SOCIO-CULTURAL & INSTITUTIONAL ASPECTS OF HOUSING
CHAPTER 7
MARKET ANALYSIS
& HOUSING
A real estate market analysis is a study of current market values of homes,
comparable to yours, that helps you determine the market value of your house.
Market value is a figure that best describes what a willing buyer will pay for the
home under current market conditions.
ARCHT. MARCELINO ENALAS DUMPA, ASST. PROF
LEARNING OBJECTIVES
The student will be able to learn;
1. the gap of the housing market between the demand and
supply with respect to the affordability issue of the low
income family sector.
2. know the present housing loan package per housing type
for socialized housing available for housing finance.
3. how the market analysis as an important tool in the
reduction of housing backlog.
INTRODUCTION
The goal of an analysis is to determine the attractiveness
of a market both now and in the future.
The housing market is comprised of buyers and sellers of
homes.
Information on the housing market encompasses the
supply and demand for homes as well as the inventory
level of unsold homes.
KEY FEATURES OF THE HOUSING MARKET
The Philippine housing market reveals a tremendous gap
between the demand and supply of housing.
The root of this housing shortage is the fact that the
majority of households are unable to pay for the cost of
housing and land.
KEY FEATURES OF THE HOUSING MARKET
LOWCOST: The minimum housing cost of P580 thousand per
unit is 3.8 times the yearly wages of an unskilled laborer in
1997, (now 850K updated 2023).
SOCIALIZED: Likewise, a P850 thousand / unit housing is 3.1
times the annual income of an employee earning a median
income of P17,000 per month.
Average annual housing price appreciation in the
Philippines (i.e. Manila) is 32 percent per year, the highest
among other major cities in Asia (HABITAT and World Bank).
Department of Human Settlement & Urban Development (DHSUD) & National Economic
Development Authority (NEDA)
ADJUSTED PRICE
CEILING:
Joint Memo Circular
TYPE CURRENT ADJUSTED
(JMC) 2023-003:
Subject: Adjusting 1. SOCIALIZED 580 K 850 K
the price ceiling for HOUSING
Socialized 2. SOCIALIZED
CONDO
22 SM
25 SM
993,320 K
1.060 M
Subdivision and (4-5 STOREY) 27 SM 1.145 M
Condominium 3. SOCIALIZED
CONDO
22 SM
25 SM
I.0 M
1.136 M
Project. (5-9 STOREY) 27 SM 1.227 M
W/ LAND DEV CONDO COST 1.8 M MAX
DIMENSIONS OF MARKET ANALYSIS
Organizations evaluate the
future market attractiveness
by gaining the understanding of
strength, weakness,
opportunities and threats
(SWOT).
EIGHT (8) MARKET ANALYSIS DIMENSIONS
1. Size
2. Trends
3. Growth Rate
4. Profitability
5. Cost Structure
6. Distribution Channels
7. Success Factors
8. Success Details
MARKET SIZE
Define by its realized market sales volume and its potential
which is either measured by quantities or qualities.
Four (4) Market Size Sources
1. Trade Association Data
2. Government Data
3. Major Players Financial Data
4. Customers Service
MARKET GROWTH RATE
An increase in
the demand for a
particular product or service o
ver time.
Market growth can be slow
if consumers do not adopt
a high demand or rapid if
consumers find the product
or service useful for
the price level.
MARKET PROFITABILITY
Defined as the amount
of profit
generated by each
individual customer or a
company.
Usually a small percentage of
customers generate the most
profit.
INDUSTRY COST STRUCTURE
A method to determine how
much it will
cost a company to construct a
housing unit and how
much profit will be
recognized from building the
structure.
DISTRIBUTION CHANNEL
The path through
which goods and
services travel from
the vendor to
the consumer or
payments for
those products travel from
the consumer to the
vendor.
DISTRIBUTION CHANNEL
A distribution channel can be
as short as a direct
transaction from the vendor
to the consumer, or may
include several
interconnected
intermediaries along the
way such as wholesalers,
distributers,
agents and retailers.
DIAGRAM
EXAMPLE:
GOVERNMENT DATA ( Philippine Residential Property Market
Analysis 2024)
The Philippines residential property market has performed
spectacularly, due to robust economic growth.
