This post is related to my previous one. So please read it if you haven’t yet. Note that this is an oversimplified explanation of the issue on hand and is by no means complete.

Done right, condominium development is the most profitable residential project to undertake in the Philippines. With a minimum of one thousand square meters of land, a developer can build a mid-rise condominium building of five to ten stories high (note that the number of stories is subject to the city’s or municipality’s building restrictions). For argument’s sake, with just, say, a very conservative number of six units per floor, that translates to 30 to 60 units per building.

The more stories or horizontal levels a residential project has, the less its cost per square meter becomes. This is true not just for condominiums but also for townhouses and single houses. Savings, ergo profit, is realized because of the following basic reasons: (more…)