Steady sale in P1M-P3M bracket drives growth for developers

Written by Rizal Raoul Reyes / Correspondent

THE underserved market is proving to be a steady growth driver for developers focused in the middle segment of the market, thanks to some silver linings in the economy, according to PA Metro Residence Builders Inc. (PAMRBI). PAMRBI president Juny Santillan said the company decided to focus on this market because this has been neglected by the banking sector, which preferred to give closer attention to the P5 million-P7 million range. “In response, PAMRBI decided to develop a niche in the P1 million-P3 million segment in the vertical housing,” said Santillan in an interview at the sidelines of the topping-off of the Amethyst Tower of East Residences Ortigas. PAMRBI said the affordable sector continues to show consistency in terms of property uptake because people in this group are serious buyers. “Basically, our market is comprised of buyers who’ll use their units for the long-term,” said Santillan. He said the growth of the business process outsourcing in the Libis area is also contributing to the high sales of East Residences Ortigas as workers in this group prefer to have homes very near their offices. “With a different working schedule compared to the regular offices, BPO workers would like to have a place near their work so they can rest after their work,” he said. Amethyst topping-off ceremony VIPs (from left) Tomas Tambunting (PDB Properties), Jonathan Lu (PAAPDC president), Engineer Lito Garay (PAAPDC), Romarico Alvarez (CEO), Noel Bernhard (AMSTEEL), Aidalyn Acoba (Allied Bank), Maria Luisa Alvarez (MZA Design), Jeric Tuazon of PA Metro Residence Builders Inc. (PAMRBI), Orlando Lina (ERO), engineer Rey Cruz (ERO) and Epifanio Santillan Jr. (PAMRBI president.) Another growth driver is the young nesters’ group, or young couples who are just starting to build their families. PAMRBI said the program led by the Housing and Urban Development Coordinating Council and the Home Development Mutual Fund (Pag-IBIG Fund) is also fueling the demand for housing units. According to Santillan, 90 percent of the buyers in East Residences have availed themselves of the Pag-Ibig window facility. Meanwhile, the overseas Filipino worker sector continues to be a stable force as most of their buyers work in service and medical sectors, Santillan said. In a recent forum, Subdivision and Housing Developers Association Inc. president Banson Choa revealed that the overseas Filipinos, mainly the professional sector, have shown consistency in their remittances to the Philippines. “Although the figures are lower than the 2008 level, it is still higher than expected considering the impact of the economic slowdown,” he said. This strong showing, he added, is “attributed to the deployment of more professional workers in the different parts of the globe.” Choa also said the middle segment has shown resiliency amid the current global economic crunch. Developers focused on the high-end market experienced stronger hits because their prospective investors tended to shy away from investing in more expensive properties, according to Choa. Amethyst is the first tower in East Residence Ortigas to be finished and sold out. The walk-up tower has a total of 116 units with a uniform size of 30 square meters. The company noted the warm response of the market continues as the second building (Topaz) and the third tower (Jade) are also registering brisk sales. As of the moment, Topaz is more than 80 percent sold and Jade, over 30 percent sold. Finally, PAMRBI said the Metro Manila condominium market offers a lot of opportunities as there is an early demand for more units