| PROPERTY BIG BOYS STOOP TO TAP low-end MARKET
Property developers that nurtured the mid- to low-end market are a bit smug that Big Boys now find the market they cater to as "lucrative". To date, Phinma has completed 10 MRBs while three are undergoing construction. Uy believes the affordable market would stay strong because housing is a necessity. Uy said Phinma's projects are geared towards families with a joint income of P30,000 a month. "The Big Boys have gone down to our level. "I hope the economy continues to grow. The average cut of a unit is 30 per sq. The current standard is 30 square meters with toilet and bath. Uy said Phinma back in the mid-1990s knew it could not compete with the house-and-lot (single-detached) segment. Unlike other condos, Phinma has few OFW buyers. Raphael Felix, vice president for planning of Phinma, said the company is looking at other growth areas like Cebu and Davao and Metro Manila prospects in Pasay, Parañaque, along with the peripherals of Fort Bonifacio like Taguig, Kalookan and Cainta. He said competitors, to be able to reach out to the first-time buyers, are offering "shoebox-size" condo units to be called "affordable". They are selling 18 square meters of space that cannot even fit in a toilet and bath, he said. In our segment we are able to offer the most affordable rates in the market," said Uy at the sidelines of the recent launch of its two latest developments in Muntinlupa City. Other developers sell properties as "investment outlets. Instead, Phinma focused on the mid-rise building (MRB) segment using the Singapore model of building residences near mass public transportation, schools, and entertainment center. The strategy paid off that today, 92 percent of the company's developments are for end-user buyers who actually live in the units. As long as rates are offered at 6 to 10 percent, prospects are good," Uy said. Development cost is about P35,000 per square meter, which is a lot affordable than its next competitor's P45,000 to P50,000 per sq. |
Wednesday, 6 June 2012
PROPERTY BIG BOYS STOOP TO TAP low-end MARKET
