LIVING WATER SUBDIVISION PROJECT

ROADMAP FOR ACQUISITION AND DEVELOPMENT

MISSION STATEMENT
CONSTRUCTION OF MASS HOUSING FACILITIES UNDER THE GOVERNMENTS PRIVATE-PUBLIC-PARTNERSHIP (PPP) THROUGH THE NATIONAL HOUSING AUTHORITYS (NHA) PROGRAM. TO ACQUIRE, DEVELOP, MARKET, SOURCE FUNDS OF A FULLY DEVELOPED (READY FOR HOUSE CONSTRUCTION) SUBDIVISION IN RIZAL. PROPERTY PROFILE PROPERTY OWNER: FILDRAVO LAND DEVELOPMENT CORPORATION PROPERTY DEVELOPER: FILIPINAS DRAVO CORPORATION PROJECT TITLE: LIVING WATER SUBDIVISION LOCATION: BGY. QUISAO, PILILIA, RIZAL TOTAL LAND AREA: 80,126 SQM LESS: EASEMENT/NPC RIGHT OF WAY 12,080 SQM TOTAL LAND DEVELOPMENT AREA 68,050 SQM ROAD AREA 19,090 SQM OPEN SPACES 4,362 SQM NO. OF LOTS 487 TITLED LOTS TOTAL SALEABLE AREA (ORIGINAL) 44,608 SQM NET (REMAINING) UNSOLD LOTS 38,200 SQM AVERAGE PRICE OF THE SUBD. P3,000-P4,000/SQM

RATIONALE
THE COMPLETED SUBDIVISION PROJECT HAS BEEN DEVELOPED TO MEET THE LOW COST AND SOCIALIZED HOUSING DEMAND. DUE TO DISTANCE, TIME TRAVEL AND TRANSPORT PROBLEMS BETWEEN METRO MANILA, (THEN) THE TARGETED END USER MARKET SEGMENT HAD SOME RESISTANCE AND OBJECTIONS. THE PROJECT WAS BUILT UNDER THE BP 220 AND PD 957 BUILDING STANDARDS. THE LIVING WATER DEVELOPERS WERE ABLE TO CONSTRUCT ONLY THE SOCIALIZED HOUSING ROW TOWNHOUSES WHICH WERE SOLD THRU THE PAG-IBIG FINANCING PROGRAM AND HAD BEEN SUCCESSFUL IN MARKETIG THEM BECAUSE OF THE LIVABLE FINISHED CONSTRUCTED FACILITIES. WHILE THE MANY OF THE RESIDENTIAL LOTS (ONLY) REMAINED UNSOLD, THIS WAS TRACED TO THE PREFERENCE OF MARKET SEGMENT WANTING TO BUY HOUSE AND LOT PACKAGE NEARER TO THEIR PLACE OF WORK (METRO MANILA) WITH LESS EQUITY (DOWN PAYMENT) REQUIREMENTS. THE DEVELOPERS ALSO DID NOT WANT TO CONSTRUCT HOUSES WITHOUT SURE BUYERS AND THIS WAS THE REASON WHY 90% OF THE PROJECTED RESIDENTIAL LOTS HAD REMAINED UNSOLD. IT IS FOR THESE REASONS THAT A WINDOW OF OPPORTUNITY TO ACQUIRE, RE-DEVELOP AND MAXIMIZE THE REVENUE POTENTIALS OF LIVING WATER SUBDIVISION HAS COME TO ITS TIME. THE MARKET DEMAND POTENTIAL FOR END USERS HAVE INCREASED THE PROXIMITY, DISTANCE AND TIME TRAVEL HAVE IMPROVED. IN FURTHERANCE TO THESE, THE GOVERNMENT IS NOW EMBARKING TO MEET THE HOUSING BACKLOG AND IS NOW PRIORITIZING THE HOUSING NEEDS OF GOVERNMENT (LGU) EMPLOYEES, TEACHERS, PNP PERSONNEL AND THE
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MARGINALIZED MEMBERS OF SOCIETY FOLLOWING THE DE-URBANIZATION PROGRAM URGING THE PEOPLE TO MOVE AWAY FROM THE CONGESTION OF THE CITIES. TO FURTHER ELUCIDATE THE RATIONALE BEHIND THE OBJECTIVES OF RE-DEVELOPING LIVING WATER SUBDIVISION (LWS) A SWOT ANALYSIS HAS BEEN PREPARED FOR EVERYONES PERUSAL.

