Students and young professionals now want living arrangements near their universities and work places within Metro Manila. With the ongoing battle with the insane, almost inhumane, level of heavy traffic, they are gearing more and more towards finding a home within the vicinity of their schools and offices. As such, developers and investors have now shifted to building mid-rise condominiums, dormitels, and even hotels, to cater to this emerging need.
Imagine a young adult or a professional living in Quezon City or Antipolo, spending several thousands of pesos and several hours on the daily for his or her commute. Given the dismal conditions of our public transportation, though can be endured but will cost one’s time, he or she can opt for Grab, or any ride-sharing application. They may also opt to drive their own cars, at his or her own risk of getting stuck in heavy traffic, combined with high gasoline prices and costs of vehicle upkeep, maintenance and repairs. A conservative estimate would be roughly Php 3,000 to Php 4,000 per month on travel expenses, not yet including the average 80 hours (or 3.33 days!) spent on the road per month just to travel to and from their destinations. No wonder there is a shift in finding living quarters closer and more accessible to offices and schools.
Dormitel Movement
Based on a recent study by US-originated real estate company Cushman & Wakefield, developers are rapidly expanding their dormitel (dormitory hotel) properties in the next two years due to this demand. This gave rise to companies such as MyTown, Point Blue, and DEI Properties who offer temporary residences to those professionals earning a little over average, who opt to go for a cheaper option than renting or buying a condominium unit. Dormitels appeal to them as they do not mind a small, shared space, a bedspace if you will, so long as the opportunity cost of privacy will be outweighed by the benefits they can get out of living in close proximity to their work or schools. Here, they can enjoy hotel-like amenities and services, while living dormitory-style (occupying a single room, to sharing bed spaces with 3 or more other people), with a cost that can be seen as both affordable and reasonable. Instead of enduring the daily commute, the convenience of living nearby is seen as a greater advantage to this target niche.
Condominium Living
Condominium developments are still on the rise, as developers continue to see this residential opportunity booming in the next several years. Aside from catering to students and young professionals, developers and investors are furthering the appeal of resort-type or hotel-type residences for their high-end clientele. Though residential lots are still available, sellable, profitable, and appealing to those with growing families, the locations of these are moving further and further away from the city center. Subdivisions with house and lots in Cavite, Bulacan, Laguna, Antipolo, and even Tarlac and Clark, are still booming and continuously thriving, but is just too far from their office spaces, and schools or universities. As such, living arrangements for even a 16-40 sqm condominium unit is appealing due to the convenience and proximity it affords its residents. Combine this with luxuries and comforts of having your own parking space, use of gym & other sports facilities, swimming pool, club house, and the like, this is sure to entice yuppies and students who would like to take advantage of this set-up. Properties like G.A. Tower in Shaw Boulevard, Mandaluyong is in the middle of the urban jungle, and is even right across an MRT station. It is in the middle of several commercial and other residential structures, that makes it accessible and a convenient dwelling space, and sound investment.
Photos by Ascot
Hotel Residential Leasing
Even hotels are taking advantage of this demand by offering long-term residential leasing for their units. What’s good about this is, hotel living is now seen as having a serviced apartment, 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., with its several lines of businesses to cater to different clientele. Their brands such as Ascott (in Makati and BGC), Somerset Olympia and Somerset Millenium, Citadines Valero and Citadines Ortigas, have a specific niche and perks they can offer the varying needs of the clients. Their packages are very flexible, ranging from monthly rates, to long term leasing of several years, which can still be customized for the clients’ needs and budget. This is also competitive enough to match the cost of renting your own condominium unit in the business districts, sans the trouble of wifi, cable 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 here is the convenience of living a stone’s throw away from where they work.
These young professionals are indeed changing the game in terms of real estate development and investments. They are driving the shift in the urban, fast-paced lifestyle, and the resources, facilities, and structures are readily available to be taken advantage of for the modern Filipino. For more information on available properties that would fit the bill, please check www.pinnacle.ph or email sales@pinnacle.ph for your real estate needs.
By Warianne Torrente | May 4, 2018
