Decline in OFW purchases of condominium due to inflating taxes

 

 

 Participation  of Overseas Filipino Workers (OFWs)  in Philippine condominium investment has softened materially as they are shifting to  offshore condominium markets.

 

PRIME Philippines  recently  presented a 10-year property market review and multi-year projections during the 2026 Annual Outlook and Media Briefing at Grand Hyatt.

 

PRIME Philippines is the fastest growing real estate service company in the country consistently providing effective integrated real estate solutions to developers, investors, occupiers, land bankers, and other clients.

 

PRIME reported that residential condos are now end-user led, not investor-driven.

 

Investor demand has softened due to compressed rental yields, muted capital appreciation over recent years, and heavy taxes imposed on transactions which structurally weaken condo investment returns.

 

Inflated zonal values ranging from 20-30%  have increased transaction costs through inflating taxes and fee bases.

 

 For ordinary assets used to generate income , taxation erodes roughly 36% of revenue,  30% of which are government taxes.

 

The usual costs include   Value Added Tax (17%), Capital Gains Tax (8%), Broker’s Commission (4%), Documentary Stamp Tax (2%), Association Dues (2%), Real Property Tax (2%), Transfer Tax & Registration Fee (1%).

 

 Higher interest rates weaken borrowing capacity and reduces  mortgage affordability for end-users.

 

PRIME noted that  an estimated 2 in 5 OFWs who previously bought in the Philippines are now allocating to offshore condominium markets. From a pricing perspective, upper-mid condominiums in central Dubai is also reported to be comparable to uppermid Metro Manila proper.

 

Rental yields have also shrunk. With yields ranging 5-10% pre-pandemic, the current state is now at 2-4%, more aligned with global standards.

 

PRIME noted in its 2025 reselling radar that 15-20%  were sold at a loss, 30-40% as “break-even”,  5% with more than 10% returns while the rest  “ on hold”.

 

Buyers increasingly favored house-and-lot living over high-density condominium formats, and developers adapted by launching “new normal” products.

 

PRIME noted that mid to luxury condominiums and residential lots posted estimated value declines of 10% to 25% in 2025. 

 

The more damaging shift was the deterioration in investor confidence following the flood control scandal, which depressed sentiment and prices for luxury assets. As a result, discounting became more aggressive, with developers offering 20–30% discounts.

 

PRIME suggested proper actions to address the several issues confronting the real estate industry: (a) realignment of zonal values for the “interest cut cycle”;  (b) reduce taxation redundancy for the  “weak economic growth”;  (c ) encourage longer mortgages for  declining investor confidence  and (d) first-time home buyer incentive for declining asset values  

 

 According to an Asian Development Bank study conducted in 2023, approximately 27.1% of remittances go into savings or investments, 72.7% of which are allocated towards real estate.

 

OFWs often buy homes for their families back home or as investments for their future. For many Filipino families, owning a home is a top priority, and OFWs play a crucial role in making that dream a reality.

 

In 2020, cash remittances experienced a minor 0.76% decline due to the pandemic, dropping from $30.13 billion in 2019 to $29.9 billion. 

 

In 2021, there was  strong recovery with a 5.1% year-on-year growth to $31.4 billion, driven by the reopening of global economies.

 

In 2022-2023, continued growth driven by land-based and sea-based workers with US$32. 539 billion  in 2022.

 

In 2024,  total personal remittances hit a record high of $38.34 billion, a 3% increase from 2023, representing 8.3% of the country's GDP.

 

As of November 2025 , the BSP data showed personal remittances of $35.73 Billion.

 

In terms of 2024 total  remittances amounting to $34,492,616,000, the sea-based sector sent home $6,941,085,000, or almost 20 percent, while the land-based sector sent home $27,551,532,000.

 

BSP records showed that he sea-based sector’s remittances (in thousand US dollars) for the past 20 years: $1,669,358 in 2005; $1,949,290 in 2006; $2,236,363 in 2007; US$3,034,553 in 2008; US$3,400,412 in 2009; $3,806,108 in 2010; $4,340,416 in 2011; $4,835,342 in 2012; $5,215,378 in 2013; $5,575,722 in 2014; $5,572,148 in 2015; $5,792,459 in 2016, US$6,870,827 in 2017; $6,139,512 in 2018; $6,539,246  in 2019; $6,353,522 in 2020; $6,545,002 in 2021; $6,715,880 in 2022; $6,852,362 in 2023; and $6,941,085 in 2024.

