I.

Highly Integrated Firms in the Philippines

A. Introduction

Investing in the Philippines is generally a good bet. The country’s economy is growing
rapidly alongside its population of educated, English-speaking professionals.

Thanks to these factors, foreign property investors have taken a renewed interest in this
island nation.

On top of that, real estate in the Philippines is relatively cheap – especially by Southeast
Asian standards. Buyers can find entire houses in luxury communities for less than US$300,000.
It’s no wonder why foreigners have flocked to the Philippines as a frontier market investment
destination. The local economy is booming yet property values here, even in its capital city of
Manila, are still astoundingly cheap.

Image Source: Google Images

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 As a result of rising interest in Philippine real estate, an increasing number of
developers have built new projects in the country. Not all of them are equal though. Low-
quality developers may present issues like delays and structural problems, which can undermine
any investment. Therefore, when purchasing real estate in the Philippines, choosing the right
company to buy from is key.

Philippine developers worth doing business with must have a substantial number of
successful projects in their history. They should also have positive reviews from customers and
real estate professionals.

B. Top 10 Philippine Property Developers

1. Ayala Land, Inc.

Ayala Land, Inc. is one of the largest property developers in the Philippines. They
create master-planned communities that promote sustainable development and provide long-
term value to our residents, investors, and stakeholders.

Image Source: Google Images

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 Ayala Land's beginnings are anchored on the development of an uncharted land known
as Hacienda Makati. It is now the leading financial and central business district in the Philippines.

Image Source: Ayalaland.com

After its establishment in 1988, Ayala Land was listed in both the Manila and Makati Stock
Exchanges in July of 1991. Today, Ayala Land is recognized as the country’s leading real
estate and property developer.

The company has over 150 years of experience in real estate. It has also consistently
ranked among the Philippines’ top developers, winning awards from major organizations like Frost
& Sullivan.

It’s also the company behind one of the country’s most expansive planned
communities – Bonifacio Global City. Ayala also developed many parts of Makati, which is
Manila’s business and financial center.

Today, Ayala Land has a wide variety of real estate projects in its portfolio. These range
from resorts and malls to residential developments, which offer buyers plenty of options in terms
of pricing.

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 2. Megaworld Corporation

Megaworld Corporation was founded by Andrew Tan and incorporated under Philippine
law on August 24, 1989 to engage in the development, leasing and marketing of real estate.
The company initially established a reputation for building high-end residential condominiums and
commercial properties located in convenient urban locations with easy access to offices as well
as leisure and entertainment amenities in Metro Manila.

Image Source: Megaworld Lifestyle Malls

Beginning in 1996, in response to demand for the lifestyle convenience of having quality
residences in close proximity to office and leisure facilities, the Company began to focus on the
development of mixed-use communities, primarily for the middle-income market, by
commencing the development of its Eastwood City community township. In addition, the
Company engages in other property related activities such as project design, construction
oversight and property management. In 1999, Eastwood City Cyberpark became the first IT park
in the Philippines to be designated a PEZA special economic zone.

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 Image Source: Google Images

Megaworld Corporation is transforming the Metro Manila landscape through a series of large-
scale residential and office developments including urban centers integrating office, residential
and commercial components. Apart from its core business of property development, Megaworld
as a holding company is into merchandise trading as well as hotel and leisure.

Megaworld continues to build upon a track record for quality and innovation centered on
customer satisfaction through high-caliber projects delivered on time and backed by professional
property management and after-sales services.

Testament to Megaworld's industry leadership is the numerous awards received through the
years. In 2007 alone, Megaworld was awarded the following:

 Overall Best Managed Company and Best in Investor Relations in the Philippines in
the Asia Money Polls
 Best Investor Relations in the Singapore Market by a Philippine Company by IR
Magazine (Singapore)
 Philippines Best Managed Company, Most Committed to Corporate Governance, and
Best in Investor Relations by Finance Asia

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 As the Philippines’ leading urban township developer, Megaworld has already launched more
than 725 residential developments, 20 lifestyle mall developments, about 1.4 million square
meters of leasable office space from more than 70 office towers, and nearly 4,000 hotel
room keys from 11 homegrown hotel properties.

Having greatly expanded its horizons, Megaworld continues to offer various career
opportunities as part of doing its part in helping build the nation.

3. SM Prime Holdings

SM Prime Holdings, Inc. (SMPH) is one of the largest integrated property developers in
Southeast Asia that offers innovative and sustainable lifestyle cities with the development
of malls, residences, offices, hotels, and convention centers. It is also the largest, in terms of
assets, in the Philippines.

