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By Jun Sanchez* THIS entry is based on the study this author made on the survey released this April by the National Statistics Office on all types of private building construction in the Philippines. The study focused on residential construction since it is meant for prospective Pinoy homeowners and residential developers. The survey is based on the number of building permits approved by the local building officials in all cities and municipalities in the Philippines; the projects are described as “started.” No figure was given as to how many were finished, still in progress or discontinued. The study shows that:
  • Residential projects account for 70% of all private construction in the Philippines. Of which, 85% are single houses, 3% are duplex/quadruplex/townhouses, 9% are apartments and 3% are condos.
  • Residential projects have a short boom-bust cycle, i.e., growth cannot be sustained. It’s moderate for single houses and apartments but for townhouses and condos, the cycle is volatile. They enjoy massive growth for a year or two only to plummet later. Condo construction has been declining massively since 2005, indicating a glut in this segment. This, however, is a national trend and does not classify projects into Class A, B or C.
  • Apartment construction grows steadily indicating that there’s a growing demand for it from Pinoys who have yet to own their homes.
These facts are relevant only if the regions (and provinces therein) where these projects were erected are considered. Knowing where these projects are may give a hint as to which regions offer the best living conditions and possibly ample job opportunities. It will also give insight on the said volatility of output of certain residential types. Of the seventeen regions in the country, eight account for 86% of total residential construction from 2004 to 2008.
  • National Capital Region ranks only 4th. Manila is last in three residential types among the six districts but 4th in condos.
So, why does construction of certain residential types behave erratically while others do not? Inherent geographic characteristics of the region, scarcity and cost of land, population density and availability of commercial establishments, job opportunities and conveniences determine the suitable residential type in the areas therein. Refusal or failure to acknowledge this fact resulted in erratic construction of certain residential types. Take Manila for example. Scarcity and high cost of lots no longer make it ideal for single houses. Its density and abundance of commercial establishments, offices and conveniences currently make condos the ideal housing project in Manila. The same is true in Makati City. See how the other regions performed, especially CALABARZON and Central Luzon.
  • CALABARZON ranks first. In Cavite alone, over 1,700 condos were started. Compare that with 23 condos in NCR’s District 5 that includes Makati. Cavite also accounts for 25% of all quadruplex and townhouses in the eight regions.
  • Central Visayas is 2nd. Cebu is way ahead of the other provinces in this region. Its output is equivalent to 71% of NCR’s total output.
  • Central Luzon is 3rd. Bulacan overtook Cavite with over 1,900 condos, 29% of all condos.
  • 5th, 6th and 7th are Davao Region, Ilocos Region and Western Visayas, respectively. The number of their condominium projects is also peculiar. 174 condos were started in Davao del Sur, 208 in Pangasinan, 135 in La Union and 130 in Iloilo. Ranked 8th is Northern Mindanao.
  • Not in the top eight, 125 condos were started in the Cordilleras, 57 in Mimaropa, 39 in Bicol, 36 in Soccsksargen and 23 in Caraga in 2004.
CALABARZON and Central Luzon are largely responsible for the apparent glut of quadruplex, townhouses and especially condos. These housing projects, condos particularly, enable a developer to optimize the cost of land. They are most suitable in highly urbanized areas where lots are scarce and price is high. Building them where lots are not much of a premium and remote with little to offer in terms of conveniences and diverse job opportunities is imprudent. How many of these townhouses and condos have been completed or discontinued? Since condos are sold on a pre-selling basis, how many Pinoys who bought into these projects lost their money? Each residential type possesses advantages that are uniquely its own. It is only by applying the principle “form follows function” not only in the way a residential project is built but as important, where it is built can a developer be certain of his project’s viability and assure that the Pinoy homebuyer gets the home that fits his lifestyle and provides what he values most – time, convenience, space, privacy or peace and quiet. For a free copy of the study, you can email the author at junsanchez2003@yahoo.com
INVESTMENT manager Ryan Osea gives INQUIRER.net a tour of two of F1 City Center's model units. Video taken by INQUIRER.net online videographer Janie Christine Octia during the F1 City Center grand launch at MC Home Depot in Bonifacio Global City.

