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Philippine home prices recover in Q4

Home prices rebounded in the past quarter, driven by faster increases in residential real estate outside Metro Manila as more families considered building houses outside the city during a coronavirus lockdown, according to the central bank.

In a report released on Friday, the Bangko Sentral ng Pilipinas (BSP) said the Residential Real Estate Price Index inched up by 0.8% from October to December from a year earlier, bouncing back from the 0.4% contraction in the third quarter.

The growth rate was lower than 10.4% in the fourth quarter of 2019, and was the second slowest since a 0.5% rise in the last quarter of 2018.

On a quarterly basis, the index rose by 2.4% during the period, reversing a 14.1% quarter-on-quarter slump in the preceding three months.

“The positive year-on-year growth in the overall residential property prices was driven mainly by those in areas outside the National Capital Region,” BSP said in a statement, noting that the slump in property prices in the capital region continued for the second straight quarter.

The index gauges the average change in home prices across building types and locations and gives the central bank an insight into the property market, bank exposures to which is regulated.

Home prices outside Metro Manila climbed faster by 5.9% in the fourth quarter from 6.4% in the third quarter. But it was still slower than 8.3% in the fourth quarter of 2019.

All types of housing units in areas outside the capital region went up except for condominium units, which went down by 2.1%. The prices of duplex houses jumped by a fifth, town houses by 14.3% and single detached or attached houses by 4.2%.

More Filipinos seeking new homes outside the capital during a coronavirus pandemic might have caused the increase in home prices, according to Nicholas Antonio T. Mapa, a senior economist at ING Bank N.V. Manila.

“The Philippines is mirroring the global exodus out from major cities, with city dwellers trading in their flats for the clean and green of the suburbs outside the concrete jungle,” he said in an e-mailed note. “The ongoing lockdown, which spawned a growing army of plantitos and plantitas indicate that clean and green is the new standard.”

In Metro Manila, the home price index fell by 4.8% in the fourth quarter, softer than the 12.2% contraction in the third quarter. Year on year, home prices turned around from an 18.9% growth in the fourth quarter of 2019.

Residential property loans given by banks continued to fall by 3.6% year on year in past quarter, easing from a 43.3% drop in the previous quarter. On a quarterly basis, loans grew by three-quarters.

In the capital, loans for new homes went down in the past quarter but increased quarterly, BSP said. Loans to new housing units outside the capital region rose both from a year and a quarter earlier.

The central bank said 42.2% of the loans were given to buyers of condominium units, followed by single detached/attached houses (30.5%), townhouses (26.9%) and duplex units (0.4%).

“This is supported by the demand we saw during the pandemic in the latter half of 2020, when people were looking for horizontal project,” Colliers Philippines Research Manager Joey Roi H. Bondoc said by telephone.

He said they expect house prices to continue rising in areas outside the capital, driven by demand, increased government infrastructure spending and the appetite from migrant Filipino workers.

BoP swings to deficit in February

The country’s balance of payments (BoP) swung to a deficit of $2.02 billion in February after the government paid off more foreign loans, central bank data showed.

“The BOP deficit in February 2021 reflected outflows, arising mainly from the Bangko Sentral ng Pilipinas’s (BSP) reserve management operations and the foreign currency withdrawals of the National Government,” it said in a statement.

The Bangko Sentral ng Pilipinas (BSP) reported a surplus of $839 million surplus a year.

These outflows were partly offset by inflows from the central bank’s foreign exchange operations and income from its investments abroad, it added.

The government’s foreign debt stock as of end-January reached P3 trillion, down 3.2% from a month earlier after it repaid P93.49 billion in foreign debt, according to data from the Treasury bureau.

The BoP gives a glimpse of the country’s transactions with the rest of the world. A deficit means more funds left the country, while a surplus shows that more money came in.

The BoP deficit last month reflected the country’s gross international reserves (GIR) of $105.16 billion as of end-February, which was enough buffer to cover 12 months’ worth of imports of goods and payments of services and primary income.

It was also equivalent to 7.5 times the country’s short-term foreign debt based on original maturity and 5.2 times based on residual maturity.

“For 2021, we project exports and imports of goods to grow by 5% and 8% year on year, respectively, especially once the domestic economy reopens in the second half with an expected wider vaccine rollout,” Robert Dan J. Roces, chief economist at Security Bank Corp., said.

He also said the global economy could gather steam given the relatively fast pace of vaccination in several countries, some of which are key trading partners.

Exports fell by 5.2% from a year ago to $5.49 billion in January, while merchandise imports went down by 15% to $7.911 billion, data from the Philippine Statistics Authority showed.

