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China Bank posts higher profit as core businesses continue to grow

CHINA BANKING Corp. (China Bank) posted higher net earnings in the third quarter as its core businesses continued to grow despite the coronavirus pandemic.

China Bank’s net income reached P3 billion in the third quarter, higher by 21% compared with the P2.5 billion posted in the comparable year-ago period, the lender said in a disclosure to the local bourse on Thursday.

This brought its net profit for the first nine months to P8.2 billion, 23% bigger than the P6.7 billion it booked in the same period in 2019.

This translated to a return on equity of 11.15%, up from 9.92% the previous year.

The bank’s assets stood at P1 trillion at end-September, P60 billion more than the year-ago level and also beyond China Bank’s year-end target, it said. This resulted in a return on assets of 1.11%.

“The year 2020 has been very challenging, but with the hard work and commitment of our employees, we are able to pull through and provide the needed banking services and support to our clients,” China Bank President William C. Whang was quoted as saying.

“We are still expecting continuing challenges from a difficult environment, and the results give us the buffer to absorb further stresses down the road.” Mr. Whang said.

China Bank’s net interest income jumped 35% to P25 billion in the first nine months from P18.7 billion a year ago, which it attributed to a 36% decrease in its interest expense. This resulted in a net interest margin of 3.89%.

The bank said its fee-based income also rose 35% to P7 billion on the back of an almost fourfold increase in trading gains and as income from its trust business grew 15%.

China Bank’s loan portfolio rose 6% to P595 billion as of September, while deposits with the bank also climbed 6% to P827 billion. This resulted in a loans-to-deposit ratio of 72% for the period.

Even as its lending book continued to grow, asset quality remained healthy, with the bank’s nonperforming loan (NPL) ratio at 2.5% as of September. Meanwhile, NPL cover was at 104%.

The lender’s loan loss reserves amounted to P6.3 billion, 12 times bigger than the year-ago level. China Bank said it hiked its provisions for possible credit losses amid the anticipated impact of the coronavirus pandemic and lockdown measures on asset quality, adding it “continues to work with borrowers experiencing financial difficulty under the current circumstances.”

Meanwhile, China Bank’s operating income exclusive of trading gains climbed 24% to P28 billion in the first nine months, while operating costs went up 6% to P16 billion. This caused its cost-to-income ratio to improve to 51% from 65% last year.

The bank said its capital grew 9% to P101 billion, with its common equity Tier 1 ratio standing at 13.08% and its total capital adequacy ratio at 13.99%, both above the regulatory requirements.

“Amid the pandemic, China Bank’s capital and liquidity position remains strong. We continue to productively deploy resources to drive strategic growth, finance our clients’ needs, and contribute to the country’s economic recovery,” China Bank Chief Finance Officer Patrick D. Cheng was quoted as saying.

China Bank’s shares closed at P21.60 apiece on Thursday, down by five centavos or 0.23% from its previous finish. — K.K.T. Jose

Dizon Copper-Silver Mines posts lower Q3 net loss

MINING FIRM Dizon Copper-Silver Mines, Inc. trimmed its net loss in the third quarter to P276,845 due to lower mining maintenance expenses.

In a disclosure to the stock exchange on Thursday, the company said its third-quarter result is 57.6% lower compared with the P652,363 net loss it recorded in the similar period last year.

Administrative and mine site expenses for the quarter fell 57.6% to P276,998.

For the nine-month period, the company said its net loss declined 38.1% year on year to P919,884, against P1.49 million a year ago.

Further, its total administrative and mine site expenses fell 38% year on year to P920,519.

“The company’s present activities are confined to the care and maintenance of the mine site and the properties therein specifically the tailings dam,” the disclosure said.

The company said it is still involved in the upkeep of the Bayarong Tailings Dam and its properties, adding that it has continued to maintain the major dam structures to avoid overspill of dam water in accordance with guidelines from the Mines and Geosciences Bureau and the Department of Environment and Natural Resources (DENR).

Meanwhile, the mining company said it plans to improve its stockholder’s equity by issuing 22,162,501 new common shares that can be issued at a premium over par.

It said that the issuance must be the same or near the current market price of its shares in the Philippine Stock Exchange.

“The company has an authorized capital stock of 101,250,000 with a par value of P1 per share but only 79,087,499 shares are subscribed and fully paid,” the disclosure said.

“Once completed, the premium over par may create additional paid-in capital of up to around P132 million,” it added.

Further, it said it is still finding a potential partner that can provide fresh capital for its projects through increasing the company’s authorized capital stock.

The company added that one project it is targeting is to extract the residual gold from the mine tailings stored in the Bayarong Tailings Dam.

