Developer eyes underserved socialized housing segment

CEBU, Philippines - In the midst of rapid urbanization and real estate boom, a home-grown developer is pushing for projects intended for the socialized and economic housing sector, encouraging other industry players to do the same to cater to the residential needs of the underserved market.

Cebu Landmasters, Inc. (CLI) president and chief executive officer Jose Soberano pointed out that along with the fast-paced development in the urbanized areas, proliferation of informal settlers arise at the same time.

He said that this could be due to the residential projects that are “too much engrossed” to the high-end market segment, thus overlooking the needs for shelter of the “poorest of the poor”.

“If you can notice the real estate industry, it is always the high-end market that benefits from such. We have to think of the ways and means to serve the marginalized sector of our economy. We have to give them the kind of real home and let them get the feel of high-end facilities,” he said.

He added that the low-income market are deprived of the opportunity to own their houses, thus settling for less and choosing to live in urban areas which are not equipped for living.

“This is really the underserved and unserved area when it comes to housing facilities. We have to realize that this type of market has the most number,” he stated.

He cited that ideally, the socialized market could avail of a unit worth of at least P400,000 while the economic sector could invest on a unit priced P800,000 to P1.5 million.

Soberano said that buyers need not worry since credit access is made readily available from banks and other financial institutions while lower interest rates are being offered by government agencies such as the Home Development Mutual Fund or Pag-IBIG that allow homeowners to pay for the unit over 20 to 30 years.

Given the clean cut policies and strict regulations in the residential community, he said that there could be already be a cluster of four-to-five storey buildings in a hectare. If properly designed, a 20-square meter unit with a high ceiling and a loft could accommodate a family of four to five.

If such controlled development for the socialized and economic housing sector could be pushed, he further noted that this could lead to a shift on attitude among the low-income market and set a margin of discipline among residents in a particular area.

“These types of market are those who are left on their own, thus they do what they want. If we come up with such kind of projects for them, it could benefit a larger community and create an attitude shift with more disciplined constituents,” he continued.

Soberano shared that the socialized and economic housing development is actually lined up as part of the expansion strategies of the real estate company for this year. CLI has allotted a six and a half-hectare property in Linao, Minglanilla for such market.

The CLI project for the socialized and economic housing will be hopefully launched before the yearend. According to Soberano, this could be composed of 400 units varying from 20 to 28 square meters in floor area and ranging from 32 to 36 square meters in terms of lot area. It will also feature amenities such as wide roads, fully-fenced perimeters, 24-hour security and a clubhouse.

Earlier, the city government of Cagayan de Oro turned over more than P48 million cash to the Habitat for Humanity in the Philippines and Gawad Kalinga for the construction of additional houses for calamity victims of Typhoon Sendong.

Soberano said that the government and the private sector need to wait for a calamity to strike to provide better housing facilities for Filipinos.

“Usually, those units given by Habitat and Gawad Kalinga are dole outs. Filipinos could actually avail of these houses. They are just waiting for a facility or a community where they can reside. There are a lot of vacant lots in Cebu,” he said.

He cited that a Filipino family earning a net disposable income averaging from P10,000 to P20,000 can already avail of a unit in a socialized or economic housing project.

He then encouraged other developers to be more aggressive in putting a solution to the housing problems in the country, urging them not to wait for the government to act on it first.

“If it is led by the private sector, it can be done and managed properly. Developers have a major role to play in improving the residential communities and contributing to achieve real economic growth. Do not just wait for these government agencies develop houses to help others,” he said.

“This should be the future. That’s what we need,”Soberano concluded, adding that pushing for socialized and economic housing development could serve as a clear solution of addressing a “real” need in the society. /JOB (FREEMAN)