<\/p>\n
By Juliana Chloe A. Gonzales<\/b><\/p>\n
PROPERTY analysts said raising the value-added tax (VAT) exemption ceiling for housing and proceeding with plans to lift the Philippine Economic Zone Authority (PEZA) moratorium in Metro Manila could help shield homebuyers from elevated mortgage rates and boost demand for office space as President Ferdinand R. Marcos, Jr. delivers his State of the Nation Address (SONA) on Monday.<\/p>\n
Joey Roi Bondoc, director of research at Colliers Philippines, said industry groups have been pushing for a rise within the VAT exemption ceiling for residential properties, arguing that it might make homes cheaper for end buyers.<\/p>\n
\u201cI believe the more practical solution is to offer tax relief\u2026 because we consider that that\u2019s one approach to really shield the general public from elevated interest and mortgage rates,\u201d Mr. Bondoc said in a call.<\/p>\n
He said mortgage rates of 6% to six.5% can be more supportive of housing demand than prevailing bank rates of 6% to eight%.<\/p>\n
Lean Cacatian, assistant manager for transactions and advisory services at Savills Philippines, said the present P3.6-million VAT exemption ceiling, which is adjusted just once every three years by law, continues to affect the mid-market condominium segment because units priced just above the brink are subject to the 12% VAT.<\/p>\n
He added that residential constructing permits posted double-digit year-on-year declines as of May, reflecting weaker confidence within the pace of future sales.<\/p>\n
\u201cWe don’t expect either demand or supply to meaningfully recuperate until rates of interest begin to ease, and at this point, that appears to be more of a 2027 conversation,\u201d Mr. Cacatian said in a Viber message.<\/span><\/p>\n On the business property front, analysts said lifting the PEZA moratorium in Metro Manila could help absorb vacant office space left by the exit of Philippine offshore gaming operators (POGOs).<\/p>\n Mr. Bondoc said rescinding the moratorium can be a \u201cgame changer,\u201d spurring demand not just for office space but additionally for the residential, retail, and hospitality sectors.<\/p>\n Savills also proposed a \u201cgreen-only\u201d accreditation framework that might limit recent PEZA accreditations in Metro Manila to buildings with green certifications, similar to Leadership in Energy and Environmental Design (LEED) or Constructing for Ecologically Responsive Design Excellence (BERDE).<\/p>\n Mr. Cacatian said the proposal offers a middle ground by providing relief to the Metro Manila office market while ensuring recent developments meet sustainability standards.<\/p>\n On reasonably priced housing, analysts said the expanded Pambansang Pabahay Para sa Pilipino (4PH) program performed strongly in early 2026, with the reasonably priced and socialized segments accounting for about 70% of residential demand in Metro Manila in the primary quarter.<\/p>\n They attributed the expansion partially to greater public- and private-sector participation, including from 8990 Holdings, Inc. and the Caloocan City government.<\/p>\n While Pag-IBIG Fund\u2019s socialized housing loans greater than doubled in the primary half, Mr. Cacatian said a \u201cgovernment-backed rental housing stock\u201d stays the \u201cmissing piece\u201d in addressing the country\u2019s housing backlog.<\/p>\n<\/p><\/div>\n <\/p>\n","protected":false},"excerpt":{"rendered":" MEGAWIDE.COM By Juliana Chloe A. Gonzales PROPERTY analysts said raising the value-added tax (VAT) exemption ceiling for housing and proceeding with plans to lift the Philippine Economic Zone Authority (PEZA) moratorium in Metro Manila could help shield homebuyers from elevated mortgage rates and boost demand for office space as President Ferdinand R. Marcos, Jr. delivers […]<\/p>\n","protected":false},"author":1,"featured_media":372723,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[5431,678,13037,3208,19250,22832,14259,38783,26188,12462,19709],"class_list":["post-372722","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-attention","tag-cap","tag-exemption","tag-gain","tag-hike","tag-housing","tag-lift","tag-moratorium","tag-peza","tag-sona","tag-vat"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t