Mass Housing Market Overview

Housing Sector:Demand and Supply

Demand: 3.8M units over 6 years

HOUSING NEED, 2005-2010

Category In Thousand UnitsHousing Backlog- Doubled-Up Housing- Replacement/Informal Settlers- HomelessSubstandard (Upgrading)New Households

984,466387,315588,853

8,298186,334

2,585,272

Total 3,756,072Source: The Housing and Urban Development Coordinating Council (HUDCC)

Demand: 2.6M New Households

HOUSING NEED, 2005-2010Category In Thousand

UnitsHousing Backlog- Doubled-Up Housing- Replacement/Informal Settlers- HomelessSubstandard(Upgrading)New Households

984,466387,315588,853

8,298186,334

2,585,272

Total 3,756,072Source: The Housing and Urban Development Coordinating Council (HUDCC)

Or 431K units/year

Affordability: Affects actual demand

0

2

4

6

8

10

Can'tAfford

Socialized AffordableMid-Income High-End

MIL

LION

FAM

ILIE

S 5.2 (29% of

population)

7.5 (42%)3.7

(21%) 1.

2 (7%)

0.1 (<1%)

•29% of the population cannot even afford to buy socialized housing unit worth Php. 300,000

Source: National Statistics Office, Colliers International research (2006 statistics)

What can the market absorb?

431 k units needed by new households per year

X 71% that can afford to buy

= 306K units can be absorbed annually

Supply: 52% of Mass housing Market Demand

Focus: socialized, affordable & middle-income housing

Socialized Affordable Middle-Income

Price Points: for a house and lotPhp 300K set by Pag-

IBIG; recently raised to Php 400K)

Up to Php. 1.5 Million Up to Php. 4 Million

Housing types and qualified families

0

2

4

6

8

10

Can'tAfford

Socialized AffordableMid-Income High-End

MIL

LION

FAM

ILIE

S

29% of population

21%

42%

7%<1%

70%

TARGET MARKET

How affordable is mass housing?

Socialized Housing• Monthly amortization of Php

1,800• Price ceiling at P300,00(recently

increased to P400,000)• Interest rate at 6% per annum• Term of 30 years

Loan Amount (Pesos)

Old Interest Rate

New Interest Rate

Monthly Amortizatio

n for Old Rate (Pesos)

Monthly Amortization for New

Rate (Pesos)400,000 7% 6% 2,661.21 2,398.20750,000 7% 7% 4,989.77 4,989.771,000,000 10.5% 8.5% 9,147.39 7,689.131,250,000 10.5% 9.5% 11,434.24 10,510.682,000,000 10.5% 10.5% 18,294.79 18,294.793,000,000 N/A 11.5% N/A 29,708.74

NEW HDMF(PAG-IBIG) LOAN PACKAGES

Growth Driver: Low interest rates providing affordable housing packages

Source: HDMF