11/02/2026
Why I Favor Constitutional Amendment (Not Cha-Cha) — A Broker’s Perspective
As a real estate broker, I regularly deal with investors, developers, and buyers who compare the Philippines with other countries in the region. One thing becomes very clear very quickly:
👉 The problem is not lack of interest in the Philippines.
👉 The problem is restrictive economic rules written into the Constitution.
I believe the 1987 Constitution is flawed, particularly in its economic provisions. That is why I support constitutional amendment, not a full constitutional change or the politically loaded “Cha-Cha.”
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Where the Problem Starts
▪️ The Constitution locks in foreign ownership limits, especially in land, real estate, and public utilities
✔️ These limits are constitutional, not legislative — making them very hard to adjust
👉 Investors see this as rigid, outdated, and high-risk
In today’s world, capital flows where rules are clear, predictable, and flexible.
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How This Affects Real Estate (On the Ground)
👉 Foreigners cannot own land, only condominium units (up to 40%)
▪️ Large foreign funds interested in industrial parks, logistics hubs, or mixed-use townships often walk away
✔️ Ownership structures become overly complex and legally risky
▸ Capital gets redirected to Vietnam, Thailand, or Indonesia instead
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The Rise of Dummy Partners — A Symptom of Bad Policy
👉 Because ownership rules are overly restrictive, some people try to circumvent the law instead of reforming it
▪️ Unscrupulous operators create dummy Filipino partners to get around foreign ownership limits
✔️ Legal on paper, questionable in substance
▸ Common in land acquisitions, long-term leases, and development projects
This does not protect Filipinos.
It damages everyone involved.
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Why Dummy Arrangements Hurt the Buyer
👉 Foreign buyers lose real control over the property
▪️ Deals rely on side agreements that are weak or unenforceable
✔️ One dispute can wipe out an entire investment
▸ Many buyers realize the risk only when it’s already too late
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Why Dummy Arrangements Hurt the Seller
▪️ Sellers face future legal exposure
👉 Transactions can be questioned or nullified
✔️ Reputational risk for brokers and developers
▸ Payment and completion issues when deals collapse
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Why This Is Bad for the Entire Market
✔️ Encourages grey-area transactions
▪️ Rewards rule-bending instead of compliance
👉 Discourages serious, long-term institutional investors
▸ Weakens trust in the Philippine real estate market
Ironically, rules meant to protect Filipinos end up doing the opposite.
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Why Our Neighbors Move Faster
▸ Investment rules can be adjusted through ordinary legislation
✔️ Investors don’t need constitutional changes to enter
▪️ Projects move faster
👉 Jobs are created sooner
● Infrastructure follows investment
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Why Constitutional Amendment Makes Sense
✔️ Fixes specific outdated economic restrictions
▪️ Keeps democratic safeguards intact
👉 Allows Congress to regulate foreign participation through laws that can evolve
▸ Sends a signal of stability and seriousness to investors
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Why Total Constitutional Change Is Risky
▪️ Opens the door to political power struggles
👉 Revives fears of term extensions and power consolidation
✔️ Creates uncertainty — the number-one enemy of investment
▸ Investors pause, delay, or leave
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Opening Up Does NOT Mean Losing Control
✔️ Zoning laws remain
▪️ Taxes remain
👉 Labor protections remain
▸ Environmental rules remain
● National-interest safeguards remain
What changes is flexibility, not sovereignty.
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What This Means for Real Estate and Filipinos
👉 More capital for infrastructure
✔️ Better construction standards and technology
▪️ Healthier competition among developers
▸ More jobs — not just construction, but retail, logistics, and property management
Ironically, excessive protection often results in:
▪️ Higher property prices
👉 Fewer choices for buyers
✔️ Slower development outside Metro Manila
▸ Missed opportunities in the provinces
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Bottom Line
✔️ The Constitution needs fixing
❌ It does not need to be torn down
👉 Amend, don’t overhaul
▪️ Modernize, don’t destabilize
✔️ Invite investment, don’t scare it away
Reform the rules. Protect the Republic. Let the economy breathe.