SWOT ANALYSIS

I.

STRENGTH 1.1 PROPERTY IS LOCATED APPROXIMATELY 50 KM. FROM MM ALONG JP RIZAL NATIONAL ROAD, PILILIA, RIZAL ON A HILLY SLOPING TERRAIN WITH VIEW OF THE LAGUNA BAY; 1.2 FULLY DEVELOPED, READY FOR OCCUPANCY, WIDE CEMENTED ROADS, OPERATIONAL WATER AND ELECTRIC LINES, SEWAGE AND PERIMTER FENCE AND SUBDIVIDED TITLED LOTS; 1.3 PROJECT IS UNEMCUMBERED, WITH EXISTING FULLY COSNTRUCTED ROWHOUSES (20%) MANDATORY SOCIALIZED HOUSING CURRENTLY WITH FEW RESIDENTS, WITH VARIED LOT SIZES, AMPLE OPEN SPACES FOR PROBABLE HOBBY FARM AND NATURE PARK, SPORTS CENTER AND MULTI-PURPOSE HALL; 1.4 VERY PEACEFUL NEIGHBORHOOD, WITH TRANSPORTATION, LINKAGES WITHIN 10 MINUTES TO AND FROM THE PILILIA TOWN PROPER, COMMERCIAL, EDUCATIONAL, TELECOMMUNICATION FACILITIES; 1.5 ACTUAL VIEWING AND SITE INSPECTION (WITH HLURB LICENCE TO SELL) MAYBE DONE, INCUDING IMMEDIATE HOUSE CONSTRUCTION. 1.6 AVAILABILITY OF SOURCES OF FUNDS FROM DBP AND WITH GUARANTEE FROM HGC SUBJECT TO DEVELOPERS QUALIFYING BACKGROUND.

II.

WEAKNESSES
2.1 TARGETED METRO MANILA MARKET FOR SOCIALIZED AND LOW COST END USER BUYER FIND THE DISTANCE AND TIME TRAVEL IMPRACTICAL TO BUY AND RESIDE IN THE PROJECT. THIS MARKET SEGMENT DOES NOT HAVE THE FINANCIAL CAPABILITY TO PURCHASE LONG TERM INVESTMENT AT THE SAME TIME RESIDE AND WORK IN THE METROPOLIS DUE TO COST OF TRANSPORTATION; 2.2 OVERALL SUBDIVISION MAINTENANCE AND SUSTAINABILITY HAS TO BE ADDRESSED BY THE LWS HOMEOWNERS ASSOCIATION, BUT SINCE THERE ARE ONLY A FEW RESIDENTS LIVING IN THE AREA, THE DEVELOPER HAS TO SHOULDER THE MAJORITY OF THE COSTS; 2.3 REAL ESTATE TAXES FOR INDIVIDUAL RESIDENTIAL LOTS HAS TO BE SUSTAINED BY THE DEVELOPERS, RESIDENTIAL TAX APPRAISAL VALUES KEEP ON INCREASING; 2.4 FORMATION AND OPERATIONAL CAPABILITY OF THE LWS HOMEOWNERS ASSOCIATION CAN NOT TRULY BE IMPLEMENTED AND TURNED OVER TO THEM WITHOUT THE PROPER AND TRUE VALUE OF COSTS TO SUSTAIN THE SUBDIVISIONS MAINTENACE REQUIREMENTS. DEVELOPER HAS TO CARRY THIS SINCE ITS STILL OWNS MAJORITY OF THE PROPERTIES; 2.5 DEVELOPERS HAS NOT FULLY DELIVERED THE PROPOSED AMENITIES AS MENTIONED IN THE OPEN SPACES AND EVEN IF DELIVERED, THE SUSTAINABILITY FOR ITS OPERATION WOULD JUST ADD UNNECESARY COSTS; 2.6 MARKETING OPERATION HAVE STOPPED PERHAPS MAINLY BECAUSE OF REASONS AS MENTIONED IN SECTION 2.1. THIS CREATED VACUUM AND FEELING OF UNCERTAINTIES EVEN TO THOSE THAT HAVE PURCHASED LOTS AND AS WELL AS THE PRESENT RESIDENT DWELLERS. A NEW MARKETING STRATEGY AND APPROACH IS IMPERATIVE.
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2.7 DISCONTINUED CONSTRUCTION OF THE SUBDIVISION; ROWHOUSES AND SINGLE DETACHED HOMES, CREATED AN IMAGE OF INCAPACITY FOR THE PROJECT. DEVELOPEMENT AS TO ITS VIABILITY AND SUSTAINABILITY; IRREGARDLESS OF THE CAUSES BUYING PUBLIC IS ONLY CONCERNED ON THE FULL COMPLETION AND SUSTAINABILITY OF THE PROJECT. DEVELOPERS IMAGE HAS BEEN TARNISHED AND MUST BE RESTORED TO GAIN PUBLIC CONFIDENCE; 2.8 SUBDIVISION ENTRANCE GATE IS POSITIONED INSIDE THE PERIMETER OF THE PROPERTY. THERE IS A NEED TO CONSTRUCT A MORE IMPRESSIVE CONCOURSE (GATE) ALONG THE NATIONAL ROAD TO GAIN AN IMAGE OF STABILITY; 2.9 LWS DENOTES A PLAIN AND SIMPLE HOUSING SUBDIVISION FOR LOWER END MARKET. THERE IS A NEED TO CHANGE THIS IMAGE INTO A HIGHER LEVEL; AT THE SAME TIME PRESENT A NEWER IMAGE OF DEVELOPMENT PLAN;

