Location

Lindenwood Residences (and, therefore, Susana Heights Subdivision) is located in Barangay Tunasan, Muntinlupa City which is the southernmost city of Metro Manila or the National Capital Region.

Note: Point your cursor in the middle of the satellite map and the whole barangay of Tunasan will light up in yellow. Move your cursor a little bit to the right and the boundaries of Susana Heights Subdivision will light up. Move your cursor up and Lindenwood Residences will light up.

Explore the vicinity with your cursor and you will see SM Center, Pepsi Cola plus several subdivisions. You can move the map in any direction by pressing your left mouse button and drag.

In Susana Heights Subdivision, a number of well-known personalities either live or own properties. These are former Philippine National Police Chief Gen. Edgar B. Aglipay, the Ampatuan’s lawyer Atty. Sigfrid Fortun, actress Judy Ann Santos among others.

Accessibility

Dubbed as the Emerald City of the Philippines, Muntinlupa is Metro Manila’s gateway or corridor to the south, CaLaBaRZon (Cavite, Laguna, Batangas, Rizal and Quezon). Fast and easy access of Muntinlupa to and from “LaBaZon” have already been solved by the various road infrastructures such as the Dr. Jose Rizal Highway, South Luzon Tollway or Alabang-Calamba-Sto.Tomas Expressway (ACTEx) and the Maharlika Highway.

Muntinlupa’s access to R or Rizal will soon be hastened by the ongoing construction of Bulacan-Rizal-Manila-Cavite Regional Expressway or Circumferential Road 6 (C6). Travel time to Ca or Cavite will soon be greatly eased by the current construction of the Daang Hari-South Luzon Expressway Link Road. This four-kilometer toll road

…is a major arterial road connecting rapidly growing towns of Imus, Dasmariñas and Bacoor in Cavite to Metro Manila via the SLEx. It will be a new road that will exit South Luzon Expressway near the Susana Heights Interchange and pass through government properties in Muntinlupa, ending at Daang Hari near Verdana Homes in Imus, Cavite. This road provides strategic access to Cavite, much-needed relief to traffic in the congested Alabang-Zapote Road and Commerce Avenue…

Comparative distances of the different subdivisions in the South to Makati City

Being the financial capital of the Philippines, Makati City has always been used by developers as a benchmark when indicating their projects’ accessibility.

Lindenwood Residences is 19.4 kilometers away from Makati City

Here’s how the other projects in the south compare:

Brentville – 28.7 kms
Nuvali – 36.8 kms (distance from the main entrance along the Sta. Rosa-Tagaytay Road)
Abrio – 38.5 kms
Santierra – 39.2 kms
Avida Settings – 40.6 kms
Treveia – 41 kms
Elaro – 41.9 kms
Montecito – 42.4 kms
Venare – 43.2 kms
Ayala Westgrove Heights – 37.7 up to 42.7 kms (depending of which phase one lives)
Eton City – 32.3 kms
Ayala Greenfield Estates – 47.8 kms

With the current cost of fuel, toll fees in SLEx not to mention the wear and tear that long distance travels cause on one’s vehicle (and body), a practical investor will always choose a residential development that is closest to the city center.

Before I proceed to the next topic, I will preempt some of you who will inevitably ask: “Is there an active fault that traverses Lindenwood Residences? There is none; the fault is in Bgy. Putatan.

By the way, there is no such term as “fault line,” please, it’s simply fault or active fault!! Ask Ms. Perla J. Delos Reyes, Supervising Science Research Specialist and OIC of the Geology and Geophysics R and D Divison of PHIVOLCS. Call her at her direct line +632.920.7058 or at trunkline 426.1468 locals 119, 129 and 148. And please, tell Kabayan Noli de Castro, Ted Failon and Korina Sanchez to do the same : )

Project Profile

Lindenwood Residences’ most prominent feature is its ragged but beautiful and breathtaking terrain. Its terrain may not be as impressive as that of Ayala Westgrove Heights and that of Timberland, but it’s awesome, nonetheless. It has a very distinct and pronounced (not gently) rolling terrain that is a challenge but very much sought after by innovative architects.

Traditional architects will find Lindenwood’s terrain difficult to work on. But with a lot of creativity, many young architects today consider this kind terrain as a canvass to build beautiful, modern and non-traditional houses.

The following are images of Lindenwood Residences that were taken on March 8, 2012. Click the images to enlarge.

Below is an example of an architectural design that took advantage of a difficult terrain and lay of land. The house is not in Lindenwood Residences but, rather, in Ayala Greenfield Estates in Calamba, Laguna.

