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Monday, October 23, 2017 | MANILA, PHILIPPINES
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Date posted: Friday, December 11, 2015 | Manila, Philippines

Real Estate

Low-end, commercial segments lift mart

THERE'S NO SLOWING the real estate industry in 2014, as property developers shifted to the low- and mid-income segments of the market to sustain growth.

Best known for its high-end offerings, Ayala Land, Inc. (ALI) was no exception, as its affordable unit, Amaia Land Corp. recorded a 44.1% increase in gross revenue to P3.50 billion last year from P2.43 billion in 2013. This pushed up the company’s ranking by 124 notches to the 568th spot in this year’s Top 1000 Corporations.

Amaia launched seven projects last year: Amaia Series and Amaia Square Novaliches; Amaia Scapes San Fernando; Amaia Steps San Pablo; Amaia Scapes Urdaneta; Amaia Steps Capitol Central; and Amaia Steps Parkway Nuvali.

The bullish outlook on the affordable segment of the housing market owes to estimates of a housing backlog running to 5.5 million to date.

Gross value added (GVA) in the real estate, renting, and business sector rose 8.7% in 2014, flat from the 8.8% the previous year.

The GVA for real estate alone was halved to a growth of 9.6% last year from 18.3% in 2013. Ownership of dwellings also eased to 1.1% from 1.9% over the same period.

In contrast, the GVA for renting and other business activities swelled by 15.3% last year from 10.5% in 2013.

Property consultancies said the strong consumer sector has propped up the commercial segment of the real estate market. KMC MAG said the growth of the business process outsourcing (BPO) sector has kept the office leasing market on a positive note, what with strong demand not only in Metro Manila but also in “second-wave” cities such as Cebu.

In turn, the BPO industry and remittances from overseas Filipino workers have fueled a boom in the retail sector. Witness here Puregold Price Club, Inc’s joint venture with Japan’s Lawson, as well as the ALI-SSI Group, Inc. collaboration for Wellworth department stores.

This year’s Top 1000 Corporations includes 40 companies belonging to the property sector. All told, real estate firms increased their combined gross revenue by 24.1% to P325.54 billion.

Making a comeback as the top-grossing real estate firm is Megaworld Corp. at 32nd place overall after it earned P43.18 billion.

Trailing the Andrew Tan-led company is Amaia’s parent, ALI, at 44th on revenue of P34.86 billion, followed closely by Henry Sy-led SM Prime Holdings, Inc. at 51st spot on revenue of P32.26 billion.

*Send e-mail to Mark at mtamoguis@bworldonline.com or follow him on Twitter @MTAmoguisBW.

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