The company also announced that it has applied for a mineral processing permit with the DENR for the said gold tailings located in Zambales.

“The company is looking for potential investors for a possible joint venture for the processing and operational rights of the Dizon tailings,” the disclosure said.

In December 2019, the company sold its property Port of Dizon, a storage facility in Subic, Zambales used for copper concentrates and a loading pier spanning 20,534 square meters, to Sunplaza Development Corp. for P100 million.

On Thursday, shares in the company ended unchanged at P7.81 per piece. — Revin Mikhael D. Ochave

‘Management prerogative’ is a lazy excuse

Our HR manager is a lawyer. The trouble with him is he’s using a lot of legal gobbledygook in defending the rationale behind our company policy. When people ask about the difficulties of a certain policy, he would often cite management prerogative to shut people out of the discussion. I thought that HR people should be diplomatic in dealing with the workers. Is there a better way?  – White Lady.

Citing legal grounds is a powerful argument, but only if common-sense solutions have been exhausted. In other words, you can only cite management prerogative when a dispute has reached the courts, but not when you’re trying to defend certain policies in the eyes of the workers.

People complain because of unreasonable company rules which are usually rooted in the command-and-control style of management, if not outright ignorance. Take this one current example raised by someone who is working from home. He was told of a new management directive that all workers similarly situated must ensure their respective computer cameras are on during office hours while working from home.

Is this a legitimate policy? Yes, but it’s not necessarily a smart and sensible move. In the first place, what’s the reason for such a policy? The person who raised the problem was told it’s a legal prerogative of the company, but was not told of the rationale behind it.

Therefore, we can only hazard a guess.

Maybe management wants to ensure that all workers remain productive. But aren’t there other options to ensure that we achieve productivity? For instance, why don’t they agree on a specific goal, the resources to be used, and reasonable timelines on a daily basis, without management haveing to do close supervision?

Management can also ask the workers to report their progress every four hours. But that’s too much. Eight hours is more reasonable for me.

The concerned worker doesn’t know th underlying reasons and he might be afraid to challenge that policy for fear of reprisal. He’s blindly following orders from a micromanager. And that’s the root of the problem.

Management prerogative is not absolute. It has limitations under the law, by an employment contract, industry standards or a Collective Bargaining Agreement as long as the policies are fair. Therefore, management prerogative should only be cited as a last resort whenever employees make unreasonable and repetitive inquiries.

And we’re not even sure if such a policy of having a computer camera open during office hours by people working from home is in violation of the Data Privacy Act. So, if we’re not sure, why create another problem?

INFLUENCING THE WORKERS
American self-improvement expert Dale Carnegie (1888-1955) advised us: “The only way to influence people is to talk in terms of what the other person wants.” Do all employees want to increase their productivity? Surely, they would want that. There are only very few people who are lazy at work. For instance, if both the workers and their management agree that higher productivity is the way forward, then they must explore all possible means to make it happen. Under the principle of co-ownership, it’s better to ask the employees how they would solve a management concern, in this case increasing labor productivity.

Would that include turning on a camera while one is working? I doubt it. Most people hate micromanagement. They want flexibility and freedom to do their job without working in a fishbowl.

Carnegie said: “I have stopped talking about what I want. I am now trying to see the other person’s viewpoint. And these things have literally revolutionized my life. I am a totally different man, a happier man, a richer man, richer in friendships and happiness — the only things that matter much after all.”

Management should stop talking about prerogative. It’s a lazy excuse. As I said earlier, it should be the last resort. After all, there are many options available for creating situations where everyone’s voice is heard, processed, and analyzed. There’s no need for management to be pressured into accepting ideas it doesn’t want. If an idea is not feasible, then the best way is to explain it to the workers.

MUTUALITY
The real question is this: Is your manager willing to make their camera operational during office hours so they can be seen by the workers as well? I’m sure your HR manager and other department managers will also dislike the idea if the CEO asks them to comply with that policy. If not, then that’s clearly an unfair situation.

Sure, toxic managers would tell their employees: “Come up to my level before challenging my policy.” If it has come to that level of discussion, then that manager will not last. Therefore, elevating the discussion between labor and management to a higher level is always desirable.

That’s what we should always aim for. If management is successful, it will be viewed as full of energy and willing to discuss anything with the workers. Otherwise, if it cannot explain itself, then it doesn’t know what needs to be done to create a vibrant workplace.

Management can be in control but not to the point of making their workers work like zombies. In an ideal world, management must allow workers a bit of freedom and flexibility, which they can reciprocate by doing an excellent job. Clearly, trust begets trust.