The architect, instead of building on existing ground, carved off the large mound and built the house just above street level. As a result, he was able to come up with a three storey house without violating the building height restriction that is usually nine meters. If the house has a basement, it is then a 4-level house : )

Another advantage: The interior of the house is partially protected from outside heat as the soil that covers a good portion of the side of the house acts as a natural insulator.

You see, Lindenwood Residences is a much underrated development that will sell itself if only enough brokers and agents put the words out about its inherent advantages and desirability.

Not many developments can boast of such qualities at prices and terms that no other developer can match.

SM Development Corporation is known not only for its projects’ aesthetics but most importantly, for its very affordable prices and flexible payment terms; unmatched by anyone in the industry.

If you want to know more about Lindenwood Residences, kindly contact me via my numbers below.

The same goes to PRC-Licensed Real Estate Brokers or PRC-Registered Real Estate Salespersons (agents) who want to market Lindenwood Residences.

Thank you so much.

Jun Sanchez
T +632 857.0100 local 1391
M +632 915.965.1389, 929.609.7142, 932.912.9585
Licensed Real Estate Broker
PRC Registration Number 4562

I am not a prolific writer. In that period, I have written just  60 articles, including this one (norm is 2 to 3 articles per week). There was a time when I didn’t post a single article in almost six months. Inspite of this, though, I always do my best to come up with quality contents making this site consistently rank in the top 10 among all real estate blogs in the Philippines (note that my URL or domain name is pinoydreamhousetoday.com but my blog title is Philippine Real Estate and Construction).

Among all these real estate websites/blogs, mine is the only one that either doesn’t openly sell real estates or serve advertising. In a sense, I believe I have somehow lived up to my original vision when I started this blog:

…to provide an online information resource center for anyone who is planning to build or buy a house in the Philippines…

In the About page of this blog, I indicated that I was a single father of two kids… I was separated from my wife.

On January 30 of this year, I became a widower…

To the right is the picture of my wife, Mary Grace and our daughter, Ariel Marie. The picture was taken around May of 2011. She was barely 41 when she died.

Please watch out for the continuation of this post as so much has happened to me that will affect the future of this website in a very big way.

Pardon me for posting an incomplete post; I just have to take this off my chest.

Thank you so much.

junsanchez

image from flickr by rubbyblossom

PSBANK Home Loan currently offers the longest and most flexible interest rate fixing period with a maximum payment term of up to twenty five (25) years to pay. They offer to finance up to 90% of the Total Contract Price of the SMDC property that home buyers are acquiring. Other developers’ buyers traditionally get financing of only 80% of TCP.

With guaranteed fast loan processing, PSBank Home Loan gives credit decision on your loan application in five days or less. They guarantee the same fast loan release to buyers of other developers and real estate dealers.

For SMDC housing loan applicants, the pre-qualifying fee of Php3,ooo is waived regardless of whether you qualify or not. Click the image to enlarge.

It is the only housing loan product that makes clients earn rebates or savings when they pay in advance or in excess of their monthly amortizations with easy and simple application requirements. Here are the PSBank Home Loan Application Form, the PSBank Home Loan Application Requirements and the Prime Rebate mechanics.

PSBank offers convenient payment options via PSBANK Automatic Debit Arrangement (ADA), Post Dated Checks (PDC), over-the-counter payment, ATM facility or online payment using enrolled deposit account thru PSBank Remote Banking.

Should you have any concern, please feel free to get in touch with Ms. Rizza C. Delena at telephone number (632) 885.8208 local 8410 or at mobile  0916.766.2183 or 0933.579.1959. You may also email her at rcdelena(at)psbank.com.ph.

Disclaimer: All claims pertaining to this loan package/product were made by Ms. Delena, NOT by the admin of this website. Its inclusion in this website is free of charge; no payment or special accommodation in any form whatsoever was accorded this website. This post does not constitute endorsement of the loan package by the admin. Do your own due diligence by finding out more about this product.

If there’s anyone among you who is connected to or working with any bank or financial institution that offers home loan packages or financing products that will help Pinoys, here or overseas, to own their home, you are most welcome to pitch your products in this website similar to what Ms. Delena did. As usual, no strings attached as it will cost you nothing but a few minutes of your time to write your own pitch.

Thank you so much.

Jun Sanchez

T +632 857.0100 local 1391
M +632 915.965.1389, 929.609.7142, 932.912.9585
Licensed Real Estate Broker
PRC Registration Number 4562

He said he wanted to interview me personally. You may probably imagine how surprised I was with his proposal. First thing that came to my mind was the interview would be about matters relating to kama sutra, _ _ _ _ s enlargement, Viagra, sexual staying power and the like… things that I am totally innocent of (e-hem!!).