A tale of two units

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By Alex Vergara Inquirer a-tale-of-2-units.jpgMANILA, Philippines--When Butch Nayona and Sylvia Bautista hired the services of architect Dante Aguirre to design their respective condo units sometime ago, the two accomplished singles had a number of requirements that were quite similar. Nayona and Bautista have yet to meet each other, but like thousands of nameless, faceless executives based in Metro Manila, they work long hours in the office. Since both live alone most of the time, they have precious little time to spare fussing over minute details. In short, they each wanted a practical and functional place to come home to at the end of a long, hard working day. Yet their tastes and personalities couldn’t have been more different. “Both units can be classified as modern fusion,” says Aguirre. “I opted for modern bedrooms and resorted to a mixture of themes in other spaces based on what they like.” Nayona asked Aguirre to design a bedroom that could lull him to sleep even during the day. “As a call center manager, I used to work odd hours,” Nayona explains. “I wanted a room that’s dark and minimalist enough to help me quickly fall asleep.” Nayona has since left the call-center industry to strike out on his own as a human resources training consultant. But he retained the look of his Pasig unit, including the master bedroom with its “walk-in bathroom” and ash-gray walls. He converted a second, much smaller room into a library. “Since the bathroom came with a shower stall, I asked Dante to do away with the door,” he says. Low bed When there are visitors, Nayona merely locks the door leading to his bedroom-cum-office to get some privacy while doing his morning rituals. Apart from a series of built-in shelves, he opted for a low bed covered in dark sheets to set it off from the bleached narra floor. “A low bed is quite practical,” he says. “I can sit on it, work on it and even tie my shoes [while sitting on it] without me completely bending my back or lifting my legs.” To keep the wooden shelves from “moving” with the temperature, Aguirre had them sealed “to the last grain” with light gray automotive paint, which also imparts them with a matte sheen that contrasts nicely with the dark bedroom walls. If the mood in Nayona’s bedroom is a bit wintry, the opposite is evident in the unit’s public areas. In lieu of gray, Aguirre opted for homey summer shades such as brick red, beige and mocha. He also did away with hardwood floors in favor of shiny granite. The living room’s entertainment center is set off by a portion of the wall rendered in chiseled terra cotta, making the flat-screen TV and other high-tech gadgets focal points in themselves. A series of built-in compartments and wall-mounted shelves mirrors a similar set-up in the dining area. In lieu of compartments, Nayona opted for a long, L-shaped wooden seat that rests permanently on the wall. “The dining table also doubles as my work table because I now work half of the time at home,” he says. “I have no intention of moving any of my chairs.” A series of built-in wooden shelves in the dining area features various accent pieces Nayona acquired from his travels to Japan, Korea and Vietnam. The Oriental theme is repeated in an indoor Japanese rock garden complete with faux bamboo shoots that sits by the unit’s window. Mood “I find Japanese and Korean pieces very subtle,” he says. “I prefer them over ornate pieces usually associated with the Chinese.” It’s a good thing Nayona had the foresight to buy two adjacent units. He asked Aguirre to knock down the wall separating the two units before he had him redesign the entire space. Apart from a mood corridor complete with ecclesiastical symbols and a small indoor fountain set on a pedestal and illuminated by cove lighting, the additional space afforded Nayona, who loves to cook, a bigger-than-usual kitchen. Cabinets and sliding drawers made of kiln-dried wood and opaque glass betray their owner’s penchant for organization. For a more modern touch, he settled for an ochre backsplash made of tempered glass paired with shiny granite countertops. Bautista, on the other hand, wanted a bedroom that’s bright and easy to maintain. She also requested Aguirre to design a number of built-in cabinets for storage as well as aesthetic purposes. “Short of asking Dante to remove all those unsightly indoor plumbing,” says the customer services manager of an American multinational company, “I asked him to cover them with functional as well as faux cabinets.” Aguirre did that and more. Since not all pipes can be concealed under cabinets, he resorted to such devices as beams and cove lighting, evident in Bautista’s grayish green master bedroom with a padded leather headboard. Geomancy Bautista consulted a feng shui master in Manila before she moved into her two-story, two-bedroom Mandaluyong unit a couple of years ago. Fortunately, Aguirre didn’t have to do major rework to conform to the geomancer’s recommendations. “I had my headboard padded so that my head won’t be directly under a beam when I sleep,” she explains. “I also had Dante wrap sharp edges in my room with leather pads.” Since it’s not often