Property firms eye middle-income market for condo sales

Local property companies are banking on the middle-income market to boost condominium sales this year, attracting buyers with master-planned communities that combine leisure and business. The Century Properties Group is doubling its capital spending to P5 billion, while Earth+Style Corp. is allocating P1 billion to finance the construction of new residential projects. "There’s huge demand for housing," Century Properties Chairman Jose E.B. Antonio told reporters at the launch of the company’s Azure Urban Resort Residences. He said property developers could only provide 250,000 units yearly, below the housing demand for about 600,000 houses. Antonio also said homeownership in the Philippines is relatively low. "Only 15 percent of the households own their homes," he pointed out. Meanwhile, Earth+Style President Victor Manarang said the company would be busy this year as the real estate sector continues to grow on the back of strong macroeconomic fundamentals and steady remittances from Filipinos abroad. "Earth+Style is going to push the expansion of the current projects in Cavite and Laguna to accommodate more clients," he said. Manarang said Earth+Style is developing the projects in anticipation of brisk demand for housing units mostly from the middle income segment — the biggest growth driver for the property sector. Azure On Tuesday, Century Properties launched Azure, a nine-building residential joint venture with the Columbian Motors Group of Companies. It is a six-hectare prime property in Parañaque City that will feature resort-type amenities, including a big man-made beach. Azure has a market value of P12.6 billion. "It will take five to six years to complete the construction. The completion of the first building will be in the middle of 2013," Antonio said. A 30-square meter condominium unit in Azure will cost P1.8 million. The company will also sell 80-square meter units. Antonio said the company had allotted P2 billion for the initial construction of Azure, which is developed by unit Century Limitless, a new brand category that will build homes that cost below P3 million. The subsidiary is aiming to increase sales by P3 billion to P10 billion. Century Properties is also building new luxury condominiums, among these the Gramercy Residences and Knightbridge Residences. Meanwhile, Earth+Style is building six property projects — Jubilation Home Village West, Jubilation Home Village East, Jubilation Home Village South, One Asia Business Center, the Promenade and Casa Bellissima. The 16.9-hectare Jubilation West project, which will be undertaken in two phases, will have lot sizes of 132-180 square meters. The 13.9-hectare Jubilation East will offer lots ranging from 221-400 square meters, while the 7.8-hectare Jubilation South will have lot sizes of 132-315 square meters. Earth+Style is also expanding the One Asia Business Center — a business and commercial hub in the south located within the 150-hectare Jubilation New Biñan township — to accommodate more locators. The property developer will also continue building the American-inspired Promenade South, as well as commercial lots in The Promenade Residences along the Molino-Paliparan Road in Cavite. The company is likewise developing Piazza Bellissima, an Italian-inspired commercial project along the busy Emilio Aguinaldo Highway in Imus, Cavite. — NPA, GMANews.TV