April 30, 2012
Developer lauds higher real estate VAT ceiling
Effective January this year, the Bureau of Internal Revenue, with the endorsement of HUDCC, has effected a higher threshold for value added tax or VAT on real estate products such as lots, house and lots, and other residential dwellings such as condominium units.
Previously, properties priced at P2.5 million below enjoyed VAT-free transactions. Now, the VAT-free ceiling has been increased to properties priced up to PhP3,199,200.
This of course spells great news for millions more Filipinos who are seeking to fulfill their lifelong dream of owning their own home, especially condominium dwellings in the metropolis. And along with consumers, developer DMCI Homes lauds the move from the internal revenue bureau.
“We commend the government in its firm commitment to provide Filipinos easier and greater access to better housing options,” says Alfred Austria, president of DMCI Homes, the property development affiliate of triple-A and renowned contractor D.M. Consunji Inc.
DMCI Homes is particularly elated with the new real estate VAT ruling, with the belief that it will strengthen and grow stronger purchasing opportunities for its core target market of middle-income Filipinos and starting families.
“From the inception of DMCI Homes, our focus has always been on providing hardworking middle class Filipinos with homes that exceed their expectations and provide exceptional value for their money,” adds Austria. “Now, our condo home buyers will benefit from greater purchasing power and ownership that is much easier on their pockets.”
DMCI Homes sets itself apart in the tough real estate market by consistently offering real estate projects that buck popular trends, such as those toward maximizing profit by offering increasingly smaller units and dwellings.
“We set and stick to standards of property development that we think offers the best possible modern dwelling solution for our core market.” explains Austria. Based on market research, insight and actual experience, the genuine middle-income market seeks a condo home that is reasonably spacious—both inside and out.
Whereas popular city condo developments these days offer basic units in studio or one-bedroom permutations, DMCI Homes proudly sets the standard of two-bedroom units for the typical Filipino condo home buyer, who may be single and intending to start a family very soon, or for actual growing families themselves.
These two-bedroom DMCI Homes units are usually 54-55 sqm in gross floor area, contained in masterplanned communities that offer a variety of amenities that are equally spacious. “Through superior design and construction techniques and processes, we are able to continue offering these types of units at prices below the new VAT threshold,” says Austria. “The move saves hundreds of thousands of pesos for our customers, funds that they can use for improvements and other purchases.”
DMCI Homes believes that for wise condo buyers, the math should be simple—for a price below the VAT ceiling, they can settle for either an entry-level studio from other prominent developers, or a two-bedroom unit from DMCI Homes.
The two-bedroom units are available in most DMCI Homes projects. DMCI Homes’ newest projects include: The Amaryllis located in E. Rodriguez Ave. cor. 12th St., Quezon City; Sorrel Residences located in Sociego St., Sampaloc, Manila; Zinnia Towers along North Edsa, Quezon City; and One Castilla Place located in Castilla St., Brgy. Valencia, Quezon City.
“Shop around, compare, and never be afraid to ask,” advises Austria of condo hunters. With the new VAT ruling on property developments, the market is sure to grow even further and competition will intensify, but not without an upper hand for trustworthy developers such as DMCI Homes. ###