The latest trade data brought the trade deficit to $2.42 billion in January, wider than the $2.149-billion gap in December 2020 but narrower than the year-ago level.

Mr. Roces said the BoP position should post a narrow surplus by year-end as economic recovery gains traction and imports rebound.

The central bank last week revised its BoP surplus projection for 2021 to $6.2 billion, equivalent to 1.6% of economic output, from its previous outlook of a $8-billion surplus. — Beatrice M. Laforga

Daily COVID-19 tally hits record

The Department of Health (DoH) reported 9,838 coronavirus infections on Friday, the highest daily tally since the start of the pandemic last year.

Friday’s tally surpassed the number on Thursday at 8,773, bringing the total to 702,856, it said in a bulletin.

The death toll rose by 54 to 13,149, while recoveries increased by 663 to 580,689, it said in a bulletin.

There were 109,018 active cases, 95.1% of which were mild, 3% did not show symptoms, 0.7% were critical, 0.8% severe and 0.42% were moderate.

The agency said 29 duplicates and one case found to have tested negative had been removed from the tally. Twenty-two recovered cases were reclassified as deaths. Six laboratories failed to submit data on Mar. 25.

About 9.3 million Filipinos have been tested for the coronavirus as of Mar. 24, according to DoH’s tracker website.

The coronavirus has sickened about 126.1 million and killed 2.8 million people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization. About 101.7 million people have recovered, it said.

Meanwhile, healthcare use in the country was at 41%, while internal care use was nearing the threshold for moderate risk, Health Undersecretary Leopold J. Vega told an online briefing.

More than half of or 54.34% of the 2,306 ICU beds in the country had been occupied as of Mar. 24, according to DoH’s tracker website. Bed occupancy in Metro Manila was at “high moderate risk,” he added.

About 61% of more than 8,000 beds in Metro Manila were occupied.

He recommended increasing bed allocations for coronavirus patients especially in government hospitals, adding that modular hospitals were being built to augment bed capacity.

VACCINE PRIORITY

Meanwhile, an inter-agency task force approved a plan to allot most of the 400,000 CoronaVac shots made by Sinovac Biotech Ltd. and donated by China to areas where more contagious variants of the coronavirus had been detected, presidential spokesman Herminio L. Roque, Jr. said.

The vaccines would be given to areas under the so-called National Regional Capital Plus, as well as Cebu and Davao.
The Philippines took delivery of the 400,000 CoronaVac doses on Wednesday. These were on top of the 600,000 doses donated by China and received in February.

President Rodrigo R. Duterte on Sunday tightened the quarantine restrictions for Metro Manila, Bulacan, Cavite, Laguna and Rizal — the NCR Plus — placing them under a “bubble” from Mar. 22 to Apr. 4.

Mass gatherings and some religious activities were banned and an eight-hour curfew was imposed starting at 10:00 p.m.

Only essential travel into and out of Metro Manila and surrounding areas would be allowed.

Mr. Roque said the task force had allowed religious gatherings once a day from April 1 to 4 at 10% capacity.
Also on Friday, Health Undersecretary Maria Rosario S. Vergeire said the substitution list for vaccination should only include healthcare workers.

She told an online news briefing they had met with regional directors, agencies and local governments on the protocol for vaccination.

The quick substitution list should be prepared so as not to waste vaccines in case those listed for vaccination decline to get the shots.

Meanwhile, Health Secretary Francisco T. Duque on Friday said we would ask the inter-agency task force to move overseas Filipino workers up on the vaccination priority list.

Migrant Filipino workers would be equal to frontline personnel and essential frontliners on the list, he told a House of Representatives committee hearing.

Under the list, health workers are supposed to get vaccinated first, followed by senior citizens, adults with comorbidities, frontline personnel in essential sectors and the poor.

‘Cha-cha’ proposal good as dead

A House of Representatives proposal to relax economic provisions of the 1987 Constitution was “virtually dead” after congressmen failed to approve it before going on a Lenten break, according to a congressman.

The Charter change proposal “is now virtually dead and is headed to the graveyard,” party-list Rep. Michael T. Defensor said in a statement on Friday.

“Sensing public condemnation if he pushed for it amid rising coronavirus infection numbers, Speaker Lord Allan Q. Velasco aborted the planned approval of his Cha-cha resolution before the Lenten break,” he said.

The House committee on constitutional amendments last month adopted a resolution that inserts the phrase “unless otherwise provided by law” in the economic provisions of the Constitution, allowing more foreign ownership in certain industries.

Congress will take a break from March 27 to May 16. Mr. Defensor said they only have nine days before the second regular session adjourns on June 4.

