1. Mass Housing Market Overview
Housing Sector:
Demand and Supply

2. Demand: 3.8M units over 6 years
HOUSING NEED, 2005-2010
Category In Thousand Units
Housing Backlog 984,466
- Doubled-Up Housing 387,315
- Replacement/Informal Settlers 588,853
- Homeless 8,298
Substandard (Upgrading) 186,334
New Households 2,585,272
Total 3,756,072
Source: The Housing and Urban Development Coordinating Council (HUDCC)

3. Demand: 2.6M New Households
HOUSING NEED, 2005-2010
Category In Thousand Units
Housing Backlog 984,466
- Doubled-Up Housing 387,315
- Replacement/Informal Settlers 588,853
- Homeless 8,298
Substandard(Upgrading) 186,334
New Households 2,585,272 Or 431K
units/year
Total 3,756,072
Source: The Housing and Urban Development Coordinating Council (HUDCC)

4. Affordability: Affects actual demand
10 7.5
5.2 (42%)
MILLION FAMILIES
8
(29% of
population)
6
3.7
4 (21%)
2
1.2 0.1
(7%) (<1%)
0
Can't Socialized A ffordable Mid-Income High-End
A fford
•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)

5. 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

6. Supply: 52% of Mass housing Market Demand

7. Focus: socialized, affordable & middle-income housing
Socialized Affordable Middle-Income
Price Points: for a house and lot
Php 300K set by Pag-IBIG;
recently raised to Php 400K) Up to Php. 1.5 Million Up to Php. 4 Million

8. Housing types and qualified families
10
42%
8
MILLION FAMILIES
29% of
6 population
21%
4
2 7%
<1%
0
Can't Socialized Affordable Mid-Income High-End
Afford 70%
TARGET MARKET

9. 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

10. Growth Driver: Low interest rates providing affordable
housing packages
NEW HDMF(PAG-IBIG) LOAN PACKAGES
Monthly Monthly
Loan Amount Old Interest New Interest Amortization Amortization
(Pesos) Rate Rate for Old Rate for New Rate
(Pesos) (Pesos)
400,000 7% 6% 2,661.21 2,398.20
750,000 7% 7% 4,989.77 4,989.77
1,000,000 10.5% 8.5% 9,147.39 7,689.13
1,250,000 10.5% 9.5% 11,434.24 10,510.68
2,000,000 10.5% 10.5% 18,294.79 18,294.79
3,000,000 N/A 11.5% N/A 29,708.74
Source: HDMF