DMCI Homes in 2007: Year of growth spurs higher prospects for 2008
DMCI HOMES in 2007:
Year of growth spurs higher prospects for 2008
The year 2007 will be etched in the history of DMCI Homes as a momentous period of growth, when, as a relatively young player in a highly-competitive industry, it furtively achieved its sales target for the year at P7.5 billion. The years before that already dictated the gradual increase in actual sales performance, as the company embraced a new thrust and embarked on a more ambitious direction. But it was only in 2007 when DMCI Homes finally scored a significant growth - it is now the company's stance to keep this level up and even improve it for the coming years.
DMCI Homes is no longer just a fledgling player as initially foreseen by its competitors. It is a force to be reckoned with in the industry, recognized for its inimitable vision of addressing the needs of the underserved and young middle-income market. In 2007 alone, 1,848 units were turned over by the company as ideal homes for growing households - they join more than 5,000 units which have been turned over by DMCI homes since its inception in 1999. Today, over 4,000 amilies have moved in to well-planned residential developments that adhere to contemporary living, world-class design and innovation.
The country's first Triple A builder/developer is raring for bigger, brighter prospects. With a world-standard level of craftsmanship borne out of more than 50 years' experience in the construction and development industry, the company is ready to claim its place in the industry as the best provider of exceptional residences for young families with modest income who deserve such a first-rate property.
Five values of idyllic living found in every DMCI Homes development remain as the key propositions that attract would-be buyers: In-city modern living, Medium density projects, Resort living, Themed developments, and Worry-free living with property management.
Highlights for 2007
"We were all pleased to achieve the sales target at P7.5 billion," said Florante Ofrecio, DMCI Homes' Director for Sales. "It started five years ago when we almost doubled sales every year. Of course, it's the result of our hard work and the company becoming more mature, efficient, and organized."
The figures recorded for 2007 alone proved to be very impressive for the company and the rest of the industry which started to take notice: 3,577 units sold; 298 average units sold per month; an estimated of only 14% back out rate. That means a total of 8,216 units sold from 1999 to 2007.
"It's a combination of our 50-year experience in the industry being put to good use and our new projects which have upped the ante in residential developments," Ofrecio noted. "Basically the strength of the company is in the products we offer. When it comes to medium rise developments, we are unbeatable in that category. Even for high rise projects, our strength is the aggressive pricing strategy which is unmatched. We're the only one in the industry which allows a 20% downpayment offer for move-in for a high-rise projects," he added.
Ofrecio likewise attributed their success to the company's fast turnover and move-in process, leading to more projects that meet the demand of the market. "For mid-rise, nobody can beat us. We deliver in as short as 10 months from groundbreaking. We're even the fastest in high rise, it's less than three years while others take up to five years before they deliver the project."
Riding on the momentum of the previous year, DMCI Homes is looking at 2008 as another opportunity to flex its muscles and beef up operations to achieve the sales target of P11 billion - a 47% increase from last year's P7.5 billion.
The company will derive inspiration from the success of several projects which fared better in 2007. These are Bonifacio Heights Condominiums in Fort Bonifacio - which caters to the housing needs of the men and women of the Armed Forces of the Philippines; Rosewood Pointe - a Neo-Asian development in Taguig singled out for its generous spaces and lush resort ambience; Riverfront Residences - Pasig's modern Asian paradise that celebrates a resort lifestyle; Tivoli Garden Residences - a high rise garden community in Mandaluyong which offers lush Asian tropical sky gardens; and Woodland Hills Subdivision - a suburban sanctuary in Carmona, Cavite offering prime lots for growing families.
The trend continues for DMCI Homes this year, through fast and efficient delivery of units to excited homebuyers. This year alone, a total of 1,011 units from mid-rise and high-rise communities will be ready for occupancy.
The projects are the high-rise Jakarta building of Raya Garden Residences which has a total of 269 units - 23 of which has already been occupied since its announcement of ready for occupancy in February. A total of 246 units are left to be occupied for 2008. Raya Garden Residences is a Bali inspired urban sanctuary, strategically located in Paranaque.
On the other hand, Riverfront Residences is offering a total of 489 deliverable units for 2008 at the Danube, Colorado, Jordan, Murray, Ganges, and Mississippi buildings. Colorado building has opened its doors to residents since December 2007, while Missouri is scheduled to be completed by December 2008.
Another popular development, Cypress Tower in Taguig, unveils its Belmira Towerwith a total of 276 units that will be ready for occupancy by June.
Tet Abad Santos, DMCI Homes project director, said that all DMCI Homes developments have distinctive features of their own which make them popular in the market.
"For Cypress Tower, it's undoubtedly the unique pinwheel configuration that provides optimal natural lighting and ventilation in all units. For Raya Garden and Riverfront Residences, it's the distinctive themed developments of these projects with their eye-catching designs that go beyond their aesthetic value. It's totally unlike other developments which flaunt frills that end up to be pretentious and awkward. DMCI Homes' themes and designs are meant to last and surpass trends like the Balinese touch at Raya which gives it character and distinguishes it from our other developments," Santos explained.