 

Remittances are a major source of foreign currency for the Philippines. This inflow of foreign currency helps support the value of the Philippine Peso, which is important for real estate investors who are looking to purchase property in the country.

 

(Atty. Dennis R. Gorecho heads the Seafarers’ Division of the Sapalo Velez Bundang Bulilan Law Offices. For comments, e-mail info@sapalovelez.com, or call 0908-8665786.)

Musical tribute to Filipino seafarers

Music  plays a special role on Filipino seafarers’ life,  whether at sea or on land.

A sunset environmental concert  dubbed as Harana  by the Bay of the Philippine Coast Guard (PCG) symphony band  pays homage to the oceans and seas  to keep our Filipino seafarers safe in their voyage  

Harana  is part of the celebration of the 24rd National Seafarers Day led by the Apostleship of the Sea (AOS) Philippines and the 20th National Maritime Week.  

Harana was an exclusively nocturnal practice which gained popularity in the early part of the Spanish Period  that was widely practiced in many parts of the Philippines with a set of protocols, a code of conduct, and specific romantic  style of music. 

 Organized in  2000,  the  PCG band is composed   of  both junior and senior ranking non-commissioned officers who represented  the institution in the different parts of the country, be it for entertainment, advertisement and for keeping the PCG's vision, mission and primary functions thru musical entertainment.

It is also an understatement to say that karaoke is a central part of  pop culture of Filipinos , including   seafarers whether on board or in between contracts.

Karaoke is the clipped compound of Japanese kara (empty) and ōkesutora (orchestra)  that is an  interactive entertainment  in which an amateur singer sings along with recorded music  (or a music video)  using a microphone.

 Karaoke is indeed  a favorite past time of Filipino seafarers as one of the  coping mechanisms aboard international and domestic  shipping vessels to address stress and boredom.

The sea can’t stop the seafarers  in mastering the art of vocal mimicry from contagiously  belting out songs like the infamous “My Way.”

In between contracts,  Pinoy seafarers and maritime students  converging along Kalaw show their singing prowess through a weekly show organized by volunteers.

The Boses ng Marino Karaoke Challenge by the Luneta Seafarer's Welfare Foundation (LUSWEL:F)  was   included in the Pasiklaban  Musicfest of this year’s NSD  at the Asian Institute of Maritime Studies, followed by the battle of the bands.

 The Philippines is considered as the major supplier of maritime labor globally as it is estimated that there is one Filipino seafarer for every four to five complements on board a vessel at any time.

 The estimated 337,502 deployed Filipino seafarers in 2018  remitted  $6.14 billion or around P318.55 billion. The sea-based sector’s remittance comprise at least 22% of the total dollar remittances of Overseas Filipino Workers (OFWs). These remittances help spur domestic consumption in the Philippines and a key ingredient in the country’s drive to achieve higher but sustainable growth.

However, away from his family and working on board vessels sailing non-stop for weeks or months the world’s oceans, the Filipino seafarer is physically, mentally and emotionally stressed.

Constantly exposed to fluctuating temperatures caused by variant weather changes of extreme hot and cold as the ships cross ocean boundaries, the risks of his getting killed, injured or ill are high.

Former president Fidel V. Ramos issued on July 9, 1996 Proclamation No. 828 declaring Aug. 18 as National Seafarers’ Day aimed at giving due recognition to the vital role of Filipino seafarers towards the development of the Philippines as a maritime country. Later, Proclamation No. 1094 was issued in 1997 by President Ramos which moved NSD to every last Sunday of September every year.

The Apostleship of the Sea (AOS) Philippines was tasked to coordinate with the public and private sectors in activities related to the celebration of said event.

This year’s NSD is set on September 29, 2019  with the  theme “ Marinong Filipino- Kababaihan: Palakasin sa Industriya!” in line with 2019  World Maritime Day theme ( Empowering Women in the Maritime Community).

The Sunday masses during the NSD all over the country are offered to the Filipino seafarers.