 

Send anonymous questions to elbonomics@gmail.com or via https://reyelbo.consulting

A community that empowers people to move forward

By HANNAH MALLORCA

A home is a place of solace during difficult times. But as we move forward to an uncertain future, there’s always a community to help us bounce back. The current health threat is a call for communities to work together to recover.

In a community-friendly neighborhood like Lancaster New City in Cavite, residents are slowly rising from difficult times through the spirit of Bayanihan. Collaboration is a priority and every LNCitizen has each other’s back, especially during this pandemic.

Being in a family-friendly neighborhood plays a significant role in helping the residents to continue ahead. Here are ways on how the Lancaster residents empower one another to move forward.

Assisting through virtual means

Despite the limited face-to-face interaction, the Lancaster community does not stop helping home seekers to look for the home of their dreams.

Lancaster holds virtual tours on its official website and social media accounts to keep people informed. With the use of videos and drone shots of the township, home-seekers are aware of what they can expect.

The use of virtual tours in social media is helpful for LNCitizens as well. Aside from serving as a virtual real estate agent, it’s also a source of information for the community.

Once you visit Lancaster’s Facebook account, updates on monthly amortizations, new establishments, and nearby locations are posted regularly.

Treating one another like family

In the Lancaster community, no one gets left behind, even if they’re living in a difficult time. Every LNCitizen makes an effort to make others feel special.

This can be seen in the story of Julie Nicolas, a financial advisor who moved out of the city with her family to begin a new life in Lancaster. Aside from its peaceful environment, Julie noted that its community has helped her to move forward.

“Ganun katutok talaga sa community ang Lancaster New City — hindi lang sa mismong bahay. Parang nakatutok sa comfortability ng mga tao which is bihira nang magkaroon ng ganyang service sa subdivision,” she adds.

Julie shared that the neighborhood was welcoming to their family. For her, it was also one of the reasons why she was able to take a step towards recovery.

“Naka-establish din kami ng extended family na kahit hindi kayo blood-related, parang considered family mo sila. So, talagang marami kaming naging kaibigan dito,” she shares. “Mas marami talaga kaming comfortability nanararanasan compared to others.”

Lucky Repelar, another homeowner, is one of the reasons why Lancaster is family-friendly for homeowners and home-seekers. During the quarantine’s early weeks, she would prepare food for her fellow LNCitizens, guards, store personnel, and street cleaners. She also made face masks and face shields and distributed them.

Extending support

The Lancaster community empowers one another to move forward in various ways. As we transition to digital, it was an opportunity for the neighborhood to develop its collaborative efforts.

For Julie, PasaBUY is a joint effort in the community that helped her family get essential needs, especially during the quarantine. Organized by the Lancaster community, homeowners create group chats to share scheduled trips to the supermarket, drugstore and other shops.

“Maraming available talaga na mabibilhan online, kasi ang daming homeowners na nag-o-online selling. Aside from PasaBUY, may grocery talagana nag-ooffer sa homeowners ng delivery, ime-message niyo lang sa kanila ano yung item na gusto niyo,” she explains.

Another collaborative effort of the Lancaster community is Tienda Buyani, a website launched to help the Lancaster community order fresh farm-produced vegetables and fruits that can be delivered to their homes.

To help the community, disaster resilience teams have also been organized in case of emergencies.

Filipinos are known for their Bayanihan spirit. The pandemic is a wake-up call for communities to work together to move forward.

In Lancaster New City, the sense of community has always been there. It has only been strengthened by the current health crisis, making every LNCitizen feel that they’re all in this together.

Building a family-friendly community is a priority for Lancaster New City, especially in times of crisis. For more details on Lancaster’s township, you may visit www.lancasternewcity.com.ph or its official Facebook and YouTube pages.

 

 

Stuff to do (10/30/20)

Halloween is online at the Palace Manila

HALLOWEEN at The Palace Manila has always been special, with giant parties and traffic jams outside the club complex. Despite the ongoing pandemic, Halloween at the Palace is not canceled — it is just going virtual with the Online Halloween Bash. This year the parties are being held for a cause: all proceeds generated from the steams will be donated to the Philippine Army General Hospital. Halloween Weekend kicks off on Oct. 30 with “Day of the Dead” at The Island, with the official drink, Jose Cuervo (get a free Day of the Dead facemask when ordering Jose Cuervo Especial Reposado at The Booze Shop). The Island, the biggest open-air party destination in the country, will come back to life with a killer set headlined by DJ Nix Damn P. Opening the show is DJ Katsy Lee, while MC Pao takes over later in the evening. The themed online shows will be free for everyone to watch on The Palace Manila’s official YouTube and Facebook pages on Oct. 30. The party keeps on going until the next night with “The Haunting At The Palace.” On Oct. 31, 9 p.m., Globe and Chivas will transform the premier clubs of the Palace Manila into a creepy parallel world, with DJ Euric and KatDJ who will take over the Xylo deck. To keep the vibe high, Marga on the Mic will be opening the show with a pre-game set with DJ Dara Carmina. Make it a 360 experience and order your drinks from the Palace Manila Online delivery. 

