With the phenomenal rate at which condominiums are mushrooming all throughout the metropolis, or even in nearby areas, it is no wonder that condominium developers have found ways to find niche markets, or even create new markets for their products.
A recent report from Pinnacle Real Estate Consulting Services observes how students and young professionals are now looking for living arrangements near their universities and work places within Metro Manila, especially with the heavy traffic.
As a result, young adults are changing the game in terms of real estate development and investments.
It noted how a young adult or a professional living in Quezon City or Antipolo would spend as much as 80 hours or 3.33 days every month on the road just to travel to school or work and spend about P3,000 to P4,000 every month on travel expenses, depending on whether one is taking public transport, availing of ride-sharing services like Grab, or driving their own vehicle.
Because there is a shift in finding living quarters closer and more accessible to offices and schools. Pinnacle observed that developers and investors have now shifted to building mid-rise condominiums, dormitory hotels (dormitels), and even hotels, to cater to this emerging need.
Pinnacle cited a recent study by US-originated real estate company Cushman & Wakefield which says that developers are rapidly expanding their dormitel properties in the next two years due to this demand. This has given rise to companies such as MyTown, Point Blue, and DEI Properties, which offer temporary residences to professionals earning a little more than average, but who want a cheaper option than renting or buying a condominium unit, it said.
It noted that while dormitels offer small, shared spaces just like bedspaces, the lack of privacy will be outweighed by the benefits they can get out of living in close proximity to their work or schools, not to mention hotel-like amenities and services.
Meanwhile, aside from catering to students and young professionals, developers and investors are increasing the appeal of resort-type or hotel-type residences for their high-end clientele, Pinnacle’s study pointed out. It said that living arrangements for even a 16 to 40 sqm condominium unit is appealing due to the convenience and proximity it affords its residents, combined with the luxury and comfort of having one’s own parking space, access to facilities like gym, other sports facilities, swimming pool, club house, among others. It cited properties like G.A. Tower in Shaw Boulevard, Mandaluyong, which is in the middle of the urban jungle, and is even right across an MRT station which makes it accessible, a convenient dwelling space, and a sound investment.
It its study, Pinnacle said that even hotels are taking advantage of this demand by offering long-term residential leases for their units. An example would be serviced apartments, complete with all the amenities and facilities of a condominium unit, without the hassle of additional services and expenses. One such player is Ascott Ltd whose several brands like Ascott (in Makati and BGC), Somerset Olympia and Somerset Millenium, Citadines Valero and Citadines Ortigas, cater to different clients.
Their rates, customized to suit the clients’ needs and budget, can compete with the cost of renting a condominium unit, but sans the trouble of wifi, cable TV, and phone line installation, and cost of food, laundry, and other household services. Since these hotels are strategically located in highly commercialized, modernized, and developed areas in the city, the best thing about living is such places is the convenience of being a stone’s throw away from where they work, it added.
From the readers
“I am writing in reference to your news article entitled ‘Adding to the Problem’ in The Philippine Star last April 22.
“XRC Mall Developer, Inc. submitted an unsolicited proposal as a response to the call of the Local Government of Baguio on the proposal to put a parking building on the existing vacant lot of Burnham Park beside the stadium. It is currently used as a parking area for about 10 tourist buses and 140 private cars. There has been misinformation on the location as others thought that it would be in the middle of Burnham Park. However, it is not. XRC proposes a multi-level parking building that can accommodate 1200 to 1500 parking slots which is 10 times bigger than its current capacity. This aims to lessen the parking area problem and to decongest traffic within the vicinity of Burnham Park. Instead of cars being parked along the road, blocking and hampering the flow of foot and vehicular traffic, people will now have an option to park their vehicles in the proposed parking building. People who are strolling and jogging in the park will continue to enjoy the beauty and serenity of the park with their cars conveniently parked in a safe and secured area. Most importantly, the cost of the project is about P800 million which shall be borne by the developer – at no cost to the government. The establishment of commercial areas is to accommodate the existing livelihood of pasalubong centers and other businesses. Moreover, this will simply augment and subsidize the recovery of investment the company is putting into the construction of the multi-level parking building. The parking fee will be minimal and shall be governed by the existing revenue code of Baguio City.
“XRC Mall Developer Inc. is a responsible developer. The company assures that no trees will be cut in the project. Likewise, the company is dedicated to bringing back the old glory of Burnham Park. By developing a multilevel parking building, we will be able to adapt to the changing times of increasing number of cars and tourists. By removing those parked cars on the streets and putting them into one parking building, we can appreciate more fully Burnham Park. More so, we are committed to plant more trees and selections of the highest quality flowers and blooming plants.
“At present, XRC Mall Developer Inc. has 26 developments, including four public markets in the City of Manila namely, Sta. Ana, San Andres, Sampaloc, and Trabajo. The company rehabilitated the public markets without any cost to the local government of Manila. These public markets are equipped with hotel-like facilities. In fact, one of the company’s advocacies is to provide well-maintained restrooms without collecting fees from the customers. XRC Mall Developer Inc. maintains the cleanliness of the restrooms in all its developments.
“With the company’s developments, it has created jobs in the community and generated revenue for local government units. In this regard, XRC Mall Developer Inc. is true to its mission to continually upgrade and uplift, not only the country as a whole, but most specifically the underserved areas.” - Ismael “Mel” P. Bayato Jr., business development head, XRC Mall Developer, Inc.
For comments, e-mail at mareyes@philstarmedia.com
Source: https://www.philstar.com/business/2018/05/09/1813363/changing-game
