Two more developers eye middle class market in Cebu
WITH the continued boom in the real estate industry of Cebu, more and more local developers are launching more residential projects to cater to the fast growing middle-income market in Cebu including the “green home” enthusiasts.
In an interview last Saturday, Johndorf Venture Corp. president and chief and executive officer Richard Lim said they had lined up at least four new projects next year in Cebu.
For the project, the company is expecting to add 2,500 residential units and an investment of at least P1 billion which he said should help stir more economic activities in these areas and help in their economic growth.
This development came after the company has assumed full control in the management of Prohomes Development, Inc., a former subsidiary that they acquired. The company is set to continue developing affordable residential units.
JVC is working on a townhouse residential community called Portville Mactan and a studio-type and dorm-type units for 148 Residences beside in Pelaez Street, Cebu City right beside Hotel de Mercedes. They already have a total of 30 projects in the last 26 years.
“The company started developing subdivisions in northern Mindanao in 1986 and we remain bullish about the prospects in tapping still a large chunk in the market despite the sprouting of several projects in the metropolis,” said Lim.
Lim said their confidence is based on real economic scenario like the continued expansion of the country’s economy, the healthy banking sector which has been implementing the lowest interest rates in history.
“The low interest rate environment will encourage more people–both the buyers and developers to invest more thus we see a lot of developments and people buying their own homes and even second homes now,” said Lim.
Lim said that the speculations of any probability of a repeat of the 1997 Asian crisis wouldn’t happen because of the healthy financial and banking systems in the country being very well managed and secured by the Central Bank and the Monetary Board.
Because of this healthy economy and continued investments in Cebu, the company is seeing an increase in the purchasing power of the Cebuano market, which includes successful entrepreneurs as well as mid-to-high-paying executives in the outsourcing sector.
“We are looking at this market including the ever active overseas Filipino workers and our expat communities according to JVC sales and marketing manager Michele D. Chiu.
This trend has also inspired a niche market developer which will be launching their first subdivision in Barangay Agus in Lapu-Lapu City, Mactan next year.
Greenovate Corp. general manager Pinky Sy said they would be launching Agus Green Home Town by the second quarter of 2013 with a total of 130 residential units.
Launched just last year, Greenovate Corp. is offering residential homes that is built with materials and designs that uses the principle of resource efficiency.
“The units prices will range from P3 million to P5 million which is already affordable for the middle market segment,” said Sy.
Sy however believed that the Filipino including the Cebuano market was still at the early phase of appreciating the “green” homes concept compared to what was already being done in Singapore.
According to Sy, green houses are houses built with environment-friendly materials, set up in a sustainable design maximizing the use of natural lighting resulting to savings in natural resources.
Grenzone Pte Ltd, a Singaporean company producing “green” materials for housing, official Engr. Liong Siok Jen said that they would be working closely with Sy to come up with a design that they could offer in Cebu using their materials.
One of the model houses that they’re making in Singapore is a 36 square meter Eco-Designed House Studio 36i.
The house uses concrete slabs, fusion weld light gauge steel, Axide Board and Natural Fiber Composite Panel, led lamps for lighting to name a few.
“The house could cost $15,000 to $20,000 move-in condition,” said Liong.