MSO’s Rush Hour Concerts are back

FOR its 30th anniversary, property developer Avida has joined Ayala Museum to bring the Manila Symphony Orchestra’s (MSO) The Rush Hour Concerts online for the very first time. The Oct. 30, 6 p.m., fundraising concert will feature the best Original Pilipino Music of the past 30 years. Every ticket sold for the virtual concert will provide a child with internet access for one year and will benefit some of the most disadvantaged families in Tondo, Batangas, and the MIMAROPA region.  Tickets for the concert can be purchased through the Ayala Museum’s official website, Facebook page, or TicketWorld. Tickets are priced at P1,000; senior citizens, PWDs, students, and teachers can get discounted tickets at P700.

Content creator webinar

THE DE LA SALLE College of Saint Benilde School of Design and Arts will be holding a free public webinar on Nov. 7, 2 p.m., via Zoom, where they will talk about how to help new-generation storytellers conceptualize innovative ways to define and perform art through social media. The webinar, titled “Thriving as a Solo Artist in the Pandemic,” aims to help young professionals and students build their artistic solo career by establishing their own social media channels. The lecture will be facilitated by theater actress and vlogger Kiara Dario and content creator Bea Chu. Interested participants can register until Nov. 6 via https://docs.google.com/forms/d/e/1FAIpQLSejX3kx3-PKrByVpm9rSugzB5JFaMlgVKqVsfsDNV-6qCrP2A/viewform?gxids=7628.

We Rise Together virtual concert

THE 2020 PHILIPPINES-Korea Cultural Exchange Festival’ We Rise Together concert will go online for the first time. Presented by the Embassy of the Republic of Korea and the Korean Cultural Center (KCC) in the Philippines, together with the United Korean Community Association in the Philippines and the National Commission for Culture and the Arts, the show will be streamed on the KCC Facebook and YouTube pages on Oct. 31, 3 p.m. The concert will feature performances by SB19, KZ Tandingan, Dasuri Choi, Star Hunt Academy Boys, World Music Band ID, and Celso Espejo Rondalla. Catch the livestream on Korean Cultural Center in the Philippines‘ Facebook page (https://www.facebook.com/KoreanCulturalCenterPH/) and YouTube channel (www.youtube.com/kccphil).

CCP’s First Children’s Biennale

BELIEVING that arts education and appreciation should begin at a young age, the Cultural Center of the Philippines (CCP) launches a month-long online creative expression biennale for children. Dubbed Arts eXpress: CCP Children’s Biennale, the series of events aims to encourage and develop creativity and artistic expression in children, create new works/activities to focus on children’s appreciation and value for the arts, and engage the participation of the guardians and parents in sustaining the appreciation for the arts. The biennale will kick off on Oct. 31, 4 p.m., on the CCP Facebook Page and will be followed by Tricks and Musical Treats: A PPO Family Concert and a screening of Mala: Ibong Adarna, a re-telling of the myth of the Ibong Adarna directed by Xian Lim. Tanghalang Pilipino Pilipino will be performing a shadow play on Nov. 1 on the CCP Facebook page, based on a number of children’s books. Meanwhile, sopranos Alexa Kaufman and Gerphil Flores will be sharing their experiences while serenading young audiences in Small Voice on Nov. 8. Biennale events will be held every Saturday and Sunday throughout November. 

K-Drama free webinar

AS PART of their Korea at Home campaign, the Embassy of the Republic of Korea and the Korean Cultural Center, together with MIND S-Cool and the BGC Arts Center, have organized a free, live webinar titled “The Role of K-Dramas in Sharing and Shaping Culture Beyond Borders” on Nov. 6 and 7, 9:30 a.m., on the Korean Cultural Center’s YouTube Channel and the BGC Arts Center Facebook page. The event consists of a series of talks focused on discussing K-drama production with Korean entertainment industry professionals, featuring dialogue with some of the Philippines’s celebrated entertainment practitioners. No registration for the webinar is required.

