By Rhia de Pablo Updated March 18, 2009 12:00 AM
CEBU, Philippines - Amidst the anticipated slowdown on consumer spending due to the current global recession, a real estate developer CLS Properties Inc. continues to eye the huge demand for housing in Cebu.
In an interview with its managing director Ken. A Salimbangon, he said that real estate continues to thrive at these times of economic downturn because housing remains to be one of the basic needs of every person.
He said that their target markets which are mostly composed of executives, professionals, and start up families are not affected with the retrenchments in the workforce and they also have minimal penetration in the OFW market, which has also been affected by the crisis.
Salimbangon said that financing companies which have become aggressive these days have also helped real estate players like them to remain competitive and attract more markets.
“Financing companies are now going back to investing their money to the local workers instead of investing in foreign companies. Even the Mutual Fund is aggressive and their releases are still on date so we do not have problems with take outs,” he said.
Salimbangon said that their projects are fast-selling even amidst economic crisis because of their affordable yet quality projects.
After having started last year, CLS Properties was already able to successfully deliver projects like East Ridge Residences Basak, Lapu-Lapu which is 40 percent completed and 100 percent sold out; East Ridge Residences Soong which is 10 to 15 percent completed and is already 45 percent sold; Pereville in Pagsabungan, Mandaue which is 50 percent completed and 90 percent sold; Matilde Condominium in Ramos which is 100 percent developed and 10 to 15 percent sold.
Currently, CLS Properties is developing a new project for the middle to high-end market segment called Cielo e Terra which will be launched this month.
Salimbangon said that despite being a newly established company, their founder has already banked in 30 years of experience having been at the forefront of the construction boom in the 90’s which saw the rise of economic and socialized housing projects in the Province of Cebu including other infrastructure works.
“We are not a big player and we are just doing small time projects so we are on the look out for pocket developments. We want to engage ourselves into socialized housing from the middle to low segment,” said Salimbangon.
He said that they are eyeing future housing projects in Mactan, Mandaue, Talisay and Minglanilla but they will pursue new developments when they are already able to sell out 50 percent of their new project.
Salimbangon said that they remain positive in their developments despite the market slowdown banking of the huge demand in the housings sector.
He said that there are a lot of people now who are renting and this is a big market to tap with the help of financing institutions who will provide affordable packages.
“We see that there is a huge market and the demand for housing will not run out even for a lifetime as the population grows, this demand also grows. As long as you have the quality, you will have more business this is why we produce affordable projects without sacrificing quality so we can provide value for money products,” he said.
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