PH ranks 2nd in digital patience in Asia-Pacific

Filipinos are the second most digitally patient consumers in the Asia-Pacific region, according to a new study by customer engagement platform Twilio, which measured how long consumers are willing to wait for online customer service issues to be resolved.

The Philippines trails only Indonesia, with 76 percent of Filipino consumers saying they remain patient when dealing with automated customer service, well above the regional average of 68 percent.

This translates to an expected resolution window of 27.3 minutes among Filipinos, longer than the regional average of 24.4 minutes. In practice, the Philippines waits longer than any other market surveyed, with actual waiting times averaging 31.9 minutes.

“Filipino consumers are patient because they start with a deep sense of trust, but this trust is a foundation that brands must either build upon or risk breaking,” said Nicholas Kontopoulos, vice president of marketing for Asia Pacific and Japan at Twilio.

Despite these delays, speed is not the dominant concern for many Filipino consumers, the study found.

Half of the respondents said clear and easily understandable instructions were their top priority when dealing with digital customer service channels.

Data security and fast issue resolution were also important factors, with 41 percent of Filipinos saying the protection of personal information and quick service were essential to their trust in a brand.

Another key expectation is warmth in digital interactions, with more than a third of respondents saying automated systems should reflect the friendliness and empathy of human agents.

The study “Decoding Digital Patience” was conducted between August and September 2025 and covered 7,331 respondents across seven Asia-Pacific markets. These include 1,007 respondents in the Philippines.

Varying patience

Twilio’s study showed patience varies significantly depending on the issue being addressed.

Filipino consumers were more understanding of delays involving complex or high-stakes concerns, particularly in healthcare, where longer resolution times were deemed necessary.

Patience declined sharply, however, in routine and everyday interactions that fell short of expectations.

High levels of frustration were reported during telecom service outages (69 percent), cases involving incorrect or damaged items (68 percent), billing disputes (68 percent) and delayed or missed retail deliveries (66 percent).

Filipinos belong to one of the markets most exposed to artificial intelligence (AI) in customer service, with 81 percent reporting they have interacted with an AI-powered tool before.

Despite this high exposure, satisfaction among Filipino consumers remains mixed, with 42 percent reporting frustrations stemming from scripted responses, generic answers and unresolved issues.

As a result, 43 percent of Filipinos said they prefer to begin customer support interactions with a human agent, even if it means waiting longer.

Source: Inquirer

Google Listings Aren’t a Threat to Home Stocks

Housing technology companies are offering far more than just online listings—and those expanded services act as a buffer against disruptions in the residential real estate market.

A turf war over the online home listings business has been brewing for some time. Then Google entered the fray.

As part of a pilot program, the search giant began placing home listings at the top of certain Google search results. News that Google might push deeper into home listings sent shockwaves through the stocks of companies that currently dominate the space.

On December 15, after reports of Google’s test spread over the weekend on social media, Zillow Group’s market value dropped by about $1.5 billion. Shares of CoStar Group, the parent company of Homes.com, fell to their lowest level in more than three years. Neither stock has fully recovered since.

The selloff, however, appears unwarranted.

A Small Experiment, Not a Market Takeover

There is no indication that Google’s home listings feature will see a broad rollout. The test itself is limited in scope: listings have appeared only for mobile users in select cities such as San Francisco and Miami. A Google spokesperson described it to Barron’s as “a small experiment,” without specifying when it began or how long it would last.

Wall Street analysts largely agree that investors overreacted. Alphabet, Google’s parent company, has previously experimented with home listings—efforts that ultimately faded away. Still, as Benchmark analyst Daniel Kurnos put it, “No one likes it when an 800-pound gorilla comes sniffing around.”

The episode reflects deeper anxieties about disruption in the housing technology sector, driven not only by Google but also by the rise of artificial intelligence. Agents told Barron’s they are already receiving increasing referrals—of mixed quality—from AI-driven chat platforms.

More disruption is coming, and companies are preparing for it.