Work from home

The world experienced a lot of “firsts” this monumental 2020. First Zoom wedding, first no All Saints/Souls’ day commemoration at the cemeteries (all memorial tombs will be close to public a week prior to Nov. 1), first no Christmas or year-ender parties. Indeed, the coronavirus has swiftly changed people’s ordinary way of living. The biggest lifestyle change happened in education and in work. The new normal is online schooling and work from home, at least for those who have been blessed to hold on to their office jobs.

For some, particularly those working in the IT field, remote work or working from home is nothing new. In the past decade, they have been accustomed to this setup. For the majority doing this for the first time (with no prior preparation, pushed to do it at the snap of the corona’s fingers), this presents a unique but welcome challenge.  A recent The Economist article reports that working from home seems to favor many white-collar employees. Only 50% of people in five big European countries spend workday in the office. A quarter remains at home full time.

While a number of employers and governments want their employees to go back to the office, there is a ripe debate on the pros and cons of working from home. The same The Economist article cites a number of studies citing that a lot of work can be done from home, and people prefer the arrangement. They call it a “working-from-home happiness boost” that makes workers productive.

A paper in the American Economic Review found that people were willing to take pay cuts to work from home, meaning it provides non-monetary and well- being benefits. Another study of Chinese call center workers found that those who worked from home were more productive (processed more calls). A 2007 study from the US Bureau of Labour Statistics found that home workers are paid higher than equivalent office workers, suggesting higher productivity.

As in any debate, there are those who disagree. Reed Hastings of Netflix says home working is “pure negative.” Facebook and Bloomberg are cited as looking for ways to get staff back in offices by reconfiguring the setup.  There is the view that bringing people together under one roof promotes behavior conducive to new ideas, that there is a positive relationship between proximity and collaboration. Yahoo, a technology firm, tried large scale remote working in the past and abandoned it because “some of the best decisions and insights come from hallway and cafeteria discussions.”

Likewise, the economists at Harvard, Stanford and NYU found that the average workday under lockdown was nearly 50 minutes longer than it was before, and they more likely send e-mails after work hours, and this challenges how much people enjoy the new scenario. And those who enjoyed working from home eventually wanted to go back to the office because they were lonely, even if occasionally.

Then, not everyone has the ability to work from home even if they want to. There are many distractions.  People cannot focus because of the uncertainty going on around us and the responsibilities at home. To name a few, there are household chores that need to be done, kids to be assisted in their online classes and that addictive Netflix temptation. It is difficult to draw the boundaries between work and life balance. The natural tendency is to start work late and end late, work at the evenings and on weekends and work outside of the usual hours with online communications open 24/7.

The pandemic has allowed us to debate this issue and actually test its efficacy. In addition to the technology challenges of work from home, there are other issues to confront — legal, social and cultural. There are those concerned about job security and social protection. No matter how this is resolved, the future will reveal some types of hybrid arrangements.

Thus, we need to find ways to make working from home productive.  These five points from Regina Borsellino might be helpful:

• Get dressed. It is a fresh starter sending a signal that to get things done. Changing clothes need not to be as formal as you might look when you are at the office, but it should be suitable for public viewing.

• Designate an office space at your home. A lot of people see it blurry to delineate work and home while at home. This will help one to still find the work and life balance even at home.

• Keep clearly defined working hours. You must stick to your actual office hours, just like when you are at your actual office. When the working time is done, then it is the time to disconnect and give your family the full attention they deserve

• Don’t get too sucked with the news and anything else. Staying informed is ok but if it will lead to relentless worries affecting work, then turning off news notification during work time may help to keep anxieties at bay.

• Communicate and don’t forget to socialize. Staying connected to one another, checking in, doing virtual meetings will help manage expectations and convey the tasks that needs to be done. Constant communication with colleagues not only prevents miscommunication rather help us feel less lonely and breaks the monotony at work.

Now that we are setting the stage for our new normal, adjustments must be made. In time, corona will also be gone. For those who are blessed to be given a chance to work from home, do it well. Given our learnings this year, it will surely be part, if not the whole, of your new work environment.

The views expressed herein are his own and does not necessarily reflect the opinion of his office as well as FINEX.

 

Benel D. Lagua is Executive Vice President at the Development Bank of the Philippines. He is an active FINEX member and a longtime advocate of risk-based lending for SMEs.

South Luzon seen as an emerging residential hotspot outside the capital

Along with the new normal, the pandemic continues to reshape market preferences in real estate, as the industry shows continued resiliency. Industry watchers are seeing a growing shift from the metro to less-dense locations, made possible by online modes of working, learning, and commerce. Even vacation properties, which used to be regarded as secondary homes, are now being considered as principal residences in the post-pandemic era.

Property listing site Lamudi reports that 83% of respondents on its site have been considering properties away from central business districts. Coincidentally, a similar shift is seen in house type preferences, as house-and lot units have become more attractive to property seekers.

