Condo market ‘getting stronger

DESPITE the global financial slowdown, the local housing market for residential condominiums has become “robust” now that more and more Filipinos are aware of the benefits of acquiring a condo unit.

Primary Homes sales manager Ramero Espina made that observation, adding that there is now a high demand for residential condos.

However, several condominium projects in the market will be turned over only in 2012. The immediate demand has prompted real estate developer Primary Homes to deliver its condominium development, Woodcrest Residences, ahead of schedule.

Woodcrest, which started last year, was first targeted to be completed toward the end of 2010 but it will be finished by the first quarter next year. Turnover of units will start in December. The buyers can then start using their properties by February 2010.

Woodcrest is located in Guadalupe, Cebu City. It has studio units, two-bedroom units, three-bedroom loft units, and townhouses. It specifically targets the mid-market.
At present, Primary Homes has already reported a 70-percent sale of Woodcrest’s 174 units, 150 of which are condos and the rest are townhouses.

Espina said these buyers include Filipinos with most of them supported by OFW (overseas Filipino worker) relatives, businessmen with investments in Cebu, and foreigners with Filipino spouses.

He noted that the shift from residential subdivisions to residential condos has been spurred by lifestyle change, even when the condominium is considered a new trend in Cebu’s real estate industry.

“Living in an upscale residential subdivision requires high costs for maintaining the house's amenities like the swimming pool and for hiring security guards while living in a condo only requires a unit owner to pay less monthly maintenance dues,” he said.

Some of Woodcrest’s amenities are a swimming pool, fitness gym, clubhouse, multi-level parking area, porches and mailboxes for every unit, and waste water treatment facility. It also has a 24-hour security, equipped with closed circuit television system.

A Woodcrest investor also has the option to earn through renting out his space with the help of Primary Properties Management Corp.

“Real estate is a great investment. A property is equipped with fire alarms and sprinkler system so risks are controllable. It can also be insured and if it will be rented out, it ensures better returns than putting funds in the bank,” Espina said.

He cited Woodcrest investors who are assured of “higher yields at eight to 10 percent per annum.”

He added that another advantage of Woodcrest is its location in the south of Cebu City.

“The trend for business now is going south as the area ushers in more development, especially with the opening of the South Road Properties. The property is (near) hospitals, schools, malls, and offices. It is also located in one of the city’s most peaceful districts,” he said.

After typhoon Ondoy left large parts of Manila submerged, Primary Homes is anticipating more potential clients from Manila to reside in Cebu.

Published in the Sun.Star Cebu newspaper on November 9, 2009.

Pag-IBIG lowers housing loan rates anew

Pag-IBIG lowers housing loan rates anew

April 03,2009

VICE President and Chairman of the Housing and Urban Development Coordinating Council (HUDCC) and the Home Development Mutual Fund (Pag-IBIG Fund) Board of Trustees, today announced further adjustments to its end-user financing program, this time creating additional housing loan brackets with corresponding lower interest rates. The rate adjustments are aligned with the redefined housing packages set by the HUDCC.

The new Pag-IBIG housing loan interest rate structure retains the 6%-rate for loans up to P400,000, and 7% for loans over P400,000 up to P750,000.

Interest rates have been slashed from 10.5 percent to only 8.5% for loans over P750,000 up to P1 million, and to 9.5% for loans over P1 million to P1.25 million.

Meanwhile, interest for loans over P1.25 million to P2 million remains at 10.5%.

Along with the latest rate adjustment, the Pag-IBIG Board also approved the increase in maximum loanable amount to P3 million, at an interest rate of 11.5% per annum for loans starting at over P2 million.

De Castro said the latest amendments in the Pag-IBIG housing loan program are intended to make the program more affordable to members, especially workers in highly-urbanized areas whose housing needs often range from more than P750,000 up to 1 million. Likewise, with the Board’s approval of raising the loan ceiling to P3 million, Pag-IBIG will be able to meet the home financing needs of members belonging to the middle-income earners. “This should give Pag-IBIG members a wider range of choices in buying a house,” he said.

Over the last two years, the Fund has implemented significant improvements in its end-user financing program. In 2007, Pag-IBIG has reduced the interest rates for loans over P300,000 to P750,000 from 10.5% to 7%. Earlier this year, the socialized housing bracket was expanded to cover loans of up to P400,000.

With the new changes taking effect April 1, Pag-IBIG member-borrowers can look forward to more value for their money as well as savings especially at this time of economic difficulties. “The savings given the lower monthly amortizations should convince Pag-IBIG members that buying their own home is a more practical alternative to renting,” De Castro added.

Members who avail of a P1 million housing loan stand to save 15.94% per month with amortizations of only P7,689.13 (covering principal and interest) over a 30 year period, compared to P9,147.39 under the old rate of 10.5%.

Year-on-year figures show the Pag-IBIG Fund is able to maintain the growth in its housing loan takeout. From P4.59 billion, the Fund recorded a P5.83 billion total takeout from January to February of the current year, representing a 27% increase.

“The demand for housing, especially from the low and middle-income earners, continues to be strong despite the global financial crisis,” he said.

Following these amendments in the Pag-IBIG housing loan program, the Fund expects to maintain a steady growth in loans granted to members and attain its target of P43 billion takeout for 2009. “This will further sustain the housing sector by providing financing to home buyers at very attractive, affordable rates,” De Castro said. (end)