Turned out he was researching on the condominium boom in Metro Manila which I have extensively written about.

Click the image to enlarge.

We met for the interview early September at SM City North EDSA. Jed, a very young lad who is probably half my age, made it clear that he was interviewing several people for his assignment and I was just one among them. Thus, although the interview went for more than 30 minutes, he said he would take only one salient point from my statements.

I totally forgot about this interview and didn’t bother to check if I was indeed cited in the article or if the article written by Jed was actually featured in FHM at all.

Yesterday, March 2, while browsing through my cellphone contact list, I happened by Jed’s number. I then called him and asked about his article. It turned out he emailed to me a PDF copy of his article as soon as it was published in December but his email probably ended up in my bulk folder and got trashed.

He emailed the same to me yesterday and I was happy to read that I was indeed quoted in the article titled “Build it and they will come.”

Below is a screenshot of the article’s opening paragraph.

As told, only one salient point of the interview was cited. It was short but it’s a quote nonetheless from a popular nationally circulated magazine.

If anyone among you wants a copy of Jed’s FHM article in PDF file, kindly email me via junsanchez2003(at)yahoo.com. It is a very well researched article citing some of the industry’s biggest players.

Thank you so much and my best regards to all.

Jun Sanchez
T +632 857.0100 local 1391
M +632 915.965.1389, 929.609.7142, 932.912.9585
Licensed Real Estate Broker
PRC Registration Number 4562

What you are seeing is what is called the front-end of a website. You’re seeing the header with the title Philippine Real Estate and Construction with a collage of pictures beside it and the Condominium Directory to the right. On top of it is the Navigation Bar. You also see the left and right side bars and of course the blog contents.

What you don’t see and something that only I am privy to is the back-end where the real action takes place. It’s where the bells and whistles are. That’s where I write this post and those before it. The back-end is also where some codings are done so you can see what you are seeing now. Posts are written in what’s called a blog editor; see the image below and click to enlarge.

See the word near the upper leftmost portion, the one that is bolded? It says Dashboard because the blog editor functions exactly like a car’s dashboard.

After a post is written, I have the option to either save it as a Draft (for publication at a later time) or to immediately publish it. The night I wrote my last post, I saved it as a Draft for proofreading. Right after I clicked the “Save Draft” button (the one on the upper right just below the word “Publish,” all the contents of my post including images disappeared. I had no choice but to do it all over again.

Good thing is I first write all my posts in Notepad then copy/paste the contents to this blog editor. It was tedious nonetheless as I had to upload all the images all over again. After I was done, I clicked the Save Draft button again and all the contents disappeared again, for the second time.
The third time, I chose not to save it but published it immediately by clicking the Publish button (the one with white font and blue background).

And the post went live.

The following day, I tried to “Update” an old post – Trip to Georgia Club in Sta. Rosa, Laguna – that I published on November 2010. After I made some changes and clicked the Update button, all the contents disappeared in the blog editor. When I previewed it, the post was blank except for the titles. See the images below.

Here’s the post as it actually looks now.

It was a complete disaster as I have lost this post and there is no way to recover it.

I asked for help in Facebook from peers who do the same thing that I do – online marketing of real estate. There are at least two groups in Facebook whose members help one another on matters like this: WordPress for Real Estate Agents and Tech Support Group for Real Estate Agents.

Members from both groups are unanimous in saying that my website woes are most probably caused by my “Plugins.”

images of plugins of Philippine Real Estate and Construction

Plugins are the bells and whistles that allow website users and developers to extend the abilities and functionality of a site beyond the features of a basic web install.

If you go back to the first image, you will see “Plugins” in the middle of the left side bar. When I click it, it shows the plugins that I have installed in my website.

To see if indeed a plugin or two are causing the magic disappearance of the contents of my blog whenever I edit and save them, I will have to disable or deactivate them all. On the front-end, you will not be able to get in touch with me using the “Contact Us” form in the navigation bar. You will have to do so via junsanchez2003(at)yahoo.com.

If the problem disappears after I disable all the plugins, then, it is indeed a plugin issue. The next step is to find out which plugin is causing the problem. I will then have to activate the plugins one at a time.

This post will be the laboratory to find out the culprit plugin. If this post suddenly disappears, it means I have activated the malicious plugin.

So brace yourselves as I might do something that will make not just this post but the entire website disappear. That’s something that will make me cry. Seriously, you might see things suddenly change, move or look funny as you read this; that means I am working in the background.

Until then, enjoy this blog until it is swallowed by the big black hole in the blogosphere.

Wish me luck and thank you so much.