AboitizLand, the Aboitiz group’s real estate arm, sees opportunities in these trends with its South Luzon properties Seafront Residences and The Villages at Lipa benefiting in increased market interest. 

After two decades of developing Cebu’s premier developments, AboitizLand began its national expansion in South Luzon in 2017 with Seafront Residences, a 43-hectare premier seaside community in San Juan, Batangas. After launching several communities in Central Luzon for the next three years, it continued its growth in the South with a fully-integrated community, The Villages at Lipa in Batangas. 

South Luzon sees steady economic growth

Low density condominiums with just 10 units in each building allows safe and relaxed seaside living only in Seafront Residences. (Artist’s Perspective)

The economy of Region IV-A, comprising Cavite, Laguna, Batangas, Rizal, and Quezon (CALABARZON), has remained decidedly resilient, growing by about 6.3 percent a year from 2016 to 2018, making it one of the fastest growing centers in the country. 

Contributing to the growth are infrastructure projects slated to be completed by 2021, such as the North Luzon Expressway (NLEX)-South Luzon Expressway (SLEX) Connector Road. Aiming to cut travel time between the two expressways to just 20 minutes, this project stokes demand for industrial space and complementing residential and commercial properties. 

Home to next wave cities Dasmariñas in Cavite, Sta. Rosa in Laguna, and Lipa in Batangas, South Luzon also attributes its growth to the industrial segment, attracting global players with its robust information technology and manufacturing industries. This constant progression has buoyed demand for integrated communities and standalone residential developments in the region.

Integrated, future-ready communities

AboitizLand’s The VIllages at Lipa boats of signature features like diamond parks and greenbelts — natural green open areas in a network of walkable spaces and amenities. (Artist’s Perspective)

One such example of a development is AboitizLand’s The Villages at Lipa. Nestled inside LIMA, the Aboitiz group’s industrial-anchored township seen to be the next leading mixed-use economic center in the south, The Villages at Lipa provides families with a complete township lifestyle, complemented by LIMA Technology Center, The Outlets at Lipa, LIMA Exchange, Aboitiz Pitch, LIMA Business District, and academic institutions. Situated in Lipa and Malvar, Batangas, the 49-hectare community is far enough from congested megacities but close enough to be able to drive to the familiar sights and sounds of Metro Manila.  

Second homes on the rise 

Opportunities also abound for investors in the market for what used to be considered second homes. With buyers wary of current stock values, relatively stable real estate investments are becoming more attractive.

With work-from-home arrangements becoming the norm, property seekers are more discerning of amenities as people look for home features that allow them to achieve work-life balance while in quarantine.

Seafront Residences provides the attractive prospect of relaxed living by the sea. AboitizLand’s premier beachside community is master-planned by Florida-based DPZ, thought leaders on new urbanist communities, and features designer homes by Budji+Royal. With access to balconies and azoteas, and the many creature comforts of a highly amenitized community, having a stunning view of Tayabas Bay and Mt. Banahaw is now possible even while working remotely.

For those who are looking for apartments living outside the city, Seafront Residences also offers Seafront Villas, a collection of low rise and less dense condominiums with just 10 units in each building. Within a short walk from the beach, lots are also available for those that plan to have houses built or for property appreciation.

Green, less dense spaces preferred 

Environmentally-conscious developments will also become more attractive to people who look towards low-density areas that offer house-and-lot type properties with generous green, open spaces, making social distancing norms possible.

Both Seafront Residences and The VIllages at Lipa communities are characterized by signature features like diamond parks and greenbelts — natural green open areas in a network of walkable spaces and amenities.

Developers adapt to shifting market needs 

Aiding the shift towards these growth centers are property developers adjusting to consumers’ needs with a pivot towards digital and contactless selling, adjusted payment terms and discounts, as well as banks offering low-interest rates to ease homebuyers into investing during a pandemic.

AboitizLand is one of the first developers to respond to changing market needs by taking their operations online and offering end-to-end, digital-based homebuying. As a result, a strong sales take up was seen during the second and third quarters of the year, beating the company’s last year sales figures for the same quarters.

Know more about how life is better at AboitizLand through its contactless homebuying service. To learn more about Seafront Residences and The Villages at Lipa, along with the rest of their residential properties, visit their website at www.aboitizland.com. 

 

For over 25 years, AboitizLand has stayed true to its promise of creating better ways to live through its thriving master-planned communities. A subsidiary of the Aboitiz Group, it is built on a firm foundation with a hundred-year heritage of advancing business and communities. For more information about AboitizLand, visit www.aboitizland.com.

