OPPORTUNITIES

1. Low mortgage rates

https://www.globalpropertyguide.com/Asia/Philippines/Price-History

“Currently, housing loan rates charged by major commercial banks range

from 4.99% to 7.5% for one-year fixed loans, and from 7.5% to 9.75% for
ten-year fixed mortgages.”

DMCI Homes can attract more potential buyers at the segment of the market they are
targeting when there are low mortgage rates trend prevailing. These potential buyers
come mostly from professionals and businessmen. The lower the mortgage rate, the lower
the down payment and interest a buyer of property must pay.

2. Promotion of the Philippines as a retirement haven for foreigners by the PRA

On 05 May 2011, the Philippine Retirement Authority (PRA) introduced different options
or packages as promotion for foreign retirees and former Filipinos who would like to
make the Philippines their retirement destination. In an article from Philippine Daily
Inquirer, PRA plans to increase the number of foreign retirees in the country to 80,000 by
2020 through various incentives.

This ongoing promotion of PRA add-up to the market of DMCI Homes it can cater. It can
develop more properties that will provide for the needs of these retirees.

3. Growing population with favorable demographics and a large base of more

financially empowered young professionals
The population in the Philippines is expected to reach around 107,190,081 by 31
December 2018, according to the latest estimate of the Commission on Population
(PopCom). On average, the Philippine population increased by 1.72 percent annually
during the period 2010 to 2015. In addition, 63.4% of the population as of Aug 2015 are
ages 15 to 64 years old.
This means that the demand for housing also continously rises of which the DMCI should
take advantage for futher construction of high-rise condominiums.
4. Continued growth of the BPO sector
In an article from Rappler, the number of BPO employees is seen to increase from 1.3
million to 1.7 million this year and the coming years. Annual growth, however, is
forecasted to slow down to 9% until 2022 due to its larger scale, sluggish industry growth
globally, and security headwinds in the Philippines.
BPO sector makes a new breed for condominium dwellers given that those working in the
BPO sector need to live near their workplace. This also means an increase in the potential
sales of DMCI homes.

THREATS
1. Increasing intensity of competition among the industry's numerous players
"There are 582 businesses engage in real estate industry as of 2015, based on the
National QuickStat of PSA"
According to the National QuickStat conducted by the Philippine Statistics Authority
(PSA), there has been 592 establishments engaged in real estate industry as of 2015 - an
indication that DMCI homes must continue leveling up its marketability to stay ahead of
its rising number of competitors.