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Slide 6-1 ASIA/PACIFIC & INTERNATIONAL REAL ESTATE 7. A Look at the Philippines Page 129
Slide 6-1
ASIA/PACIFIC & INTERNATIONAL REAL ESTATE
7. A Look at the Philippines
Page 129
Slide 6-2
Geography
Page 130
Slide 6-3
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 FloridaMedian household income of $78,000
Page 131
Slide 6-4
Philippine Economy
Exports to: China, United States, Singapore, and Japan Agricultural Industrial Mining
Infrastructure impedes development outside metro areas
Tourism potential
Page 133
Slide 6-5
The Big StoryBusiness Processing
Centers
Overtaking India
English-speaking workers
Service attitudes
Low wages & office rents
Makati City, Manila, Quezon City, Cebu City
Driving office space, residential, retail development
Page 133
Slide 6-6
Two Trends
Seat leasing Turnkey
Fully equipped call center operation base
Company only needs to supply the workers
Serviced offices Furnished office spaces
All expenses non-rent expenses included
May furnish support staff
Page 134
Slide 6-7
BERDE
Building for Ecologically Responsive Design Excellence
Philippine Green Building Council
Local green building rating system
Patterned after LEED
Page 135
Slide 6-8
Foreign Ownership of Real Estate
Cannot own landCondos okay if no more than 40% foreign
occupancySingle-family home okay but not the landForeign natural heirs of a Filipino citizen may
inherit, cannot sell to foreignerCorporations less than 40% foreign
ownership may acquire landPage 135
Slide 6-9
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 6-10
Rental Property
Luxury condos
2–3 month’s rent deposit
Rent paid in advance, post-dated checks
Standard rental
2 month’s rent deposit
“Customs of the place “
Page 136
Slide 6-11
Real Estate Professionals in the Philippines
National licensing Challenge to develop the real estate
management skillsChamber of Real Estate and Builders
Association
Page 137
Slide 6-12
Doing Business in the Philippines
Beyond the Basics
Names
Initial Contact and Introductions
Business Cards
Negotiations and Decisions
Demeanor
Social Etiquette
Page 141-143
