Over the years, the demand for housing has outstripped supply, driven by rural-to-urban and intercity migration in major cities such as Manila, Laguna, Clark, Cavite and Bulacan where people believe there are better prospects for employment.
While, in 2015, there was an excess of around 253,300 high-end (or open market) houses and 307,740 mid-priced homes, many of which were situated within the National Capital Region (NCR) and the country’s other urban centers, other housing segments present a different story. By 2030, the housing backlog is expected to reach 10.1Mn units in the socialized, economic and low cost housing segments. These housing segments primarily cater to poor to lower middle income classes which comprise 81.3% of the population.
With close to 25 years of experience in developing affordable housing and communities, P.A. Properties is well-positioned to capitalize on the huge housing backlog with 137 hectares of landbank. For 2017, P.A. Properties ended the year with PhP11.8B in total assets growing at a 2Y CAGR of 25.3%. In the same year, the company infused PhP 835Mn in equity, increasing its total equity to PhP3.1B.
“The current housing backlog stands at over 5.9 million countrywide, with socialized and economic housing accounting for the bulk of this requirement. As a result, prevalence of informal settlements that lack basic infrastructure and sustainable service has increased significantly across most towns and cities,” shared Romarico “Bing” Alvarez, Chairman of P.A. Properties.
The government alone cannot meet the rapidly growing demand for decent shelter, particularly in urban areas.
To date, the socialized housing segment has a backlog of 3,032,351 units while the economic housing segment has 2,588,897. And the backlog continues to rise by 168,000 to 190,000 units a year, according to reports. With these figures, addressing the backlog will require investments beyond the capacity of the national and local budgets.
“The government needs to develop the synergies and participation of all stakeholders, including the private sector, employers, citizens and development partners in the provision of shelter,” added Alvarez. “For its part, the government knows that policy-making, land acquisition and a successful expropriation plan are critical to meeting the interests of the general public.”
P.A. Properties completed a total of 40 affordable housing communities with 16 more housing communities under construction. The company also has development plans for 25 future projects estimated to generate up to PhP25B in revenues. In 2017, P.A. Properties forged a partnership with Osaka-based real estate firm, Hankyu Hanshin Properties Corp., to develop three (3) township projects – equivalent to a total of 54 hectares with a projected revenue of PHP 11.25Bn.
“People migrating to the cities and who are looking for places to live in are taking matters into their own hands by occupying land — building shacks and makeshift houses on vacant lots. Unless the government and the private sector come up with solutions, the pattern of land occupations and the clamor for decent places to reside in will likely continue,” concluded Alvarez.
About P.A. Properties:
For 24 years, Laguna-based P.A. Alvarez Properties and Development Corporation (P.A. Properties) has established itself a name in the competitive Philippine real estate industry by enabling the public to have their dream homes at affordable rates and payment schemes.
The company, which has already built about 19,000 housing units in Laguna, Batangas, Bulacan, Cavite, Pampanga, and Metro Manila, continues to embark on strategic expansion efforts to further build 15,000 more housing units in the next five years, thereby creating comfortable, safe, and joyful Filipino communities.
P.A. Properties, which has a capitalization of PHP3.3 billion (as of October 2018), acknowledges that partnering with Hankyu Hanshin Properties Corporation in developing ldesia would not only help the company grow its experience, expertise, and technology, but it will also help the company realize its advocacy of helping ease the more than 6 million housing backlog in the Philippines.
For more information about P.A. Properties, visit www.paproperties.com.ph
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