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CHAPTER I

INTRODUCTION

According to the National Center of Education Statistics (NCES) data, the approximate

number of student population enrollees grew from 217 million to 500 million in 2012 statistical

survey. NCES also added that by year 2020 the population might increase its number by another

500 million student enrollees. The reason why several factors come into play in determining the

size of the global student population which, in effect, the demand also for student temporary

housing and dormitories. Taken together, the net effect of factors determining student temporary

housing and dormitories demand are forecast to yield continued growth in the number of students

attending universities and colleges. Ages range from 18 and 24 is projected to continue rising

through year 2050. In a study on economical demographics, it says that as the demand of student

housing rises, the economical trend of the housing industry will take place. (“Student Housing

Stats”, n.d.).

In some universities in the United States, Freshmen Students are required to live in

dormitories on the basis that living in dormitories and other temporary shelter leads to better

classroom performance and lower drop out incidence. There was a survey being conducted by

college students at a large state school that determines the impact on the school performances of

the students living in dormitories. The result of the survey shows that across model specifications

and estimation techniques, students living in dormitories increased GPA by 0.19 to 0.97. That is,
the estimate for the degree of improvement as to student performance. (James Murray, University

of Wisconsin, Feb. 9, 2010).

Looking at the perspective in the national level, the worsening traffic condition in metro

manila has pushed young professionals and students to scout for living spaces closer to their

workplaces and schools. According to a recent report by Cushman & Wakefield on March 24,

2018. It says that with expensive condominium rents in central business districts, the report shows

that individuals on a budget turn to the fringe areas for affordable housing options. These typically

come in the form of dormitories and boarding houses. Developers have noted the rising need for

reasonably-priced lodging while also acknowledging their tenants’ desire for a more sophisticated

offering. This paved the way for the growing foot print of budget dormitories.

In Davao City, an observable statistics of university students from neighboring provinces

and the city’s outskirts live in these temporary residences. Data elicited through survey involving

five hundred seventy-one (571) respondents and focused group discussion among selected groups

of student-boarders/dormers, reveal that a student’s stay in a boarding house and dormitory has

significant contributions to his/her personal, social, academic and emotional growth. Results

demonstrate further, that respondents have recognized their boarding houses and dormitories

possessing good basic housing facilities. (Brilliantes, Aga, TipaceandAdegue.September2012)

However, in the article of Brilliantes (2012), he also added that although a student’s stay

in dormitories brought about some significant contributions, it lacks and nothing to do with

development of their spirituality on the other hand. It also lacks provisions for safety and security
Facilities implying that most operators have violated some requirements stipulated in the building

Code of the Philippines. A certain case in Davao happened that when a group of Indian medical

students raised their petitions against their landlord who also happens to be a doctor for having a

very poor dormitory facilities to the point that their studies got affected. (Morandante, 2015)

In connection to the research above, there has been also a massive competition in terms of

dormitory real estate businesses in Davao nowadays, it is said to have been competing in terms of

strategic areas like near the school campuses or just a one-way ride from the campus provided that

the location is at the same time near and accessible to any malls. An observable and clear indication

of widespread dormitory business in Davao can be traced by checking out the list of similar

registered line of businesses in the Department of Trade and Industry Davao. (Cruz, edukasyon.ph,

December 2018)

On the other hand, data coming from the Department of Trade and Industry Digos shows

the comparative two-year records (2017 and 2018) of registered real estate businesses pertaining

to boarding lodges, inns, apartments, boarding houses and dormitories indicated there to having

bit of slight increase in the number of registrations and is expected to increase more in the

following years depending on the factors that affect the market such as school expansion, school

erection and building construction projects. Filtered information from DTI Digos also enumerated

the registered near school boarding houses. Thus, based on the information it is now appropriate

to say that there has been an existing similar market competition as to real estate businesses in

Davao and Digos area.