Jun Sanchez
Licensed Real Estate Broker
PRC Registration 4562
Tel 857.0100 local 1391
Globe 0915.965.1389
Smart 0929.609.7142
Sun 0932.912.9585

Living in a condominium is not for everyone. Condominium living is fit for those people who value time and convenience the most. Problem is, not all condominium projects enable their residents to save time nor do they offer much in terms of convenience. Thus, careful assessment of a condominium project’s offerings and features is essential if you are to make the most of your investment in a condominium.

Enter Grass Residences

Grass Residences is a development of SM Development Corporation or simply, SMDC. It is located just north of the envisioned Masterplanned Quezon City Central Business District called the Triangle Park.

Please read very carefully the article above about the Triangle Park… it’s a must read!!

…The development sprawls over more than 250 hectares, in a strategic location right in the heart of Metro Manila. It covers properties within the North and East Triangles and the Veterans Memorial area… which have been chosen to become a model, mixed-use development that shall play a critical role not only in Metro Manila, but also internationally.

The Triangle Park, has one of the most ideal locations, in terms of metropolitan access, with the use of at least 3 mass transit stations, and with a frontage on the main thoroughfare in Metro Manila that is longer than any of the existing major Central Business Districts…

It is described by the World Bank as the “center of gravity of all commercial activities in the coming years.”

Project Location Plan

Grass Residences sits just behind SM City North EDSA and is just a stone’s throw away from TriNoMa (which by the way, stands for Triangle North of Manila). It is bounded on the west by Nueva Ecija, on the north by Nueva Vizcaya and on the east by Misamis Streets. The project has three entry points for the residents’ vehicles, one along each of these streets.

Accessibility

SMDC understands the importance to its investors of being at, near or within easy reach of places that are most important to them: workplaces, schools, leisure areas, places of worship, medical facilities and the like.

• It is the best example of the so-called “transit-oriented” residential development. The bus, taxi, FX and jeepney terminals at SM City North EDSA, currently, are complemented by the EDSA MRT 3 for those travelling to and from south-east of Grass Residences.
• The so-called “Closing the Loop” project of the Department of Transportation and Communication (or DOTC) will link MRT3 with LRT 1. This will enable residents of Grass to reach more places faster, affordably and conveniently.
• Add to this the proposed MRT7 or the Manila Red Line that has been awarded to conglomerate San Miguel Corporation. MRT7 will have a 22-kilometer light rail line that will be linked to the MRT3-LRT1 common station at the corner of EDSA and North Avenue and will extend all the way to San Jose, del Monte, Bulacan… all using a single ticketing system. The single ticketing system will eventually include the Philippine National Railways.
• Grass Residences’ proximity to Mindanao Avenue gives its residents faster and easy access when travelling north via the North Luzon Expressway. The so-called NLEx Segment 8.1 or the NLEx Mindanao Avenue Link is a four-lane, 2.7 kilometer expressway that runs from Mindanao Avenue to the NLEx exit in Valenzuela City. Residents of Grass Residences can now bypass the EDSA-Balintawak route when entering NLEx.

Project Overview

Grass Residences is situated on a 3.6 hectare property. It has three modern-themed residential towers with ground level shared amenities and two parking buildings, each with a commercial component at the ground level. It has a total of 5,997 units composed of a mix of 1, 2 and 3-bedroom units.

Masterplan

Approximately 65% of total land area is allotted to amenities and open spaces.
Tower 1:  39 residential floors (1,988 units); unfurnished; 2 basement parking floors (94 slots)
Tower 2: 38 residential floors (2,022 units); fully-furnished; 2 basement parking floors (88 slots)
Tower 3: 38 residential floors (1,987 units); fully-furnished; 2 basement parking floors (84 slots)
Parking Building A: 4 parking flrs (201 slots); w/ commercial area; amenity rooftop (badminton courts)
Parking Building B: 4 parking flrs (218 slots); w/ commercial area; amenity rooftop (basketball court)
On-site parking: 202 slots

Sequence of Construction

Tower 1, Tifton – 2007; turnover Q3 2011
Tower 3, Bermuda – 2009; turnover Q2 2013
Tower 2, Bahia – November 2010; turnover Q2 2014

Why were the towers constructed in such a sequence? Was it a random decision on the part of management or is there an underlying reason for such? Why construct in sequence 1-3-2 instead of 1-2-3 or 3-2-1?

For Feng Shui reason; 1-3-2 is a lucky numerology in Chinese geomancy. Do you know Mall 168 in Tutuban in the area of Divisoria? 168 is the luckiest numerology in Chinese geomancy!!

Project Unit Mix

Mostly 1-bedroom units are offered in response to market clamor for smaller units and per historical sales of Tower 1.

