By Juliana Chloe A. Gonzales

DMCI Homes, the real estate arm of DMCI Holdings, Inc., is preparing a 4,000-unit socialized housing project in Cavite as it moves to develop its own projects to comply with government housing requirements.

Company President Alfredo R. Austria told reporters on Wednesday that DMCI Homes decided to pursue socialized housing developments instead of paying the fees tied to requirements of the Department of Human Settlements and Urban Development (DHSUD), the country's main housing regulator.

The requirement traces back to the government's Balanced Housing Development Program under the Urban Development and Housing Act of 1992 (Republic Act No. 7279, as amended), which obliges licensed subdivision and condominium developers to devote a portion of their projects — set by law at at least 20% of project area or cost — to socialized housing, or to pay an option fee to the state in lieu of building.

"If you don't do socialized housing, you'll have to pay for socialized housing development. We thought instead of paying those fees, we'll [develop] housing," Mr. Austria said, adding that the company is finalizing government permits, which will determine when construction can proceed.

According to the Consunji-led developer, the first phase of the planned Cavite project will consist of 4,000 units measuring 27 square meters (sq.m.) each, priced at approximately P1.8 million under government regulations.

"It's challenging because, how can it be affordable? What are the ways in design and construction? We really have to sharpen our pencils to reach that price [of P1.8 million]," Mr. Austria said.

A socialized housing development in Valenzuela is also being planned for the coming months, the company said. Both projects come as government estimates place the national housing backlog at around 6.5 million units, the supply gap that the balanced housing rule was designed to help address.

Beyond its compliance projects, Mr. Austria said DMCI Homes is adjusting to a shift in buyer behavior, with end-users driving demand for ready-for-occupancy (RFO) units over preselling properties. He noted that buyers who held off on purchases during the pandemic are now buying completed units to meet immediate housing needs.

"During the pandemic or crisis, they hesitate to buy because it's a big investment and a big commitment. They will wait and hesitate. But if they need it, they will buy it. So, we think there are many RFOs who will buy because they've been postponing their decision to buy," he said.

RFO properties now generate about 60% of DMCI Homes' sales and have become the company's main source of cash for ongoing developments.

The Oriana, which became ready for occupancy at the end of July, is currently the company's top-selling project.

"The last one, [The] Oriana, was RFO at the end of July. That's our top-selling project. [It's along] Aurora Boulevard near LRT Anonas station, next to Infina (DMCI Homes' other residential project)," Mr. Austria said.

Meanwhile, The Erin Heights has topped off structural construction, including a swimming pool on the 55th floor. The project is 60% sold and will stand about 150 meters from the planned Tandang Sora station of Metro Rail Transit Line 7 (MRT-7), the under-construction line that will link Quezon City to San Jose del Monte, Bulacan. Turnover of The Erin Heights is scheduled to begin in October 2027.

On the hospitality side, Mr. Austria said DMCI Resorts, the company's hospitality arm, is expected to complete the first two towers of its P7-billion Solmera Beach Park Resort by February 2027, with turnover to residents targeted for August of the same year. The development will have five buildings named Matahari, Kartika, Bumi, Asri, and Nusa.

Matahari will serve as the project's residential building, while Kartika, Bumi, Asri, and Nusa will operate as condotel buildings. Matahari and Kartika are scheduled for completion by February 2027, while the remaining three buildings are expected to be completed through the rest of the year.

"[The buildings] are almost 90% sold out," Mr. Austria said.

Parent company DMCI Holdings, Inc. earlier reported that its second-quarter net income rose 61% to P6.5 billion from P4 billion a year earlier.

On Thursday, shares in DMCI Holdings fell seven centavos, or 0.89%, to close at P7.83 apiece.