“I don’t think the leadership will try to have the resolution passed during the nine-day sessions,” he said. “Even if the House would approve it, the Senate would no longer have time for it.”

The first few months of the third regular session that starts on July 26 would be allotted to 2022 national budget deliberations and some lawmakers would be filing their candidacies in October for next year’s national elections, Mr. Defensor said

“Clearly, the pandemic and lack of time militate against the Speaker’s Charter amendment effort,” he said.

The remainder of the 18th Congress would address measures for economic recovery and financial assistance to the poor, he added. — Vann Marlo M. Villegas

Another magistrate files for early retirement

Another Supreme Court justice has filed for early retirement for health reasons, according to its spokesman.

Associate Justice Edgardo L. Delos Santos wanted to retire before his retirement date on June 12, just a year and three months after his appointment, court spokesman Brian Keith F. Hosaka said in a Viber group message on Friday.

Mr. Delos Santos has yet to write a formal retirement letter, but he had written to his staff about his plan so they could plan for their employment, he said.

Chief Justice Diosdado M. Peralta’s early retirement takes effect on March 27.

“I have agonized over this decision to hang my judicial robe early,” Mr. Delos Santos said in his letter, a copy of which was provided by the court spokesman.

“I spent sleepless nights trying to think better — no, make that — the best way to announce my decision to you, my staff, in light of trying times we are currently experiencing,” he added. — Bianca Angelica D. Añago

Baguio police told to stop red tagging

A Baguio trial court has ordered law enforcers in the Cordillera Administrative Region (CAR) to stop tagging four young activists and their groups on social media as communists pending a case filed against the police.

The court issued the order after a hearing on the case on March 24. It will hold another hearing on March 29, according to a copy of the order.

Four young activists earlier asked the court to stop the police from linking them to the New People’s Army — the armed wing of the Communist Party of the Philippines — and other terrorist groups.

Red tagging for the past months had been rampant, the College Editors Guild of the Philippines-Cordillera posted on its Facebook page on Thursday.

“Various complaints and reports had been filed to the Commission on Human Rights-CAR well as to the City Council against such attacks on progressive individuals and organizations,” it added. — Bianca Angelica D. Añago

Pilipinas Shell reports P16-B net loss in 2020

Pilipinas Shell Petroleum Corp. ended last year with a net loss of P16.18 billion due to one-time charges that came with the transformation of its Batangas refinery and the global drop in crude oil prices.

In a regulatory filing on Friday, the listed oil company said of last year’s losses, 73% or P12 billion were one-off charges “related to the cessation and transformation” of its refinery in Tabangao into an import facility.

It also said P4.8 billion of the net loss was “due to the drastic decline in crude prices.” The company posted a net income of P5.62 billion in 2019.

Pilipinas Shell President and Chief Executive Officer Cesar G. Romero said in a statement, “Transforming the refinery into a world-class import terminal last August was a difficult but vital decision to make given the negative outlook for the refining sector worsened by the Covid 19 pandemic.”

He said the move was a “very hard decision for Pilipinas Shell but necessary to be more competitive and ratable in the future.” The firm has transformed its shuttered Tabangao re finery in Batangas into an import facility, which now serves Luzon and northern Visayas. The former refinery used to produce 110,000 barrels per day.

Pilipinas Shell also said that it posted a core net income of P400 million by the end of the fourth quarter, swinging from the third quarter’s year-to-date core net loss of P700 million.

In the fourth quarter, the firm’s marketing volume delivery saw a 30% increase compared with the level in the second quarter. However, the firm ended the year with a total volume of 5.1 billion liters, 13% below its pre-pandemic value.

“We are slowly seeing the results of our agility and decisiveness to thrive from the challenges posed by the global pandemic. We are confident about driving fuel mobility and getting the country back on track as the country recovers from the impact of the pandemic,” Mr. Romero said.

The firm added that it was able to “keep its balance sheet strong” as it was able to reduce its gearing to 41% in the fourth quarter. This was supported by positive cash flow from operations.

Pilipinas Shell also reported that it had exceeded its cash conservation targets, with P3.9 billion in capital and operating expenditure savings, almost double the P2 billion target it set for itself in 2020.

The company detailed its plans to add two more medium-range import terminals by 2025. It said that it is allotting a yearly capital expenditure of around P1 billion per year to “strengthen its supply chain across the country.”

Shares in Pilipinas Shell, the country’s second-largest in terms of market share, rose 1.46% or 30 centavos to close at P20.80 apiece on Friday.

NOTICE TO PROCEED

In a separate development, the Department of Energy (DoE) has issued a permit to a Shell company in the Philippines to proceed with its liquefied natural gas (LNG) project.