Bringing new life to regional centers

With the effects of the coronavirus disease 2019 (COVID-19) pandemic still being felt worldwide, many leaders and policy makers are turning their minds to recovery. The global economy is experiencing the worst economic depression in a century, and novel ideas must be put forward for the world to bounce back.

In order to address a holistic recovery, there is a call for governments to address economic problems like a lack of dynamism and flexibility, citing the importance of decentralizing economic and capital functions to less populated areas. Such a shift may induce a swifter economic recovery, while simplifying crisis management, and bringing new life to regional centers.

In the Philippines, the initiative to decentralize Metro Manila has long been a focus of the national government. Decentralization would serve to accelerate rural development and revitalize essential industries such as farming and fishery, while reducing the population density of the capital.

Many local and multinational investors are looking to expand their businesses to untapped regional areas in the Philippines, according to international real estate services firm KMC Savills.

“They’re actively looking in provincial areas, a lot closer to where their employees live. They want their employees not to sit in transportation, not to take public transportation, to be able to get to the office very quickly,” said KMC Savills, Inc. Managing Director Michael McCullough at a previous webinar.

Particularly, Pampanga is emerging as a hotspot for investors looking to secure real estate. Global real estate services firm Colliers International tagged the area as having a ‘high potential’ to become a key property investment hub outside Metro Manila.

“The government’s active infrastructure implementation and decentralization program is encouraging developers to look closely at Pampanga, notably Clark Freeport and adjacent cities and municipalities,” the company wrote on one of its market intelligence reports.

“We think the Clark-Angeles-San Fernando corridor (Metro Clark) has high potential to become a key property investment hub outside Metro Manila. We see opportunities for office and residential segments.”

Meanwhile, Colliers noted that property developers are starting to line up leisure and retail segments and plan to tap demand once the pandemic wanes and market sentiment recovers.

“Given the relatively cheap developable land in the area, Colliers believes that the development of integrated communities is a practical route for many developers,” the company added.

Furthermore, the new international gateway facility in Clark will likely improve efficiency of logistics operations in northern Luzon. Colliers pointed out that the completion of the Clark International Airport Expansion project might entice other logistics, information and technology, tourism and outsourcing firms to consider Clark for their operations.

“The improved connectivity should also spur more economic activities and eventually drive the demand for offices, residential and industrial spaces and warehouses in the northern Luzon corridor. Colliers sees the completion of other infrastructure projects such as Skyway 3, Clark-Malolos Passenger Railway, NLEx-SLEx connector and the Subic-Clark Railway further boosting the region’s attractiveness for logistics-related investments post-pandemic,” the company wrote.

Outside of Luzon, the local government units of Davao and Iloilo are also attracting the eye of investors. According to a white paper published by online property marketplace Lamudi, several companies, especially business process outsourcing firms, continue to expand and establish their operations in these cities.

“With the ongoing decongestion efforts of Metro Manila through several decentralization measures by the government, such as stimulating industrial activities in the countryside and enticing more enterprises to set up their operations there, more and more property developers are expanding beyond the country’s premier urban hub to meet the growing demands of property seekers for residential condominiums in these so-called emerging cities, notably Davao, Iloilo, and Angeles in Pampanga,” the white paper said.

The current trend for developers in seeking out these areas remains to be master-planned or mixed-use townships, integrated communities wherein tenants can live, work, and play without having to face the hassle of commuting.

Townships have the added benefit of allowing communities to better respond to the current and future crises, with an increasing demand for more work and life balance. With remote work becoming the norm overnight, many more employees are exposed to the advantages of working closer to home, limiting their exposure to the virus and securing their health and well-being.

“Colliers believes that there is sustained demand for condominium projects located within townships. In our opinion, the convenience of being near office and retail establishments partly contributes to strong take-up,” Colliers wrote.

“To take advantage of this demand, Colliers recommends that property firms continue developing integrated communities outside Metro Manila. This should be facilitated by strategic land banking in property investment hubs outside the capital region such as Cebu.” — Bjorn Biel M. Beltran

Philippines mobile connectivity ranking slips (despite increase in score)

Philippines mobile connectivity ranking slips (despite increase in score)

How PSEi member stocks performed — October 29, 2020

Here’s a quick glance at how PSEi stocks fared on Thursday, October 29, 2020.

Shares drop on profit taking amid uncertainties

By Denise A. Valdez, Senior Reporter

PHILIPPINE SHARES declined on Thursday as investors secured profits amid declining global markets.

The 30-member Philippine Stock Exchange index (PSEi) erased 128.40 points or 2.01% to close at 6,249.39, while the broader all shares index cut 55.21 points or 1.45% to end at 3,753.08.

