Sy-owned property developer SM Development Corp. (SMDC) said it is launching six more residential projects by end of this year and at least a dozen in 2024.
According to SMDC President Jose Mari H. Banzon, most of the remaining housing developments in the pipeline for inauguration until December 31 will be in the Visayas and Mindanao.
“We normally launch at least one to two projects a month, so that the minimum we launch will be 12 projects,” he told reporters on the sidelines of the Dot Property Philippines Awards held recently at The Peninsula Manila. “[But it] could be more, depending on the sales take-up of our development.”
Without citing exact figures, Banzon said that they have an “extensive land bank that is scattered all over the Philippines” for their upcoming vertical housing projects.
He added that this could also accommodate their plan to also expand to another residential format similar to a subdivision.
“Right now, because we are known to be a condominium developer, we have invested significantly or substantially in large tracts of land to develop horizontal housing. We’ll be starting this fourth quarter by launching affordable residential lots in secondary cities in Southern Philippines and Central Luzon.”
The real estate industry is currently grappling with high interest rates and more expensive construction materials.
Despite this, however, SMDC remains bullish on the growth of the real estate sector. Banzon said: “We’re very positive and very optimistic about the residential market in the Philippines.”
The residential arm of SM Prime Holdings Inc. (SMPHI) also said it is on track to achieve its “biggest sales ever.”
SMPHI reported that the performance of its residential business, led by SMDC, has improved in the first half, with revenues reaching P17.6 billion. “Judging from the performance of our sales over the last eight months, from January to August, our sales have actually been hitting record levels,” he said, without divulging the exact amount. “We feel that we will end 2023 as our record year.”
Driving SMDC’s sustained growth would be the continued strong demand this holiday season from the overseas Filipino workers (OFW), which currently comprise 60 percent to 70 percent of its total market.
“December is a good year for us because many overseas Filipino come home. So that makes our local market very, very strong,” Banzon said. “As long as the Philippines continues to send workers overseas, we will have a very strong market.”
