MARKET STUDY OF THE PROPOSED HOUSING FACILITY WITHIN THE

REGIONAL GOVERNMENT CENTER

I.

Rationale
The main objective of the market study is to assess the extent of marketability of the
Housing Facility that is being proposed to be put up within the Regional Government
Center (RGC). This study therefore, tries to evaluate the market viability of the
proposed housing service by assessing the potential future level of demand for the
facility. Specifically, this study tries to:
1. Find out whether there are potential RGC locators within or near the Regional
Government Center who are interested or are in favor to the putting up of housing
facility within the RGC;
2. Look into the factors that influence the decision of the survey respondents, RGC
agency locators, to avail of the housing facility;
3. Determine the preferred rates that the respondents are willing to pay for the use
of the facility;
4. Ascertain other basic amenities which the housing facility should include or offer,
as pointed out by the respondents; and
5. Determine the preferred arrangement by which the housing facility shall be
shared with the general public.
Given these objectives, a survey was conducted among 35 RGC agency locators.

II. Site and Area Analysis

A. The Site
The Regional Government Center (RGC) is located in the heart of Tuguegarao City,
the capital of the Province of Cagayan. Tuguegarao City is a major urban center in
Northeastern Luzon and a Primary Growth Center. To date, almost all national
government agencies had established their regional offices in Tuguegarao,
bringing to the region varied and higher-level government services and facilities
ten years after it was chosen as the center of Region 2. The Department of
Finance classified Tuguegarao as a First Class Municipality in July 1993.
At present, Tuguegarao City is a bustling commercial, education and government
center. It is also the regional tourism service center because of its accessibility to
tourism attractions, spots and destinations and because of the existence of
reliable facilities for land, water and air transport, communications, power, health,
protective services, and finance as well as amenities for dining, housing,
recreation and souvenir shops.

Figure 1.Location Map of RGC

B. The Area (Regional Government Center)

A 60-hectare lot at Carig Sur, Tuguegarao City, the Regional Government Center
(RGC) boasts itself as a showcase of pride, not only for Tuguegarao City and the
province of Cagayan, but also for the entire Cagayan Valley Region. It hosts
regional offices of government agencies and government-owned and controlled
corporations operating in the region. It is a one-stop government service center,
aimed at improving access and delivery of services to the public. Presently, a total
of 74 government institutions have been issued their respective lots within the
RGC site. A total of forty-four (44) agencies/institutions and one park have
located in the RGC.
The Center site is one of the fastest growing nodes of Tuguegarao City. As the
regions administrative, institutional and commercial center, the area is
experiencing a relatively rapid pace of development.
The Regional Development Council (RDC) 2, through its Regional Government
Center Management Committee (RGCMC) orchestrates the systematic
development of the RGC, through the adoption of policies and guidelines for the
centers development, vigilant monitoring and coordination of all physical
development activities and by tapping local resources, while continuously
exploring avenues for external financing.
One of the major thrusts of the RDC 2 is to provide common facilities to the
Regional Government Center to support and sustain its goal of providing one-stop
government service to the public. Furthermore, due to the growing demand for
parks and green areas, the City Government of Tuguegarao has identified the RGC

parks as propriety areas for development. Plans of interventions include the

establishment and maintenance of trees, beautification of the Center as a whole
and park development and renovation.
Around the Regional Government Center include other business establishments,
hospitals and schools and universities which make it suitable to put up its own
housing facility. With this, the RGC allotted the portion along the national
highwayto be devoted for this as shown in the RGC Lot Allocation Map below. This
shall also serve as a potential income generation activity of the RGC.