Lastly, an article entitled “Student Use of Boarding Houses” (2005) asserted that if there

were no temporary places to stay in, students living afar would not have been able to attend the

school they prefer. It means of the thought that being away from home due to studies, work and

business give rise to the desire and necessity of a second home. NRYC is a new student dormitory

building which will soon rise at Tres de Mayo, Digos City fronting Gaisano mall of Digos and it

aspires to be the best service provider to its clients and tenants at a reasonable price while enjoying

an accessible place to stay at the gateway of the South.

Business Name

The proposed name of the business is “NRYC Dormitory”. It stands for the name of her

beloved only son Neil Ryan Y. Cavanas. The dormitory is given emphasis for majority of the

spaces in the building is occupied of dormitory units, but it doesn’t mean that the business is solely

focused on the said service. It also caters the tenants for rental spaces on the ground floor.

Nature of the Business

Majority of the spaces will be for the lease of dormitory units, there will be segregation

based on gender. The second floor will be for the girls and the third floor will be for the boys.
However, the ground floor is said to be for commercial lease of units for the interested tenants,

thus, the building in general is operating for lease.

Business Location

The business will be located at the Quezon Avenue, National Highway, Zone 1, Digos City,

Davao del Sur across the Gmall of Digos.

Business Organization

The establishment will be registered as a sole proprietorship from of organization. Mrs.

Lolita Yu Cavanas as being the sole proprietor is at the time the owner and the lessor of the

establishment. As to her competency she is more confident in managing the business in accordance

to her level of service standards.


Service Description

NRYC Dormitory, located at Quezon Avenue, National Highway, Zone 1, Digos City,

Davao del Sur, offers an accessible place and with reasonable price to stay in.

The business will operate primarily as a dormitory and secondarily as space rental, but as

per Department of Trade and Industry rules, the business will be designated as real estate. The

property has a 200 square meter area. The building that will be constructed has a capacity of 10

rooms for dormitory and 4 available spaces for commercial rentals. In operation for dormitory, it

will offer a living quarter for students enrolled in a near educational institution and a worker who

worked near the place for a longer period and on a contractual basis. Each room is well-ventilated,

has two beds, two study tables, a cabinet and is air conditioned. The dormitory also has a receiving

and kitchen area. Tenants will have access to clean comfort rooms and laundry room for those who

will intend to wash their clothes. Installed CCTV cameras are strategically placed inside and

outside the building for security of the tenants/customers. For the space rental, it provides a

spacious place where business women/men can put up their business.

Service Differentiation

There are various known dormitory and commercial building within Digos City for they

have positioned their selves in the market. For the NRYC Dormitory to be recognized, these

following services are to be offered.

Parking Area. The parking area is often the first thing the customers see when approaching

to the property. A well-maintained parking area can make a great first impression. It also shows

the management care about the safety of your customers and employees.
Laundry Area. The laundry area is where the tenants do their laundry comfortably. This

is to ensure that the tenants are able to do their laundry without consuming too much of their time.

Smoking Area. Providing a smoking area for their customer to protect all individuals from

exposure to passive smoke anytime.

Target Market

In business, it is important to determine the types of target customers before anything else

especially when the business type is that of a service provider. Customer preference is a matter to

be considered as these may vary in needs and wants. Proper segmentation of clients is also

beneficial to picture out the projection of revenue. The proponents would wish to suggest that

NRYC Dormitory market its services to students of Cor Jesu College specifically those students

with parents earning the average compensation and above average salary compensation.

1. Average salary earners. These represent students’ individual parents whose salary ranges

from ₱ 20,000-₱ 30,000 per month. It is important to specify a good estimation as to the

earnings of individual parents to obtain best indicators of financial capacity.

2. Above average earners. These represent students’ individual parents whose salary ranges

from ₱ 40,000-₱ 50,0000 per month. It is important to specify a good estimation as to the

earnings of individual parents to obtain best indicators of financial capacity.

Mission

The NRYC Dormitory offers a secure and welcoming environment to the people who work and

study away from their homes and provides space(s) for businesses. We ensure good quality

services and facilities alongside with its affordability.


Vision

NRYC Dormitory aims to be a premier dormitory and commercial building in the province,

providing the secure and good quality services on a consistent basis, to drive meaningful value to

our clients. To be the best at what we do.

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