Housing program contractors back out due to low profit

In addition to contractors backing out, Castro identified other causes of delay, permitting, due diligence on site suitability and land ownership, and the lengthy construction period for vertical housing.

Some contractors have withdrawn from the administration's Pambansang Pabahay para sa Pilipno Housing (4PH) program due to low profit margins, causing delays in the construction of houses for Filipinos, Malacañang revealed.

"Maliit po kasi ang presyo na ibibigay natin sa taong bayan para i-avail ito kaya ang ibang contractors po ay hindi po sumasang-ayon na makisali or sumama sa gantong klaseng proyekto (The price we are offering the public to avail of this is low, so some contractors do not agree to join or take part in this kind of project)," Communications Undersecretary Claire Castro said in a press briefing on Monday, March 31.

In addition to contractors backing out, Castro identified other causes of delay, permitting, due diligence on site suitability and land ownership, and the lengthy construction period for vertical housing.

"So ito po ay mga issues na hindi po ninanais ng administrasyon (These are issues the government did not want to happen)," she said.

Despite these challenges, Castro, citing information from the Department of Human Settlements and Urban Development (DHSUD), reported progress in the implementation of the 4PH program.

Based on the DHSUD data cited by Castro, there are currently 90 ongoing projects nationwide in various stages of development and construction.

"Ang ilan po dito ay nabuo na po, nagawa na po, at ito yung magje-generate ng total of 259,365 housing units (Some of these are already completed and is expected to generate 259,365 housing units)," she said.

Additionally, 82 projects are in the pre-production stage, with 436 proposals still pending approval.

At least 8,000 housing units are scheduled for turnover this year.

President Marcos has previously acknowledged the ambitious nature of the 4PH target of 1 million housing units per year to address the backlog.

"We are aiming for 1 million homes. One million low-cost and socialized homes a year. It is an ambitious number, but we will try very, very hard," he said in November 2022. 

Source: Manila Bulletin

Makati City lowers real property tax rates

Makati City has taken a bold step to provide economic relief and boost investment growth as Mayor Abby Binay signed a landmark ordinance significantly reducing real property tax (RPT) rates in all property classes.

Binay approved City Ordinance No. 2025-047 on March 24, 2025, amending key provisions of the Revised Makati Revenue Code.

The ordinance lowers the RPT rates for residential, commercial, industrial, and special properties, marking one of the most progressive tax reforms in the city's history.

Under the new ordinance, residential properties will now be taxed at 1.0 percent, down from 1.5 percent; tax for commercial properties will be reduced from 2.0 percent to 1.5 percent, while industrial properties will remain at 1.5 percent. Special properties get the most significant cut, dropping from 1.5 percent to 0.5 percent. Moreover, the additional tax rate for residential and commercial properties has been halved from 0.25 percent to 0.125 percent, making property ownership and business operations more affordable.

The ordinance also slashes assessment levels, the basis for computing assessed property values. Residential property assessment levels have seen significant reductions. R-1 properties have been adjusted from 12 percent to 0.65 percent, R-2 properties from 12 percent to 0.30 percent, and R-3 properties from 12 percent to 0.25 percent.

For commercial and industrial properties, assessment levels have also been reduced from 40 percent to more competitive rates. Commercial classifications C-1, C-2, and C-3 now range between 2.0 percent and 0.60 percent, while industrial classifications I-1, I-2, and I-3 follow the same range. Special class properties remain at 0.70 percent in commercial and industrial zones and 0.30 percent in residential areas.

The mayor assured stakeholders that despite the anticipated short-term revenue dip, Makati's financial health remains robust.

The city's budgetary flexibility has been bolstered by an estimated P7.9 billion annual savings following the transfer of 10 Embo villages to Taguig, which previously required significant subsidies. She emphasized that the long-term benefits far outweigh the expected short-term revenue adjustments. This move reinforces Makati's commitment to a fair, efficient, and transparent tax system that benefits both businesses and residents.

To further incentivize compliance, the ordinance allows property owners who have already paid their RPT for 2025 to receive a tax credit equivalent to any excess payments, which can be applied to future tax dues.

Binay said Makati's latest tax reform is more than just a fiscal policy shift. It is a strategic move to attract more investments, encourage property development, and sustain economic momentum.

She said that by prioritizing equitable taxation and financial prudence, the city cements its reputation as a premier business hub and a model for smart governance.

