DMCI Homes allots P5B for condo projects this yr

DMCI Homes is spending around P5 billion this year for the development of both new and existing residential condominium projects.

Company officials said the capital expenditures involve at least 16 projects in various stages of development.

The company has just launched three new projects, namely Ohana Place along Alabang-Zapote Road, Magnolia Place in Tandang Sora Extension in Quezon City and East Raya Gardens in Pasig City. These are all mid-rise residential developments which target young families of modest income.

As of end-August this year, sales has grown 57 percent from the same period last year to around P9 billion, with the January-August 2007 sales breached as early as June 2008.

Officials attributed this growth to the huge demand for affordable projects as well as the company’s conscious decision to focus on the affordable market segment rather than the upper to high-end market.

According to DMCI Homes managing director Alfredo Austria, mid-rise development is one of the most successful endeavors of the company and derives its expertise in this sector through its experience with developing residential projects since 1999. Towers are consigned to no more than five floors allowing for low density of a building.

“Over the years, we have sharpened our craft on building medium-density projects. More than 7,556 units of mid-rise buildings have been offered to the public, 60 percent of which are already moved-in. Building mid-rise developments affords us to deliver units earlier than the normal developments. And since the bulk of our buyers are end-users, the demand for moving-in right away is addressed,” he said.

DMCI Homes still has a landbank of undeveloped properties in the Taguig area covering around 80 hectares, which according to one official is enough to last the company for the next 10 years, assuming that only two projects will be launched each year at three hectares per project.

Next year, another three to five new residential mid-rise condominium projects will be launched. One of this will be located in Donada St in Pasay in front of Manila Sanitarium while another will involve the third phase of the Rosewood Pointe project. The company is also currently in discussions for the development of the former Pfizer manufacturing plant site in Muntinlupa into a residential condo project.

DMCI has sold a total of 11,499 units of houses since it was established in 1999. Majority of the unit sales are mid-rise buildings while high-rise condominiums only comprised about 23 percent. Subdivision units meanwhile accounted for 12 percent and leisure, two percent. About 5,308 unit buyers have already moved-in.

For 2008 alone, officials revealed that DMCI Homes has sold about 3,641 units, and more than 3,000 unit buyers have moved-in.

For this year and next year, DMCI Homes said it hopes to maintain its dominance in the real mid-income segment by launching high volume generation mid-rise condo projects such as Ohana, Magnolia, East Raya Gardens and new developments in Taguig and Parañaque.

Company officials also revealed that they will sustain the inventory of high-rise projects within the year with the launch of a high-rise project in Pasay City, as well as opening of new towers for Tivoli Gardens.

They added that growth can also be achieved thru geographic expansion outside of the company’s current market.