From Daydreaming to Ribbon-Cutting: Stoking PH Property Through Infra Connectivity

Fostering a pro-business and environment pro-property is instrumental in reviving the Philippine property market. Earlier, Colliers Philippines highlighted that raising capital gains tax might be detrimental to the recovery of the property market, as we see the measure's enactment derailing and slowing real estate transactions, including purchases.

- Harold Erwin CruzSenior Associate Director for Valuation, Colliers PhilippinesandJoey Roi BondocDirector and Head of Research, Colliers Philippines

It might also hamper the revival of the Metro Manila pre-selling and secondary condominium markets, especially the mid-income condominium segment (PHP 3.2 million to PHP 12 million per unit), where we continue to see cancellations due to high mortgage rates and mismatch between what the end-users and investors prefer and what is actually supplied by the market.

What's positive for the real estate market is the fact that the government has been passing reform bills that we see playing an important role in improving the overall condition of the property market.

Right-of-Way Getting in the Way of Infrastructure Completion

Among the measures approved by the previous Congress is the Accelerated and Reformed Right-of-Way (ARROW) Act. The measure streamlines procedures to expedite the acquisition of right-of-way, reducing bottlenecks that delay the construction of pivotal public projects. It also calls for collaboration among various government agencies to address cross-sectoral challenges such as electrification, connectivity, and environmental safeguards. It amends Republic Act No. 10752 or the Right-of-Way Act, which was signed into law in 2016, a few months before President Benigno Aquino III stepped down from the presidency.