Philippine property sales pick up as recovery moves forward

Cheer Residences unit for sale Philippine property sales
A look at Cheer Residences from SMDC. The firm was one of several developers to see property sales increase

Philippine property sales are moving forward with Ayala Land, Megaworld and SMDC all recording an uptick in transactions during the first half of this year. While homebuilders were forced to change how they market projects and finalize deals, the COVID-19 pandemic didn’t derail the real estate market as some had predicted.

Ayala Land saw residential real estate sales rebound in the second quarter despite enhanced community quarantine measures in place. Additionally, the developer did not see a major price correction and it believes home prices will remain relatively stable.

“We’re seeing a pick-up in activity in residential sales as early as now. We hope that the positive trend will continue. Low interest rates, low inflation rate and stable exchange rates—these factors are conducive for investments,” Ayala Land President and Chief Executive Bernard Vincent Dy told Manila Standard. “If you look at long term trends of property, taking into account various economic cycles, I believe property continues to be one of the best, if not the best, performing asset class.”

See properties from Ayala Land on Dot Property Philippines

SMDC records strong Philippine property sales

During the first three months of 2020. SMDC recorded a 23 percent increase in sales over the same period last year. The firm brought in PHP11.4 billion in sales and another PHP.24.8 billion in reservation sales. In an interview with CNN Philippines, SMDC President Jose Mari Banzon explained the strong sales were due to industry resilience, consumers’ basic need for shelter and SMDC’s product

“We belong to an industry that is resilient. The asset is real, tangible and least affected by deflationary forces,” Banzon said. “In the Philippines, there’s a six million unit shortfall in housing, so there is a very big demand that has yet to be filled. Housing also fulfills the dream of every Filipino to own a home.”

See SMDC homes on Dot Property Philippines

Megaworld sees demand for property in the provinces

Megaworld noted that significant demand for provincial properties helped it generate nearly PHP17 billion in reservation sales during the second quarter. Residences in Cavite, Laguna, and Rizal were the most popular, according to the developer.

“While the method of selling real estate during quarantine period was quite challenging, our digital sales strategies that we’ve been working on since two years ago paved the way for faster, smoother and safer transactions, and client engagements,” Megaworld Chief Operating Officer Lourdes Gutierrez-Alfonso explained to the Manila Bulletin.