Developer invests P300M on 2-tower condo project

CEBU, Philippines — Property firm Priland Development Corporation is venturing into the lucrative condominium market noting the demand for vertical developments in Cebu.

The company announced yesterday its maiden foray into the condo development through Northwoods Place in Mandaue City.

In a press conference Tuesday, company president Ramon Carlo Yap said the developer is poised to take part in Cebu’s growing real estate industry particularly in the condo market.

The company is investing some P300 million for the two-tower condo project, which is designed to have 312 units composed of residential (studio and 1-bedrooom units) and home office units.

Yap also announced the firm is set to launch two condo projects and four horizontal developments next year.

Marcelino Relampagos, general manager, said the firm is looking to spend almost P1 billion as capital expenditure for the projects to be launched next year.

The two condo projects slated for launch in 2018 and both to be located in Cebu City will add around 1,100 units

Irvin Paul Pastoria, sales manager, noted the demand for condo has become relevant nowadays, becoming an option for investors aside from buying a house and lot.

Northwoods Place sits just outside of Northwoods Residences, Priland’s first gated community. The development is close to Sacred Heart School - Ateneo de Cebu and sits along H. Abellana Street

The project's amenities include a swimming pool with gazebo, gym, and a commercial area that is ideal for a tutorial center, laundry shop, and other establishments.

The company launched residential projects in Mactan and Consolacion earlier this year.

Yap also said the company is set to make its first foray into township development by late 2019 through its mixed-use development in a 42-hectare property in Consolacion, Cebu.

This township project will have industrial, commercial and residential components.

In its November 28 report entitled When Giants Envade: National Property Developers Redifining Cebu, property consultancy firm Colliers International said that township projects, which integrate the live-work-play lifestyle, provide a better value proposition than standalone projects since they offer mixed-use developments such as office, residential, retail, even institutional.

This feature makes integrated townships a more attractive option for both investors and end-users.  Colliers has observed that premium pricing especially for condominium units in Cebu is achieved by projects in masterplanned communities launched by major developers.

Colliers said integrated townships have also become more popular in Cebu given the inadequate transport infrastructure in the traditional business district – the Uptown/Downtown area.

"The national developers were successful in developing townships in Metro Manila and have applied the same concept in Cebu. The developers are bridging infrastructure gaps and unlocking opportunities by building master-planned communities that have the potential to become major catchment areas for business activities in Cebu," Colliers said.

Colliers believes that the mixed-use projects will also become more attractive from now on especially as Cebu tries to retain its status as the second largest outsourcing hub in the country and one of the most attractive BPO destinations in the world. We see more BPO tenants in Cebu shifting toward these mixed-use communities as these projects offer a better living and working environment.

Given the rising popularity of integrated townships, Colliers sees national developers actively acquiring large parcels of land in Cebu that could be developed into master-planned communities.

Colliers believes that in the increasingly competitive real estate environment, developers need to distinguish their projects from others. We see competition intensifying especially with the completion of projects on Mactan Island, Mandaue, and South Road Properties (SRP).

"Apart from the typical land uses such as office, residential, retail, and hotel, developers should also incorporate other uses such as industrial, education and healthcare. We believe that developers should also integrate entertainment and recreational facilities for outdoor sports," it said. (FREEMAN)