Purchasing a big lot for subdividing

Some medium-size entrepreneurs here purchase a big lot that they convert into a compound - a fenced property with townhouses inside that they sell or rent. One of my husband's relative has that business and he said they earn good because generally big lots are cheaper than small lots. And their townhouses are selling like hotcakes so it's really a good business. However, now that they are running out of big lots in the Metro, their target is the suburbs which have bigger and cheaper lots. However, townhouses in those areas are not attractive for now.

 

Yea, it is quite a good strategy. There is actually a global shortage of housing. This is exacerbated by the influx of migrants from conflict zones who come with loads of cash. This has resulted in a scramble for prime plots especially in developing countries. Population explosion makes these lots a hotcake. On the flip side, most developers are concentrating on high end housing to the disadvantage of a sizeable segment of the population who can't afford the same.

 

There is a motion by a legislator to limit (or to stop for now) the construction of condominium to ease the congestion in Metro Manila. If that proposal becomes a law, you can expect the cost of real property to increase tenfold since townhouses will naturally be the trend in residential housing development. And I agree with that proposed law because it is really crowded now because a small land will be occupied by a tall residential building and the by-product is the lack of parking area so their residents would use the street for parking.