one encounters a high-ceilinged stairwell in a condo unit (if there’s one at all!), Aguirre didn’t let the space go to waste. He had a blown-up picture of a sunflower framed and nailed to the ceiling as a focal point. A round light diffuser (or, in this case, enhancer) made of countless strings of shiny fiberglass dangles from the ceiling-mounted photo and casts its irregular shadow on the wall. Aguirre also did a wall installation made of dried plants, including fragrant eucalyptus leaves, by the stairs. The sunflower’s color, actually, ties in with the first floor’s color scheme, which ranges from dusty orange to rich ochre. The color scheme gradually changes from orange to lime green, warm to cool, fall to spring, as one climbs the naturally varnished stairs and into the two bedrooms on the second floor. To add an illusion of space in the dining room, which also doubles as a sitting area, Bautista had a huge mirror installed beside the four-seat dining table. “The mirror also doubles the amount of blessings that have come my way,” she says. Unlike Nayona, however, Bautista has very little time to cook so she settled for a smaller kitchen. Even then, Aguirre designed a small, but charming space for her to prepare breakfast and cook the occasional pasta. The pink kitchen, as Aguirre describes it, is infused with shots of silver and gray in the form of accent tiles to give the area a modern feel. Instead of brooms and other cleaning implements, Bautista keeps her dozens upon dozens of shoes (it seems no woman can have enough of ’em) in a “secret” compartment in the kitchen, right underneath the stairs. Rather than do it alone, Aguirre believes in collaborating with his clients. There’s no other way to do it, he says, if you both want to produce a finished product that’s mutually acceptable. For instance, he asked Bautista to source for curtains and various accent pieces, including Oriental-inspired tableware. “A designer can’t do it alone,” says Aguirre, who is scheduled to leave for Canada to work on several design projects. “I always encourage my clients to improve on their respective units so their personalities would eventually come out through their homes.” Photo courtesy of the Philippine Daily Inquirer
By Inquirer MANILA, Philippines--Paramount Hotels & Facilities Management Inc. has been appointed by a unit of SM Investments Corp. to manage the group's beach club in its eco-tourism project in Nasugbu, Batangas. Costa Del Hamilo Inc., the developer of the beach club and a subsidiary of SMIC, appointed Paramount to manage Pico De Loro Beach & Country Club in Hamilo Coast. Due to be operational in the third quarter of 2008, Pico De Loro Beach & Country Club is an exclusive membership club featuring resort, recreational and leisure facilities, SMIC said in a disclosure to the stock exchange. Paramount is a property management company that aims to introduce internationally accepted hospitality industry standards to the local property market. It specializes in property management, encompassing hotel management, food & beverage operations, and restaurant franchising. Also, the Paramount team also forms part of Microtel Inns & Suites (Pilipinas) Inc., the Philippine master franchise-holder of the Microtel Inns & Suites brand. Early this year, SMIC said it was spending P5-P6 billion over the next five years to pursue the first phase of the 5,800-hectare Hamilo Coast beach-resort community in Nasugbu, Batangas. The initial phase of Hamilo Coast, dubbed Pico de Loro, will span 40 hectares and will feature 11 condominium buildings consisting of 1,500 units.

Eton launches Makati condo

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By Elizabeth Sanchez-Lacson Inquirer MANILA, Philippines--Eton Properties Phils. Inc., the property arm of the Lucio Tan Group, launched on Monday its second condominium project in Greenbelt, Makati City, which targets professionals working in the central business district. Eton president Danilo Ignacio said during the launch that the 34-story Eton Parkview Residences is on Gamboa Street behind the Asian Institute of Management. The project will offer 230 all-loft units. A one-bedroom unit ranges from 40 to 57 square meters, and will sell at about P3.6 million. A two-bedroom unit on the other hand, which is about 70 sqm, costs about P6.5 million. Parkview follows Eton's first project in Greenbelt -- The Greenbelt Residences -- which as of July is 90-percent sold. Eton Parkview is in front of two parks -- the Washington SyCip Park and Legaspi Park -- and is close to the Greenbelt Mall. It is a foreclosed asset of Allied Bank. The turnover for completed Eton Parkview units is scheduled for December 2011. Eton also unveiled Monday a partnership with sister company Allied Banking Corp. to offer home mortgage financing rates at 5.5 percent to 8.38 percent for a fixed period, lower than the industry average of 8.5 percent. Allied Bank president Reynaldo Maclang said the housing loan will offer 5-,10-, 15- and 20-year terms to interested home buyers at fixed interest rates. Initially, the home loan financing will be offered exclusively to buyers of Eton's twin tower residential project in Ortigas dubbed the Eton Emerald Lofts .
