PROPERTY developer Century Properties Group Inc. (CPG) said on Thursday it is targeting to produce 20,000 residential units annually to help supply the 5.7 million recorded housing backlog in the Philippines.
The targeted yearly output will start by 2020, with CPG making a foray into affordable housing to cater to the middle-class market.
“So every year in the next few years, we hope to produce 20,000 units a year. That’s huge because the macro—the big picture for housing in the Philippines—there is a very big gap between the demand and supply,” CPG Chairman and Chief Executive Officer Jose Antonio told reporters on the sidelines of the company’s annual shareholders’ meeting held in Makati City.
“As we are going to a new platform like affordable, the construction period of affordable [housing]is only two years,” he added.
CPG’s low-cost project will offer a two-story unit with a large space allowance that would allow homeowners to expand their bedroom units as they wish.
A size range of 40 to 45 square meters (sqm) lot area will be offered, with a price range of P1.1 million to P1.8 million each, depending on the size.
“The bulk is about P1.4- to P1.5 [million]so with this, it’s very affordable. For the most affordable units, it’s like P8,000 a month, which is already like renting a house,” Antonio said.
He said the low-cost housing project is a testament to the increasing purchasing power of the middle class, “and I think that is the theme of what we want to do, to take opportunity of the rising middle class in the Philippines.”
CPG recently launched a 26-hectare affordable housing project in Tanza, Cavite, a residential property development with 2,877 units which is expected to generate P4.5 billion in revenues.
Similarly, more projects are slated for construction as the company is looking for further land banks in certain areas in Metro Manila, Bulacan, Batangas and “more in Cavite.”
Once projects are completed and the annual 20,000 units are established, CPG expects these will account for 35 percent of the company’s total income.
“We’re ramping up, so maybe we will stabilize this 20,000 [units annually]in 2020,” Antonio said.
In the second half of the year, CPG expects to launch its Batulao project in Batangas, situated on a 6.6-hectare piece of land with a total number of 356 units. This project is expected to generate P2.2 billion in revenues.
Last April, CPG partnered with Mitsubishi Corp. for the development of the PHirst Park Homes Project, a housing project that targets first-time homebuyers.
Incorporated in 1975, CPG is involved in the high-end real estate business through its subsidiaries Century City Development Corp., Century Limitless Corp., Century Communities Corp. and Century Properties Management, among others.