In the October 18, 2011 issue of the Manila Standard Today, it was reported that Robinsons Land Corporation of taipan John Gokongwei bought 2.85 billion pesos of properties, for land banking, in several places, including one in Malabon City. Land banking is the practice of buying properties for future use or buying land without any current definite plan on what to build on it.

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