DMCI Homes, the real estate arm of listed DMCI Holdings, Inc., is preparing to enter the socialized housing market with an initial project comprising some 4,000 units in Cavite as it diversifies its product offerings to leverage its capabilities in design, construction and project development.
DMCI Homes President Alfredo Austria told reporters that the company was working on the necessary permits for the project, which could be launched in the coming months.
The first phase is planned to have about 4,000 units, with each measuring around 27 square meters and priced at about P1.8 million.
Austria said the company had been working on the project for several months, with the design undergoing several revisions to balance affordability and quality.
“Quality and affordability [are] important. To make the design efficient, it needs several iterations,” he said.
The project is being designed with smaller residential units but relatively generous open spaces, which Austria said would distinguish DMCI Homes’ offering from other socialized housing developments.
“Our plan is [to have] lots of open space. It’s still a resort type even if it’s in a residential area,” he said.
The company is also planning a socialized housing project in Valenzuela, although details on its scale and launch remain under development.
Austria said DMCI Homes decided to develop its own socialized housing projects rather than simply meet its socialized housing obligations under the law through payments for non-compliance.
“Instead of paying those fees, we’ll do socialized housing,” he said.
Austria said affordability was the main challenge, particularly in keeping construction costs to a certain level that would still allow the units to be sold at the targeted price.
“It’s challenging because how will it be affordable? What is the design and construction? We really have to sharpen our pencils for it to reach that price.”
For the socialized housing developments, the company is considering putting up 18-story buildings with smaller units on offer but with substantial open spaces.
Austria said the company’s experience in developing high-rise residential projects would help it explore the segment while maintaining its standards for design and construction.
The company has yet to announce the specific location, final development plan and launch date for the Cavite project, pending the completion of permits and other requirements.
Shares of parent company DMCI Holdings closed at P7.75 apiece on Friday. Markets were closed Monday in observance of a Philippine public holiday.
