Market Feasibility Dane Apartment
Content
Market Feasibility In the Philippines, there are around 18,452 families who are renting in 2009. In the NCR, 2,462 families rent. The average rent per family in the NCR is 4,774 per month (NSO).
Source: National Statistics Office
According to Jones Lang Lasalle Leechiu (JLLL), a global real estate services firm, the demand for office space, residential condominium and apartments will continue to rise until 2015. The demand for apartments is fuelled by the rapidly-expanding business-process outsourcing (BPO) industry (primarily call centres). As seen to the graph at the right side, the prices of houses continue to increase. Thus, renting instead of buying is a favourable option today. In Navotas, where Danes apartment is located, demand is strong. Based on personal observations, people in Navotas are still looking for apartments. Following the trend in the market, demand will still continue to rise for a foreseeable future. Industry Attractiveness There is a lot of competition for the renting business. Condominiums are rising everywhere. The age of the industry is quite old already since renting a place to stay dates way back. The growth rate of the industry is on the rise. The population of the Philippines continue to rise and so does the need for apartments. Average income for a renting business the average rent per family in the NCR costs around P4, 774 per
Source: Collinears International
GDP
12% 31% 57% Services Industry Agriculture
Source: National Statiscal Board
Major Component of Services
9% 15% 17% 23% 36%
Source: National Statistical Board
month (2009). According to the Collinears International, prices continue to rise as the demand for grows. Now, the average price is around P6, 500 per month. The industry Repair Business concentration is quite neither fragmented nor concentrated. This industry’s service is a must Real estate and have. Not all can apply for a house loan Renting Business immediately. The service being offered is a Transport necessity for busy individuals who are always on the move. It is especially suited for the people who get relocated by their jobs often. The trend in the market now is rent
now, build a house later. Also, business process outsourcing (BPO) which is popular nowadays is moving in favour of the industry. Those employees in the BPO industries are the ones who have a need to travel often. Therefore, they opt to rent rather than buy a house. In the long term run, the industry will grow and become stronger. Since the forecast of the NSO is that the population will continue to rise. More people mean more market for this industry.
In Navotas, we can see that the population is still rising. Increasing the potential number of customers for Danes apartment. The economic growth of Navotas is looking promising for businessmen. Development is on going left and right. For the Renting Industry here, growth is optimal as well. Applying the ratio found in the government website, very 1 in 9 people rent. Thus, Renting Industry in Navotas is very rich
Target Market Attractiveness The target markets of Danes apartment are the call center agents. Currently, the Philippines is the number one global provider of voice services. According to the New York Times, around 400,000 call center agents are Filipinos . A projection by Frost and Sullivan says that it will rise to 600,000 and bring $14.7 billion in revenues in 2016. The average income of the agent is around P30, 000 per month. Usually, a call center agent will rent an apartment near his/her office. Graveyard shifts are always a must for them. For their safety and convenience, an apartment near them is always a must. The location of Danes Apartment is very convenient for call center agents. It is just one jeepney or bus ride away from Convergys. Transportation here never sleeps. Just perfect, if you are a call center agent whose night and day are in reverse. The price is just right for the target market. The P6,500 includes the rent, utility, CATV and telephone bills. Danes Apartment’s features will surely fit the target market’s taste and budget. Market Timeliness The target customer is always looking for a new and near apartment to their workplace. There is no short of customers. The market is slowly gaining momentum as time passes by. The numbers projected by surveys are in favor of the market. SMDC and Robinsons build condominiums but they are to be sold, not rent. In Navotas, there are no big competitors. Competitors are often disbursed around the city. In just two month of operations, 14 out of 20 apartments were already occupied. That is how low the competition is in the area. Conclusion The Industry’s Attractiveness is promising. According to Jones Lang Lasalle Leechiu (JLLL), a global real estate services firm, the demand for office space, residential condominium and apartments will continue to rise until 2015. The target market attractiveness is impressive. Their numbers continue to rise and also their salaries. According to the New York Times, Americans prefer Filipino call center agents amongst others. Therefore, Call Center Agencies values the services of the Filipinos and are willing to pay much.
Market timeliness is impeccable. The generation prefers fast and instant things. They usually lack patience. A renting business established today, will be surely in demand as soon as it is finished. As the trend dictates, rent now, build a house later. In Navotas, population of the people are still growing. The economic growth is picking up the pace. Businesses are sprouting everywhere. Danes Apartment establishment will surely flourish around this condition. Also, adding the fact that it is near Convergys, the LRT, MRT and PNR. Public transportation there is no problem at all. In conclusion, the Danes Apartment business venture is very feasible. Every statistics about the industry looks very promising.