But does the 6.6% share of the 2-bedroom units in the total mix suggest that there is not much demand for them? The answer is no; there is considerable demand for 2 bedroom units at Grass Residences.

Investment implication of offering mostly 1-bedroom units

Average pricing of 1-bedroom units in the three towers range between Php2.3 and Php2.7 million; whereas, for two-bedroom units, it’s between Php4.6 and Php5.5 million.

As per the old BIR ruling on E-VAT payment on real estate transactions, buyers of houses and lots (condominiums fall under this category) had to pay 12% E-VAT on condo units that are priced at P2.5 million and above.

BIR Revenue Regulation 16-2011 (PDF file), which took effect on January 1, 2012, increases the threshold amount for VAT-exempt real estate transactions for houses and lots to P3,199,200.

With either tax ruling, buying two-bedroom units is impractical as buyers will have to pay an additional Php552,000 to Php660,000 E-VAT.

So, how can someone own a two bedroom unit at Grass Residences and avoid paying the 12% E-VAT without breaking the law?

He can buy two adjoining 1-bedroom units and “combine” them into a single unit. That way, he shall be issued 1 Condominium Certificate of Title (CCT) for each unit or 2 CCT’s for the combined units thereby exempting both units from the 12% E-VAT.

There are several variations of combined units at Grass Residences. The picture on the right is a typical variant. Notice that the middle vertical portion is where the partition wall of the 2 separate 1-bedroom units is supposed to be.

Furnishings for units at Tower 2 and 3

Construction Update

Pictures speak louder than words. So, here are images showing the construction status at Grass Residences.

The Clubhouse or Pavillon took design inspiration from the architectural style of the casinos in Macau.

The main swimming pool is 50 meters long and is, therefore, considered as an Olympic-sized swimming pool, albeit with half the number of official lanes of eight; the pool has four lanes.

By the way, one of the most convenient features at Grass Residences is the private bridgeway or footbridge that links the project directly to SM City North EDSA. Residents can walk to and from SM, rain or shine, without their feet touching the road.

It will be guarded 24/7 and only Grass residents will have access to it.

Availability

As I write this post, there were 56 units still available for sale at Tower 1, 102 units at Tower 2 and Tower 3 appears to have been totally sold out (might be a database error, though; will check it again soon).

If you want to know more about Grass Residences, kindly give me a shoutout via the Contact Form above or you may contact me on my numbers below.

Thank you so much.

Jun Sanchez
Licensed Real Estate Broker
PRC Registration 4562
Tel 857.0100 local 1391
Globe 0915.965.1389
Smart 0929.609.7142
Sun 0932.912.9585

SMDC started slow when it developed its first condominium project in 2003, the Chateau Elysee in Bicutan, Paranaque City. The project is composed of 24 residential buildings that are six to seven storeys tall. This was  followed in 2006 by Mezza Residences, a 38-storey four-tower condominium at the corner of Aurora Boulevard and Araneta Avenue adjacent to SM Sta. Mesa.

The company started its aggressive drive in 2007 when it developed Lindenwood Residences in Susana Heights, Muntinlupa City. It is SMDC’s first and only subdivision project with 390 individually saleable lots on a 23-hectare property.

SMDC targets what it calls the “premium middle class market.” It carries two brands – SM Residences that caters to young upstart families and M Place that caters to young upwardly mobile career-oriented individuals.

Within a short period of time, SMDC has developed 16 residential projects, 15 of which are in Metro Manila and one in Tagaytay City. Six projects are completed and ready for occupancy, the rest are either under construction or nearing completion.

In its October 2011 report, Manila Bulletin cited the study made by Colliers International Philippines disclosing that:

SMDC sold the most number of condominium units in Metro Manila and attained the highest amount in terms of sales values for the first half of that year… It held the same record in 2010 and 2009.

With 90 real estate players in the condominium housing segment, SMDC captured 22% market share of this segment. For 2012, SMDC plans to launch four or five new projects.

As it is, with SMDC’s close to 2,000-strong salesforce, the company is still direly in need of additional Licensed Real Estate Brokers and agents or Sales Persons. To cope with ever growing demand for its projects, SMDC launched its second Marketing Division just this month.

The need for more sales people will become even greater if the following news from Business Mirror pushes through:

…the government-run Bases Conversion and Development Authority (BCDA) has been tasked by the Aquino administration to privatize the 33-hectare South Bonifacio, in Taguig City… The property is composed of lands presently occupied in part by the Army Support Command and Special Services Unit of the Philippine Army and in part by the Bonifacio Naval Station and Philippine Marine Corps of the Philippine Navy.