By Charles E. Buban Inquirer mayfair-tower-1.jpgMANILA, Philippines--Imagine being at the oval viewing deck of this soon-to-rise residential high rise at the corner of UN Avenue and Mabini Street. Offering a 360 degree view of its environs -- with the Manila Bay as the centerpiece -- the Mayfair Tower is indeed one of the most anticipated projects in Manila. In fact, owner and developer Anchor Land Holdings Inc. is happy to announce that their two- and three-bedroom units facing Manila Bay and their 36-square-meter single bedroom units are still available. The project is expected to meet its deadline of completion in the second quarter of 2008. “Alhi is guided by the principle that you have to deliver what you promised. And more than simply building a structure, what we want for our homebuyers are units where they can safely and comfortably rest after their busy day,” said Alhi vice chair Steve Li during the Mayfair Tower’s recent topping-off ceremony. Cosmopolitan living Li added that Alhi made sure that the P850-million Mayfair Tower will respond to the lifestyle of its homebuyers who have been exposed to cosmopolitan living. The design of the building alone conveys the message: extensive use of rectangular prism of jade green, reflective glasses and lines of stainless. The 7th floor will feature a 30 meter, three-lane pool as well as a kiddie pool, spa, sauna and shower areas, fitness center, pond, function hall, sun deck, pocket gardens, viewing deck, waterfall feature and a lounge area. But the main attraction of Mayfair Tower lies on top of the building where it is crowned by a unique, oval-shaped structure rising on the 30th floor. This is also where the Skygarden and the Vista Deck are located. 30th floor attractions mayfair-tower-2.jpgWhile the Skygarden will feature pocket landscaping, bench seating and a multilevel outdoor function area, the Vista Deck located at the 30th floor will have the Skylounge where a lounge and reading areas, breakfast nook, bar, viewing deck and indoor pocket gardens will be located. This area can also be converted into an open-plan indoor function area. “Mayfair Tower’s location also makes it very accessible to Manila’s finest restaurants, schools and various entertainment options. Long-staying expatriates or homecoming Filipino professionals would indeed appreciate having a unit here,” said Alhi AVP Elizabeth Sison. Famous sunset mayfair-tower-3.jpgShe said that as an added bonus, those who bought or will buy units facing west will get a fantastic view of Manila Bay’s famous sunset right from their living room. “Now that’s an added feature that very few developments here in Manila offer.” Alhi is a multinational company with several projects in China and some parts of Asia. It began its commercial operations in the Philippines with the launch of Lee Tower, a luxury condominium project located in Binondo, Manila. Photos courtesy of the Philippine Daily Inquirer
By Elizabeth Sanchez-Lacson Inquirer MANILA, Philippines--Legacy Ventures Realty and Development Inc. is investing nearly P1 billion in its maiden condominium-townhouse project near the Manila Bay, its president said. Dubbed the Sentosia, the project features 127 exclusive clusters of duplex and quadruplex housing units, bearing a modern Singaporean design. Sentosia is five minutes away from the SM Mall of Asia and 15 minutes away from the domestic and international airport. Legacy president Carlos Wilfredo Pineda said the units would be sold for about P52,000 per square meter or at least P8 million for a 161-square-meter unit. The property is seen appreciating by about 10 percent in a year’s time from turnover, Pineda said. Legacy is offering a guarantee that if the property fails to appreciate after one year it will buy back the unit from the customer at the original price. Pineda also said the company would offer discounts especially for cash payments and in-house financing. A total of 24 units -- the first phase of the project -- will be turned over to the buyer by the end of November. Another 32 units will be turned over to the buyers in December. All units will be completed by December 2008. Pineda added that construction cost alone would amount to about P350 million.
