A strategic management paper for Cebu Landmasters, Inc. / Alex T. Barbara.

Thesis (M.A)--Pamantasan ng Lungsod ng Maynila, 2024.

A strategic management paper presented to the College of Business Administration in partial fulfillment of the requirements for the degree Master in Business Administration.

The founder, Jose R. Soberano III, has positioned the company as the leading residential real estate developer with a 21% market share in Mindanao and Visayas, focusing on offering cost-effective residential projects. With more than ten years of expertise, it has received many accolades from Property Guru, a top award-giving organization in Asia.

The residential real estate industry is showing more demand for luxury condominium units as more people look for units with bigger floor area to accommodate work-life balance and as they ponder more on the importance of having a second home with ample space for remote work and leisure. According to Colliers Philippines, the luxury condominium accounts for 34% of over-all take up in 2022 compared to just 5% a few years back. The luxury segment of the residential real estate in the Philippines mirrors that of other countries where demand for such properties sawa marked increase after the pandemic. Focusing on its residential business segment, the researcher recommends a market development strategy for CLI which is expanding its business operations in Western Visayas by launching its high-end residential product in Iloilo City. Provided that there is a high take-up of vertical residential development in Iloilo and stable cash remittances, the demand is already present.

Moreover, one of the strengths of the company is its sound financial position with a net income of 3.7 billion pesos and earnings per share of 0.92 pesos, which can be optimized to support the strategy to expand in Western Visayas, By expanding its business operations and presence, the market share of the company will increase and can be recognized as one of the top real estate developers in Western Visayas, Mindanao, and the entire Philippines in the foreseeable future.

Cebu Land masters is a prominent market leader in the socialized and middle-income residential segment in Visayas and Mindanao, boasting a wealth of experience in the real estate industry spanning two decades. The pricing of the subdivision lots typically spans a range of approximately Php l60,000.00 to over Php1,200,000.00. Similarly, the dwelling units within the development exhibit a price range of approximately Php460,000.00 to over Php4,000,000.00. In recent years, CLI has additionally undertaken the development of residential projects that incorporate a recreational element. A well-known real estate developer in the Philippines, CLI offers a wide range of residential and commercial buildings as part of its portfolio, catering to a diverse group of clients from different economic backgrounds. The firm's projects serve clients in the high-end market as well as the mass housing sector, which includes socialized, reasonably priced, and middle-class subdivision developments. The company's products, which include integrated residential township developments and standalone residential subdivisions, are available to these customers as lots or dwelling units.

In addition to its involvement in the socialized and medium-market housing sectors, the company has achieved notable success in developing a number of high-end real estate projects such as Park Central in Cebu Business Park, Asia Premier Residences, and 38 Park Avenue both located in Cebu I.T. Park. Consequently, CLI has emerged as a highly accomplished real estate developer in the Philippines. It is claimed that the company have gained a favorable position within the industry of real estate and among various costumers, such as Overseas Filipino Workers (OFW). It is recognized as a reliable developer that consistently delivers high-quality properties promptly. These properties are strategically situated near major commercial hubs, catering to the needs of densely populated areas. The company also thinks that purchasers respect it and that it has a good reputation in the real estate industry. Additionally, the business has an extensive network of independent brokers, internal sales agents, and sales offices spread throughout Visayas and Mindanao.

The company, after establishing its name in the residential segment of real estate, is now ramping up efforts to build more office buildings, mixe-use developments, hotels, and townships with the longer view of creating higher recurring revenue streams and the subsequent creation of a real estate investment trust company to further solidify its brand as one of the best real estate companies in the Philippines.

As it stands, competition in the residential real estate segment is intense with about 4213 real estate entities operating in the country. Cebu Landmasters, Inc. when compared to Ayala Land, Inc., is like David and Goliath. Ayala Land, Inc.(ALI) have so many subsidiaries whose list is three pages long. ALI is present in all segments of real estate from mass housing (Bella Vita Land Corp.), affordable housing (Amaia Land, Corp. ), middle income market (Avida Land, Corp), the wealthy segment (Alveo Land, Corp.) and the very affluent segment (Ayala Land Premier). ALI is present in malls, industrial real estate (Laguna Technopark) and hospitality (Ayala Hotels and Resorts). SM Prime Holdings Inc. is at par or even greater than Ayala Land, Inc. with 80 SM Malls, SMDC, office buildings, hotels, and convention centers (SMX). Megaworld Corporation is another behemoth in the real estate industry with an almost identical product line-up of ALI and SM Prime. Megaworld is into leisure and hospitality (Newport Resorts World, Belmont Hotel, Savoy Hotel), residential segment under their subsidiaries Global-Estate Resorts, Inc. (GERI) and Empire East Land, Inc., malls such as Uptown Mall in BGC, and numerous office buildings such as Alliance Global Tower and Uptown Place Towers both in Uptown Bonifacio Taguig City to name a few. The rivalry among so many well-established real estate companies in the Philippines each offering so much product differentiation is more than enough proof that competition is intense.

The real estate industry has significantly grown thanks to foreign investment growth, a growing middle-class population, and sustained remittances from overseas Filipino workers (OFW), especially after the economic recovery post-COVID, Property developers are expected to maximize the increasing demand for property supply as multiple opportunities for real estate segment arise.