Demand for midrise building residential developments growing in key cities

DEMAND for midrise building (MRB) residential developments is on the rise, especially in key cities such as Laguna and Iloilo.

Roy Golez, Leechiu Property Consultants director for research and consultancy, said they are seeing increasing demand for midrise building developments as rising land values make it more expensive for people to have their own single detached homes.

“MRBs offer a more affordable alternative… There’s a demand for MRBs from millennials and families,” he said in a webinar on SM Development Corp.’s (SMDC) Facebook page on Friday.

Cyrill Manzo, SMDC assistant vice-president for architecture design management, said the company is launching several midrise residential projects outside of Metro Manila.

“For SMDC, we’ll be launching some projects in Iloilo, Cagayan de Oro, Laguna, Cavite to name a few. For each project we have about 1,900-3,000 units. So imagine around 10,000 to 15,000 units in the market every year. This is SMDC’s way to help solve the housing backlog,” she said in the same webinar.

Ms. Manzo said the concept for these projects revolve around “green living” and sustainability.

“SMDC’s MRB residential communities are lifetime investments for residents. It’s a future-ready, sustainable property development that doubles as an investment… It is the future of real estate,” she added.

Mr. Golez noted growing demand for such projects in Laguna, which has seen fast population growth due to the industrial parks and new infrastructure projects that improved accessibility and connectivity. Iloilo has seen similar growth as more business process outsourcing firms expand and create more jobs in the city.

He noted it is a good time to invest, since real estate values have continuously grown even during the pandemic.

“This gives buyers the reassurance that investments made in these projects will likewise continue to grow… Demand for housing today is too huge and it will continue to be high. It contributes to the capital appreciation of your condo unit,” Mr. Golez said.

He also noted developers are now offering modern-designed, sustainable housing projects at very low cost.

“Buying a real estate property provides an opportunity for buyers to help the country. Investments in real estate have six times multiple in the economy. One peso spent in real estate translates to six pesos contribution to the economy,” he said.

Mr. Golez offered some tips before making any real estate investment, such as making sure of the project’s location and the strength of the real estate developer.

“Be ready to invest. Have enough savings, cash flow and emergency fund before you put your first peso in any real estate investment. Have enough money so you can cover the monthly payments and amortization… Also, invest in a modern, sustainable project designed to focus on health and property growth value,” he said. — Cathy Rose A. Garcia