem 2004) GDP: 6.3% (1st Sem 2004) Inflation: 4.7%, (1st Sem 2004) Exports: US$ 18,734.1 million (1st Sem 2004) Imports: US$ 19,934.9 million (1st Sem 2004) Principal Exports: Electronics (66%); Garments (6%); Machineries/Transport Equipment (5%) Principal Markets: USA, Japan, Netherlands, Hong Kong, Malaysia, Singapore, Taiwan, China
Should you require further information about investing in the Philippines please do contact us.
Elenita Frondoso Mallinson
Licensed Real Estate Broker REBL No. 18393 - N