Up the BLOQ
When Fiona and Richard Rey King were looking for a house where they could comfortably raise their children, it was more challenging than the young couple expected. “Most of the offerings at that time were either too expensive for what we could afford or if it was something we could afford, it did not suit the demands of family with kids growing up,” shares Fiona, founder, president and CEO of BLOQ Residences.
It was through this experience that they decided to try their hand at building and selling homes. “To both of us, it was fun and exciting, as my husband is a licensed civil engineer and I, a licensed real estate broker,” continues Fiona, an affordable housing advocate
Together, they pooled their savings to buy a lot inside a subdivision in Cebu and build a house they felt would best suit families like theirs. In less than two weeks after it was listed, the property was sold 30 percent higher than the other properties listed. “We refused to accept that to create value and affordability, we had to cut corners. Contrary to that, we firmly believe that the discipline of good design can create beautiful spaces that need not be expensive,” adds Fiona.
While planning for their next projects, they learned that their engineer shared rental space with his brother in an industrial area of factories. The space had 10 rooms and only one bathroom. They had to fill up their water containers the night before, as water was not always available. This story made Fiona and Richard realize how limited affordable-quality housing was. They thought that a compact and well-designed layout would help drive costs down by coming up with a building that was efficient in its usable floor area. From this, BLOQ Residences was born.
BLOQ Residences created quite a buzz in Cebu’s residential condo market when it was launched in 2014 with the unique value proposition, “Why rent when you can own?”
The project bucked trends, catalyzed development in the community, and changed how condo projects are priced and marketed in Cebu.
Today, there are four completed BLOQ buildings and three others under construction, all situated in the highly urbanized cities of Cebu and Mandaue. The brand has received two awards from the Philippine Property Awards. Demand is so strong that there’s a waitlist of interested buyers.
Fiona, who conceptualized and nurtured BLOQ, says she has been selling a lifestyle, not just a condo.
From the start, they had defined their niche market and had a clear vision of what they wanted to achieve — to provide young professionals with quality yet affordable housing.
Being a wife, mom of five, and entrepreneur, Fiona has learned to balance her career and family life. Here, she shares 10 insights into the business of developing affordable housing.
1. Be holistic. Include others. Affordable real estate development is a unique endeavor, as it requires us developers to have an encompassing perspective of stakeholder benefit. As a business, our purpose should not be solely for profit. We have to be mindful that the product we put on the market will give our homeowners lasting value.
2. Give more without you taking less. Profits are vital to making affordable housing sustainable. Without profit, a business wouldn’t be able to scale up and help address the current housing backlog. We’ve always been creative in giving more to our buyers without us taking less. We understand that city living comes with a certain cost. This is why we take great care in choosing materials that are easy to maintain and keep costs reasonable. In fact, all our BLOQ projects come with polished concrete floors. This gives our unit owners the flexibility to personalize their space without raising their financing costs.
3. Big ideas are great. But they have to be rooted in discipline. Numbers matter. It’s easy to get lost in the abstract ideas of design. Being fond of design, I’m guilty of wanting to make our projects as pretty as we possibly can. But for housing to be affordable, I have to find the discipline to design with great care and keep costs down. Every project we’ve undertaken has gone through several iterations of floor plans and feasibility studies in hopes of finding utility and purpose for every square meter that we construct.
4. Work with people. You’d be surprised. They can do the job better than you. Real estate development is a team effort. It’s one of the industries with the longest business cycles. We acquire land. Design on it. Secure the necessary permits. Construct. Sell. Collect payments. It usually takes us three to five years from start to finish. Given the magnitude and work it requires, we can only succeed if we work as a team. Over the years, we have been blessed to have worked with architects, consultants, colleagues and associates who have continued to grow with us. BLOQ has grown because of the people who share our passion and commitment.
5. Start small, but build right. When my husband and I started our real estate development business, we were building and selling one-off houses. Out of our savings, we bought a lot inside a residential subdivision and built a house that we thought a young family like ours would find value in. The experience afforded us real insights into what it takes to build and sell housing developments. As we grow the business, we’ve become mindful of the basic rules.
6. Master the rules before you break them. I enjoy photography. One of the things our coach taught us was to master the rules before we break them. I find that this also applies to us in real estate development. Before we were able to fully comprehend BLOQ and its value proposition, we studied so many existing developments. We pored through countless floor plans and price lists; visited so many property listings; and deliberated pricing, location and accessibility. It was only a matter of time before our a-ha moment arrived and we felt confident enough to build our first BLOQ project.
7. Care enough, even for the small stuff. Given that property development is a lengthy process, it’s easy to miss out on the details. I find that being detailed helps a lot in maintaining the level of work and service we provide. Finding the time to visit the site to inspect the progress and workmanship keeps everyone aligned. I find that having the commitment to do the job right saves a lot of time and costs. We also appreciate the feedback our buyers share with us, as it gives us more insights and opportunities to improve our product and service.
8. Actions speak louder than words. As a mother, I noticed that my children follow what my husband and I do. No amount of words will sway them if what we say contradicts what we do. I find this also applies to the work that we do. No amount of vision, mission, objectives, key result areas, and performance indicators will keep us and our associates aligned if they don’t see us walk the talk. Honesty in our work and commitments matters. It is, in fact, infectious.
9. Practice leads to better execution. As we are on our seventh BLOQ project, I can, with a certain degree of confidence, share that every BLOQ has become better than the previous ones. Every feedback, insight, mistake, and success we accept and see as an opportunity to improve. To this day, we continue to learn and accept the changing dynamics of our market. For instance, we’ve noted how our residents with hybrid work arrangements are coping with the limitations of their space. We’re using this to guide us on how we can further improve our product so it can continue to create value in their lives.
10. Plan, even if everything doesn’t go as planned. I like to plan. Planning gives me the opportunity to execute at a high level of performance. Planning also affords me to have options on hand in case of unforeseen events. When typhoon Odette hit Cebu hard in December 2021, no amount of preparation spared us from its impact. We were very grateful that our properties did not sustain any damage. We could only thank our designers and contractors for having built a structure that kept everyone safe. Our property managers and I were left scrambling for fresh water and diesel to keep our residents safe and comfortable. At the end of the day, it was our continuity plan that gave us the ability to respond. Again, plan even if everything doesn’t go as planned.
(We welcome your suggestions and comments. Please e-mail me at [email protected]. Follow me on Instagram @monsromulo.)
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