MÁTA-NAW

Blending Modern Living with Natural Beauty:

A Mid-Rise Condominium and Hotel in Tanay, Rizal

CHAPTER 1:

INTRODUCTION

1.1 The Problem and Its Setting

1.1.1 Introduction/ Background

In the Philippines, residential real estate consists of high-class communities, mid-

range subdivisions, condos, and both public and private housing. According to a poll
conducted in 2020, the majority of Filipino families are single-family homes, with more
than half being property owners. Leasing in condominiums, buying rent-to-own units
in subdivisions, and renting flats are all widespread in big cities like Metro Manila.
Condos may sell for as much as 220,000 Philippine Pesos per square meter on
average. But the migration of households out of rural regions has created a need for
low-cost, communal housing, especially for low-income families. The geographic
position of the nation renders it vulnerable to natural calamities, which has an additional
impact on the housing situation. A decision to hasten the inventory of government lands
that are idle and to create socialized housing for informal settlers has been accepted by
government agencies and the business sector.
The Philippines market for condominiums and hotels is expanding.
Condominiums are becoming a desirable asset class due to rising foreign investment
and a thriving tourism sector. Hotels can contribute to the economic and social
development of the area they operate. The demand for condominiums and hotels is
further fueled by the trend toward urbanization and the desire for adaptable lodging
choices. For investors, rental income from condos may be a reliable source of income.
A constant source of revenue may be generated by renting out apartments to tourists or
business visitors with the right management and marketing.
A condominium and hotel are only a financially sustainable business if it has a
rental program. Condominium purchasers can rent out their flats as a component of the

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Blending Modern Living with Natural Beauty:
A Mid-Rise Condominium and Hotel in Tanay, Rizal

hotel business in return for a portion of the rental revenue, and occasionally almost all
of it. The marriage of the condominium interest with a rental agreement connecting the
condominium interest to the hotel is what distinguishes the modern condo-hotel project.
The condominium and hotel, which may include both commercial and residential units,
including the hotel's operational spaces, dining areas, and bars, are similar in design to
condominium regimes formed under state law. The mixed-use design allows for easier
management of the whole project by the owners of the commercial component of the
building through the condominium owner association than they could with a
condominium complex that is exclusively for residential use.
The topic of condominium and hotel investing has drawn a lot of interest in the
Philippine real estate market. Condominiums and hotels are growing in popularity as
viable investment choices for both local and international investors as the tourist sector
expands. Although there are many benefits to this unusual investment choice, there are
also hazards and difficulties.
A condominium and hotel can provide a wide range of amenities to meet the
demands of their guests and residents. These amenities can satisfy people's wants and
aesthetic preferences. Common features of both hotels and condominiums include the
following.
An indoor artificial waterfall is a water feature that mimics a natural waterfall,
commonly used in traditional Japanese gardens to highlight scenes or provide focus.
There are various types, ranging from small indoor fountains to large outdoor
installations, some resembling natural waterfalls.
Rooftop cinema is one method that combines a well-liked and thrilling means for movie
buffs in Hong Kong to enjoy films surrounded by breathtaking panoramic views. This
innovative cinematic experience combines elements of cinema, nature, and urban
landscapes, making it perfect for romantic date nights, gatherings, or unique events. The
article delves into the history of rooftop cinema in Hong Kong, its benefits and
challenges, iconic nightscapes, and the unique experience of rooftop cinema in this
bustling metropolis. It provides a unique ambiance, enhancing the overall cinematic
experience and providing a social gathering space for connecting and creating lasting

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Blending Modern Living with Natural Beauty:
A Mid-Rise Condominium and Hotel in Tanay, Rizal

memories. However, in another sense spas, renowned for their healing baths and medical
services, are well-liked for their health treatments, and healing baths, are prevalent in
Asia and Europe. They come in various forms, including hot tubs, jetted tubs, and
Jacuzzis. Portable spas are installed above ground, while hotels and resorts may have in-
ground spas. The clubhouses are essential amenities in residential real estate projects,
enhancing the desirability of apartments and contributing to residents' enjoyment. They
provide a common area for socializing, recreation, and event hosting, making them ideal
for fitness enthusiasts and ensuring child safety.
Green spaces, like parks and gardens, offer numerous benefits to urbanites,
including recreational amenities, ecological upkeep, environmental beautification,
disaster mitigation, aesthetic enhancement, physical and mental health improvement,
energy reduction, wildlife habitats, and carbon sequestration. Central Park in New York
City is an example of a green area with over 18,000 trees and one surviving American
elm stand.
Amenities like indoor activities provide a controlled environment for focus and
enjoyment, like board games, while outdoor activities involve physical exertion like
navigation and climbing. Balancing indoor and outdoor activities and digital detox is
essential for overall well-being, ensuring a balanced lifestyle.