Click this link to see the satellite map of South Bonifacio (move your cursor in the middle of your screen where the crosshair (+) is and the place will light up in yellow). Click it and you will see a great description of it by a friend, Aaron, who is a fellow Filipino Wikimapia moderator.

North east are McKinley West and McKinley Hill; Further north east is Bonifacio Global City. Just one kilometer away, south west, is Megaworld’s Newport City.

The same report added that: “…SM Land, Inc. has already submitted to the BCDA an unsolicited offer to develop the property;” it is the first company to do so. Please read the complete report of the Business Mirror above to see details of SM Land, Inc.’s offer.

If BCDA awards the privatization of South Bonifacio to SM Land, Inc., what do you think will be its implications on SMDC’s development plans? How many condominium projects will it put up? Will it have enough people to market its projects, both current and forthcoming?

If you are a PRC-licensed real estate broker, or you already own a realty brokerage firm or you are a member or officer of a chapter of a certain real estate brokers association like REBAP, PAREB, etal. and you want to be accredited by SMDC, kindly get in touch with me using the Contact form above or make a comment below. I will refer you to my friends at SMDC.

Thank you so much.

Jun Sanchez

So far, Robinsons Land Corporation (or RLC) is the biggest real estate developer to invest in what could possibly be the biggest property development in my home city. And this makes me wonder… Why?

Malabon City has earned the unenviable reputation of being The Flood Capital of Metro Manila.

It has 21 barangays and most people who do not live in Malabon think that the entire city is flood-prone. That is not true. There are at least four barangays that remain generally or partly flood-free regardless of how heavy the rain is, and that includes the barangay where I live – Tugatog (which means zenith or apex in English) – the highest elevated barangay in Malabon. The others are Barangays Acacia, Tinajeros and Potrero.

All four barangays are situated in the eastern-most portion of the city with a slope of 5%; the rest are generally flat. They also happen to be the gateway to the other cities of Metro Manila (kindly see the map). In short, if you live in one of these four barangays, you will not encounter flood when going to Caloocan, Manila, Quezon City and more during heavy or prolonged rains.

Click the following link to see the property that was bought by Robinsons Land in Barangay Tinajeros along Gov. Pascual Avenue where public transportation is available 24/7. Place your cursor in the middle to see it light up in yellow; click on it to see its description. On the navigation bar, choose Map Type then choose Google Hybrid to see the streets. Just two kilometers away to the east is Monumento in Grace Park, Caloocan City, an important transportation hub.

With no less than eleven banks just meters away from this property, it’s an indication that the area is highly commercialized and industrialized.

What is the best use for this land?

The property is no less than two hectares, maybe even close to three hectares – too big and unsustainable for a mall given the existing market. RLC’s best bet is to develop a mixed-use commercial and affordable residential condominium project on this property.

Who shall be the target market for these residential condominiums?

Malabon residents in the mid and western portion of the city, those who have grown tired of the frequent flooding but can’t quite leave Malabon for some reason or another, especially those who work or have businesses in the adjoining cities. Residents in Navotas City, farther in the west, are also likely buyers.

It’s a big gamble on the part of Robinsons Land to invest in Malabon City, but given the location of the property and the niche that I believe they will cater to, it’s a gamble that has the potential of a big pay back.

Thank you so much

Image courtesy of zip-codes.philsite.net

But with the way the Philippine National Railways (PNR) rehabilitated the Southrail Line – from Tutuban to the Bicol Region – what we have is a railroad system that is neither modern, fast nor reliable.

If our railroad system is to live up to its full potential, its modernization should be left in the hands of the private sector. And if there’s one company that has the motivation, vision, ability and financial muscle to do it, it is Ayala Corporation.

Let’s look at the timeline:

1987: During former President Fidel V. Ramos’ visit to Los Angeles, US financial and industrial giants Bechtel Enterprises and GE Capital signed a memorandum of understanding (MOU) with Ayala Corporation signifying their entry into a US$600 million railroad project.

… Dubbed the MCX or Manila-Calabarzon Express, it was to provide commuter and freight service between Metro Manila and the southern provinces of Luzon… Additional phases in the plan include extending the line to the southern port of Batangas City thus linking it to the deep-water port of Manila. An additional lateral section can connect Lucena City in the east to Sangley Point, Cavite in the west thus opening up the entire southern Luzon area to a modern transport facility…

The plan didn’t push through. But the vision and motivation of Ayala Corp. for wanting to modernize PNR’s Southrail Line at that time will be clear if you consider the succeeding events.

1988: Ayala Corporation spun off its real estate division into a separate company, giving birth to Ayala Land, Inc (ALI).