Image Source: smprime.com

SM Prime Holdings, Inc. was incorporated in the Philippines in 1994. They started as a mall
developer and operator and grew to be the biggest retail shopping center developer and operator
in the Philippines. Currently, it has 79 malls in and outside Metro Manila and 7 shopping malls
in China, totaling 10.2 million square meters of Gross Floor Area (GFA). In the Philippines, they
have a total of 17,715 tenants and 1,853 tenants in China.

“As a responsible corporate citizen, SM Prime endeavors to be a catalyst for economic growth
by enriching the lives of millions of Filipinos. Simultaneously an environmental steward, we ensure

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that our core business strategy hinges on sustainability principles that contribute to value creation
over time.”

As SM Prime remained focused on its growth and development strategies, prestigious international
and local award-giving bodies cited SM Prime as one of the Philippines’ leading companies in 2013.
A true testament to SM Prime’s commitment to providing the best value returns to its stakeholders by
achieving management excellence in all that they do.

4. Filinvest Land, Inc.

With over 50 years of experience, Filinvest Land, Inc. (FLI) is one of the leading full-range
property developers in the Philippines with a diverse project portfolio spanning the
archipelago. The company has developed over 3,000 hectares of land into homes for over
160,000 families.

Image Source: filinvest.com / Timberland Heights, San Mateo, Rizal

From residential communities, FLI has diversified into building townships, mid-rise and high-
rise condominiums, BPO hubs, office buildings, shopping centers and leisure developments. With
over 250 ongoing developments in 50 key areas across the country, FLI continues to expand and
innovate, propelled by its commitment to build the Filipino dream.

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 Like others on this list, the company is also financially sound. It’s consistently profitable, and
it has plenty of new projects in the works, such as Studio City.

Filinvest is best known for its mid-market developments, such as Alta Vida. At this
development in San Rafael, buyers can find houses for less than $100,000. However, the
company has recently expanded into luxury projects like Brentville International Community.

5. Federal Land

Federal Land is a trusted real estate developer in the Philippines, nurturing dynamic
communities since 1972. With 50 years of experience, Federal Land continues to design and
deliver residential, office, retail, and hospitality developments to meet the ever-changing needs of
the people and the communities it serves.

Image Source: Google Images

This firm also ranks alongside the most financially well-off developers on this list. In
addition to its many successful projects, it is a member of GT Capital Holdings and a partner of
Metrogroup.

In general, Federal Land’s residential properties tend to cater to wealthy Filipinos and foreign
investors. Some of its best condo developments include the Grand Hyatt Residences and the
Marco Polo Residences.

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 A typical Federal Land unit will cost upwards of $100,000, which is expensive by Philippine
standards.

6. DMCI Homes

Founded in 1954, DMCI Homes is now one of the largest developers in Metro Manila. The
company ranks among the World’s Top 1000 Corporations, and ZipMatch lists it as the
Philippines’ number one developer.

Unlike some of its competitors, DMCI Homes’ bread and butter are residential properties. The
company has erected more than 30 projects in Metro Manila with even more in the works.

Image Source: Google Images

DMCI has also developed other successful properties, including hotels and casinos. It also
built some of Makati’s most notable high rises, including the Philippine Stock Exchange Plaza.

On the residential side, DMCI is best known for its affordable condos throughout Metro
Manila. Many of the company’s units cost well under $100,000. The company has only recently
begun to expand into housing and luxury developments.

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 7. Robinsons Land Corporation

Robinsons Land Corporation (“RLC”), incorporated in 1980, is the real estate arm of JG
Summit. It is one of the leading real estate and property developers in the Philippines, with a
proven track record of over 40 years in the industry.

It is the second-largest mall operator in the country with its extensive portfolio of 53 lifestyle
centers nationwide.

Image Source: Google Images

It has 28 prime office developments anchored on the resilient BPO sector, and it is the
Sponsor of the biggest Philippine Real Estate Investment Trust in terms of asset size and
geographic spread. RLC also has five workable centers in the growing flexible workspace
segment.

It is the largest hotel developer and operator in terms of the number of hotels with its 24
diverse, multi-branded hotel properties consisting of the first Filipino five-star hotel, upscale
deluxe hotels, mid-market boutique city, and resort hotels, essential service value hotels, and
luxury resorts.

RLC has seven industrial facilities capitalizing on abundant opportunities in the logistics
sector and over 100 residential properties, including three iconic joint venture residential
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projects with some of the biggest real estate names in Asia. Furthermore, it has 20 mixed-use
developments, including three landmark Destination Estates that espouse the Live-Work-Play-
Inspire lifestyle.