1.1.2 Statement of The Problem

The study evaluates Tanay, Rizal's tourism sector as a developing ecotourism

destination, emphasizing marketability, human resource proficiency, and local
government development programs. It implies that the township could develop into a
hub for farm-to-table tourism, complete with reasonably priced lodging and resort
features from hotels and condos. The market is drawn to natural settings and informal
Filipino dining. Travel agencies have a good chance of succeeding, but the local
community's industry expertise requires extensive training and education.

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Blending Modern Living with Natural Beauty:
A Mid-Rise Condominium and Hotel in Tanay, Rizal

One of the thirteen towns and one component city that make up the province of
Rizal, the Municipality of Tanay, is situated 54 kilometers southeast of Metropolitan
Manila, the country's economic center. According to Tanay Gov.ph, the province's
coastal settlements surrounding Laguna de Bay and a part of the Sierra Madre Mountain
range, it has been fully aware of the need to enforce environmental protection programs.

The number of visitors staying a night in this first-class municipality also dropped
to 1,241,633 in 2020 from about 5,816,847 million in 2019. The number of guests
staying overnight in 2021 inched up to 160,941 and even tripled to 349,969 last year. A
total of 33,670 travelers have already spent the night in Tanay since January, TTO data
showed.

Tourism demand refers to the volume of goods or services people are willing to
purchase at a certain price within a specific time frame. It varies with the hours and
seasons, with new tourists entering the market seeking excellent service and value.
Seasonality can have both positive and negative effects on the tourism industry, with
peak seasons straining resources due to congestion and low seasons potentially leading
to facility loss and under-use.

Main Problem

The bustling and culturally vibrant city of Tanay Rizal stands as a beacon of economic
potential and cultural richness. However, beneath its exterior lies a complex set of
challenges within the accommodation sector that warrant immediate attention. As the city
strives to attract a growing number of visitors and cater to the needs of its diverse
population, the existing accommodation in Tanay Rizal encounters issues related to
capacity, accessibility, quality, and regulatory frameworks have emerged. the
accommodation landscape in Tanay Rizal faces multifaceted challenges. A comprehensive
analysis is required to understand the intricacies of these challenges and to identify strategic
pathways for enhancing accommodation that align with the unique characteristics and
aspirations of Tanay Rizal.

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Blending Modern Living with Natural Beauty:
A Mid-Rise Condominium and Hotel in Tanay, Rizal

Consolidation of All Approved Subdivisions, Tanay

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Blending Modern Living with Natural Beauty:
A Mid-Rise Condominium and Hotel in Tanay, Rizal

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Blending Modern Living with Natural Beauty:
A Mid-Rise Condominium and Hotel in Tanay, Rizal

Residential real estate price index Philippines 2016-2022

• In 2022, the residential real estate price index in the Philippines was at 145.5
index points. The country's index points of housing units have significantly
increased over the past five years - except for a slight decline in the previous
year.

The Residential Real Estate Price Index (RRPI) is used to measure the rate at
which the price of residential properties changes over time. It is also an
indicator to assess the country's real estate and credit market situation.

Tenure status of households occupying housing units Philippines 2022

• According to a 2022 survey, about 60 percent of households in the Philippines

occupied housing units and lots they owned. On the other hand, 9.5 percent of
Filipino families were renting a house or room, including a lot.

Share of households occupying residential units Philippines 2022, by building type

• According to a 2022 survey, the overwhelming majority of households in the

Philippines resided in a single-house unit. In comparison, only 0.5 percent of
Filipino households live in a condominium unit or condotel.

Share of households living in residential units Philippines 2022, by floor area

• A 2022 survey revealed that more than half of households in the Philippines
resided in a residential unit that had a floor area of around 10 to 49 square
meters. Only 3.2 percent of Filipino households lived in a housing unit with a
floor area of 200 square meters and above.

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Blending Modern Living with Natural Beauty:
A Mid-Rise Condominium and Hotel in Tanay, Rizal

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Blending Modern Living with Natural Beauty:
A Mid-Rise Condominium and Hotel in Tanay, Rizal

Migration Patterns

Despite being regarded as a rural community, the town is definitely quite

susceptible to migrants because of its close proximity to Manila. Also due to various
infrastructure development, wherein more roads and bridges were built, have made the
town accessible to nearby towns and provinces. Areas that were not habitable and
accessible before, are now available and within reach, makes it even more appealing to
outsiders.

