PROPERTY COMPANIES are benefiting from rising transportation costs brought about by spiralling fuel prices, with consumers preferring to live near their workplace to avoid commuting.
In a statement, Lucio-Tan led Eton Properties Philippines, Inc. said people are looking at ways to cut expenses, and many of them are now considering settling near their offices.
The company said over half a million people make their way to the Makati central business district daily from nearby cities and provinces.
"But faced with higher gas prices, both commuters and motorists are now considering living closer to their workplace to lessen travel costs," said Janette Cordero, Eton Properties senior assistant vice-president for business development.
Prince R. Cruz, a senior economist of the Global Property Guide, said rising demand for residential condominiums near central business districts has long been observed, noting that these are places where most call centers are located.
"Based on our research, we found out that the rental yields from property areas near central business districts are much higher because most of the units are rented by call center agents who prefer to cut short their travel time and have higher wages," Mr. Cruz said in a phone interview.
He added that high crude prices might have intensified the demand for these types of properties.
"But [the demand for residential units] will also depend on how much the market will charge because people will still balance what they are spending on rents with what they are saving for transportation time and expenses," Mr. Cruz said.
Ms. Cordero said the increasing popularity of properties near major transportation modes has been evident in Eton’s three-tower residential condominium, the Belton Place.
"Even during the high expense period of June and the lean periods of July and August, Belton Place sold an average of 80 units per month," she said. Prices of Belton Place units start at P1.5 million.
Ms. Cordero said most of their customers are foreigners who buy units at the Belton Place for investment purposes and rent these out to tenants.
Like Eton, Megaworld Corp. Robinson's Land, said many of its residential clients work near the condominiums.
In an interview, Megaworld Executive Director Kingson U. Sian said convenience is a key factor in the decision of buyers where to live. He said the company was the first to conceive and develop mixed-use projects, where people can walk from their homes to their workplaces.
Meanwhile, Dan M. Abando, president of Ayala unit Alveo Land Corp., said some clients prefer to be closer to schools.
"It’s already a general notion that people look at convenience as one of their parameters in buying houses," he added.
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