1989: Laguna Technopark, a 387-hectare industrial park was opened by ALI together with two other multinationals, in response to the government’s call for private sector participation in countryside development. Technopark straddles Sta. Rosa and Binan, Laguna and is now home to almost 100 of the biggest manufacturing/assembly corporations in the Philippines.

1990: Known for high-end commercial, office and residential projects primarily in Makati, ALI decided to test the middle-income housing market by establishing Laguna Properties Holdings, Inc. (now known as Avida Land)

LPHI acquired a 400-hectare property from the Yulo family in Sta. Rosa, Laguna and developed it into Santa Rosa Villages, San Jose Village and later, the Santa Rosa Estates. These were followed by various projects in Batangas and Lucena City in Quezon.

1995: A consortium of five local companies was formed to acquire controlling interest in what would later be called Metro Rail Transit Corporation Ltd. to develop and maintain EDSA MRT 3. These were Fil-Estate (a real estate company), Ayala Land, Inc., Anglo Philippine Holdings Corp (that owns National Bookstore among others), Ramcar (the car battery company that also owns Kentucky Fried Chicken, Mr. Donut and Tokyo Tokyo) and Greenfield Development Corporation (of the Camposes who own Unilab).

Anglo Philippine Holdings has minority stake in Shang Properties, Inc, the upscale developer of The St. Francis Shangri-La Place, The Shang Grand Tower, Shangri-La Plaza Mall, The Enterprise Center (in Makati) and currently, One Shangri-La Place – all are within spitting distance from MRT 3.

Greenfield is one of the biggest landowner in the country. Together with ALI, it has controlling interest in Bonifacio Global City. It has vast properties in Laguna. It is currently focused on its 11-hectare mixed-use development along Shaw Boulevard called the Greenfield District, just across Shangri-La Plaza, again just a stone’s throw away from MRT 3.

1999: EDSA MRT 3 started operation

2001: North Triangle Depot Commercial Corporation was incorporated by three of the original consortium-members of MRT 3 – Fil-Estate, ALI and Anglo Philippine Holdings Corp – to develop the 20-hectate TriNoma Mall. Did you know that this mall sits directly on top of MRT’s huge depot?

2005: ALI and Greenfield Development Corporation formed a joint venture to develop Ayala Greenfield Estates – a 350 hectare upscale residential development in Calamba, Laguna with an 18-hole, par 72 championship golf course designed by Robert Trent.

2007: Ayala Land launched Nuvali, a 1,800 hectare mixed-use development that straddles the cities of Sta. Rosa, Calamba and the municipality of Cabuyao in Laguna. It is envisioned to become the Makati Central Business District of the South. It is one of the country’s most ambitious real estate projects that will be completed in 30 years. The various residential developments in Nuvali are handled by its three units – Ayala Land Premier, Alveo and Avida.

April 2010: ALI established its fourth residential unit, Amaia Scapes, this time for the class C market. It offers house and lot packages from P605,000 to P1.25 million. Currently, Amaia has developments in Cabanatuan, Pampanga, Cavite, Laguna, Lipa, Batangas and Negros Occidental.

December 2010: The Inquirer announced that Ayala Corp was looking into the possibility of participating in the development of the PNR’s (Southrail Line) service to Southern Luzon up to Legazpi City in Bicol.

… the PNR line can directly link the Makati central business district to suburban communities being developed by ALI in areas in Laguna… It’s logical for them to participate in the development of that corridor. They have a lot of developments near the PNR line.

So far, nothing new has come up regarding this plan.

August 31, 2011: ALI puts up its fifth residential unit, the South Maya Ventures Corp. to cater to the largest but most neglected segment of the housing market – the underprivileged and homeless. Called “socialized housing,” each unit will cost P400,000 and below. Its first project was scheduled for launching within the last quarter of this year in Gen. Trias, Cavite. To remain feasible, expect succeeding projects to be located farther down south where lands are cheap.

The timeline indicates the following:

1. Bechtel’s and GE’s MOU with Ayala Corp. in 1987 to construct the MCX railroad project was meant to lay the groundwork for the latter’s future projects in Laguna. The freight service was certainly partly intended to transport cargoes to and from the various locators in Laguna Technopark. The commuter service was meant to “pull” its early middle-income real estate projects closer to Metro Manila.

With hundreds of real estate projects that have sprouted in Laguna and other provinces in the south since, plus the seventeen economic zones in Laguna alone, a modern railroad system is imperative and feasible now more than ever.

2. MRT 3 illustrates that those who have the greatest motivation to invest in transportation infrastructure are big commercial, office and residential real estate developers whose properties lie near this transportation line. An improved transportation increases demand for and, therefore, value of their properties.

It also indicates that ALI has the ability and experience in building and managing a modern transportation infrastructure.

