I haven't been posting lately due to my busy work sched, I'll be sharing this news clip taken from Philippine Daily Inquirer courtesy of one of my colleagues Mr. Vic Asuncion. Thanks for your very informative emails Sir Vic! as I had mentioned in my previous post, the key to be sucessful in real estate investment, or perhaps in any business venture, is
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For Jones Lang LaSalle LeeChiu research head Claro Cordero, victims of recent typhoon “Ondoy” should hold on to their homes for now. Against the consensus of many homeowners in flood and landslide-stricken areas of Antipolo, Cainta and Marikina, Cordero reminds them to review the fundamental attractions of their areas.
National Real Estate Association president Alejandro S. Mañalac agrees with Cordero’s advice, saying “there is wisdom in it.”
Cordero said any significant downward movement in prices immediately following a disaster would only be temporary.
After more than eight years of observing the industry, Cordero holds the position that prices will most likely normalize over the medium term.
After all, he explains that the valuation of these properties in the past already accounts for the propensity of these areas to flood.
“Selling it now means offering it much lower than its actual value. With the learning that we had with the recent experience taught by the dynamic duo of Ondoy and “Pepeng,” we already know better how to prepare... or at least avoid being physically hurt,” Mañalac said.
Calamity-proof twin towers
For individuals and families on the lookout for high rises as an alternative to single-level homes (and possibly as a protective measure against floods), they should keep a keen eye on Ortigas & Co., which recently announced it was on track with the development of its two towers located at the site development of Circulo Verde, the masterplanned residential community on Calle Industria in Bagumbayan, Quezon City.
Ortigas & Co. engaged the services of DCCD Engineering Corp., which has 50 years of experience in hydrology and flood control, to meet the technical challenges. Michael Reyes, president and chief operating officer of DCCD, says, “Even in the planning of Circulo Verde, we wanted to prepare for anything. When we gave our parameters to our engineers and architects, we tasked them to provide protection against natural calamities, including earthquakes, flooding and typhoons.”
Estimated to cost P15 billion in total investments over the next 15 years, the developer has poured in P350 million to protect the property from future flash floods. It will build a retaining wall, which will run a kilometer around the periphery of Circulo Verde.
“Complementing this design, the entire site has also been raised by eight meters from the level of the Marikina River. At the same time, a new canal at the fore of the property is in the works to collect the storm runoff coming from Calle Industria. This will guide floodwater from adjacent areas to the appropriate outfall,” said Cathy Casares-Ko, general manager for real estate, Ortigas & Co.
Secondary defense measure
Aside from being protected from the river, residential buildings are equipped with pumping systems as a secondary defense measure, especially in ground-level car parks. The pumping systems are also equipped with one-way pipe valves to prevent back flows.
“Even with all these measures in place, we have instructed DCCD to revisit the hydrological and flood study for Circulo Verde and will implement new designs, if any is recommended,” Ko adds.
The twin towers’ construction is scheduled to finish on time, the developer assured. The first phase of construction, which has been allotted P3 billion, includes the construction of five residential towers on 2.7 hectares of the 12-hectare property. This year sees the rise of the 23-story Ibiza Tower, which, intended for independent professionals and young couples, offers one- to two-bedroom units (44 to 80 square meters in single- and bi-level layouts). Also underway is the 11-story Majorca Residences with one-, two-, and three-bedroom units (42 to 107 sq m) dedicated to growing families.
Integrated community
Reflecting high interest in the mixed-use project, which highlights the concept of an integrated community, preselling of units in Ibiza Tower has reached 60 percent, while all units in Majorca Residences have now been sold. Building development continues with piling works for both the foundations of Ibiza and Majorca ongoing and utilities going online. With a promised delivery date in the third quarter of 2012, Ko places confidence in the project’s timeline.
Cordero has advised existing homeowners affected by Ondoy to work collectively in drawing up flood prevention plans and other strategies to protect the quality of life in their subdivision. Aside from providing assurance to homeowners of their safety, these measures can positively impact perceptions and help valuations in their areas return to their real levels.
Mañalac adds that it is actually much easier to deal with floods than earthquakes in the sense that the former can be forecast and monitored as it approaches the areas to be affected.
“If we have not yet made preparations as far as the structures of our houses is concerned, like adding another level, constructing roof decks, etc. because we could not afford it yet, we can always move our things up, lock and leave the house until the storm has passed. On the other hand, an earthquake strikes without any warning since nobody as of now can predict when and where it will happen and how strong or how long it will be.”
NREA stresses that if the government realizes the urgency to prioritize the programs and projects which were meant to address the flood problem like the ones being proposed by architect Jun Palafox, the residents of these areas can continue their lives with less worries.
