Century plans low-cost housing
Century Properties Group plans to venture into the horizontal economic housing development to strengthen its real estate portfolio that includes vertical projects, and leasing, leisure and tourism-related businesses.
Century said in a presentation during a recent analysts’ briefing it planned to build affordable house and lot developments in next wave cities that had attracting significant investments.
Among these are Baguio City, Cavite, Batangas, Laguna, Iloilo, Dumaguete, Davao, Naga, Rizal and Bulacan.
It said the target market for the horizontal economic housing projects includes college graduates with stable jobs and working in next wave cities with a monthly salary of at least P25,000 month, and families of migrant Filipino workers who currently renting or living in non-subdivision locations.
The property company said it planned to become a key player in the horizontal housing sector, which had benefited from rising incomes and low interest rates.
Century said it expects the economic housing projects to give the company higher margins that will result in a higher return on invested capital.
The move to venture in to economic housing projects forms part of the company’s 2020 master plan.
Century’s current condominium developments target the high-end, middle-income and affordable markets of the residential sector.
Aside from house and lot subdivisions located in high-density cities, Century is starting to expand in the leisure and tourism sector with recent investments in Palawan and Batangas.
“We are currently present in two operating segments, but are in the process of diversifying into two ‘allied real estate’ segments to further strengthen our portfolio,” Century said.
The company earlier said it would invest P10 billion in capital expenditures annually through 2020 to expand its real estate business.
Century in 2015 is scheduled to turn over six buildings with total units of 2,997 and sales value of P15.8 billion.
Century registered pre-sales of P4.49 billion in the second quarter of 2015, up 46 percent from from P3.07 billion in the first quarter on the back of strong demand from the overseas Filipino market, and sale office spaces.
Share price of Century on Thursday closed at P0.64, down 1.5 percent.