Listings Are Only One Piece of the Business

Major housing platforms—Zillow, Rocket’s Redfin, and CoStar’s Homes.com—are no longer just house-browsing websites. Each has expanded into adjacent services that help insulate them from changes in how buyers search for homes and how agents advertise.

Realtor.com, which also operates a listings platform, is owned by Barron’s parent company, News Corp.

Among the big players, analysts say Zillow’s core business appears the most insulated from increased competition, thanks to strong organic traffic and brand recognition. According to web traffic measurement firm Semrush, Zillow is the most-viewed real estate website in the United States.

In recent years, Zillow has pivoted away from relying primarily on agent listing marketing. Instead, its main sources of growth now come from mortgage services and rental listings. The company also offers agent-focused products such as workflow management software and seller-oriented listing tools.

“The combination of the business that we’ve built is far more diversified than it was five years and 10 years ago,” Zillow Chief Financial Officer Jeremy Hofmann said at a December technology conference.

Benchmark’s Kurnos rates Zillow’s Class A stock a Buy, with a $95 price target—nearly 40% above its recent price of $68.54. “To think that Google would somehow displace the most complete end-to-end solution in the marketplace with the strongest and stickiest agent product suite seems rather far-fetched,” he wrote.

Homes.com and CoStar’s Long Game

CoStar’s Homes.com was positioned as an agent-friendly alternative to dominant listing sites, focusing on services for sellers’ agents rather than lead generation. CoStar acquired Homes.com in 2021 and announced its aggressive expansion with a Super Bowl commercial in 2024.

Usage has grown since then—but so has spending. CoStar’s marketing budget reached $1.36 billion in 2024, up from $684 million in 2022. That surge in spending has weighed on earnings, contributing to stock declines. CoStar shares are down 26% since the Friday before the 2024 Super Bowl and fell another 6% in 2025.

Homes.com remains a relatively new arm of CoStar’s broader commercial real estate business, which includes data analytics software and marketing platforms. Fears of technological disruption have only added to recent pressure on the stock.

Still, CoStar is betting heavily on innovation. According to CEO Andy Florance, 50% of Homes.com’s software development is now focused on artificial intelligence. “AI offers transformative opportunities to unlock tremendous value in real estate,” he said on an October earnings call.

Rocket, Redfin, and Vertical Integration

Rocket, one of the largest mortgage originators in the U.S., made a major move into listings with its 2025 acquisition of Redfin. By the third quarter, more than one in ten of Rocket’s retail loan closings came from customers who used both Redfin and Rocket, CEO Varun Krishna said. “We expect this to only increase,” he added.

Even if competition intensifies or demand for listings portals weakens, Rocket maintains a dominant position in mortgage origination and servicing. Its $14.2 billion all-stock acquisition of loan servicer Mr. Cooper brought an estimated one in six U.S. mortgages under the combined companies’ management.

That refinancing opportunity is one of the reasons Rocket’s stock surged 72% in 2025.

A More Competitive—but Stronger—Ecosystem

For real estate professionals, increased competition may ultimately be beneficial. Wendy Monday, a broker at Nashville-based Onward Real Estate, says she currently advertises on Zillow but is watching Google’s experiment closely.

“The more platforms there are,” she said, “the sharper their tools all have to be.”

For now, Google’s test looks less like a threat—and more like a reminder that housing technology companies have evolved well beyond simple listings.

Source: Barrons

May VAT be imposed upon condominium association dues?

Value Added Tax (VAT) is NOT imposed on condominium association dues in the Philippines. Association dues, membership fees, and other assessments collected by condominium corporations are explicitly exempt from VAT under Philippine law.

