MARKETING condominium units has always been a huge challenge. Real-estate developers and brokers must be creative and even technologically savvy in order to break through the clutter, effectively engage potential customers and stand out.
This has never been an easy task.
Although there are two ways to market condominium units—either as places in which customers can live, or as a form of investment which can promise gratifying financial returns after a time—the same old questions continue to hound property marketers. How can they convince customers, who often already have places of residences, to buy a new condominium unit? How can they convince potential investors that investing in property can be financially rewarding in more ways than one?
As it is, there are already literally hundreds of condominium buildings in and around the metropolis. The problem is that not everyone can afford to rent, much less own, a posh condo unit. Similarly ubiquitous are dormitories that line the streets around schools and government offices. However, these spaces are oftentimes within old and battle-scarred houses that do not really offer too much in terms of comfort and convenience.
Enter the condormitel—a new concept that merges the condominium, dormitory and hotel in one—and marketing residential property has never been the same again.
The condormitel concept
Although the condormitel concept has been around for quite a while, it is only now that condos are being aggressively marketed as such. But what exactly is a condormitel?
A condormitel is much like a dormitory but is inside a posh condo building and is offered with hotel-like amenities—like air-conditioned lobbies, lounges, and sometimes, even pools, gyms and sky gardens. Think of it is a first-class dormitory for individuals who prefer to spend extra for better comfort and greater convenience.
Condormitels also offer condo-level amenities, like fire- and smoke-detection systems, water reservoirs, standby emergency power, security-card key system, centralized garbage collection, high-speed elevators, closed-circuit televisions, study halls and retail outlets. These amenities are particularly true of Space condormitels by Major Homes and La Casarita by Hospitality Innovators.
As a residential space, the condormitel’s target market is composed of middle- to upper-income students and single workers who would like a small space to stay while going to school or working in call centers or government offices. As such, most condormitels are near colleges and universities, government agencies and business-process outsourcing companies.
Much like most regular condominiums, condormitels are often high-rises with 25 to 40 floors each and around 500 to 2,000 units, like University Home of JNJ Summithill and the Harvard Suites by Ascott. There are low-rise condormitels, as well, like the eight-floor Apartment 20 by Arkiland.
Each condormitel unit is fully furnished, oftentimes with three to six beds. The size of a unit oftentimes falls between 14 square meter and 28 sq m, although I know of slightly larger ones being developed for a slightly different market.
An investment option
Interestingly, condormitels aren’t just for people who need temporary living quarters. They can also be for people looking to invest in property, or “condopreneurs,” as they are now called. These are investors whose main business is the offering for rent or lease of condominiums and apartments.
Investing in condormitels requires just a relatively small start-up capital, yet, it gives steady income if managed properly and considering the fact that demand for affordable living space in prime urban areas will always be heavy.
Condormitel investment is based on a “sachet business model,” in which units are rented out on a per-bed basis, much like a regular dormitory, making it much easier to look for occupants.
To make the investment package even more tempting, some condormitel developers, like Major Homes and their Space condormitel series, even throw in property management into the mix. Meaning, all an investor has to do is pay the price for each unit, and everything else is handled by the property-management firm, including the search for renters.
Stress-free investment packages, such as the ones offered by condormitel developers, make property investment truly attractive. Add to this the fact that the property sector has always been one of the most practical areas of investment, as the value of property often increases over time.
Although quick flips—buying property, whether brand new or previously owned, improving it and reselling it at a higher price—are prevalent in the scene and is admittedly the easiest way to earn a quick buck, it is still in property rentals that true financial returns are found. And the reason is pretty simple: renting generates a steady flow of monthly income that can literally last a lifetime. Also, rental rates increase over time while the investors’ monthly amortization for the property remains the same.
I have always believed that investing in property is a wise endeavor. Although a lot of people are overwhelmed by the prospect and quit even before they get their feet wet, property investment is actually pretty straightforward. It’s just a matter of proper planning, setting clear and measurable investment objectives, and tailoring your investment to your available funds.
And now, with the advent of the condormitel, investing in property rental has become an even more appealing idea.
Image credits: www.major.com.ph, www.kabayanrealty.com