SERIES of lockdowns. Ever-changing health protocols. COVID-19 pandemic.
These have undoubtedly altered consumer behavior across all industries. Real estate was no exception.
And in the residential space, developers have observed a shift in market demand towards horizontal developments. These are less dense neighborhoods that offer more open spaces compared to vertical developments. After all, proper social distancing has proven to be one of the more effective means of controlling the spread of the COVID-19 virus.
Despite the pandemic, boutique property developer A. Brown Company Inc. (ABCI) tallied a record P1.5 billion in reservation sales during 2020 compared the P1 billion it recorded the year before.
“Our focus has always been on properties that underscore healthy, environment-friendly and low dense communities with a focus on city, mountainside, agricultural, golf and sea resort, and lifestyle developments,” Robertino Pizarro, President and CEO of ABCI said in answer to a question from FrontpagePH.com
“This has allowed us to respond quickly to the changing demands of the market and sustain our niche developments,” he added.
According to Santos Knight Frank, the ongoing COVID-19 pandemic has brought significant positive growth to the supply of the house and lot market in Cagayan de Oro. Although the growth slowed down in 2020 to minus 30 percent (508 new units in 2020 from 726 new units in 2019), the market supply exponentially grew by an additional 252 percent as of July 2021, prompting developers like ABCI to pursue further development for its projects.
ABCI pioneered the master planned mixed-use community concept in Northern Mindanao and is now looking to further develop more properties that follow the concept of healthy, environment-friendly, and low dense communities. The company has a land bank of 293 hectares in marketable locations and is well-positioned to take advantage of the demand for its trending properties.
A prime example is its master planned community in Tanay, Rizal. Offering cool weather at 430 meters above sea level and temperatures dropping to 20°C, this property is surrounded by the natural habitat of century-old trees.
It has a majestic view of Laguna Lake and the Sierra Madre mountain range. This expanse will host a mixed-use development with an upscale residential estate, a themed restaurant, a hotel, and a condominium. Another 15-hectare property in the area is designated for the economic and socialized housing with a commercial space frontage.
To fund its projects, ABCI is looking to raise as much as P1.5 billion from the sale of additional preferred shares this October. The company’s shares are now available via PNB Capital and Investment Corporation, the sole issue manager, lead underwriter, and sole bookrunner for ABCI’s preferred shares.
“We look to continue to deliver excellent value for money developments alongside our core competence of building quality homes and pioneering real estate concepts,” said Pizarro. “As we venture outside Mindanao, we will continue to pursue real estate products that are built for the long term – providing security, safety, healthy environments to create happy communities.”