Developer expects rise in demand for housing

Published on Sun.Star Network Online (http://www.sunstar.com.ph/)
by Debra Magallon-Estero

A START-up real estate firm initially thought launching a subdivision project at a time when the global economy is experiencing a set back would be like “starting on the wrong foot.”
“But we got a tremendous response from our buyers,” said Rey Aguila, general manager for Cebu-based Primehomes Development Corp.
Primehomes is set to officially introduce today Henaville, its first economic housing project located in Barangay Estaca, Compostela town.
Aguila, in an interview with Sun.Star Cebu yesterday, also seven duplex units under the first phase of the project were already sold out within the pre-selling period.
Sold out
He added that 60 percent of the 52 townhouse units available were already sold, as well.
This, Aguila noted, confirms data from the Housing and Urban Development Coordinating Council showing a backlog of over 280,000 of houses in the province.
The positive feedback also encouraged the company to look out for other opportunities both in the northern and southern parts of Cebu.
Primehomes is confident about venturing into high-end developments, as well as condominium projects in the future. But during its conceptualization stage, the company wanted to offer affordable yet superior quality houses since buyers now are very choosy and particular about value-for-money, said Aguila.
Most of the buyers are overseas Filipino workers (OFWs) or Filipinos with foreign spouses. Eighty to 90 percent of those who purchased units applied for loans under the Home Development Mutual Fund (Pag-Ibig Fund).
Completion
But Primehomes said it is also offering in-house and bank financing schemes.
With a total land area of three hectares, Hena-ville’s project development is set to be completed not later than 2011.
Among the amenities and facilities at Henaville are an entrance gate and guardhouse, underground drainage system, multi-purpose hall, basketball court, concrete perimeter fence and wastewater treatment facility.
Primehomes will also open second phase of the project by the second half of this year.
Henaville features a two-story townhouse that has three bedrooms and two toilet and bathrooms. The unit has a floor area of 60 square meters while lot areas range from 50 to 70 square meters.
The two-bedroom duplex units, on the other hand, have a lot area starting from 80 square meters to 109 square meters. The one-story duplex unit covers a 38- square meter floor area.
Both house types have a provision for garage and buyers can choose between a bare and a finished unit.
Initial prices start at P1.068 million for the townhouses and P1.26 million for the duplex units. (DME)
Cebu
Business
Source URL: http://www.sunstar.com.ph/cebu/developer-expects-rise-demand-housing

Real Estate Boom Amid Economic Turmoil

Earlier today, I interviewed the general manager of a start up real estate firm who was set to launch its first residential project here in Cebu.

The company is actually the fourth real estate firm I interviewed for this month and I should say that this industry is not losing over to the global economic setback experienced the world over.

All four companies are very positive with their forecasts for this year, saying that the demand for lots, house and lots and condominium units in the province continue to rise.

And these companies all point out to similar factors why there exists such a trend in Cebu.

First, they attribute growth to the increasing number of overseas Filipino workers who believe in investing hard earned money on real property.

This is clearly evident of how the Filipino working class has matured in handling their finances. Although it really took a long way before the Filipino has come to terms with the fact that money should be spent wisely, at least we are now getting there.

The increase in the demand for residential projects is also an effect of many companies choosing to outsource a part of their businesses to the Philippines. The offshoring and outsourcing industry here is a growth driver not just for the real estate industry but also to tourism, food and retail industries.

Employees in the BPO sector are almost being singled out as the ones more capable to buy properties because of the hefty pay they are receiving. On the downside, they become easy targets for consumerism.

Cebu, being a business hub, has also become home to implanted residents who come here initially for business but ends up staying for the long term because of the many pleasures the city has to offer.

Now the real estate industry here is in for a stiff competition. And I guess this is not a bad thing after all. (Deejhay Magallon)