During the year to Q1-Q4: 2024, the nationwide residential
real estate price index rose by 6.1 % (inflation adjusted),by
quarter; 10.2 % (Q1), 14.1 % (Q2), 12. 9 % (Q3) and 6.5 %
(Q4) according to the Bangko Sentral ng Pilipinas (BSP), the
country’s central bank.
GOVERNMENT DATA
By PROPERTY TYPE:
Condominium units saw price increase of 10.6 % (inflation-adjusted)
in Q1 2024
Single Detached/Attached house prices rose by 3.2 % (inflation-
adjusted) in Q1 2024
Duplex House prices rose by 27.1 % (inflation-adjusted) y-o-y in Q1
2024
Townhouse prices rose by 0.8 % (inflation-adjusted) over the same
period
MARKET TRENDS:
It is the upward and downward market movement
during a period of time.
In this case, figures had to be derived from potential
customers or segments.
EIGHT (8) MARKET TREND TECHNIQUES
1. Customer Analysis
2. Choice Modeling
3. Competitor Analysis
4. Risk Analysis
5. Product Research
6. Advertising Research
7. Mix Modeling Marketing
8. Simulated Test Marketing
MARKET TRENDS
ECONOMY OF SCALE
In microeconomics, economies of scale are the cost advantages
that enterprises obtain due to size, output, or scale of operation,
with cost per unit of output generally decreasing with increasing
scale as fixed costs are spread out over more units of output.
MARKET SEGMENTATION
Market segmentation is the technique used to identify the
specific needs and wants of customer groups and then
using those insights into providing products and services
which meet customer needs.
Segments are usually measured in terms of sales value or
volume.
In the diagram below, segment B is twice the size of segment
C:
DIAGRAM
HOUSING FINANCE
The purpose of housing finance is to provide funds which
home buyers need to purchase homes.
A simple objective and number of ways in which it is limited,
as a result of government action and a very complicated
housing finance systems that have been developed.
SEVEN (7) GOVT. AGENCIES IN HOUSING FINANCE:
1. Home Guaranty Corporation (HGC)
2. Housing & Urban Development Coordinating
Council (HUDCC)
3. Home Development Mutual Fund (HDMF)
PAG- IBIG FUND
4. Housing & Land Use Regulatory Board
(HLURB)
5. National Housing Authority (NHA)
6. Social Housing Finance Corporation (SHFC)
7. National Housing Mortgage Finance Corporation
(NHMFC)
FUNDING SOURCES
Seven (7) Funds for the Urban Development and Housing
Program shall come from ff. sources;
1. Fifty Percent (50%) from Annual Net Income Public Estates
Authority, used by NHA to carry land acquisition for
resettlement purposes.
2. Proceeds from ILL Gotten Wealth administered by National
Home Finance Corp.
3. Loans, Grants, Bequests and Donations
from local or foreign sources.
4. Bond Flotation subject to Monetary Board
guidelines.
5. Social Housing Tax subject to
concurrence to LGU concerns
6. Sale of Alienable Public Lands in Urban
Areas
7. Domestic & Foreign Investment through
appropriate build-operate-transfer
scheme.
HOUSING FINANCE SUBSIDIES
Appropriate environment for mobilization of adequate
funds.
Three (3) Housing Market Sectors:
Ultra Poor/Marginalized
Low Income
Middle / High Income
RA 7835, 1994: COMPREHENSIVE & INTEGRATED
SHELTER FINANCING ACT (CISFA)
Implement the following vital components of the National
Shelter Program:
Resettlement
Medium Rise Public
Private Housing Program
Land Banking to ensure availability of land to sustain
Resettlement Program.
Manage / Administer Trust Fund for the Medium Rise Public
and Private Housing.
EIGHT (8) TARGETS OF RA 7835:
1. Continuous Funding
2. Low-Cost Housing Acquire Capability
3. Sustainable Finance
4. Public-Private-Partnership
5. LGU Participation
6. Balanced Shelter Development
7. Housing Regulations
8. Technical Manpower Resources.
MARKET ANALYSIS
& HOUSING
THE END
