Ty realty firm eyes low-cost projects

Philippine Daily Inquirer

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MANILA, Philippines—Federal Land Inc., the property arm of tycoon George Ty, plans to venture into low-cost housing by selling residential units priced below P1 million by next year, thereby catering to a broader segment of the Philippine population.

“Our subsidiary, Horizon Land, is considering that,” Federal Land president Arthur Ty said in a recent talk with reporters. “We’d like to look into that. Tie up with the bank on assets they have depending on location.”

Ty was referring to the group’s banking arm Metropolitan Bank and Trust Co., which also has a thrift bank unit, Philippine Savings Bank.

Going down-market has been a common strategy among big property developers in recent years given the huge backlog of demand for affordable housing in the country alongside the highly liquid financial system.

Bulk of Federal Land’s condominium projects in Metro Manila currently sell high-rise residential units at an average price of P5 million although it also has projects offering units priced at P2 million and below in certain areas like Marikina, Paco (Manila) and Cavite.

The property company is upbeat on the real estate industry despite headwind from the United States and Europe.

“Interest rates, while rising, remain low. There’s nothing right now or in the foreseeable future that indicates that they will go up,” said Jose Mari Banzon, company executive vice president and general manager.

“Remittances continue to be strong, fueling a lot of the real estate sales now. Until those show signs of abating, we think that the market continues to be strong. We haven’t felt any slowdown,” Banzon said, adding that the business process outsourcing sector was continuing to grow.—Doris C. Dumlao

Low-cost houses coming up for Payatas residents

Hans Joshua Dantes

Philippine Daily Inquirer

THE QUEZON City government will provide low-cost houses to informal settlers in Barangay Payatas to move the families away from dangerous areas like sidewalks, roadways and flood-prone waterways.

A memorandum of agreement was signed Thursday by the city government with the Pag-ibig Fund and Habitat for Humanity for the low-cost housing project.

Mayor Herbert Bautista led the signing, along with Pag-Ibig Fund chairperson Darlene Marie Berberabe and Habitat for Humanity managing director Ricardo Jacinto.

The project will be built on a 1.58-hectare site in Barangay Payatas not only for informal settlers but for homeless public school teachers as well.

This will form part of the city government’s Housing Board shelter plan for Quezon City, Bautista said in a press conference.

The members of the Housing Board are: Bautista, Vice Mayor Joy Belmonte, the Urban Poor Affairs Office and urban poor groups Alyansa ng Maralita sa Nova and Urban Poor Council Leaders of Quezon City.

Firm budgets P200M for 2 projects

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By Katlene O. Cacho

A NEW player in the real estate industry in Cebu will be investing P200 million for the development of two housing projects this year.

Softouch Property Development Corp. (SPDC) said they are optimistic about business prospects because of the robust growth in the real estate industry, particularly in the demand for housing.

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SPDC president Manuel Dy said they will be building houses in Barangay Sudtunggan, Lapu-Lapu City and Barangay Jugan in Consolacion this year.

Dy is the owner of MDR Microware Sales Inc., a supplier of computer parts, computer accessories and peripherals in Visayas and Mindanao. He said he diversified his business by venturing into real estate because of the robust growth of the industry in the past years.

SPDC started its operations in 2009. Its first project was Softouch Subdivision in Upper Cala-joan in Minglanilla.

Market feedback

Last Saturday, the company launched its second project called Anami Homes, a mid-range development in a 10-hectare property in Barangay Sudtunggan in Lapu-Lapu City.

According to Ely Jumao-as, Softouch general manager, the company will initially develop 1.3 hectares of the property, which will have about a hundred houses. He said they will first look at the market’s feedback before expanding.

Anami Homes features four model Asian contemporary house units like townhouses with or without a terrace and single detached houses with or without a terrace with prices ranging from P1.7 million to P3 million.

Among the subdivision’s amenities are a multipurpose hall and a covered basketball court. The company hopes to complete development in the first quarter next year and residents can start moving in the middle of next year.

“This project specifically targets the middle-class, start-up families, employees and overseas Filipino workers,” Jumao-as said.

He said people now prefer owning homes rather than renting houses because of affordable rates and good payment schemes.

Apart from the Anami Homes, the company will also develop a 2.1-hectare property in Consolacion into an economic-housing project starting November this year. The project will have about 250 house units.

Growth

According to National Economic Development Authority Director General Cayetano Paderanga, real estate and private construction will continue to remain upbeat this year, given the bright prospects in the property market like office, residential, retail and hotel/leisure submarkets.

Jumao-as said they are optimistic on the real estate industry despite the presence of big players in the market today because of the robust growth of commercial establishments and manufacturing industries in Cebu.

“The company is open to build condominiums or beachfront communities depending on the needs and opportunities in the market. But what we are focusing now, since we are a new player in the industry, is to build the company’s brand by delivering affordable yet high quality houses to the Cebuano market,” Dy said.

Published in the Sun.Star Cebu newspaper on September 20, 2011.