MANILA, Philippines - The Philippines is at an interesting junction in the evolution of the residential property sector. On the one hand, the industry sails over testy waters due to the global economic downturn; on the other hand, its growth is abetted by remittances from overseas workers, and revenues from the BPO industry and two-(or more) income households. Brought into the mix are the urbanization of our landscape and the population’s exposure to rapidly expanding lifestyle choices.
These converging realities have influenced the (re-)structuring of our families, as well as the structures we live in. There is now a housing market niche waiting to be filled, and sometimes it will not be a giant-size company that will be willing to readily adjust and maneuver through gaps in housing.
SOC Land Development Corporation ( SOC Land ), a medium-size developer beginning to carve a name in the real estate industry, is the property arm of South China Resources, Inc. which is helmed by the Puyat-Reyeses. The mother company has built a track record as a major player in industries such as oil exploration, banking, construction materials, and telecoms, among others.
The corporation recently launched its residential development project, Anuva, Russian for “new beginning,” a signifier of the fresh mandate of SOC Land , and a tantalizing glimpse of what lies ahead for many middle-income Filipino families. The 2.4-hectare community, located near the Sucat Interchange, will have 4 tandem buildings or 8 towers with medium density allocation.
Elevated lifestyle for Filipino families
The story of the birth of Anuva is about a company that knows to consolidate preparedness and opportunity. According to John Paul Reyes, chief executive officer of SOC Land, the family realized “there is a 3-4 million backlog in housing.” The group’s history in land banking freed them from the need to buy land or go into joint venture to undertake property development activities.
“The family decided that it was worthwhile to embark on real estate because they have lands in prime locations that have good market opportunity. The new venture is also geared at enhancing the company’s shareholder value, at the same time filling the need of Filipinos for better housing products, which are affordable quality homes that will elevate their lifestyle while keeping within their means,” Reyes explains. “Add to that our experience in the construction industry and the availability of long-term loans to clients. Jumping into it was an easy decision.”
SOC Land commenced construction just within a few months since launching Anuva in November 2011. Reyes says that a contributing factor to this feat is South China ’s divestment of non-core businesses in recent years that has resulted in substantial liquidity for the group and prompted them to search for new business opportunities.
Majority of Anuva’s buyers are OFWs, members of the business class, and professionals. To date, sales have reached the 23% mark. “We are up against the big boys, so the question of stability instantly comes to the buyer’s mind. As a new player, we have to make sure that we give so many added things that big players do not provide.” Like the third force in the telecom industry or what a budget carrier did for the airline industry, “small players can offer new concepts and affordability to buyers that big players don’t usually give as they have a minimum profit margin to meet. As small players, we are flexible in terms of profitability.”