Attractive loan packages spur the real estate market

One of the few good reasons why AboitizLand is active in investing into residential projects today is to take advantage of the appealing residential loan package facilities offered by banks these days.

"Today is a great time to borrow money from banks for real estate purposes as banks just felt the hang-over from a long-time loan drought," said Aboitizland president and chief operating officer (COO) Andoni F. Aboitiz.

After spending over half a billion pesos for the development of its high-end integrated residential subdivision called Prestina in Talamban, just a few years back, along with other medium range residential projects, AboitizLand is now investing another half a billion pesos for its new housing project in the South called "Kishanta."

Aside from the Overseas Contract Workers (OCWs) who are the active buyers of residential real property products, Aboitiz said the local market is now being activated through the opening of attractive housing loan packages by banks.

Because of this, AboitizLand has introduced for the first time, its innovations in financing to make investment so much within reach for many.

"We have partnered with six banks which are offering very low interest rates and for terms of up to 10 or even 15 years. We are also introducing for the first time, options to make equity or down payments lighter than usual," he stressed.

In the last two years, despite the economic difficulties in the Philippines, Aboitiz said the companies' several housing projects, including Mahogany Grove, and Molave in Consolacion had posted encouraging sales performance, which exceeded the company's target goal.

The residential real estate market in Cebu has become more competitive, thus forcing developers to build high quality projects, with affordable costs and relaxed payment schemes.

He added that because of the very competitive landscape for residential real estate market, developers are compelled to invest more, and providing better quality products in lesser price range.

Its latest project, Kishanta, will be offering a total of 380 lots, about a quarter of which will be offered in house and lot package. Lot only price in an average of 250 square-meter to 280 square-meter cut is pegged over a million pesos, depending on the location.

There are a number of developers not only from Cebu, but also the national players that are also taking advantage of the active buying market for residential projects in Cebu.

The Ayala affiliate, Cebu Holdings Inc. (CHI) is currently marketing its upscale residential project "Amara" at the northern part of Cebu in Lilo-an.

While, Filinvest Development is now preparing to aggressively market its high-end resort subdivision project in Mactan, Island.