“Local shares saw one of its worst sell-offs in months amid rising COVID (coronavirus disease 2019) cases and jitters over the (US) election outcome,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.

More than 500,000 new coronavirus cases were recorded across the globe on Wednesday, with the majority coming from the United States (US), India, France, and other European countries.

This resulted in a second national lockdown declared in France and Germany, and the United Kingdom being expected to follow the same track.

The upcoming US election on Nov. 3 is also causing jitters among investors amid uncertainties over how the results will affect the country’s economic recovery.

Overseas markets plummeted during Wednesday’s trading: the Dow by 3.43%; S&P 500 by 3.53%; Nasdaq by 3.73%; Euro Stoxx 50 by 3.49%; FTSE 100 by 2.55%; and Dax by 4.17%.

This led investors back home to pocket profits from the recent PSEi rally, Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said.

“Market continued its correction on profit taking… as the increasing transmission rate of the pandemic in the US and Europe (is seen to) derail economic recovery,” Mr. Pangan said in a text message.

Local events such as incoming typhoons are also weighing on sentiment, AAA Southeast Equities, Inc. Research Head Christopher John Mangun said.

“The sentiment may (also) have been negatively affected by the series of typhoons that have hit and will continue to come in by next week. The selldown may continue on the last day for the week,” Mr. Mangun said in an email.

All sectoral indices ended Thursday’s trading in red territory. Mining and oil dropped 197.93 points or 2.61% to 7,373.26; financials lost 30.39 points or 2.42% to 1,221.29; services fell 30.87 points or 2.09% to 1,442.84; holding firms shaved off 124.20 points or 1.87% to 6,486.45; industrials decreased 155.20 points or 1.81% to 8,416.73; and property slid 49.04 points or 1.61% to 2,991.32.

Value turnover was trimmed to P6.66 billion from P6.8 billion in the last session. Some 3.36 billion issues switched hands, up from 1.75 billion issues the previous day.

Decliners outnumbered advancers, 147 against 58, while 52 names ended unchanged.

Net foreign selling continued on Thursday, growing to P942.94 million on Thursday from P442.88 million in the previous session.

Peso weakens versus the dollar on higher foreign external debt

THE PESO weakened slightly versus the dollar on Thursday on data showing increased borrowings from the foreign market and as coronavirus cases in the United States increased.

The local unit closed at P48.39 versus the dollar on Thursday, declining by 1.5 centavos from its P48.375 finish on Wednesday, data from the Bankers Association of the Philippines showed.

The peso opened Thursday’s session at P48.43 per dollar and strengthened to as high as P48.38. Meanwhile, its intraday low was at P48.45 against the greenback.

Dollars traded declined to $524.15 million on Thursday from $534.6 million in the previous session.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso weakened as economic uncertainties continue to linger, with coronavirus cases in the United States seeing an uptrend.

“The peso was weaker after the increased volatility in the global financial markets with the renewed surge in global COVID-19 cases,” Mr. Ricafort said in a text message.

The dollar held gains against a basket of major currencies on Thursday as escalating coronavirus cases in Europe stoked investor fears that fresh lockdowns would further hit the already fragile economic recovery, Reuters reported.

The safe-haven greenback steadied against a basket of six currencies at 93.39, taking a pause after its 0.3% gains in early trade.

Concerns of further damage to the economy grew as France and Germany went back into lockdown on Wednesday, as a massive second wave of coronavirus cases threatened to overwhelm Europe.

Traders also braced for volatility with the US election less than a week away, while the country, like Europe, also faces an increase in coronavirus infections.

With former US Vice President Joe Biden consistently leading in the polls over US President Donald Trump, traders are cautiously betting on his victory and a possible “blue wave” outcome, where Democrats control both chambers of Congress.

Data due on Thursday includes US third-quarter gross domestic product, which analysts expect to show record growth but not enough to make up for the pandemic’s impact.

Meanwhile, a trader said the peso inched down after the release of data showing an increase in the Philippine government’s foreign debt as of end-September.

The Bureau of the Treasury reported on Wednesday that the country’s external debt reached P2.93 trillion in September, inching up by 1% from P2.9 trillion in August and jumping 11% from the comparable year-ago period.

Total outstanding debt stood at P9.369 trillion at end-September, 2.6% lower than the level recorded in August but 18% higher year-on-year, as the government continues to spend amid the coronavirus pandemic.

For today, Mr. Ricafort sees the peso moving from P48.35 to P48.45 versus the dollar, while the trader expects a range of P48.40 to P48.45. — KKTJ with Reuters

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