Published on Friday, 23 November 2012 00:00
Written by IRMA ISIP
Malaya Business News Online -
Philippine Business News | Online News Philippines
Low-end subdivision developers
affiliated with the Organization of Socialized Housing Developers of the
Philippines (OSHDP) are suggesting that medium-rise buildings are the most
cost-effective way of addressing the 4 million housing backlog in the country,
Jefferson S. Bongat, OSHDP national
president, said that in-city housing, such as medium-rise buildings (MRBs) for
multi-family dwellings, can serve larger number instead of for example,
rowhouses.
Bongat, however said that , private developers need tax
breaks from government to make developments like these to be viable, similar to
those given to them for horizontal development.
Bongat said said the MRBs are ideal
for low-income individuals, particularly renters, who need to be in their place
of work.
Under the scheme, one MRB can be built
within a 2,000-square meter area. It would be 5 storeys high with just 125
units to keep the density low. Bigger lots could accommodate multiple
buildings. The minimum area per unit is 20 sqm.
Development cost could go as low as
P38,000 to P40,000 per square meter which is about the same price for a house
and lot package in Cavite. The monthly
amortization would be also the same at about P5,900.
Small pocket developments for MRBs can
still be accommodated in Pasig, Cainta and certain parts of Quezon City,
Bonggat said.
Once subsidies are in place, a
developer can roll out one MRB in 8 months, he explained. Bongat said the proposal was presented to the
Housing and Urban Development Coordinating Council, chaired by housing czar
Vice President Jejomar Binay.
Bongat said MRBs also maximize the
beneficial use of residential lands in cities, which continue to become scarce
and costlier, Bongat said.
He added that MRBs will keep workers near their families
and their place of work or livelihood.
“In the process, it reduces
transportation costs and travel stress, by cutting commute time, which workers
can put to more productive and gainful use,” Bongat said.
OSHDP’s recent studies reveal that MRB
residential units can be built by private developers at the estimated cost
of P840,000 per unit in National Capital
Region; Metro Cebu and Metro Davao, give the high cost of city lands.
In other highly-urbanized cities, MRB
units can be put up at an estimated P750,000 per unit.
These are designed to be acquired by
city workers who are formally-employed and with fixed incomes.
Their savings from reduced transport
costs and less commute time could augment their amortization of these MRB
units, according to Bongat.
Also based on their recent study, the
housing loan package for socialized housing of P400,000 last set in December
2008, may need to be adjusted to P450,000 to reflect the movements in price of
land and construction.
These units are located in low-density
socialized housing projects in the suburbs of Metro Manila and of regional
cities.
These would remain generally
affordable given the recent reduction by the Home Development Mutual Fund
(Pag-IBIG Fund) of housing loan rates and the longer repayment period of 30
years, as well as the participation of private banks in housing activities.
These housing solutions also will
enable the greater participation of private developers, in compliance with the
balanced housing development requirements under the Urban Development and
Housing Act of 1992 (R.A. 7279), OSHDP said.
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