Japanese trading house Mitsubishi Corp. will develop homes for the lower middle class in the Philippines with local real estate giant Century Properties Group.
The partners will build about 4,000 townhouse-style homes on a 26-hectare lot near the capital. The total project cost is estimated at around 10 billion yen ($88.9 million).
Each two-story home spanning 40 sq. meters is to be priced at a little over 1 million pesos ($20,000), targeting such demographics as young adults with household incomes of at least 400,000 pesos, and older coupes whose children have left the nest.
The subdivision will be situated in Cavite Province, a densely populated area whose residents commute to Manila or work at nearby factories. The partners expect buyers to take out mortgages offered by a government-backed foundation.
Home supply for lower-income consumers has been limited, with the quality low in many cases. Mitsubishi saw an opportunity in offering low-price homes with a certain level of quality, as more people enter the middle class in the rapidly growing Southeast Asian country.
Many foreign companies supply condos for the country’s higher-income consumers. Mitsubishi is among them, and is building condos priced from 6 million pesos to 30 million pesos with local conglomerate Ayala.
Source: Nikkei Image: Wikimedia Commons