Ayala Land scares away “hungry ghost’’ month with low downpayment scheme

August, the seventh lunar month in the traditional Chinese calendar, has since been regarded as the dreaded “hungry ghost month.”

Belief has it that during this period, Hell opens its gates to allow ghosts and spirits to wander free and prey on "victims," who would usually characterize their experience of such presence with bad luck or a series of unfortunate incidents. This is why most individuals and even big businesses would choose to stay put and postpone any dealings or transactions for the following month.

Ayala Land Inc., however, chose to defy the odds.

"We are optimistic that even though this is the hungry ghost month, we will actually scare the ghosts away. We are looking forward to a very active ghost month with the Ayala Land Home Run promo," Augusto Bengzon, Ayala vice president and treasurer, said in a recent press briefing.

Under this promo, which will run until the end of August, Ayala Land is offering the lowest downpayment rate of only 5 percent from the usual 10 to 20 percent.

Single hindrance

"Our studies have shown that many people wanted to buy an Ayala Land or any home. But the biggest single hindrance was the ability to raise the required 10-percent downpayment," Bengzon explained.

According to Ayala Land, it has also partnered with BPI Family Bank, Security Bank and RCBC Savings Bank to help potential homebuyers finance the payment of the remaining 95 percent of the purchase price through long-term loans.

"We have embarked on financing schemes that make our products more attainable for the greater number of our people. We've had a few initiatives like the home starter bond and the low amortization, low downpayment schemes over the last few years," Ayala Land officials noted.

The home starter bond was a program introduced by the company in 2006, which, according to officials, was an instrument that allowed homebuyers to save up toward the purchase of a new home.

Aside from offering friendlier payment schemes, Ayala Land also announced during the briefing its foray into "socialized housing," in which units are estimated to cost as low as P400,000, as part of the company's growth program.

"Basically, we feel that this is a hugely underserved market that presents a huge opportunity. We really want to make a difference and tapping the socialized housing is just a natural progression to be able to provide, at least for Ayala Land, housing for more Filipinos," officials explained.

Significant strides

Historically known as a high-end developer targeting and servicing the upper end of the market, Ayala Land, over the past 10 years, has been trying to make significant strides in terms of making their products more accessible to a lot of people.

"We have been working hard in the residential group to really make our products more accessible to a much broader market," noted Bernard Vincent Dy, senior vice president and head of the residential business group of Ayala Land.

For one, Ayala Land officials noted that they have "strengthened and broadened" their portfolio to include multiple brands.

"As you know under the residential business groups we have four brands at the moment-Ayala Land Premier, Alveo Land, Avida Land and Amaia Land-and these basically cater to various segment of the market. Second, is we go to various areas, we are now nationwide," officials explained.

With the company now going for the "socialized housing" segment, Ayala Land will start servicing by the end of the year, an even broader market that can afford units or houses that cost anywhere from P400,000 up to as high as P40 million to P50 million, Dy added.

Philippine Daily Inquirer
12 August 2011
By: Theresa S. Samaniego