By Tessa Salazar Inquirer MANILA, Philippines--Property experts note that aside from “good sign” the deluge of condo developments brings for the Philippine property market, it gives prospective buyers more choices in terms of size, design, location and price. Global Property Guide’s chief economist Prince Christian R. Cruz notes that the more options available, the better it is for buyers. Richard Raymundo, Colliers International’s director for research and consultancy, says that as with other industries, a more robust property sector would contribute more to the economy and also increase property values. He also says another positive result of a property sector boom is increased employment for the construction outfits. But are low-priced condominium developments enough for you to “bite the bait,” so to speak? Without driving you back to overpriced condo units from reputable developers, experts remind Filipino condo unit buyers not to commit the common mistake of buyers in the past. If you’re considering buying from condo developers without proven track records, don’t just take their word for it. Investigate. “Residential units are sold on a preselling basis in the Philippines. Buying from a developer with a good track record gives an assurance that it will be delivered on time and with the quality agreed on,” Raymundo advises. Buying a condominium in the Philippines “is very tricky,” Cruz notes, and he reminds buyers to seek first the developer’s track record in terms of reliability, service and quality. “The company’s reputation in terms of structural design is very important. It is easy to check the size and layout of condo units, but to check whether substandard materials were used or that the building can withstand typhoons and earthquakes is difficult.” Cruz stresses that the Philippines is located along the Pacific Ring of Fire, where earthquakes and volcanic eruptions constantly threaten the land. “Completely surrounded by water, we are also under constant threat of typhoons and flood.” Cruz says the building’s life actually depends on its structural design and maintenance. “In other countries, a well-maintained building can last up to 100 years without any major renovations or repair. In the Philippines, a building’s life span is probably shorter due to harsher environmental conditions.” He adds that condominiums are set like a corporation. What the unit owner actually owns are shares to the corporation proportional to the unit’s size. Contrary to popular belief, the owner does not lose ownership of the unit after 50 years, according to the Condominium Act (RA 4726). The owner of a condo unit as a shareholder in a company has a say on what would be done to the condominium building. Raymundo says a condominium is run under a condominium corporation. “That is why there are condominium unit owners’ meetings held to decide on issues like property management, special capital expenditure, condominium rules and regulations. This said, the financial position and how the association dues are arrived at have to be transparent to all condominium owners.” Cruz says that as the condominium building gets older, association dues used for maintenance typically gets higher. “If unit owners feel that association dues are too high, they have the right to see the company’s audited financial statement. They should remember that they are not mere tenants in the building, they are stockholders. The property manager should serve at the owners’ pleasure and not the other way around. Active participation in the condominium board could prevent this from happening in the first place. Cruz says condo buyers should ask questions, not just from the real estate agent and the developer, but more importantly, from prospective neighbors. These include other condo owners and people within the locality. “They know if it floods in the area, if there are serious peace and order problems, or if the garbage is regularly collected. These are simple things that are often neglected but are very essential.” What rights do condo unit owners have after the building has lived out its supposed life span? How would an owner know if association dues are used properly? Questions like these have to be answered even early on. Raymundo says that each building owner has a proportionate right to the land on which the building stands. Once the building is economically obsolete, the land, however, retains value. “The property can be redeveloped with each unit owner having a proportionate right or share in the land value. For example, if there is a 10,000-sq-m condominium and Owner A owns 5,000 sq m, Owner A has a right to 50 percent of the land and its value,” Raymundo says. Some condominium developers experience difficulties forecasting market demand, Cruz says. According to him, not all developers conduct a proper market study before building a condo building. Since there are always chronological gaps between planning, construction and marketing, several factors such as customer preferences, economic conditions and construction costs, may change. “There can be a mismatch between what is available and what is demanded, especially in terms of unit sizes. While this can be remedied by merging or dividing units, this is costly and can affect the building’s structural integrity,” Cruz reminds. For more tips on how to choose structurally safe condos, check Inquirer Property’s July 14, 2007 issue or log on to http://showbizandstyle.inquirer.net/lifestyle/lifestyle/view_article.php?article_id=76523

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