Once the Philippine GDP starts growing again at a rate of 6-8% after the pandemic is reasonably brought under control in 2023, the demand for budget housing (units priced at P1 at 5 million each) will see the greatest increase. . There are two main reasons for this. First, over the next three to five years, the Philippines will finally transition from a lower middle income economy to an upper middle income economy, with our GDP per capita exceeding $ 4,000. Extrapolating from data from Philippine Institute for Development Studies (PIDS) research on “Middle Class Profiles and Determinants,” 40% of the country’s 22 million households will now earn an income monthly (at 2017 prices) Continued. These approximately 8,800,000 million households will no longer be too concentrated in very congested areas such as Metro Manila or Metro Cebu, but will increasingly move to new metropolitan areas such as CALABARZON (in particular Batangas) and Central Luzon (in particular the so-called Pampanga Triangle of San Fernando -Angeles-Clark-Subic). This trend is also already evident as we see an aggressive expansion of major Manila-based real estate developers into these new metropolitan areas. Since it is the middle income segment that will grow the fastest over the next decade, demand will be for budget housing and not for high-priced luxury units of 10 million pesos or more, the segment market that is already suffering from oversupply and is currently experiencing a slowdown as the pandemic wreaks havoc on the economy.
A large portion of these households that increasingly enjoy middle-income status come from relatives of the more than 10 million Filipino Overseas Workers (OFW) whose remittances to the Philippine economy have barely declined. during the worst period of the pandemic in 2020 and are already growing in the first half of 2021 at almost 5%. Expect this increase to accelerate as the global economy returns to normal. The same goes for the roughly 1.3 million workers in the BPO-IT industry who have also been equally resilient during the recession caused by the pandemic. We can add to these households those who have teachers or nurses who have become the beneficiaries of the government’s enlightened campaign to increase their salaries to P 30,000 or more per month. These are the households that should be targeted by property developers in the categories of low-cost housing (and HLM).
Real estate developers who cater to these middle-income families actually help to strengthen the foundations of a democratic society. As experienced by other countries that have come before us in becoming primarily a middle-income society, it is middle-income citizens who can be the strongest advocates of democratic institutions. Anything that promotes the well-being of middle-income households can go a long way in stabilizing a society politically. That’s why I’m happy to see a growing number of real estate developers focusing on this market segment. A notable example is Cebu Landmaster Inc. (CLI), based in Cebu, which is giving big Manila-based developers a real boost in the real estate markets of Visayas-Mindanao. CLI’s first major project was a standout example of how to decongest another urban center like Metro Cebu (consisting of Cebu City, Mandaue City and Lapu-lapu City) by attracting families to live in the suburbs. This suburb is the first-class municipality of Minglanilla, fifteen kilometers south of Cebu City. In 2014, CLI developed a 7.8 hectare property in Linao, Minglanilla with an initial offering of 725 homes, each with stunning views of the greenery and bustling Cebu metro as seen below. The brand name of the houses is Casa Mira. For those who know Spanish, “Mira” means to watch. A common feature of Casa Mira homes is that each has a beautiful view to look at.
CLI has decided to focus on the budget housing sector which had an order book of some 2.5 million units in 2019, according to the Subdivision and Housing Developers Association. After the remarkable success of its first business, CLI has spread widely in the Visayas-Mindanao regions. Closely following the initial success of the first project are Casa Mira Sud Phases 1 and 2, straddling Naga and San Fernando also in Cebu province. in the neighboring province, Negros Oriental, the Sibulan project, just outside the city of Dumaguete, is complete. In Mindanao, his first project is in Kauswagan, Cagayan de Oro City. The horizontal communities of the towns of Bacolod and Iloilo are recording strong sales. too much. Over the next five to ten years, CLI will implement at least 10 projects, including Casa Mira Sud. towers in Mandaue and Guadalupe, Casa Mira condominiums in Bacolod, and continued expansions in Dumaguete, Ormoc, Davao and Puerto Princesa in Palawan. Case Mira takes its place as CLI’s flagship budget housing brand, currently comprising 62% of the builder’s residential portfolio and is expected to contribute 30% of total revenues. All units exist in very well planned communities. Although focused on the budget housing market, Casa Mira’s amenities and services are comparable to high-end housing estates: a gym, clubhouse, swimming pools, chapel and shops. Environmentalists will be happy to hear that 40 to 60 percent of the land is allocated to open space. Buyers who are already part of the millennial generation are also drawn to the existence of a property management team that supports owners 24/7 through the CLI Property Management.
Boosting its reputation as a decongestant for highly urbanized and overcrowded areas like Metro Manila and Metro Cebu is an ambitious plan to reclaim 100 hectares of land in Minglanilla Municipality through a consortium of five to six Cebu-based companies. , led by CLI as project manager. It will be a 10 billion pesos project envisaged to create an autonomous township that will generate new economic opportunities in the province of Cebu. The development will include a port and mid-rise condominiums. CLI expects this world-class field to generate more than 75,000 jobs in the municipality. The proximity of the planned estate to Metro Cebu will make it an ideal location for a planned community with live work and play opportunities for its residents and visitors. CLI’s example should be followed by other real estate developers to deliver value for money to middle-class families. Targeted at the budget housing sector, Casa Mira homes start at an affordable price of P1.6 million per unit while ensuring that all units have generous spaces where families can spend quality time together, particularly appreciated by homebuyers in these times of containment and, in the future, the expected continuation of homework and blended learning as part of the so-called New Reality. CLI’s active presence in other growing urban centers in Visayas and Mindanao will ensure that these nascent metropolitan areas can avoid the mistakes of monster cities like Metro Manila and Metro Cebu which have become unlivable due to over-development. With more developers following the CLI example, more of our cities in the future will be truly sustainable.
For comments. my email address is [email protected].
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