MANILA, Philippines—Federal Land Inc., the property arm of tycoon George Ty, plans to venture into low-cost housing by selling residential units priced below P1 million by next year, thereby catering to a broader segment of the Philippine population.
“Our subsidiary, Horizon Land, is considering that,” Federal Land president Arthur Ty said in a recent talk with reporters. “We’d like to look into that. Tie up with the bank on assets they have depending on location.”
Ty was referring to the group’s banking arm Metropolitan Bank and Trust Co., which also has a thrift bank unit, Philippine Savings Bank.
Going down-market has been a common strategy among big property developers in recent years given the huge backlog of demand for affordable housing in the country alongside the highly liquid financial system.
Bulk of Federal Land’s condominium projects in Metro Manila currently sell high-rise residential units at an average price of P5 million although it also has projects offering units priced at P2 million and below in certain areas like Marikina, Paco (Manila) and Cavite.
The property company is upbeat on the real estate industry despite headwind from the United States and Europe.
“Interest rates, while rising, remain low. There’s nothing right now or in the foreseeable future that indicates that they will go up,” said Jose Mari Banzon, company executive vice president and general manager.
“Remittances continue to be strong, fueling a lot of the real estate sales now. Until those show signs of abating, we think that the market continues to be strong. We haven’t felt any slowdown,” Banzon said, adding that the business process outsourcing sector was continuing to grow.—Doris C. Dumlao