In its early years, when PA Properties was still looking into residential development, this Laguna-based company decided to stick with a single group of homebuyers to build its business around—the middle income earners.
“We noted early on, that the growth of the residential market is being supported by the expansion of the middle-class population, government efforts to urbanize underprivileged rural areas, and housing projects for low-and middle-income groups. Proof was the fact that when we launched our first residential subdivision project in San Pedro, Laguna, the 200 units we offered, were sold in less than four months. This inspired us to deliver more,” said Romarico “Bing” Alvarez, chair of PA Properties, which recently marked its 23rd anniversary.
With more Filipino families expected to improve their living standards in the coming years, Alvarez noted that the first thing they would consider is to stop renting and invest in their own homes.
“As one of the leading players catering to low- and middle-income homebuyers, the company has been able to deliver more than 20 communities, benefiting over 17,000 homeowners in several areas of Luzon,” added PA Properties president, Jonathan Lu.
Lu said the company is fortunate to have engaged in land banking for future projects.
Anticipated
“And as several industry expansion outpaces the supply of property spaces in Metro Manila, these companies have found several provinces nearby as conducive for their operations. From these locations, companies are finding enough labor to support their small and mid-sized operations. These individuals and families are what we have anticipated—a reason why we have built and are planning to build communities in several of these highly progressive locations,” Lu explained.
While most projects of PA Properties are concentrated in the areas of Laguna and Cavite, the company also began building elsewhere.
“Shifting our sights away from established markets to new urban-growth zones can be challenging. However, property developers that adopt a strategic approach may gain early-mover benefits,” Alvarez said.
Firm foothold
He related that after establishing a firm foothold in the provinces of Laguna (setting up projects like St. Joseph Richfield, San Jose Residencias, and St. Joseph Homes Calamba) and Cavite, the company is now setting up in other locations including San Jose del Monte in Bulacan (NuVista San Jose), San Fernando in Pampanga (Bridgepointe Place), Caloocan City (The North Grove), and Ortigas in Pasig (East Residences Ortigas).
“While Metro Manila has always been the country’s center of development, the process of decentralization has already begun as some of the top outsourcing companies are in various emerging cities taking advantage of young labor force, low cost of labor, notable customer service, low rental rate, and high yield rate,” Alvarez said.
Alvarez also related that their active contribution in serving the middle-income homebuyers must have attracted foreign players to form strategic partnership like what Hankyu Realty Co. Ltd., the property arm of Japanese conglomerate Hankyu Hanshin Holdings, Inc. did when it formed a joint venture with PA Properties to develop the first phase of Idesia Dasmariñas, which meanwhile spans 11 hectares.
Alvarez said the joint venture only strengthens the company, which has been providing affordable and quality housing to the local market over the last 23 years.
Lu added that the 23rd anniversary theme of PA Properties is timely: “23 Years of Turning Dreams into Realty is a manifestation of our desire to explore potential investment partnerships that would enable us pool expertise and market intelligence. In the end, what we want to provide are highly coveted housing developments for our homebuyers.”