Aboitiz sees strong potential for condominiums in Cebu

By Nancy R. Cudis
THE real estate arm of the Aboitiz group sees a strong potential in condominium development in Cebu as more residential units are being built farther from the cities.

“We are seeing a very good uptake of our sales, especially in our condominium units. Some years ago, we made a judgment call that Cebuanos are going to move towards condominium living because house and lot (units) are located farther and farther away (from the cities),” said AboitizLand Inc. chief operating officer Andoni Aboitiz

Buyers

The uptake is shown in the profile of buyers of Persimmon West-the first tower with 157 units that was built at AboitizLand’s The Persimmon. About 80 percent of the buyers are locals, 10 percent are overseas Filipino workers (OFWs) and about seven percent are foreigners.

“Initially, the target was the international Filipino market but the locals bought units very quickly so we are now building the second tower, Persimmon North, to (also) cater to the OFWs,” Aboitiz said in a press conference yesterday at The Persimmon in Mabolo, Cebu City.

The Persimmon is AboitizLand’s first venture into “vertical development” project.
‘Urban village’
Covering 1.4 hectares of prime property, the “urban village” is comprised of four 15-storey towers complemented with a commercial area and various amenities.

The continuous construction of The Persimmon will take up a huge share of Aboitizland’s P2 billion capital expenditures (capex) for 2010, said Aboitiz. He said that each tower is estimated to cost about P400 million.

AboitizLand is already scouting for new and “good” areas in Cebu City where they can build another skyrise project.
Aboitiz said their next condominium project would be after the completion of The Persimmon in two to three years.

Although it sees strong potential in condominium development, the property developer continues to plan on building horizontal residential development projects.
Recently, AboitizLand closed a sale of 15 hectares of land in Cordova, Mactan where it plans to launch a mid-end inland residential development next year.

Aboitiz disclosed that the P2-billion capex also include the launching of the commercial plot and series of townhouses in its high-end integrated community Pristina North, in Talamban, Cebu City as well as continuation of other projects, including Kishanta in Lagtang, Talisay City.
He said that most of the capex would be sourced through bank loans.

“If you think we are busy in 2009, wait what we will do in 2010. We are going to change (the landscape of) the city,” Aboitiz said.