3. With the pattern of its real estate developments, ALI clearly sees the high growth potential of the South Luzon Corridor. It is the only big developer that has invested a very large part of its resources south of Metro Manila. ALI probably knows something that other developers don’t.

The private sector is motivated to participate in the construction of transportation infrastructure not only because of the revenue they will gain from it but more importantly, because of the boost it gives in the demand for and value of their real estate developments.

And with the way Ayala Land has lined up many of its projects near PNR lines, it shall reap the biggest benefit from a modern railroad system in the south.

Thank you so much

Metro Manila has become what it is today because of the over-concentration of businesses plus recreational, cultural, and institutional facilities therein – elements that are barely present in many parts of the countryside.

An ideal economy is one wherein most if not all citizens see and feel economic gains (in varying degrees) wherever they may be. It’s a gargantuan task but I think it can be done; definitely not in this lifetime, but I do believe, slowly, it can be done.

One of the strategies to achieving this was clearly outlined by the National Economic Development Authority (NEDA) in 2004.

…spur economic growth for Bicol and Mindanao… development of the Southern Luzon Corridor as a strategy to decongest Metro Manila, and provide new opportunities for growth in the countryside… The Plan has in fact identified as one of its priority activities, the rehabilitation of the existing rail link to Bicol…Key roads and roll-on and roll-off (RORO) port facilities have been lined up for Mindanao… to provide access to product markets… PNR’s South Line will extend up to Matnog, Sorsogon, being the take off point to the Visayas and Mindanao.

Yes, for me, a major factor that will stimulate economic growth in the countryside is a modern, fast and reliable railroad system that will not only cater to commuters but will also transport cargoes (freight trains) over long distances.

PNR has already rehabilitated the so-called Southrail Line – from Tutaban in Divisoria up to the Bicol Region. However, the rehabilitation was poorly done. There appeared to be no resolute effort to really modernize the project. Most of the coaches or trains are second hand that were donated by Japan. Travel time from Manila to Bicol is ten hours, the same time it takes when taking a bus : (

By the way, our railroad system is also originally planned to extend North all the way to San Fernando in La Union.

How can a modern railroad system stimulate economic development in the countryside and decongest Metro Manila?

By opening up and increasing demand for real estate markets that were once unattractive for those living in Metro Manila.

A 2006 Dutch study (this is a PDF file) noted that:

… households are willing to pay more for housing near railway stations due to lower transportation cost and reduced travel time. As workplaces become more accessible, so do leisure areas…

Another study (this is another PDF file)noted that:

… the price of real estate is highest in city centers and decreases with every unit of distance from the city center. Thus, when some areas are pulled closer to the city center through an improvement in transportation, land values in these areas increase…

As households increase in these once unattractive locations (because of their distance to Metro Manila), commerce will follow thereby increasing demand for properties in these locations. As people increase, more commercial establishments, conveniences and, therefore, job opportunities will be generated that will further increase demand for properties.

Eventually, these areas will become the new urban centers that will become the source of livelihood and recreational facilities for people living farther along the line. Having been pulled closer to the new city center, demand for real estate in these locations that are farther along the line will increase. Population will increase that will lead to new commerce and so on and so forth. The cycle shall be replicated as you go farther and farther along the line. Again, this process will take decades to be truly felt. That’s why we have to start now!

And this is beneficial for real estate developers who shall then have greater options on where to build their succeeding projects instead of just focusing on Metro Manila.

And those developers who have already built their projects nearby will find the value of their properties enhanced.

Other economic benefits of a modern railroad system

PNR trains currently cater solely to commuters. For me, trains transporting cargo is as important as trains moving people. In the US, freight trains provide the following benefits:

From the food on our tables to the cars we drive to the shoes on our children’s feet, freight railroads carry the things America depends on. America’s railroads account for 43 percent of intercity freight volume — more than any other mode of transportation — and provide the most efficient and affordable freight service in the world. Every year, America’s freight railroads save consumers billions of dollars while reducing energy consumption and pollution, lowering greenhouse gas emissions, cutting highway gridlock, and reducing the high costs of
highway construction and maintenance. In addition, America’s freight railroads generate nearly $265 billion in total annual economic activity and sustain 1.2 million jobs.

Obviously, our country will never attain the same figures given the size of our economy, but we shall to a certain extent.

But given the sorry state by which our railroad system was rehabilitated, none of these shall take place. That’s why it’s important to leave its rehabilitation and modernization to the private sector – to a company with the motivation, vision, ability, willingness, clout and financial muscle to do so.

And that company is none other than… Ayala Corporation.

I will tell you why in my next post.

Thank you so much

image of freight train courtesy of popularmechanics.com