Other weeklong NSD activities nationwide led by AOS include memorial at sea, novenas, oratorical/art /photo contest, film showings, search for  the Ten Outstanding Maritime Students of the Philippines (TOMSP) and  the grand parade participated in by stakeholders.

 The NSD coincides with the National Maritime Week celebrated every last week of September spearheaded alternatively by the government agencies Maritime Industry Authority (MARINA), Philippine Coast Guard (PCG), and Philippine Ports Authority (PPA).

***

Atty. Dennis R. Gorecho heads the seafarers’ division of the Sapalo Velez Bundang Bulilan law offices. For comments, email info@sapalovelez.com, or call 09175025808 or 09088665786).

Filipino Seafarers as disciples of the church : 24th National Seafarers Day

Manila Archbishop Luis Antonio Tagle has acknowledged the role of  seafarers, Filipino mariners in particular, in propagating the teachings of the church, and  not merely major contributors to the country’s economic growth.

Speaking during the holy mass of the 24^th National Seafarers Day (NSD) at the Paco Arena, Tagle noted that Church has always been interested in seafarers since Christ first gathered his fishermen-disciples around him who later  disseminated his teachings.

Andrew, Peter, James and John, the sons of Zebedee, were fishermen.  The bible relates that Andrew and Peter were fishing, plying their trade when called, and James and John were mending nets with their father. The bible also  states that James and John  weren’t just fishermen, but business owners, along with their father, for they employed others in the business.

Thomas and Philip may have also worked as fishermen, for they were all together and fishing when Jesus appeared to them following his resurrection.

Tagle also earlier noted in a previous NSD celebration that Filipino seafarers  are  ‘saint potentials’.  The archbishop was referring to Saint Lorenzo Ruiz and San Pedro Calungsod as he noted that these two martyrs of the Philippine Catholic Church were seafarers and missionaries at the same time before they became saints. He added that Ruiz and Calungsod sailed to other countries and died for a mission: “to teach the Good News.

He likewise reminded the faithful not to be blinded and numb by comfort, wealth and luxury.

“As we strive to make our lives better, may this not lead us to forgetting our roots, neglecting those who need our help. Real progress also means progress in sympathizing and helping our fellowmen. But if it leads us to becoming numb and blind to the needs for others, then you cannot call it real progress,” Tagle stressed.

The estimated 337,502 deployed Filipino seafarers in 2018  remitted  $6.14 billion or around P318.55 billion. The sea-based sector’s remittances comprise at least 22% of the total dollar remittances of Overseas Filipino Workers (OFWs). These remittances help spur domestic consumption in the Philippines and a key ingredient in the country’s drive to achieve higher but sustainable growth.

“If you are already well-off and live a comfortable life and you deny the Philippines and forget where you came from, that is not progress. That is regression. That is not the attitude of an upright person. And that is not the kind of Filipino I know,” Tagle added.

Tagle underscored that the pain brought by separation is a sign of  the seafarer’s  love, strength, and faith for the good of his  family and the country.

"Even if you feel pain when you leave your family and your country, that suffering is not a reason for you to be ‘paralyzed,’ but inspire you to strive for more,” said Tagle adding  that their hardships will not weaken them but make them even stronger.

The Philippines is considered as the major supplier of maritime labor globally as it is estimated that there is one Filipino seafarer for every four to five complements on board a vessel at any time.

 Former president Fidel V. Ramos issued on July 9, 1996 Proclamation No. 828 declaring Aug. 18 as National Seafarers’ Day aimed at giving due recognition to the vital role of Filipino seafarers towards the development of the Philippines as a maritime country. Later, Proclamation No. 1094 was issued in 1997 by President Ramos which moved NSD to every last Sunday of September every year.

The Apostleship of the Sea (AOS) Philippines was tasked to coordinate with the public and private sectors in activities related to the celebration of said event. The Sunday masses all over the country were offered to the Filipino seafarers.

This year’s NSD was set on September 29, 2019  with the  theme “ Marinong Filipino- Kababaihan: Palakasin sa Industriya!” in line with 2019  World Maritime Day theme ( Empowering Women in the Maritime Community).

Other weeklong NSD activities nationwide led by AOS include the grand parade participated in by stakeholders,  memorial at sea, novenas,  and the search for  the Ten Outstanding Maritime Students of the Philippines (TOMSP) as well as oratorical, art, photo and singing contest ..

