Vol. XXII, No. 176 [ BusinessWorld Online ]
Wednesday, April 8, 2009 | MANILA, PHILIPPINES
PROPERTY DEVELOPER Earth+Style Corp. plans to expand its subdivision project in Biñan, Laguna in the third quarter, as demand for housing in the so-called middle segment continues to be strong despite the prevailing economic gloom.
Ma. Luisa J. Ramirez, marketing communication head of Earth+Style, said the firm plans to spend P160 million to expand its 13.9-hectare Jubilation Home Village East by 2.8 hectares.
"This will add more than 100 ’saleable’ units ... It would take up to two years to finish this," she said.
In January, Earth+Style started the development of its "Villagio Di Xavier Dolce Vita" project, also in Biñan, worth P450 million.The company is also planning a project for lower middle-income families, called Summer Breeze County, she said.
"We continue to expand since demand for those product lines continue to be strong [despite the downturn in the economy]," she said.
Ms. Ramirez said the new projects would be financed by internal cash and loans.
The projects are part of Earth+Style’s P5-billion mixed-use development called Jubilation New Biñan, which the company launched seven years ago.
The company is owned by Jacinto L. Ng, Sr., who also heads the Republic Biscuit Corp. and the Asia United Bank.
In a separate interview, Ramon Jose E. Aguirre, research manager of industry analyst Colliers International, agreed that demand for mid-end projects continue to be strong because of the large housing backlog here.
"It’s actually safer than high-end properties because of the housing backlog and with the lack of space for horizontal developments in Manila, such properties in Laguna and adjacent areas are very popular," he said.
The Housing and Urban Development Coordinating Council placed the housing backlog at four million in 2007.
Mr. Aguirre said it was unlikely for mid-end housing to be affected by the economic slowdown, since there are many ways for the middle class to finance home purchases, such as by borrowing from a government lender like the Pag-IBIG Fund.
Prince Christian R. Cruz, senior economist at Global Property Guide, noted that statements by various property firms of shifting toward middle-income developments show that demand is holding up.
Ms. Ramirez said Earth+Style is also looking for locators for Jubilation New Biñan’s commercial segment, One Asia Business Center, where there are 30,752 square meters of land available.
The first phase of One Asia Business has several restaurants and a medical facility.
Ms. Ramirez said Earth+Style is luring banks and outsourcing firms to move to the area, but exporters are also welcome since the project is accredited by the Philippine Economic Zone Authority, which grants tax perks to exporters. — Don Gil K. Carreon
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