“Shell was issued the Notice to Proceed (NTP) recently on March 16, 2021,” said Ma. Laura L. Saguin, division chief at the DoE’s Oil Industry Management Bureau- Natural Gas Management Division, in an e-mail on Thursday.

This came after DoE Assistant Secretary Leonido J. Pulido earlier said in a virtual event that the department was evaluating the applications of two prospective LNG terminal builders.

Ms. Saguin did not give further details on the Shell unit that received the NTP, and whether the notice covered an onshore LNG facility or a floating storage and regasification unit.

Pilipinas Shell Communications and Social Performance Manager Cesar C. Abaricia said in a Viber message, the notice to proceed “will enable us to further explore the opportunity of importing LNG into the Philippines.”

“The Philippines is an important country for Shell,” he said.

Mr. Abaricia added that the group “is keen to continue working with the country to meet its growing energy requirements. Shell continues to pursue opportunities where it can leverage its global expertise to provide more and cleaner energy solutions.” — Angelica Y. Yang

TRB approves provisional toll rates for Skyway 3

The Toll Regulatory Board (TRB) has approved San Miguel Corp.’s (SMC) Skyway Stage 3 provisional toll rates.

“Please note, however, that the approval of provisional toll rates does not automatically mean that the proponent may immediately be given the authority to start collecting toll fees,” the TRB said in a statement on Friday.

Class 1 vehicles like cars and vans that use the skyway from Buendia to Sta. Mesa will pay P105; P30 from Sta. Mesa to Ramon Magsaysay; P129 from Ramon Magsaysay to North Luzon Expressway (NLEX) Balintawak; and P264 from Buendia to NLEX Balintawak.

Rates will double for Class 2 vehicles like buses and trucks and triple for Class 3 vehicles like large trucks.

The toll regulator said the provisional toll fee matrix will be published once a week for three consecutive weeks.

A bond will also be required to be posted by San Miguel.

The TRB also said the testing of Skyway 3’s toll collection equipment and system will start on Monday, March 29.

The testing will take place in areas where toll road facilities have been completed, it added.

This is to make sure that “there are no system glitches or flaws to avoid a repeat of the RFID (radio-frequency identification) problems we had in the past,” the toll regulator noted.

There are four conditions that San Miguel has to meet before it could start collecting fees: At least 95% completion rate, the project must be in accordance with the approved plans, safe and commercially operable, and toll road facilities have been installed.

Last week, SMC President and Chief Operating Officer Ramon S. Ang said the project was “97% complete.”

The TRB said it was validating Mr. Ang’s claim “as part of its regulatory function to check possible oversight on the computation.”

Skyway Stage 3 links the South Luzon Expressway in Alabang to NLEX in Balintawak. — Arjay L. Balinbin

More flights cancelled due to travel restrictions

Local airlines have cancelled more flights because of the travel restrictions imposed by the Philippine government.

Flag carrier Philippine Airlines (PAL) announced on Friday the cancellation of several international flights “to comply with the continuing restrictions that limit the maximum number of passenger arrivals from international flights to 1,500 a day for all airlines combined into Manila until 8:00 a.m. of April 19.”

PAL said a total of 75 international flights from March 26 to April 5 were cancelled, including flights from Dammam, Tokyo, Osaka, Singapore, Fukuoka, Dubai, and Hong Kong to Manila.

The flag carrier said it would continue to announce additional flight cancellations for the remainder of the period.

On March 23, budget carrier Cebu Pacific also announced the cancellation of a total of 36 domestic flights from March 25 to April 4, including flights from Manila to Boracay, Lagazpi, Cauayan, Cebu, Pagadian, Ozamiz, Iloilo, Puerto Princesa, Kalibo, Naga, and Virac.

“Due to the rising cases of COVID-19 (coronavirus disease 2019) in Metro Manila and adjacent provinces, the Philippine government has implemented stricter guidelines in areas belonging in ‘NCR (National Capital Region) Plus’ until April 04, 2021. During this period, only essential travel is allowed in and out of Metro Manila,” Cebu Pacific noted.

Both PAL and Cebu Pacific advised affected passengers to rebook their flights, request refunds or store the amount of their tickets in a travel fund. — Arjay L. Balinbin

Cebu Landmasters sells nearly 60% of units in new condo project

Listed property developer Cebu Landmasters, Inc. (CLI) launched its newest condominium project Mandtra Residences with nearly 60% of units in the first tower sold after three weeks.

Mandtra Residences is the first in the list of projects CLI is collaborating with Cebu Homegrown Developers, Inc.

