Updated April 04, 2009 12:00 AM
CEBU, Philippines - In order to adjust to the changes in the market preferences brought about by the global financial crisis, a developer of a high-end beachfront property in Minglanilla creates mid-range units in its on-going development.
Despite the foreseen slowdown on real estate investments, Paramount Property Ventures Inc. (PPVI) remains bullish to deliver its current waterfront community project in Tulay, Minglanilla called Fonte di Versailles.
Since the market is currently in a slowdown, the company’s chief executive officer (CEO) Abelardo Cañedo, Jr. said that they continue to look for untapped markets that will offset those that have been affected by the global recession.
He said that most of their clients are overseas Filipino workers (OFWS) and their families and since there is a notion that this segment has been hit by the global recession, they are now on the look out for growth markets.
“There is a slowdown or a slow activity in real estate now. And most of the players in the industry may be experiencing it right now but it does not stop us from moving on because there is not really a fall in the market and we remain confident that the upswing will go back again maybe later this year or early 2010,” said Cañedo.
Fonte di Versailles highlights an Italian architectural theme and imparts the so-called “smart living” concept which exemplifies the principles of “ergonomics” in its floor plans, house designs and features with prices that range from P6.8 million to P14.9 million.
Cañedo said that to cope with the times, they have started to offer units ranging from P1.5 million to P4 million on the north phase of their property.
“We know that the preferences of buyers now are going lower considering the economic crisis and most are in a wait and see mode specially those who have other properties abroad. So we considered these factors and came up with a mid-range pricing,” said Cañedo.
After a year of selling, Fonte di Versailles is now 30 percent sold and its South phase, which will be the high-end area, is going to start construction this May.
Cañedo said that on a positive note, the slowdown in real estate made prices of construction materials relatively more affordable these days so they are now keen on fast tracking their developments.
“Now is certainly the best time to construct and develop properties since the prices are at its lowest and since it’s the best time, it’s also good for us to fast-track our developments before prices again shoot up once the economy swings back,” he said.
He said that this year, they target to finish 90 percent of the construction of Fonte di Versailles before they move on to do other projects that are in the pipeline.
Cañedo said that they are eyeing to do more projects in Naga City which will include a joint venture project for another beachfront project in a six-hectare-lot.
He said that despite the huge growth potential of Cebu as a hub for real estate investments, they are also on the look out to do developments in Davao City which they will undertake once the economy starts to recover.—Rhia de Pablo
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