Property prices sustain quarterly growth in Q1

Property prices sustained their growth momentum for three straight quarters, rising by 5.6 percent in the first three months this year amid the further reopening of the economy from strict COVID-19 quarantine and lockdown protocols.

The Bangko Sentral ng Pilipinas (BSP) said the Residential Real Estate Price Index (RREPI) increased to 139.6 in the first quarter from 132.2 in the same period last year.

In Q1 2022, the 5.6 percent YoY growth in the nationwide RREPI was mainly driven by the rise in the prices of townhouses, duplex housing units, and condominium units, increasing by 25.6 percent, 20.9 percent, and 14.7 percent, respectively. Conversely, prices of single-detached/attached houses contracted by 2.5 percent

“The year-on-year increase in the RREPI is consistent with the outcome of the Q1 2022 Consumer Expectations Survey, which showed a higher percentage of consumers preferring to buy real estate property in the first quarter of 2022,” the central bank said in a statement. The RREPI, launched in the first quarter of 2016, is used as an indicator for assessing the real estate and credit market conditions in the country.

But economists believe the growth will taper off in the coming months as the central bank’s Monetary Board steps up its tightening cycle to fight mounting inflationary pressures. The BSP started to tweak interest rates after it delivered a 25-basis-point rate hike last May 19, the first in more than three years or since November 2018.

According to the BSP, the increase in the nationwide RREPI in the first quarter was mainly driven by the rise in the prices of townhouses, duplex housing units and condominium units.

The index showed the prices of townhouses jumped by 25.6 percent to 197.4 from 157.2, followed by duplex housing units with 20.9 percent to 160.3 from 132.6, and condominium units with 14.7 percent to 187.2 from 163.2.

On the other hand, prices of single-detached/attached houses contracted by 2.5 percent to 112.7 in the first quarter of the year from 115.6 in the same quarter last year.

The BSP attributed the year-on-year pickup in nationwide housing prices to the 9.5 percent rise in residential property prices in the National Capital Region (NCR) to 156.4 in the first quarter of the year from 142.8 in the same quarter last year, driven by the increase in the prices of condominium units and townhouses that offset the decline in the prices of duplex as well as single detached or attached houses.

Likewise, the residential real estate prices in areas outside NCR grew by five percent to 133.8 from 127.4.

Source: Philstar

Government fails to attain 6-year housing target

The government has failed to complete its six-year housing target, as only 86 percent has been accomplished during the term of President Duterte.

As of end-2021, the Department of Human Settlements and Urban Development (DHSUD) said about 1.08 million house and lot units were produced and financed.

This is roughly 86 percent of the 1.26 million units targeted under the Philippine Development Plan 2016-2022.

Nonetheless, housing chief Eduardo Del Rosario said he is pleased and satisfied with the sector’s achievements under Duterte.

DHSUD’s annual housing production was pegged at 197,886, the highest among previous administrations since 1975.

He is optimistic that the incoming Marcos administration would sustain and boost the current gains.

“We must continuously innovate to ensure that our vision to be a ‘strong institution and catalyst for the provision of adequate and affordable housing, inclusive human settlements and well-planned communities for every Filipino family’ comes to light,” del Rosario said.

DHSUD has assisted 233 local government units in updating and ratifying their comprehensive land use plans and provincial development and physical framework plans.

It also crafted real estate development policies and issued directives to cushion the impact of the pandemic, issued 1,437 licenses to sell and certificates of registration to 36,624 dealers, brokers and salespersons in the last two years.

The DHSUD said it paved the way to further professionalize the housing industry, as well as revised the rules and regulations of the magna carta for homeowners associations nationwide.

Del Rosario said the DHSUD strengthened partnerships with LGUs and private developers through finalization of various agreements, some of which resulted in the construction of evacuation centers to boost the country’s disaster preparedness.

Source: Philstar

Is accepting a bed spacer on a rented apartment illegal?

The bedspace phenomenon

According to a recent study, 30% of Filipinos prefer to rent than to buy property. A huge part of that 30% are the employees who are living in bed space condition. Bed space and ordinary rent differ from each other in a way that the renter will only occupy the bed or their personal space. Renting a house or an apartment means that the renter has some authority over the property while the bed spacer will only mind the space that he or she is allotted to.

Because of the huge demand, more and more people are getting involved in the business. The bed space phenomenon has opened many doors to many people.

Is accepting a bed spacer on a rented apartment illegal?

In general the provisions of the contract between the parties to determine their respective rights and obligations. If your contract of lease does not state anything regarding the accommodation of a bed spacer, one needs to look into the provisions of pertinent laws. Republic Act (RA) 9653, otherwise known as the "Rent Control Act of 2009," is applicable on the matter. Section 8 thereof states that:

"Section 8. Assignment of Lease or Subleasing. - Assignment of lease or subleasing of the whole or any portion of the residential unit, including the acceptance of boarders or bed spacers, without the written consent of the owner/lessor is prohibited."

Based on the foregoing provision of the law, we submit that there is nothing inherently illegal or unlawful about accepting a bed spacer to occupy, in whole or in part, the residential property which you are renting, provided that you secure first the written consent of your lessor or the owner of said property.

It bears stressing that it is important to secure the consent of your lessor or the owner of said property before you accept or accommodate a bed spacer because failure to do so may give rise to a cause for ejectment. Section 9 of RA 9653 expressly provides:

"Section 9. Grounds for Judicial Ejectment. - Ejectment shall be allowed on the following grounds:

"Assignment of lease or subleasing of residential units in whole or in part, including the acceptance of boarders or bed spacers, without the written consent of the owner/lessor;"

Accordingly, it is best to get in touch with your lessor and inform him or her about your plans of taking in a bed spacer to help you out with the payment of your rental fees. Should your lessor be amenable to it, make sure that you obtain his or her written permission so as to avoid future dilemma on the subject matter.

Source: Manila Times