“Our partnership believes in the innate dynamism and abilities of Cebuano entrepreneurs and professionals and hope to meet their aspirations beginning with well-planned residential communities,” CLI President and Chief Executive Officer Jose R. Soberano III said in a statement on Friday.

He said the joint project allows CLI to have access to “high value locations” to offer a new generation of Cebuano entrepreneurs and professionals “upgraded” living spaces.

“Our exceptional sales velocity indicates we are indeed meeting a highly felt need,” he added.

The P3-billion project features condominium units ranging from 21 square meters (sq.m.) to 41 sq.m., priced from P2.35 million to P4.17 million.

Mandtra Residences will have three towers occupying a 12,405 sq.m. property.

“The planning of this Mandtra project happened in the middle of 2020, in the middle of the uncertainty, but also in the middle of being aware of what kind of home would be healthier, what kind of home would be better and safer,” Jose Franco B. Soberano, CLI director, executive vice president, and chief operating officer, said in an online launch on Friday.

The first tower will have 26 floors with 595 units, from studios to one-bedroom units. Some of these condominium units feature balconies. It is set to be completed in 2025.

The Madtra project includes a retail podium, a sky garden, clubhouse with swimming pools, jogging paths, a fitness gym, and a chapel. These “have been designed to provide homeowners a multi-faceted urban sanctuary.”

Over 7,000 sq.m. of space will be dedicated to amenities.

“You can be assured that the well-being of our residents is prioritized,” Mr. Franco Soberano said.

“Cebu Landmasters [continues] to be very optimistic on what’s in store for 2021,” Mr. Jose R. Soberano III said in the online launch. CLI shares at the stock exchange rose by 1.6% or P0.09 on Friday to close at P5.70. — Keren Concepcion G. Valmonte

PLDT Global eyes expansion of digital services in Asia through Taiwan’s Chief Telecom

PLDT Global Corp. announced on Friday that it is partnering with Chief Telecom Inc. for the expansion of its digital services in Taiwan.

PLDT Global said its partnership with Chief Telecom, a Taiwan-based telecommunications services provider, should also enable the Philippine firm to expand its services to the “rest of Asia.”

The partnership will provide enterprise customers with a “one-stop shop offering connectivity services across borders, for fast service delivery and competitive offerings via cloud connection, enhanced business continuity services, and security,” PLDT Global said in an e-mailed statement.

Chief Telecom provides cloud services, submarine cable infrastructure, and carrier neutral internet data center services in the region, according to PLDT Global.

Tim Chiang, Chief Telecom senior vice president, said the partnership is a “win- win arrangement” for the Taiwanese firm.

“Through this partnership, we can focus on the growing opportunities for enterprises in Taiwan to expand their business operations across Asia,” he said.

PLDT Global is a communications infrastructure and technology platforms provider.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

Filinvest Land unit seeks approval for REIT offering

Filinvest Land, Inc. (FLI) subsidiary Cyberzone Properties, Inc. (CPI) has filed on Friday the registration statement with the Securities and Exchange Commission (SEC) for its real investment trust (REIT) initial public offering (IPO).

Up to 1.63 billion CPI common shares owned by FLI will be sold through a secondary offer worth P8.30 per share. An overallotment option of 163.42 million CPI common shares, called the option shares, may be availed by a stabilizing agent or a relevant affiliate.

“An application will be made for the listing of the offer shares, together with the rest of the shares of the company, on the main board of the Philippine Stock Exchange, Inc. (PSE),” CPI said in its prospectus.

Both offer shares will be subjected to the same terms and conditions.

Net proceeds are estimated to reach P13.03 billion. Should the overallotment option be exercised, net proceeds may reach P14.35 billion.

“The entire proceeds from the offer will be used by the selling shareholder in accordance with its reinvestment plan,” CPI said in its REIT prospectus.

CPI also plans to change its corporate name to Filinvest REIT Corp., as it seeks to list as Filinvest Development Corp.’s REIT platform. The company is now in the process of applying for the amendment of its articles of incorporation with the SEC.

“The offer shares will be listed and traded on the main board of the PSE under the trading symbol ‘FILRT,’” CPI added.

CPI’s REIT portfolio will include 16 office towers, including one with space for retail in Northgate Cyberzone, Filinvest City, Alabang, and a Cebu-based officer tower with a retail component.

FLI and CPI tapped BPI Capital Corp. as its joint global coordinator, bookrunner, and underwriter. UBS AG Singapore Branch was also selected to act as joint global coordinator and bookrunner.

If the regulatory bodies approve CPI’s REIT IPO plan under Filinvest REIT Corp., it will be the third REIT listing in the country and the second REIT offering this year. — Keren Concepcion G. Valmonte

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