III.

OPPORTUNITIES
3.1 ONCE THE LWS IS REFOCUSED ON LOCAL RESIDENTS MARKET EVEN THE METRO MANILA WOULD BE ATTRACTED TO IT DUE TO THE SPECULATIVE GROWTH OF INVESTMENTS THAT MAY BE ENVISIONED BY THE PROJECT. BASICALLY, SPECULATIVE INVESTORS ARE MOTIVATED INTO PURCHASING PROPERTIES BECAUSE OF THE PROJECTS INVESTMENT GROWTH NOT ON THEIR PERSONAL USAGE; BUT ENVISIONS TO LEASE OUT THE UNITS AS WELL WHILE WAITING FOR THE INCREASE OF VALUES. 3.2 THE THEME SLOGAN FAR FROM THE MADDING CROWD WOULD BE A REVERSAL OF THE HARD SELL CONCEPT (OF CONVINCING THE LOW END MARKET). COMBINING MULTI-LEVEL MARKETING PROGRAM TURNING THE NEGATIVES INTO OPPORTUNITIES. A HIGHER QUALITY OF (COUNTRY SIDE LIVING) LIFE, LESSER POLLUTION, NO TRAFFIC, A MORE RELAXED LEISURELY WAY OF LIVING, ETC. 3.3 SINCE LWS HAS BEEN PRE-APPROVED BY DBP AND CURRENTLY, UNDER THE PAGIBIG FUND, IT IS EASIER TO SECURE DEVELOPMENTAL AND END USERS BUYERS LONG TERM FINANCING.

IV.

THREATS
CURRENT SITUATION: 4.1 SUSTAINABILITY OF SUBDIVISIONS COST OF OPERATING. ITS UTILITIES, SECURITY, GARBAGE AND ADMINISTRATIVE SERVICES, WITHOUT ADEQUATE SUPPORT AND REVENUE FROM HOMEOWNERS AND THE DEVELOPERS ARE CONTINUALLY BLEEDING FROM THESE FIXED MONTHLY PROBLEMS. 4.2 UNNECESSARY REAL ESTATE TAXES ON UNSOLD PROPERTIES ARE DRAINING THE DEVELOPERS RESOURCES. CONTINUED INCREASE OF ZONAL VALUATION AND RESIDENTIAL REAL ESTATE APPRAISAL WITH THE STRICT TAX AUCTION PROGRAM OF RIZAL PROVINCE POSESS A SERIOUS THREAT. 4.3 CONTINUED NON-DELIVERY AND FULL OPERATIONAL ACTIVITY OF SUBDIVISION SUCH AS SECURITY, MAINTENANCE MAY CAUSE THE STOPPAGE OF AMORTIZATION FROM EXISTING BUYERS AND USE THIS EXCUSE AND REASONS TO REPORT TO HLURB. 4.4 CONTINUED DETERIORATION OF COMPLETED ROWHOUSES DUE TO NATURAL ELEMENTS, WEATHER, VERMINS, VANDALISM, ETC. CREATES A NEGATIVE AND IRRESPONSIBILE IMAGE FOR THE DEVELOPER. PREPARED BY: ARTURO FAVIS JR.