THE Board of Investments (BOI) has approved the application of Tondo Holdings Corp. (THC) as a new developer of affordable housing.
THC’s planned P10.18-billion project falls under the Preferred List of Economic and Low-Cost Housing under Book I of Executive Order (EO) 226, otherwise known as the Omnibus Investments Code of 1987, and complies with the guidelines set by the current Investment Priorities Plan (IPP).
“The inclusive growth strategy in the Duterte administration’s 10-point Socio-Economic Agenda will boost the lower income class (so they can) join a rapidly expanding middle class segment of the population. This project will go a long way towards addressing the big demand for affordable housing among the rising middle class,” Trade Undersecretary and BOI Managing Head Ceferino Rodolfo said in a statement on Thursday.
“With the construction of these new housing projects, more jobs are also being generated not only among the construction segment but also with its suppliers,” he added.
Construction of the project dubbed as “Urban Deca Homes Manila” is on-going and is expected to be operational by January 2017 providing up to 819 jobs. The project involves the development of around 85,000 square meters (sqm) in Vitas Street, Tondo, Manila with the construction of thirteen 13-story buildings with a total capacity of 13,212 units.
The proposed condominium project consists of studio type units measuring 22.95 sqm per unit, 1 bedroom (27.42 sqm), and 2 bedroom, type A and B measuring 32.18 sqm and 30.6 sqm, respectively, with tiled finish flooring (interior), toilet and bath, and kitchen counter already tiled.
It will have amenities such as a community mall and children’s playground. Residential units are expected to have package prices ranging from P700,000 to P2 million per unit.
The country’s housing backlog as of 2016, according to the Housing and Urban Development Coordinating Council (HUDCC) is about 5.7 million units. According to the updated Housing Industry Roadmap, the backlog is expected to breach 12.3 million units by 2030.
“The BOI for its part has approved 996 housing projects with an aggregate capacity of around 464,000 units as of October 2016. This represents 10.1 percent of the housing backlog for low-cost housing between 2001 to 2015,” Rodolfo said.
“With the support of the Subdivision and Housing Developers’ Association [SHDA], we are encouraging property developers to redouble efforts to produce more affordable housing units. The developers, in return, remain bullish in surpassing their annual production average of 350,000 units to temper the backlog,” he added.
THC is a wholly owned subsidiary of mass housing developer 8990 Holdings Inc. To date, it is one of the largest developers of low-cost housing in the country with 47 registered projects around the country, of which 44 with an aggregate capacity of more than 36,000 units are registered with the BOI.