The NSD coincides with the National Maritime Week celebrated every last week of September spearheaded alternatively by the government agencies Maritime Industry Authority (MARINA), Philippine Coast Guard (PCG), and Philippine Ports Authority (PPA).

***

Atty. Dennis R. Gorecho heads the seafarers’ division of the Sapalo Velez Bundang Bulilan law offices. For comments, email info@sapalovelez.com, or call 09175025808 or 09088665786).

West Philippine Sea and the 2019 Ten Outstanding Maritime Students of the Philippines

The West Philippine Sea issue was one  of  the questions I asked to the  aspirants for the 2019 Ten Outstanding Maritime Students of the Philippines (TOMSP) in line with the 24^th National Seafarers Day (NSD).  

 They were also asked what single personal item they will save if they were on board the damaged  Filipino fishing boat FB Gem-VIR  that  a Chinese vessel rammed on June 9, 2019 near the Reed (Recto) Bank.

Some of the answers given cellphone, rosary, bible, family pictures, and notebook with prayers.

Out of the 25 hopefuls, the following students were declared the winners: D/C Ma. Toiza Boriba Gorantes and  D/C Ryan Anthony Bretana  both from John B. Lacson Foundation Maritime University (JBLFMU)  Arevalo;   E/C Peter Matthew Bibera of JBLFMU Molo  and  D/C John Kevin Buenaventura  and D/C Zayber Araya of John B. Lacson Colleges Foundation (JBLCF Bacolod). D/C Keith Aiken Pajarillo and D/C Aldrin Ulep both of  Maritime Academy of Asia and the Pacific – IMMAJ Campus;  D/C Christian Khen Torreliza of  Baliwag Maritime Academy; D/C William Catacutan of  University of the Visayas ( UV Main Campus) and E/c Dustin Ryan Veridiano, of University of Cebu (Lapu Lapu/Mandaue).

The chosen students are seen as the embodiment of the "ideal seafarer," displaying "integrity, passion, assertiveness, dependability and camaraderie" that will allow them to become globally competitive Filipino seafarer.

The  search gave recognition to students for being academically excellent, highly competent in practice, in good moral standing and active in their respective communities.

From 2011 to 2019, ninety students have received   the TOMSP award.

The largest number of winners came from  JBLCF – Bacolod with fifteen students.

They are followed by   eleven students from  Maritime Academy of Asia and the Pacific (MAAP) IMMAJ Campus   and another eleven  11 from  from  MAAP CGSO  campus.

Ten winners came from JBLMU– Arevalo.

Seven students came from Philippine Merchant Marine Academy (PMMA)-Zambales while another seven came from University of Cebu (UC) – Lapu Lapu and Mandaue.

Five students came from JBLMU – Molo.

Four students came from Mariners’ Polytechnic Colleges Foundation.

Three students each came from Asian Institute of Maritime Studies (AIMS), Technological Institute of the Philippines (TIP) Manila and  DMMA College of Southern Philippines.

Two students came from Malayan Colleges Laguna.

One student came from each of the following schools: Baliwag Maritime Academy, Colegio Dela Purisima Concepcion Roxas, Lyceum International Maritime Academy Batangas,   Manuel Enverga University Foundation, Inc.,  NAMEI Polytechnic Institute, Philippine Merchant Marine School (PMMS)  Las Pinas, Southwestern University Maritime Regiment, University of Perpetual Help System Dalta,  and University of the Visayas.

With this year’s NSD theme "Marinong Filipino-Kababaihan: Palakasin sa Industriya!", nine  female students were awarded since the TOMSP search begun in 2011 wherein four came from the MAAP , one each from University of Cebu, PMMA, Colegio De La Purisima Concepcion-Roxas, JBLCF Bacolod and latest winner   from JBLMU-Arevalo.

Higher maritime education usually consists of 4-year college degree programs for either marine transportation or engineering. Most commonly, the students go through a 4-year structure (3 - 1) which stipulates 3  years of academic study prior to onboard job training in the final year. An alternative approach is a 2 – 1 – 1 structure which schedules the onboard job training for the third year. After the one year job training, the students go back to school to finish their last year.

