Overly cautious market spurs condo sale

By Charles E. Buban
Philippine Daily Inquirer
Posted date: September 12, 2009

DURING A BOOM period, the condo market embodied everything that was exciting about being rich and living within a short commute to a bustling metropolis.
Not only are developers willing to show exuberance in their latest projects but even the buyers are willing to spend money as long as they enjoy opulent architecture and be able to live the high life.

But with the crash of the world’s housing markets in 2008, condo buyers became overly cautious.

Putting aside immodest fantasies of modern living, a lot of today’s condo buyers would rather go for affordability, comfortable and homely environment.

“In a way, it became our time to get noticed. We’re the ones already offering low-priced units with high-quality facilities that are not too ostentatious,” explained Epifanio Santillan Jr., president of PA Metro Residence Builders Inc., the developer behind East Residences Ortigas in Pasig City and One Metropolitan Place, a five story condo in Pasay City.

East Residences Ortigas offers 30-square-meter units with prices ranging from P1.097 million to P1.560 million while One Metropolitan Place offers 8-, 24- and 30-sq-m garden units with prices ranging from P959,000 to P1.633 million.

Santillan reported that unit sales have slowed down a bit last year (when crisis broke out in the United States) but picked up once again early this year when it became clear that the country would not feel the brunt of the US housing crash.

Sell out

In fact, PAMRBI was able to sell out two of the four residential buildings (Amethyst and Topaz) at East Residences Ortigas in record time and is expecting the same with the units available at Jade and Ivory.

“It’s important to tell that the property market is perking up and buying a condo unit is still one of the best investments one could make,” said Romarico Alvarez, PAMRBI chairman.

He said as developers of residential condo projects, they were banking on first-time buyers, probably single professionals or newlyweds.

“Aside from enjoying the price advantage [as compared to buying a house and lot in a subdivision], you don’t have to take care of a big yard since the association would handle most of the things outside your unit including the playing courts, swimming pool and the gardens,” Alvarez explained.

Location is also a big factor considering that most of their buyers are working in offices located in major business districts.

“If you are working in Makati or even in Fort Bonifacio Global City, it will be a short ride coming from One Metropolitan Place, which is located on Edang Street [near Philtranco bus station], Pasay City. The same goes with East Residences Ortigas, which is a ride away from the Ortigas business district,” Santillan explained.

Since condo residents often enjoy less privacy than residents of detached homes, developers have made a concession: lessen the number of units per floor.

Both East Residences Ortigas and One Metropolitan Place only has six units per floor. This floor area density allows condo residents not only enjoy privacy but also less foot traffic along hallways and less waiting time on elevator.