THE property sector is anticipating the next administration’s review of the Real Estate Investment Trust (REIT) law that is expected to usher in more property investments in the country.

In its second quarter market insight report, Pinnacle Real Estate Consulting Services said industry players welcome incoming finance secretary Carlos Dominguez III’s pronouncement of the possible review of REIT law’s implementing rules and regulations under the Duterte administration.

Currently, the law intends to provide incentives to income-generating properties like office, retail, hotel, and even residential and hospital developments, provided the company is listed in the stock market and that these companies distribute 90 percent of their net operating income as dividends to stockholders.

However, Pinnacle said the subsequent rules on public float and value added tax on the transfer dampens the appetite of would-be REIT company applicants. It said there is a need to revisit these additional requirements in the implementing rules. “Anticipated growth provided by these policies would definitely impact positively on the real estate market,” said the real estate consulting firm. For 2015, the Philippine Statistics Authority (PSA) reported that the real estate sector was the fastest growing industry in terms of gross revenue during the fourth quarter.

During the last quarter of 2015, PSA reported that the gross revenue index inched up by 5.9 percent, with the growth being driven by the real estate sector growing at 12.7 percent. While growth in the real estate sector may not be phenomenal in the next years, given the higher base achieved over the decade, Pinnacle said industry players expect stable growth with the sound political climate brought about by the economic agenda presented by the incoming administration.

Source: Sunstar | June 28, 2016
http://www.sunstar.com.ph/cebu/business/2016/06/28/property-sector-hails-anticipated-reit-review-482198