Strategies for 2008
Alfredo Austria, DMCI Homes managing director, discussed the company's aggressive action plan to meet its P11 billion sales target for 2008.
"We have set two critical strategies in order for us to achieve our sales objectives. First is to drive growth. We aim to maintain dominance in the real mid-income condo segment by having sustained inventory for the high rise condo projects such as Cypress Towers, Rosewood Pointe, Raya Garden Condominiums, Tivoli Garden Residences and Dansalan Gardens. Growth can also be achieved thru geographic expansion outside of the company's current market and the development of high volume generation mid-rise projects within the year," Austria said.
The industry is anticipating the lineup of DMCI Homes projects to be launched for 2008, expecting the company to outdo itself for previous years. The first in the pipeline is Royal Palm Residences in Taguig - a Thai-inspired, tropical-resort residential condominium nestled within DMCI Homes' Township Central. It will be designed as a haven with a balanced, healthy lifestyle for the upwardly-moving, young achievers and professionals seeking holistic wellness amidst the fast-paced urban life.
There is also the Illumina Residences Manila - a modern and exclusive residential high-rise condominium located in Sta. Mesa, Manila that provides a comfortable and efficient city living for the career-driven, moderately earning Filipino families.
Mahogany Place meanwhile will launch its third phase, a low-density, Asian-themed residential enclave situated within DMCI Homes' Township Central. Mahogany Place III will offer a quality pedestrian environment and landscaped community spaces for affluent families with sophisticated tastes in search of a home.
"The new projects in Taguig are part of the master plan of Township Central, an 86-hectare property that will house a variety of DMCI Homes projects. Royal Palm Residences and Mahogany Place III are the newest developments within this township. Such projects contribute to the realization of our vision of Smart Living thru the efficient use of space and smart engineering solutions borne out of years of following world-class building and design principles," Austria explained.
The expansion will reach newer locations including Las Piñas, Sta. Mesa, Pasig, Tandang Sora, and Pasay. "These sites were considered due to the demand for middle income projects in the vicinity. These areas are populated by Alfonsos, the company's personification of the mid-income segment who need to be in close proximity to their work and be near schools of their children. We are hoping to provide convenience and upgrade the quality of lifestyle within the areas where Alfonsos are familiar with already," Austria added.
Austria noted that the company will also launch new and improved development features and services for its Property Management Office (PMO). Several new product lines will be introduced to cater to the diverse needs of the market.
One of the newer products is Alta Vista de Boracay, the company's first venture into residential leisure development. "It's a different challenge to sell a leisure property, but we are following the same formula of aggressive pricing, excellent product quality, fast delivery, and other advantages which have given much success to our other projects," Austria noted.
The second approach to achieving DMCI Homes' sales objective for 2008 is to improve the company's operational efficiency. "We owe it to Alfonso or to the mid-income segment to tighten our costs and expenses through better systems, personnel redeployment and outsourcing to provide real value. We know we have to work as a team; the sales target is not just upon the shoulders of our sales force."
Austria cited the company's project development group as responsible for championing customer touch points. The design and construction group meanwhile reviews top concerns and needs of the customers to reduce spending in non-critical areas. This group ensures on-time product completion and consistent product quality. The marketing team works on delivering compelling communication messages and insights that answer real concerns of Alfonso.
"We are also organizing to drive sales performance by increasing coverage and enhancing efficiency of our sales channels through improved sellers' product knowledge and competencies. After the sales, we are working on enhancing our after sales service through systematically fulfilling documentation requirements and establishing loyalty via customer care. Rather than focusing our efforts in just selling or hitting our targets for 2008, we have vowed to champion customer satisfaction by delivering our products on time and creating lasting relationships with our dear residents," Austria added.
Meanwhile, Alfonso Cervero, Customer Care Division Director of DMCI Homes, further explained that the company's focus is on continuing education and training programs for its employees and agents, especially those who have personal interaction with the clients. "This is a highly competitive industry and we need to be extra diligent if we want to succeed. We are also working on our after-sales program and activities that will guarantee that customer satisfaction does not end on the sales transaction alone."
"We try hard to keep our customers happy. We try to make the buying experience for them as painless and as seamless as possible, from the time they are toured around the project site, to the processing of documents, and the transition stages until they can finally move in to their home," Cervero said.
The company's operational efficiency likewise redounds to the sales uptrend that they are presently enjoying. "The fast-moving units signify how happy or satisfied our customers are. A big portion of the selling efforts is through good customer experience. If you have satisfied customers, you get referrals," Cervero added.
Buoyed by its accomplishments, the company is now heading towards a future full of exciting prospects. In spite of all its successes however, DMCI Homes will always stay true to its vision of offering the best value for money products with the highest level of craftsmanship for more families in the country. The company will always deliver more than houses to its valued clients - it's the promise of a beautiful life which starts at home.