The almost 90 maritime schools annually produce some 40,000 graduates while a  2018  study by the Maritime Industry Authority (MARINA)  showed that an average of  about 18% of enrollees manages to complete the full academic three years.

Former president Fidel V. Ramos issued on July 9, 1996 Proclamation No. 828 declaring Aug. 18 as  NSD  aimed at giving due recognition to the vital role of Filipino seafarers towards the development of the Philippines as a maritime country. Later, Proclamation No. 1094 was issued in 1997 by President Ramos which moved NSD to every last Sunday of September every year.

The Apostleship of the Sea (AOS) Philippines was tasked to coordinate with the public and private sectors in activities related to the celebration of said event. The Sunday masses all over the country were offered to the Filipino seafarers.

***

Atty. Dennis R. Gorecho heads the seafarers’ division of the Sapalo Velez Bundang Bulilan law offices. For comments, email info@sapalovelez.com, or call 09175025808 or 09088665786).

DEADWEIGHT: accident , suicide, and seafarer's death compensation claims

 The   Finnish-German film  “Deadweight” dealt with  the legal question on the cause  of  a Filipino seafarer’s death that has a significant impact in  compensation claims. : whether he died  by accident or suicide.  

The movie by German filmmaker  Axel Koenzen Axel  explores the tough working conditions in the globalised shipping business.

Ahti Ikonen is the captain of a large 35,000-ton container vessel Brugge, which enters the port of Savannah behind schedule. As they are  under deadline pressure,  he violated regulations by ordering his crew to help the local dockworkers unload the cargo. Unfortunately, it  costs the  life of a Filipino seafarer James that threatens his career.  In the port of Rotterdam, Netherlands unionized dockworkers exploit the incident and refuse to unload the ship and called for a boycott.

In the film, the Filipino seafarer James was somewhat suffering from a depression as his request  for repatriation  was not granted even if his tenure was already beyond  that stipulated in the contract.  In a scene he was  shown with a head injury after the illegal lashing  and later     as a dead person.

The  film showed the discussion among the Filipino crew on what will be the tenor of their testimony surrounding James’ death.

If he died due to accident,   the heirs will be paid US$50,000.00 and an additional amount of US$7,000.00 to each child under the age of twenty-one (21) but not exceeding four (4) children under the POEA contract.  The amount usually is higher if the death is covered by a Collective Bargaining Agreement (CBA).

On the other hand, declaring the incident as suicide will save the owners large amount of payment for death benefits from the insurance companies.

The employer is liable to pay the heirs of the deceased seafarer for death benefits once it is established that he died during the effectivity of his employment contract. However, the employer may be exempt from liability if it can successfully prove that the seafarer’s death was caused by an injury directly attributable to his deliberate or willful act, including killing himself by committing suicide.

The investigators  concluded that James died by suicide due to illegal lashing  based on the testimony of the crew.

Studies identify  as most frequently cited factors  for seafarers’ suicide the  various work-related problems which  included conflicts among the crew, disciplinary problems, work pressure,  cancellation of shore leave, various mental health conditions, depression,  marital or girlfriend problems and  alcohol consumption.

I was elated to see my name in the credits of the film. In 2014, I was interviewed by  German filmmaker  Axel Koenzen on the different issues confronting the Filipino seafarers, including the perils of the profession like disability or death due to illness, injury or accidents.

Two years later, the film  had its world premiere at the 2016  Berlin International Film Festival.  

Deadweight is a measure of how much weight a ship can carry, or the sum of the weights of cargo, fuel, fresh water, ballast water, provisions, passengers, and crew.

The film was aptly described in the 9th Subversive Film Festival in  Zagreb, Croatia as “Axel’s  nautical piece which  deals with the exploitation of the nautical working class that makes the functioning of capitalistic efficiency possible. With an accentuated documentary approach,  through various observational methods the film speaks about responsibility, limitations, restrictions, which are symbolic of a time in which instructions are mediated through e-mail and  radio,  and reflect the essence of the global syndrome of mediated management - the shifting of responsibility that often falls on the lowest level executioner. The film has adapted, in its making, to the rhythm of the boat, while the author refuses to romanticize the hard and brutal working conditions of its crew.”

Deadweight had its Philippine premier last month  at the UP Film Center in Diliman. I suggested to Axel  that it be shown in schools and other venues in time for the National Seafarers Day celebration during the last week of September.