Legal Basis for Exemption

Supreme Court Ruling

The definitive legal authority is the Supreme Court decision in G.R. No. 215801 (First E-Bank Tower Condominium Corp. v. Bureau of Internal Revenue, January 15, 2020). The Court held that:​

• Association dues, membership fees, and assessments collected by condominium corporations are not subject to income tax, VAT, and withholding tax

• A condominium corporation is not engaged in trade or business

• Dues are collected purely for the benefit of condominium owners and constitute contributions for maintenance, not income

• The dues do not arise from the sale of goods or services

This Supreme Court ruling specifically invalidated Revenue Memorandum Circular No. 65-2012 (RMC 65-2012), which had attempted to impose 12% VAT on condominium dues in 2012.manilatimes+1​

Tax Code Provisions

The exemption is codified in the National Internal Revenue Code (NIRC) through two provisions:

Section 109(Y) - VAT Exemptions: Following the Tax Reform for Acceleration and Inclusion (TRAIN) Law (RA 10963, 2018), this section explicitly lists "association dues, membership fees, and other assessments and charges collected by homeowners' associations and condominium corporations" as VAT-exempt transactions

Section 30(C) - Mutual Benefit Associations: Condominium corporations qualify as "beneficiary societies" or associations operating exclusively for the benefit of their members. No part of net income or assets may inure to any member individually.​

Conditions for the Exemption

The VAT exemption applies only if the condominium corporation meets specific requirements:

Requirement	Details
Legal Structure	Non-stock, non-profit corporation
Primary Purpose	Organized exclusively to manage and maintain common areas for members' benefit
Use of Funds	Association dues must be budgeted and spent solely for common area maintenance, utilities, security, administrative expenses, and governance
Income Activities	No substantial income-generating activities directed at non-members (e.g., commercial leasing)
BIR Certification	Must obtain and maintain a valid Certificate of Tax Exemption (CTE)
CTE Validity	Valid for three years; must be renewed periodically (RMO 38-2019)

Obtaining Tax Exemption Status

To qualify for and maintain the exemption, associations must:

1. File BIR Form 1945 with the Bureau of Internal Revenue, including:

   • Certified copies of Articles of Incorporation and By-Laws

   • Latest General Information Sheet

   • Audited financial statements

   • Detailed list of actual activities

   • Board resolution authorizing the application

2. Pay the certification fee (₱100)

3. Undergo BIR evaluation, which may include field inspection and document verification

4. Receive and maintain the Certificate of Tax Exemption, valid for three years

5. File annual returns (BIR Form 1702-EX for exempt entities) demonstrating continued compliance​

What Is Taxable vs. Exempt

Understanding the distinction is critical for proper compliance:

VAT-Exempt Receipts

• Member association dues and CUSA (common-usage-service-area) charges

• Special assessments for common area improvements

• Penalties and interest on late payment of dues (part of enforcing collection)

• Rental of function rooms to members (mutual benefit activity)

Taxable Receipts (Subject to Income Tax and VAT)

• Lease income from commercial tenants (telco antennas, retail kiosks)

• Interest income on bank deposits (subject to 20% final withholding tax)

• Unrelated commercial operations

• Services rendered to non-members for consideration​

Important Compliance Consideration

Failure to maintain the Certificate of Tax Exemption is critical. If a condominium corporation's CTE lapses due to non-renewal, the exemption is automatically lost. This means all association dues collected become taxable income retroactively, creating significant tax liabilities and penalties.​

Evolution of the Law

The current exemption status represents a reversal of the BIR's 2012 position:

Year	Action	Outcome
2012	BIR issued RMC 65-2012 imposing 12% VAT and 32% income tax	Created significant burden on condo owners
2018	TRAIN Law amended the Tax Code to expressly exempt condominium dues	Provided statutory protection
2020	Supreme Court invalidated RMC 65-2012	Confirmed exemption is constitutionally and legislatively sound
2025-2026	Current BIR position and jurisprudence confirm exemption	Stable legal framework in place

Conclusion

Condominium association dues cannot lawfully be subject to VAT in the Philippines. This protection is established through:

1. Supreme Court precedent (G.R. No. 215801)

2. Tax Code statutory exemption (Section 109(Y) and Section 30(C))

3. Legislative intent embodied in the TRAIN Law and prior homeowners association statutes

4. Underlying principle that condominium corporations are not engaged in trade or business

Unit owners and condominium boards should ensure their associations maintain valid Certificates of Tax Exemption from the Bureau of Internal Revenue to protect this exemption and demonstrate compliance to local government units and regulatory authorities.

Source: Ziggurat Real Estate