Filipinos embrace idea of 'vertical or condo living'
Published on Tuesday, 26 February 2013 19:01 Written by Roderick L. Abad
SINCE the last real-estate boom in the country in the mid-1990s, the
concept of "condo living" has become more popular in the country,
according to a top official of a national real-estate group.
"The surge in the number of condo [condominium] projects in the country
today can be attributed to several factors," National Real Estate
Association Inc. (NREA) President Benigno T. Cabrieto Jr. told the
BusinessMirror in an interview.
Primarily, he said, the mushrooming of "vertical" residential projects
in the country is due to increasing demand from overseas Filipino
workers (OFW).
Approximately, P240 billion, or 30 percent of the $20 billion in OFW
remittances, is invested in real estate every year, the bulk of which
goes to condominium units in key cities of Metro Manila.
It is noted that such amount was not significant during the mid-1990s'
boom of the real-estate sector.
Cabrieto pointed out that "payment terms for the condo units are more
affordable now for the middle class, partly due to very low interest
rates offered by the banks and the Pag-IBIG Fund."
Urban migration also contributed to the increasing demand for more
dwelling units in Metro Manila (National Capital Region) and its key
cities, he noted.
Because land in the region and the key cities is getting scarcer and
more expensive, Cabrieto explained that condo projects are getting more
popular among developers.
"New and innovative designs of condos make the project more efficient,
environment friendly and more affordable to buyers," he said.
Cabrieto also noted that buyers have developed preference for buying
condo units within Metro Manila over house-and-lot units in the suburbs
due to "traffic, high fuel cost and lack of mass transport."
"Even if the amortization of house-and-lot units in the suburbs is
lesser than that of the condos, adding the fuel cost and road toll makes
it more expensive," he said.
Real-estate developers are targeting the OFWs, people working or
studying in or near the project area, as well as apartment dwellers, for
their condo projects.
They also aim to tap newly married and retired couples or starter
families who also need housing.
Demand for condo units, according to the NREA President, is dictated by
need and affordability.
The OFWs, he said, buy for investment and future needs.
Due to the unabated traffic problem in Metro Manila, people living or
working in the project vicinity is a good target market as they see its
accessibility as an advantage.
For the apartment dwellers who would not want to leave the region,
Carbieto said they are encouraged to buy a condo if its monthly
amortization cost is almost the same as the monthly rental cost of their
apartment.
Other potential markets, he added, are newly married people, especially
DINKs (double income no kids) and senior citizens whose children have
gotten married and left them or have found their house empty and hard to
maintain.
"It becomes more practical for them to sell the big house and live in
the condo during their twilight years," Cabrieto said.
In a nutshell, there are a lot of benefits in living in a condo or
vertical residential project.
But mostly, having better security systems, easier maintenance and
nearness to the conveniences of city living are "come-on" factors why
homeowners prefer to live in condominiums.
The concept of condo living or vertical residential project is
fast-becoming a trend not only in the Philippines but worldwide,
Cabrieto also noted.
This, he said, is fueled by another global phenomenon, "rapid urban
migration," where more people are living in the cities than in the
countryside.
The idea of "green urbanism" is also catching a lot of attention because
it defines the ideal way of urban development.
"Green urbanism requires energy-efficient buildings, with lots of
greeneries, where people just walk to their place of work, with a good
mass transport system with minimal carbon footprint. Lowering the carbon
footprint or the amount of fossil fuel being burned, is the trend today
to alleviate the effects of climate change," the NREA top official said.
While real-estate developers in the country are building numerous
residential projects, particularly in the vertical segment, it seems
that the supply in the industry itself is not sufficient to meet the
growing demand on a national scale.
In fact, based on the Philippine Housing Industry Plan: 2012-2030 by the
Subdivision and Housing Developers Association Inc., the current housing
backlog in the country is 3,919,566, including 832,046 families who
cannot afford a housing unit and need government subsidy.
"The housing backlog comes mainly from the low-income segment of our
society," Cabrieto said.
Such figure is estimated to grow to 6,546,106 by 2030 if not addressed.
Given this, the condo sector, or the real-estate industry as a whole, is
helping meet the housing backlog in the country at present.
"But more low-cost and socialized condo units should be built in Metro
Manila and key cities since the housing backlog is in the low-income
segment of our society," the NREA president said.
The real challenge to the government, he added, is how to eliminate the
squatter colonies in Metro Manila and provide decent housing to its
citizens.
At NREA, Cabrieto said, they help in elevating standards of vertical
living through advocacies led by their member-architects who belong to
the top 100 architects in the world.
"The past president of NREA, architect Felino Palafox Jr., is advocating
green urbanism through his designs and through his series of lectures
and advocacy campaign. A member of the NREA board, architect Abelardo
Tolentino who ranks No. 86 in the world, is also helping in elevating
the standard of condominium development through his innovative designs,"
he added.
With the continued prominence of condo living among the populace,
Cabrieto lauded those premier real-estate developers in the country who,
in their own initiative, have redefined vertical developments with their
well-planned and intelligently crafted designs that provide not only the
comfort and convenience that residents need but also a dignified kind of
lifestyle they deserve.
"Condo living is the wave of the future. As demand for affordable
dwelling units in the metropolis rises, we have to go vertical to
accommodate all this demand because land is a finite resource in the
metropolis," he said.
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