Home buying trend

Pre-selling is out and real marketing is in.

"Buyers have become more discriminating. They make sure the units for sale have been built; they inspect the materials used; they look at the amenities. Before, a developer can just show an off-site model unit and there would be buyers," said Jose Merin, president of Universal Rightfield Property Holdings, Inc.

Today, it is the buyer who intends to live in the condominium or the house for sale who account for 90% of total industry sales.

"The time of the investors’ market is over. There was a time when investors looking for future earnings (when the property appreciates) accounted for 90% of sales," he said.

In the last two years, much of the activity in the housing market has been focused on the mid-market or houses and condo units priced at between P1 million and P4 million. From one unit a month prior to 2000, industry sales has increased to the current 10 to 30 units a month, particularly for units located near the central business districts of Makati and Ortigas.

Affordable housing

Universal Rightfield’s current entry in the affordable housing market is the three-towered Dansalan Garden. A joint venture with DMCI Project Developers Inc., the 15-storey first tower will be completed by early next year. Condominium units range in size from 45 to 93 square meters and in price from P2 million to P4 million. Its model units are located on the second floor of the building. Communal amenities include a swimming pool and a playground.

The two other towers will be 30 storeys high and will take about three years to complete.

Total cost of the project is about P1.8 billion.

"When we entered the condominium business, we decided to start a trend, sort of a fashion statement. From EDSA, the Globe Telecom-Pioneer Highlands is orange. Dansalan has varying hues of green. It gives life to the buildings, making them friendlier," said Merin.

Dansalan’s building designer is Formoso and Associates.

"We deliberately chose a Filipino group as we feel they have the best skills and creativity to come up with a world-class structure. I think the trend of getting foreign consultants is now on its way out. Not only are they expensive, they also just duplicate what we already have," said Merin.

Another trend Universal Rightfield has noticed is that most buyers now prefer pure residential condominiums to mixed-used buildings with commercial units. This may be traced to the perceived tighter security and less car traffic in purely residential areas. Cost-wise, residential condominiums are cheaper to build than a mixed-used building.

Once the units are sold, Universal Rightfield will turn over the security and maintenance of the building to a property management company. "Aside from external factors, the perception of how a building is maintained and run determines its appreciation," he said.