Figure 2.Allocation Map of RGC

III. Characterization of the Market (Current Market/Situation)

IV. Market Survey
a. Results of the Survey
A. The Respondents
Within the Regional Government Center, there are thirty-nine (39) Regional Line
Agencies, three (3) GOCCs, one (1) LGU and a regional medical center. A school,
the Cagayan State University Carig Campus is also situated very near the RGC.
Thirty-six (36) responded to the survey, or 84% of the total number (43) of floated
survey questionnaires.
B. Results
a. Profile
A total of thirty-five (35) agency-locators served as respondents to the
survey. The size of these agencies were assessed in terms of their number
of divisions and personnel, as shown in the table below. Information on
their length of stay at the RGC has likewise been deduced from the survey.

Table 1. Profile of Agency Respondents

No. of Divisions

No. of Personnel
Permanent

Casual

Contractual

0-3

4-6

710

1100

10
1
to
20
0

20
1+

1100

10
1
to
20
0

20
1+

1100

101 to
200

201+

Frequenc
y

13

24

16

Percenta
ge

31
%

50
%

19
%

0%

7%

11
%

4%

0%

59
%

4%

4%

89
%

Most of the agencies have about 4-6 divisions, with some agencies having
at least 1 division, while others have a maximum of 10. On the other hand,
the average number of permanent employees per agency is 1-100, and the
same is true for casual and contractual employees.
Table 2. Length of Stay at the RGC
Number of Years
1-10

11-20

21-30

31-40

No
Answer

Frequency

15

Percentage

42%

19%

6%

8%

25%

On the number of years that the agency locators have been at the RGC,
most of these have been at the Center for a period of 1-10 years. Some
have stayed for a year at the minimum and 40 years at the most.
b. Perceptions on the Regional Government Center
The perception of the respondents was also taken on whether there is a
need for the RGC to be developed to cater to other basic services needed
by its stakeholders, as shown in Table 3.
Table 3. Perception on the RGC

There exists the need

for the RGC to be
developed to cater to
other basic services
needed by its
stakeholders.
RGC will be a good

Strongly
Agree
26

Agree

Disagree

Strongly
Disagree
1

25

place to start
commercial activities
due to its strategic
location and proximity
to the airport, city hall,
offices, banks,
educational
institutions, hospitals
and residential areas.
The RGC administration
can ask for payment for
the basic services it will
provide such as the
convention hall, leisure
parks and related
services at a
reasonable price.
FREQUENCY

15

18

66

34

The table above reveals that most of the respondents strongly agree that
there is a clear need for the RGC to be developed to cater to other basic
services needed by its stakeholders. Of the 35 respondents, there were 26
who agreed strongly.
The respondents likewise strongly agreed that the RGC is a good place to
start commercial activities due to its strategic location, and also concurred
with the idea that the RGC administration can ask for payment for the basic
services it will provide.
On the amenities that the RGC should provide, the table below reveals the
most preferred or popular choices, from among a list that was provided.
These include sports complex, housing/accommodation, convenience
stores/groceries, convention halls and coffee shops or restaurants.
Table 4. Amenities that the RGC should Include/Provide
AMENITIES/FACILITIES
Sports Complex
Leisure Park
Housing/Accommodation
Air-conditioned Market (wet &
dry)
Convention Halls
Convenience Stores/Groceries
Amusement Area
Pay Parking with Carwash
Shopping Center
Grooming Stores/Salons
Boutiques
Food Stalls
Souvenir Shops & Pasalubong
Center
Coffee Shops/Restaurants
Others

FREQUENCY
32
23
32
17

PERCENTAGE
91%
66%
91%
49%

31
32
16
18
21
22
17
29
28

89%
91%
46%
51%
60%
63%
49%
83%
80%

30
2

86%
6%

c. Perceptions on the Use of Housing and Accommodation Services

In order to determine whether there is a potential demand for an housing

facility within the RGC, the respondents were asked questions related to the
conduct of conventions, seminars and trainings. Their responses are
summarized as shown below.

