Post on 16-Apr-2017
Mass Housing Market Overview
Housing Sector:Demand and Supply
Demand: 3.8M units over 6 years
HOUSING NEED, 2005-2010
Category In Thousand UnitsHousing Backlog- Doubled-Up Housing- Replacement/Informal Settlers- HomelessSubstandard (Upgrading)New Households
984,466387,315588,853
8,298186,334
2,585,272
Total 3,756,072Source: The Housing and Urban Development Coordinating Council (HUDCC)
Demand: 2.6M New Households
HOUSING NEED, 2005-2010Category In Thousand
UnitsHousing Backlog- Doubled-Up Housing- Replacement/Informal Settlers- HomelessSubstandard(Upgrading)New Households
984,466387,315588,853
8,298186,334
2,585,272
Total 3,756,072Source: The Housing and Urban Development Coordinating Council (HUDCC)
Or 431K units/year
Affordability: Affects actual demand
0
2
4
6
8
10
Can'tAfford
Socialized AffordableMid-Income High-End
MIL
LION
FAM
ILIE
S 5.2 (29% of
population)
7.5 (42%)3.7
(21%) 1.
2 (7%)
0.1 (<1%)
•29% of the population cannot even afford to buy socialized housing unit worth Php. 300,000
Source: National Statistics Office, Colliers International research (2006 statistics)
What can the market absorb?
431 k units needed by new households per year
X 71% that can afford to buy
= 306K units can be absorbed annually
Supply: 52% of Mass housing Market Demand
Focus: socialized, affordable & middle-income housing
Socialized Affordable Middle-Income
Price Points: for a house and lotPhp 300K set by Pag-
IBIG; recently raised to Php 400K)
Up to Php. 1.5 Million Up to Php. 4 Million
Housing types and qualified families
0
2
4
6
8
10
Can'tAfford
Socialized AffordableMid-Income High-End
MIL
LION
FAM
ILIE
S
29% of population
21%
42%
7%<1%
70%
TARGET MARKET
How affordable is mass housing?
Socialized Housing• Monthly amortization of Php
1,800• Price ceiling at P300,00(recently
increased to P400,000)• Interest rate at 6% per annum• Term of 30 years
Loan Amount (Pesos)
Old Interest Rate
New Interest Rate
Monthly Amortizatio
n for Old Rate (Pesos)
Monthly Amortization for New
Rate (Pesos)400,000 7% 6% 2,661.21 2,398.20750,000 7% 7% 4,989.77 4,989.771,000,000 10.5% 8.5% 9,147.39 7,689.131,250,000 10.5% 9.5% 11,434.24 10,510.682,000,000 10.5% 10.5% 18,294.79 18,294.793,000,000 N/A 11.5% N/A 29,708.74
NEW HDMF(PAG-IBIG) LOAN PACKAGES
Growth Driver: Low interest rates providing affordable housing packages
Source: HDMF