Developer invests P1.5B
Katlene O Cacho
27 January 2013
A REAL estate player is allocating some P1.5 billion for the construction of 1,500 houses in the Visayas and Mindanao this year.
Of that investment, the bulk will be set aside for three projects in Cebu with a total of 800 units. The remaining 700 units will be distributed in Cagayan de Oro, Davao and Iligan cities.
According to Richard Lim, president and chief executive officer of Johndorf Ventures Corp., the capital expenditure (capex) share for Cebu is the biggest so far since the company’s entry in 2004.
“Cebu is becoming progressive. It is one of the fastest growing cities in the country.
In fact, its growing population and bullish property market have attracted big players to expand their projects here,” Lim said. Their presence in Cebu is a manifestation of how optimistic and confident local players are about Cebu and the booming real estate industry.
A total of nine hectares of land will be developed into affordable subdivisions under the Johndorf and Prohomes brands. Two of these projects will be located in Mactan and one in Carcar, Cebu.
Meanwhile, the Mindanao projects will have a total of 35 hectares of land to be developed into socialized and mid-range housing projects.
Late last year, Johndorf announced it has taken full control of the management of Prohomes Development Inc., a former subsidiary of the company. Prohomes, Lim said, will maintain its role in developing affordable residential units. Johndorf will focus on building residential units for the middle-income market.
Lim said they have already started building one of the Mactan projects. Construction of the two remaining projects will commence, the company hopes, in the third or fourth quarter this year.
Lim stressed that despite the presence of big and new players doubling efforts in serving the housing requirements, there are segments that are not fully served. He believes demand is still present in all segments, particularly in the low and middle-income market, spurred by Cebu’s growing population and thriving businesses.
Cebu’s three-million population is one factor that developers consider in terms of putting up projects, he said.
CBRE Philippines noted that the affordability of housing units brought about by the intense competition in the market, low interest rates and easy financing schemes offered by banks have led the country to experience “democratization” in the housing sector, from a nation of renters to nation of owners.
Lim also announced that his company is building up its land banking activities in Cebu in preparation for the continued demand in the property market.
“We are starting to look outside Cebu City because nearby cities and the countryside are showing progress. The developments here are gearing toward the south of Cebu,” said Lim.
Aside from building horizontal projects, last year Johndorf also ventured into condominium development through 148 Residences, the studio-type and dorm-type project located on Pelaez St. near University of San Carlos.
Lim said the company has no plans yet of building another condo project but he is not closing doors on building another one, given the huge demand for condos.
Johndorf has already built more than 10,000 homes in Visayas and Mindanao since its establishment in 1986.