Table 5. Conduct of Activities by Agencies that Strengthen the

Need
for a Housing Facility
Do you conduct
conventions, seminars,
trainings?
Yes
No
If yes, how many events
has your agency
conducted in the last
two years?
1-3
4-6
7-9
10+
How many days on the
average is the duration
of your activity?
1 day
2 days
3-4 days
More than 4 days
How many participants
do you usually have on
the average?
1-50
50-100
100-300
Others
Where do your
participants stay during
the entire duration of
your activity?
Hotels near RGC
Housing
houses/Dorms near
RGC
Hotels in the city
proper
They are on their own
What time of the year
do you usually conduct
your events/activities?
January - March
April - June
July - September

FREQUENCY

PERCENTAGE

32
4

89%
11%

3
7
2
20

9%
22%
6%
63%

3
14
13
2

9%
44%
41%
6

14
11
6
1

44%
34%
19%
3%

8
12

25%
38%

15

47%

14

44%

14
4
19

45%
13%
61%

October - December

16%

From the table, all of the respondents do conduct regular seminars/trainings

and similar activities. On the average, the agencies conducted 10+ events
of this kind during the last two (2) years. The average duration of seminars
is about 2 days with 1-50 participants. Finally, most of the seminars are
conducted during the 3rd quarter of the year.
d. Perceptions on the Proposed Housing Facility within the RGC
The perception and views of the respondents on the proposed housing
facility were also generated. The respondents are all in agreement that the
RGC should have its own housing facility. The top five (5) desired basic
amenities of the housing facility include, air-conditioned/well-ventilated
rooms, WiFi connection, private comfort rooms, wide parking space and
refreshment store or caf.
Table 6. Desired Basic Amenities of the Housing Facility
AMENITIES/FACILITIES
Air-conditioned or wellventilated rooms
WiFi connection
Private comfort rooms
Wide parking space
Sports center/Gym
Convenience store
Laundry services
Refreshment store/Cafe

FREQUENCY
34

PERCENTAGE
100%

34
34
32
26
31
30
32

100%
100%
94%
76%
91%
88%
94%

For specific types of room/accommodation, the amount that they are mostly
willing to pay ranges from Less than P1,500 for standard aircon room and
standard aircon room (twin bed); P1,500-2,499 for deluxe (single bed); and
Less than P1,500 for dormitory type of accommodation.
Table 7. Willingness to Pay or Desired Cost of Rent for Specific Types
of Room/Accommodation

Less than
P1,500
P1,500P2,499
P2,500P3,599
More than
P4,000

STANDARD
AIRCON
(Single
Bed)
24

STANDARD
AIRCON
(Twin Bed)

DELUXE
(Single Bed)

17

DORMITORY
TYPE
(maximum of
8)
20

11

16

The respondents unanimously expressed their willingness to recommend

the use of the housing facility within the RGC to the general public,
including local and foreign students of nearby schools such as CSU Carig

Campus, but are one in saying that the facility will have to provide for a
separate building for students.
Table 8. Willingness to Recommend the Use of the Housing Facility
with the General Public& Preferred Sharing Arrangement
Would you recommend the use
of the housing facility to the
general public including local
and foreign students of CSU?
No
Yes, in the same building
Yes, in a separate building
Others
No Answer

FREQUENCY

PERCENTAGE

6
1
26
0
3

17%
3%
72%
0%
8%

V. Conclusion
From the results of the survey, the agency locators are both interested in the putting
up of a housing facility at the Regional Government Center (RGC). The basic
amenities that are desired to be included in the housing facility include: 1) airconditioned or well-ventilated rooms; 2) private comfort rooms; 3) restaurants or food
stalls; 4) convenience stores; and 5) wide parking space.
For specific types of room or accommodation, the amount that the respondents are
mostly willing to pay ranges from Less than P1,500 for standard aircon room and
standard aircon room (twin bed); P1,500-2,499 for deluxe (single bed); and Less than
P1,500 for dormitory type of accommodation.
Finally, the respondents are also willing to allow the use of the proposed housing
facility not only to agency locators but also to the general public including students
from nearby universities, but are one in saying that the students, specially other
nationalities, will have to be housed in a separate building.