Source: National Statistics Office
According to Jones Lang Lasalle Leechiu (JLLL), a global real estate services firm, the demand for office space, residential condominium and apartments will continue to rise until 2015. The demand for apartments is fuelled by the rapidly-expanding business-process outsourcing (BPO) industry (primarily call centres). As seen to the graph at the right side, the prices of houses continue to increase. Thus, renting instead of buying is a favourable option today. In Navotas, where Danes apartment is located, demand is strong. Based on personal observations, people in Navotas are still looking for apartments. Following the trend in the market, demand will still continue to rise for a foreseeable future. Industry Attractiveness There is a lot of competition for the renting business. Condominiums are rising everywhere. The age of the industry is quite old already since renting a place to stay dates way back. The growth rate of the industry is on the rise. The population of the Philippines continue to rise and so does the need for apartments. Average income for a renting business the average rent per family in the NCR costs around P4, 774 per
Source: Collinears International
GDP
12% 31% 57% Services Industry Agriculture
Source: National Statiscal Board
Major Component of Services
9% 15% 17% 23% 36%
Source: National Statistical Board
month (2009). According to the Collinears International, prices continue to rise as the demand for grows. Now, the average price is around P6, 500 per month. The industry Repair Business concentration is quite neither fragmented nor concentrated. This industry’s service is a must Real estate and have. Not all can apply for a house loan Renting Business immediately. The service being offered is a Transport necessity for busy individuals who are always on the move. It is especially suited for the people who get relocated by their jobs often. The trend in the market now is rent
now, build a house later. Also, business process outsourcing (BPO) which is popular nowadays is moving in favour of the industry. Those employees in the BPO industries are the ones who have a need to travel often. Therefore, they opt to rent rather than buy a house. In the long term run, the industry will grow and become stronger. Since the forecast of the NSO is that the population will continue to rise. More people mean more market for this industry.
In Navotas, we can see that the population is still rising. Increasing the potential number of customers for Danes apartment. The economic growth of Navotas is looking promising for businessmen. Development is on going left and right. For the Renting Industry here, growth is optimal as well. Applying the ratio found in the government website, very 1 in 9 people rent. Thus, Renting Industry in Navotas is very rich
Target Market Attractiveness The target markets of Danes apartment are the call center agents. Currently, the Philippines is the number one global provider of voice services. According to the New York Times, around 400,000 call center agents are Filipinos . A projection by Frost and Sullivan says that it will rise to 600,000 and bring $14.7 billion in revenues in 2016. The average income of the agent is around P30, 000 per month. Usually, a call center agent will rent an apartment near his/her office. Graveyard shifts are always a must for them. For their safety and convenience, an apartment near them is always a must. The location of Danes Apartment is very convenient for call center agents. It is just one jeepney or bus ride away from Convergys. Transportation here never sleeps. Just perfect, if you are a call center agent whose night and day are in reverse. The price is just right for the target market. The P6,500 includes the rent, utility, CATV and telephone bills. Danes Apartment’s features will surely fit the target market’s taste and budget. Market Timeliness The target customer is always looking for a new and near apartment to their workplace. There is no short of customers. The market is slowly gaining momentum as time passes by. The numbers projected by surveys are in favor of the market. SMDC and Robinsons build condominiums but they are to be sold, not rent. In Navotas, there are no big competitors. Competitors are often disbursed around the city. In just two month of operations, 14 out of 20 apartments were already occupied. That is how low the competition is in the area. Conclusion The Industry’s Attractiveness is promising. According to Jones Lang Lasalle Leechiu (JLLL), a global real estate services firm, the demand for office space, residential condominium and apartments will continue to rise until 2015. The target market attractiveness is impressive. Their numbers continue to rise and also their salaries. According to the New York Times, Americans prefer Filipino call center agents amongst others. Therefore, Call Center Agencies values the services of the Filipinos and are willing to pay much.
Market timeliness is impeccable. The generation prefers fast and instant things. They usually lack patience. A renting business established today, will be surely in demand as soon as it is finished. As the trend dictates, rent now, build a house later. In Navotas, population of the people are still growing. The economic growth is picking up the pace. Businesses are sprouting everywhere. Danes Apartment establishment will surely flourish around this condition. Also, adding the fact that it is near Convergys, the LRT, MRT and PNR. Public transportation there is no problem at all. In conclusion, the Danes Apartment business venture is very feasible. Every statistics about the industry looks very promising.