Atty. Gorecho heads the seafarers’ division of the Sapalo Velez Bundang Bulilan  law offices. For comments, email info@sapalovelez.com, or call 09175025808 or 09088665786

seafarer's diet and colon/ colorectal cancer

The interplay of dietary factors, age and  working environment  while at sea contribute to the development of    colon cancer among seafarers.

The Supreme Court ruled in the case of Skippers vs. Lagne ( G.R. No. 217036 August 20, 2018 ) that  rectal illness is compensable for permanent and total disability due to his dietary provisions.

Colon cancer, also known as colorectal cancer or large bowel cancer, includes cancerous growths in the colon, rectum and appendix. Colorectal cancer can invade and damage adjacent tissues and organs. Cancer cells can also break away and spread to other parts of the body (such as liver and lung) where new tumors form.

Companies usually deny liability for payment of disability or death benefits since there only three  types of cancers  listed as occupational diseases under the POEA Standard Employment Contract– (1) Cancer of the epithelial lining of the bladder (papilloma of the bladder); (2) cancer, epithellematous or ulceration of the skin or of the corneal surface of the eye due to tar, pitch, bitumen, mineral oil or paraffin, or compound products or residues of these substances and (3) acute myeloid leukemia and chronic lymphocytic leukemia.  

 Jurisprudence provides that to establish compensability of a non-occupational disease, reasonable proof of work-connection and not direct causal relation is required. Probability, not the ultimate degree of certainty, is the test of proof in compensation proceedings.

Settled is the rule that for illness to be compensable, it is not necessary that the nature of the employment be the sole and only reason for the illness suffered by the seafarer. It is sufficient that there is a reasonable linkage between the disease suffered by the employee and his work to lead a rational mind to conclude that his work may have contributed to the establishment or, at the very least, aggravation of any pre-existing condition he might have had.

The  Supreme Court stressed that the seafarer  acquired or developed his illness during the term of his contract due to the  strenuous nature of his  job, his advanced age at the time of hiring combined with his poor diet which consists of mostly carbohydrates, high-fat, high­ cholesterol, and low-fiber foods.

His dietary provisions while at sea increased his risk of contracting colon cancer because he had no choice of what to eat on board.

Being a seafarer, the food provisions on a ship  are designed for long journeys across the oceans and seas. The food provided are mostly frozen or processed meat, and  canned goods. Seldom are there vegetables which easily rot and wilt and, therefore, impracticable for long trips.

These provisions undoubtedly contribute to the aggravation of the seafarer's rectal illness.

While there is no specific cause of colorectal cancer, the Supreme Court noted that  certain factors can increase risk of developing the disease, including diet, age and health. Diets high  in fat, red meat, total calories, and alcohol are significantly associated with the formation of cancer-causing chemicals known as carcinogens which predisposes humans to contracting the disease.

 

The compensability of colorectal cancer has also been ruled upon in the case of Leonis Navigation v. Heirs of the late Catalina V. Villamater  (G.R. No. 179169               March 3, 2010) wherein the Supreme Court noted that factors that increase a person's risk of colorectal cancer include high fat intake.  

Diets high in fat are believed to predispose humans to colorectal cancer. It is believed that the breakdown products  of fat metabolism lead to the formation of cancer-causing chemicals (carcinogens). Diets high in vegetables and high-fiber foods may rid the bowel of these carcinogens and help reduce the risk of cancer.

Living in typically confined environments on board vessels for prolonged periods of time leaves seafarers exposed to various ongoing health problems including obesity and vitamin deficiency, as they choose convenience foods heavy in sugar and salt and low in protein.  Poor diet has even been found to be a key factor in altering physiological and psychological functions, which can have a devastating impact not only on the individual but also on the smooth running of daily operations.

Seafarers are exposed to occupational risk factors, as well as environmental risk factors, as part of their normal everyday activities since they spend a large part of their lives at sea. Most seafarers live and work under extremely hazardous conditions that can cause serious short-term and long-term damage to their health. In some cases, they are exposed to conditions that can even be fatal.

 Atty. Gorecho heads the seafarers’ division of the Sapalo Velez Bundang Bulilan  law offices. For comments, email info@sapalovelez.com, or call 09175025808 or 09088665786