Property firms see dorm-type developments as next big thing

Property companies are seeing dormitory-type developments or co-living spaces for young urban professionals as the next big thing in the sector which could become their new leg of growth, industry players told The STAR.

DMCI Holdings chairman Isidro Consunji said they would announce a joint venture soon for such a development given the growing demand.

“We are preparing a joint venture for the new format,” Consunji said.

He hinted the planned project may not necessarily be built as a dormitory, but may be used for the purpose.

Taipan Lucio Tan’s Eton Properties Philippines Inc. may also consider exploring the format, similar to what Eton did in Hong Kong, said its president Lucio “Bong” Tan Jr.

In a recent interview, the younger Tan said Eton could look into this but would have to study the pricing.

In Hong Kong, Tan’s Eton converted former luxury apartments into a dormtype development known as Mini Ocean Park Station which has 270 units. Young professionals such as investment bankers are among Eton Hong Kong’s clients in the new development.

Property consultant David Leechiu said professional dorms would be a big market in the Philippines.

“Developers are now entering the dormitory market to provide great quality but affordable living spaces near the business districts,” Leechiu said on Saturday in a briefing organized by COL Financial. “It’s going to be a big market.”

Leechiu said demand is growing because of the worsening traffic situation in the country.

“There is rising demand for dormitories as the metropolitan traffic situation worsens and the need for affordable living spaces inside the city continues to grow,” Leechiu said.

Existing players include MyTown of SM Investments Corp. and the Philippines Urban Living Solutions Inc. and Ayala Land Inc.,’s The FLATS.

MyTown is a dormitory builder backed by Mark Mobius’ Templeton Emerging Markets Group and Ayala-led BPI Capital Corp.

PULs set up MyTown in 2011 and formally established in 2012 as the first Philippine company that specializes in building 10 to 20-square meter affordable units, rented out near Metro Manila central business districts, specially catering to the underserved young professional demographic.

Aimed at young professionals, MyTown’s dormitories are equipped with attractive amenities and targeted retail facilities that allows its tenants to save on travel time and transportation cost.

It operates at least five projects with over 1,000 beds and is constructing an additional five projects that can house an additional 1,400 beds. The target is to utilized and expand its land bank to reach 6,000 beds by 2018.