Robust consumer spending sustains housing demand

CEBU, Philippines — Housing demand could see a continued rise moving forward, supported by robust consumer spending, property developer Cebu Landmasters Inc., said Wednesday.

The listed firm shared this bullish outlook after it reported a record P16.7 billion reservation sales in the first nine months of 2018, up 69 percent.

This represents 88 percent of its P7 billion sales target this year, the company told the Philippine Stock Exchange yesterday.

CLI president and CEO Jose Soberano III attributed the strong performance to robust sales from the firm’s Cebu projects carrying its economic housing brand Casa Mira and high-end projects in Cebu.

A mid-market project in Bacolod is likewise boosting performance.

The company’s bullish outlook stems from projected consistent rise in consumer spending.

A third-quarter Bangko Sentral ng Pilipinas (BSP) survey showed 9.2 percent of Filipino households intend to buy houses in the next 12 months.

“Our high-end projects in Cebu and mid-market project in Bacolod City also significantly contributed to our total sales performance,” the official said.

Soberano said about 2,500 units were taken up by the market at an average price of P2.5 million.

Casa Mira contributed P1.42 billion from sales of 746 units. Baseline Center, a high-end mixed-use development in Cebu City, chalked in P1.18 billion from sales of 341 units. Meanwhile, MesaVirre Garden Residences, a condo complex in Bacolod City, sold 427 units raising P929.93 million.

“The strategies we have adopted in the housing market allows us to meet full-year targets,” Soberano noted.

He said 14 projects serving the mid to economic segments in different locations in Visayas and Mindanao such as Cebu, Dumaguete, Cagayan de Oro and Davao would continue to boost sales. Additional revenues are also expected from upcoming projects in Bohol and Iloilo.

“We expect to see continued strong sales performance in the coming years as demand for housing from these segments of the market remains firm,” the CEO said.