Source: Manila Times

Developing a new metric for inclusive cities

Four urban personas: developing a new metric for inclusive cities

A study from Cushman & Wakefield sets a global benchmark for how inclusive cities really are across Europe, the Middle East, Africa and Asia Pacific

As the urgency to develop more sustainable cities across the world heightens, Cushman & Wakefield has embarked on a study to measure the social, economic, environmental and spatial inclusiveness of almost 80 global cities across the EMEA and APAC regions.

The global real estate firm has developed the ‘Inclusive Cities Barometer’ to quantify the social value of our cities by mapping, tracking and measuring how inclusive our cities really are.

Across the dimensions

The study measures the inclusivity of 44 cities in EMEA and 35 in APAC based on 9,000 data points, and 110 metrics across four dimensions and 12 sub-dimensions. These dimensions include:

Social inclusion – measuring 58 variables including health and wellbeing, tolerance, respect and personal freedom, education, and population and density growth.

Economic inclusion – a measure of 22 variables including employment, economic vitality and growth, and innovation.

Spatial inclusion – a measure of 25 variables including housing and property, security, safety and social infrastructure, accessibility and urban attractiveness.

Environmental inclusion – a measure of five variables including climate, pollution, and the United Nations SDG score.

The cities represented in the research are at varying stages of their journey towards more inclusive and vibrant urban environments. Instead of ranking them by performance, the Inclusive Cities Barometer measures progress relative to starting points, highlighting an actionable roadmap for improvement.

Cushman & Wakefield defines inclusive cities as ‘urban environments that prioritize diversity, equity, and accessibility for all residents, regardless of their background, identity or socio-economic status.’

The four city personas

The cities were categorized into personas representing different stages of their journey towards developing inclusive urban environments, reflecting varying degrees of maturity.

Mature urban centres: These are cities with a longstanding commitment to social inclusion, that prioritize the needs of all citizens. They focus on equal distribution of wealth alongside strong but balanced economic growth. In EMEA this includes four Nordic capital cities, as well as Amsterdam and Rotterdam in the Netherlands, and Edinburgh and Glasgow in Scotland. In APAC, Australian cities such as Brisbane, Perth, Sydney and Melbourne sit firmly in this category.

Social drivers: These cities are demonstrating strong rates of social inclusion across many of the dimensions, although not as mature in their journey to reduce wealth and lifestyle inequity. Cities in this category include global economic powerhouses such as London, Paris, Brussels, Berlin, Tokyo, Singapore and Seoul.

Rapid risers: Rapid risers are cities previously less active on equitable economic and social development that are now rapidly advancing social inclusion initiatives. This includes cities such as Athens, Budapest, Milan and Warsaw in Europe, and Chinese cities such as Beijing, Shenzhen and Shanghai, as well as Hong Kong.

Emergers: Emergers are at the beginning of their journey to increase rates of inclusivity throughout, but with strong ambitions. In EMEA, these cities are predominantly based in the Middle East and Africa and include Abu Dhabi, Cairo, Istanbul, Lagos, and Johannesburg. In APAC, these cities are located in South and South East Asia amongst whom are Bangkok, Bengaluru, Chennai, Ho Chi Minh City, Kuala Lumpur and Mumbai.

The path forward

As governments chart a course towards building cities that account for the needs of all citizens, the report argues that alongside governance, the real estate and construction sectors have a critical role to play in the future of the urban environment. They can influence the development, management, occupation and strategic planning of cities – thus spreading the burden of responsibility for developing sustainable, inclusive cities more evenly.

In recognizing that the scale and complexity of delivering inclusive cities can be overwhelming, the report urges that the real estate industry takes a more straight-forward approach – to recognize inclusiveness as an asset, not a cost. The report sets out a checklist for developers, investors and corporate occupiers to consider when developing inclusive cities.

The checklist asks developers and investors to consider working with local resident groups to ensure than the consequences of the development on the wider community is co-managed. They should also create destination places that inspire and represent the city’s identity and respond to the needs of the community.

‘Consider employee needs outside the office, factoring in leisure activities ‘

For corporate occupiers, they should consider employee needs outside the office, factoring in leisure activities such as restaurants, entertainment and retail. The building itself should promote health and wellbeing, and offer a diverse range of settings so everyone can find a space they feel comfortable working in.

The report concludes with statement that ‘engaging in socially responsible real estate practices not only enhances community social value but also fosters long-term economic success by building more resilient and vibrant neighborhoods’.

Access the Inclusive Cities Barometer from Cushman & Wakefield here.

Source: Worktechacademy