ALI launches ‘affordable housing’ development
ALI launches ‘affordable housing’ development
Ayala Land Inc. expects to generate sales of P1.6 billion from the sale of 1,828 house and lot packages in Laguna over the next four to five years by its new affordable housing brand Amaia Land Corporation.
In a press briefing, ALI senior vice president and residential business head Bobby Dy said ALI's plans for Amaia is "quite ambitious" since the property giant expects the new brand to become the biggest contributor to its residential sales in five years.
Amaia President Leo Montenegro said the affordable housing segment is the second biggest segment in the market and accounts for 34 percent of total demand. The affordable and socialized housing segment has a backlog of 3.8 million to 4.2 million units.
Because of its large potential, Dy said Ayala is not setting a limit on the capital it will pour into Amaia as this will depend on how well the market receives the new brand.
While margins are lower in affordable housing compared to Ayala's more established brands in the middle to high end market, Dy said Amaia is seen to be profitable as it relies more on volume gains.
Dy said they are currently looking for more real estate to beef up Amaia's land bank with a focus on Laguna, Cavite, Batangas, Bulacan, and Pampanga since property costs in these provinces are "pretty decent."
He explained that land cost takes up a large chunk of property prices and finding cheaper land is one way of keeping prices affordable withouth sacrificing the quality Ayala is known for.
Banking on the large market for homes in the P1.25 million and below price range, Amaia was launched to cater to a broad affordable market segment, among them civil servants, manufacturing employees, small business owners, starting professionals and OFWs.
Amaia intends to offer economic housing to families that earn from P20,000 to P50,000 a month. Families in this socio-economic bracket make up 34 percent of the more than 17 million households nationwide.
Montenegro explained that the new brand will offer homes for a minimum monthly amortization of P4,000 a month.
"We have studied the market, talked to our designers, contractors and financial partners to come up with a product that meets the most felt needs of this segment," said Montenegro adding that "it will be a product backed up by the best practices of Avida and Ayala Land."
"We want to break the stereotype that to own an Ayala Land product you have to be well-off. Amaia represents our thrust to broaden our market and to ensure the longevity of the Ayala Land heritage," Dy said.
(Published on Manila Bulletin)