A total of 10,666 migrants were identified by the MPO in 2015 which was
equivalent to the 9.00% of the 2015 total population of Tanay, with negligible difference
on sex proportions, 49.78% - Males and 50.01% - Females. Majority of migrants were from
young individuals under the following age categories: 72.19% - Working – Age Group
(ages15-64 years old) and Dependent Age Group (ages 0 – 14) with 24.89%, while Old
Age Group (ages 65 and over) with 2.92%. They came from various provinces – Manila,
Bicol, Pampanga, Pangasinan, Visayas Region, even foreigners (Vietnamese and Indians).
As per MPO’s assessment interview, movement of population in Tanay were motivated by
the following reasons: seeking better economic condition.

TABLE 13. Migration by Age Group and Sex, 2015

Number of Migrants
Age Group Both Male Female
Sexes
0-14 2,655 1,343 1,312
15-64 7,700 3,836 3,864
65 and over 311 141 170
Total 10,666 5,320 5,346

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Blending Modern Living with Natural Beauty:
A Mid-Rise Condominium and Hotel in Tanay, Rizal

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Blending Modern Living with Natural Beauty:
A Mid-Rise Condominium and Hotel in Tanay, Rizal

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Blending Modern Living with Natural Beauty:
A Mid-Rise Condominium and Hotel in Tanay, Rizal

Table 3.15 Return of Investment

AMENITIES

TOTAL FLOOR PRICE PER SQM TOTAL PRICE PER

AREA (PHP) YEAR (PHP)

PARKING AREA 1,700 2,000 3,400,000

OUTDOOR 2,500 175,000 63,000,000

CINEMA

OUTDOOR 1,200 5,000 6,000,000

SPA/FITNESS
COMMERCIAL

CENTRAL PARK 11,000 35,000 385,000,000

RENTABLE 7,000 3,000/month 252,000,000

STALLS

RESTAURANT 2,000 3,000/month 72,000,000

OUTDOOR 1,000 3,000/month 36,000,000

DINING

Note: This computation is just a preliminary estimate of the proponents

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Blending Modern Living with Natural Beauty:
A Mid-Rise Condominium and Hotel in Tanay, Rizal

HOTEL

STANDARD 9,000/250 unit 4,700/day 374, 400, 000

DELUXE 9,600/200 unit 8,500/day 684, 000, 000

LUXURY 6,200/100 unit 12,200/day 439,200,000

CONDOMINIUM

STUDIO TYPE 1,800/50 unit 40,000/ month 24,000,000

UNIT

1 BEDROOM UNIT 1,560/30 unit 55,000/ month 19,800,00

2 BEDROOM UNIT 2,250/30 unit 70,000/month 25,200,000

3 BEDROOM UNIT 1,800/20 unit 90,000/month 21,600,000

PENTHOUSE 240/2 unit 150,000/month 3,600,000

ADMINISTRATIVE

BUILDING ADMIN 200 3,000/month 7,200,000

ANNUAL GROSS INCOME 2,952,600,010

Note: This computation is just a preliminary estimate of the proponents

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Blending Modern Living with Natural Beauty:
A Mid-Rise Condominium and Hotel in Tanay, Rizal

Table 3.16 Total Building Construction Cost

RESIDENTIAL

NO. FLOORS FLOOR PARAMETER TOTAL COST

AREA(SQM) COST

CONDOMINIUM 9 850 40,000 306,000,000

HOTEL 13 1, 907 35,000 867, 685, 000

COMMERCIAL

COMMERCIAL 2 5,000 30,000 300,000,000

STALLS

AMENITIES

RECREATIONAL 5 3,280 140,000 2,296,000,000

FACILITIES

ADMINISTRATIVE

ADMIN 2 200 37,500 15,000,000

BUILDING

TOTAL BUILDING COST 3, 784, 684, 000

Note: This computation is just a preliminary estimate of the proponents

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Blending Modern Living with Natural Beauty:
A Mid-Rise Condominium and Hotel in Tanay, Rizal

Table 3.17 The Annual Return of Investment

FURNISHING AND EQUIPMENT

Estimate 40% of total Construction cost

1,513,873,600.

ESTIMATE

TOTAL REVENUE FOR 5 YEARS 2, 952, 600, 010 x 5

= 14, 763, 000, 050

GRAND TOTAL COST 5, 298, 557, 000

ESTIMATE

CURRENT VALUE 14, 763, 000, 050

COST OF INVESTMENT 5, 298, 557, 000

PROFIT 9, 464, 443, 050

RETURN OF INVESTMENT

9, 464, 443, 050 x 100 55.92% in 5 years

5, 298, 557, 000

55. 92% + 11.18% per year (increased)

5 years

Note: This computation is just a preliminary estimate of the proponents

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