MANILA, Philippines – Sy-led property firm SM Developmemnt Corp. (SMDC) will launch a low-cost development in 2013 to meet the demands of overseas Filipino workers (OFW) and those studying in schools in the metro.
According to Henry Sy Jr, CEO of SMDC, the property developer will launch their new low-cost brand for units that will sell for P1 million to P1.5 million each.
They will be the same average size as other units sold by SMDC at around 20 to 24 square metres. The savings will come in the cheaper land prices and the structure of the buildings which will be low rise.
“We’re saving money on the location and height of the building, a saving which we will be able to pass on to the consumer,” said Sy speaking at a media briefing on Tuesday, December 11.
The locations will be in areas such as Sucat and Pasay, not the central business districts. The pilot project will be located in Fairview, Quezon City.
“We will be addressing a need. Even at P2 million to P4 million, the average OFW won’t be able to afford it because they have other obligations,” said Rosaline Qua, COO of SMDC.
In 2010, the property developer announced it would be joining the low cost property market with its My Place brand where condominium units would be priced at P1.1 million and below. The projects with an average of 2,000 units per development are located in areas such as Quezon City.
According to Qua, another emerging low cost market is the university student community.
“Instead of living in crowded dorms, parents get units for their children. They choose apartments that are close, safe, and have amenities like swimming pools, gyms, study and lounges. That’s another emerging market we have which we would like to continually mind,” she said.
Expansion plans abroad
The listed developer also has plans to expand into China in 2013. “China is pushing through soon. The paperwork is a little more tedious,” said Sy.
According to Qua, an expansion into China is possible for next year depending on certain regulations and permits. The developer’s retail affiliate, SM Prime Holdings owns property in Xiamen and Chengdu.
Eventually SMDC will look further afield at other ASEAN country’s such as Myanmar and Laos said Sy.
SMDC looks to grow 10-15%
SMDC is targeting to grow by 10% to 15% by 2013. This includes a minimum of 3 launches and the expansions of existing projects.
SMDC has bought P15 billion worth of land this year compared to P9 to 10 billion worth of property bought last ear according to Sy.
The developer currently has a land bank of 50 hectares in Metro Manila in areas such as Makati, Mandaluong and Pasay. Including their land outside of the capital, their total land bank adds up to 130 hectares.
This 2012, SMDC finished the expansion of existing projects and launched an additional two new projects that amounted to P21.9B. These projects include Jazz Tower B, Wind Tower 4, Field Building 4, MPST Tower C, Grace Residences and Breeze Residences.
Reservation performance by the end of September this year yielded P26.5 billion compared to last year’s P17.6 billion for the same period, a 51% growth year-on-year. – Rappler.com