Each project of RLC has led to the rise of thriving, harmonious communities, in line with JG
Summit’s vision to make life better for the Filipino nation.

8. Rockwell Land

Rockwell Land pioneered the “city within a city” concept that defines Manila’s real estate
landscape today.

In the 1990s, the company developed Rockwell Center – a “mini-city” on the site of a former
power plant. This development quickly became popular among foreigners and Filipinos, and it
launched a new trend of comprehensive real estate developments.

Image Source: investasian.com

Today, Rockwell Land is best known for its luxury real estate. Most of its projects are within
Metro Manila, but it has a presence in other major cities like Cebu.
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 As a high-end developer, most of Rockwell’s properties are expensive by Philippine
standards. A townhome at 205 Santolan costs nearly $500,000. The company’s more affordable
options, such as The Grove, still cost over $100,000.

9. Century Properties

Century Properties Group, Inc., (CPGI) is one of the leading real estate companies in the
Philippines with a 34-year track record. The Company is primarily engaged in the development,
marketing, and sale of mid- and high-rise condominiums and single detached homes, leasing of
retail and office space, and property management.

Image Source: Google Images

As of December 31, 2019, the Company has completed 28 projects, which include the
following: 25 residential buildings, consisting of 14,362 units with a total gross floor area (GFA) of
1,147,194 sq.m. (with parking); a retail commercial building with 52,233 sq.m. of GFA (with
parking); a medical office building with 74,103 sq.m. of GFA (with parking); an office building with
56,284 sq.m. of GFA (with parking). In addition, the Company has completed a total of 866 homes
under its affordable segment.

This is in addition to the 19 buildings totaling 4,128 units and 548,262 sq.m. of GFA that were
completed prior to 2010 by the founding principals’ prior development companies, the Meridien
Group of Companies (“Meridien”). Noteworthy developments under Meridien are the Essensa
East Forbes and South of Market in Fort Bonifacio, SOHO Central in the Greenfield District of

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Mandaluyong City, Pacific Place in Ortigas, Le Triomphe, Le Domaine, and Le Metropole in
Makati City.

Though it has a handful of other projects, Century Properties specializes in high-rise condo
buildings. Most of these developments are luxury units, which can cost upwards of $100,000. Yet
Century does offer some affordable, mid-level housing at Commonwealth and Acqua Private
Residences.

10. Shang Properties

Shang Properties is owned by the Kuok Group – the Singaporean real estate firm behind
the Shangri-La hotel chain. As such, most Filipinos know Shang Properties as the Philippine
property developer that brought the Shangri-La brand to their country.

Image Source: Google Images

In recent years, Shang Properties has shifted its focus from hotels to residential real estate. It
primarily builds high-rise luxury condos in prime locations, keeping in line with the Shangri-La
brand.

A standard condo at One Shangri-La Place in Metro Manila will thus cost at least $100,000.
Other properties, such as Shang Salcedo Place, have slightly lower prices, but you’ll be hard-
pressed to find a Shang property for less than $90,000.

Currently, Shang Properties plans to continue to expand into the residential market with even
more projects on the horizon.

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 II. Housing Delivery Process in the Philippines
A. What is Housing?

Housing is the buildings or structures that individuals and their families may live in that
meet certain federal regulations. Different housing situations vary for individuals and may depend
on age, family, and geography.

B. Housing in the Philippines

In the Philippines, less than 1/3 can afford proper shelter. In Metro Manila alone, there are
3.1 informal settlers; 23% stay on government land, 22% in private properties, 15% in danger
zones (which include the streets, bridges, riversides, and along train tracks), and 40% on
infrastructure sites. There still exists a huge problem with housing in the Philippines. Various
factors affect this such as financing, government policies and interventions, institutional subsidies,
and the values and culture the Filipino people illustrate.

Image Source: Google Images

C. Housing Problems/ Social Issues

The Philippines is beset with a huge backlog in providing land security and housing for the
poor. Two basic problems being faced by the government in realizing a successful housing
program are:

 Money
 Availability of land
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 Other issues hampering pro-poor land and housing programs:

 High transaction costs due to the confusing and unclear land use policies
 Non-cooperation of land owners to engage in the Community Mortgage Program
(CMP)
 Misinterpretation and/ or non-implementation of local government units (LGUs)
 Other problems pertaining to housing are the provision of land and housing to
internally displaced persons (IDPs) due to natural hazards and armed conflicts.

Informal Housing

The magnitude of the housing need (defined as backlog plus new households) is
staggering and has been estimated to reach more than 3.7 million in 2010. In Metro Manila alone,
the total backlog (to include new households) has been projected to reach close to 500,000 units.

Image Source: Google Images

Addressing this backlog will roughly require about 3,000 hectares of land to be designed
to accommodate detached housing units, a prospect that suggests the need for a higher density
housing strategy if the housing deficit is to be effectively addressed. Beyond the provision of
housing by the public sector, new approaches are needed especially since rural-urban migration
is expected to continue and will exacerbate the housing problem.
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 Homeless

In cities of industrial countries, the number of homeless people has increased and their
existence has become a social problem since the 1980s. In cities of developing countries, the
number of street homeless who cannot live even in squatter areas has increased since the end
of the 1990s. These people face serious problems in surviving on the streets. They are an urban
minority deprived of human rights and excluded from society. However, the problem of street
homeless has not yet been constructed as a social problem in developing countries because it is
overwhelmed by the large-scale squatter problem. The street homeless has been regarded as a
part of the squatter homeless.

Image Source: Google Images

D. Housing Affordability and Delivery

A significant part of the problem plaguing the housing sector in the country is the lack of
affordability. The fundamental solution to this problem is again rooted in economic growth, which
provides employment and income to households, which can then increase affordability levels. In
the short to medium term, increasing the availability of housing credit and financial resources and
lowering the cost of land and housing production can make a significant difference.

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 E. Government Housing Strategies

The National Shelter Program (NSP) represents the Philippine action agenda for housing.
It is a comprehensive strategy of the government to assist homeless low- and middle-income
families in meeting their housing need through affordable housing opportunities. Under the NSP
are five major schemes categorized into two main groups:

 Direct Housing which includes: (i) housing production; (ii) community programs;
(iii) developmental loans; and
 Indirect Housing, which is composed of: (iv) home mortgages and (v) guarantees.

In this regard, Executive Order (EO) 90, series of 1986 outlines the mandates of the
government agencies involved in the delivery of the NSP and recognizes the need to engage the
private sector in housing delivery and finance.

F. Housing and the Government and its Delivery System

The responsibility of the government to ensure the provision of decent and affordable
housing to every Filipino is contained in the Constitution, which mandates the State to undertake
a continuing program of urban land reform and housing, which will make available at affordable
cost decent housing and basic services to underprivileged and homeless citizens in urban centers
and resettlement areas.

From 1978 to the present, the NSP has remained the key housing agenda of the
government. The program’s objective as well as mechanisms to achieve that objective remain in
force today.

Initially, the government adopted a highly centralized system of managing the program.
This was done through the creation of a Ministry of Human Settlements (MHS) in 1978, which
served as the umbrella organization of all shelter agencies that had evolved since the 1950s.
These agencies include the following:

1. National Housing Authority (NHA), in charge of social housing production

specifically upgrading of sites and services

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 2. Human Settlements Development Corporation (HSDC), also into shelter
production and New Town and Estate developments
3. National Housing Commission (NHC), supports the HSDC and NHA in shelter
production
4. Human Settlements Regulatory Commission (HSRC), regulates subdivision
development and socialized housing construction
5. National Pollution Control Commission (NPCC)
6. National Environmental Planning Council (NEPC)
7. Housing Finance Corporation (HFC), provides mortgage insurance or
guarantees to encourage private banks and financial institutions to grant housing
loans on easy terms of payment
8. National Home Mortgage Finance Corporation (NHMFC), acted as a secondary
market for housing mortgages
9. Home Development Mutual Fund (HDMF), a provident savings fund maturing
after 20 years

Toward the end of the 1980s, a rationalization of the shelter agencies was undertaken.
The Ministry of Human Settlements was dissolved, and in its place, the Housing and Urban
Development Coordinating Council (HUDCC) was organized. Comparatively, the HUDCC had
limited powers over the shelter agencies, since its main task was to coordinate the shelter
agencies in the implementation of the NSP. The reorganization also reduced the number of key
shelter agencies from nine to five (originally): NHA, SHFC, HDMF, HGC, NHMFC, AND HLURB.
(But later SHFC was included.)

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References:

I. Highly Integrated Firms in the Philippines

 https://www.investasian.com/property-developers/philippine-property-developers/
 https://www.ayalaland.com.ph/about-us/
 https://www.megaworldcorp.com/company
 https://www.smprime.com/corporate-profile/
 https://filinvestland.com/our-company/company-background
 https://federalland.ph/
 https://www.robinsonsland.com/
 https://www.century-properties.com/our-company/

II. Ekistics: The Science of Human Settlement
 https://www.slideshare.net/allonaalejandre9/community-development-aspect-of-
housing?from_action=save
 365098987-Housing-Delivery-System-in-the-Philippines.pdf

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