|DMCI says family buyers to sustain its growth|
Malaya - Business Insight , June 3, 2010
Consunji-led DMCI Holdings, Inc. is keeping its faith on the resiliency of the market in the real estate industry, developing products that will cater to the need of families looking for ample space.
The company, which is looking to double its business in five years, justifies its development approach on the characteristic of the market as more of the end-user than an investor, according to DMCI Homes president Alfredo R. Austria.
The company in a recent briefing said that they are in "increasing pressure from sellers" to develop smaller studio and one-bedroom units "which are faster to sell", yet Austria said the company remains focused in its strategy of developing two to three bedroom units to "build a community of families" in its projects.
The attractiveness of smaller units is due to its affordability, costing a littler over P1 million and not being subject to value added tax.
"(But) marami pa ring market for the P2.5 million to P3.5 million," according to Austria, citing the price range for their products.
Cherrie Lyn Cruz, DMCI Homes marketing manager, said their projects are primarily available to families with a combined monthly income of P80,000 to P100,000.
Since starting operation in 2000, the company has delivered a total of 10,000 units and has created communities like Raya Gardens in Merville, Paranque, Rosewood Pointe in Acacia Estates, in Taguig City, Tivoli Garden Residences in Mandaluyong, and Magnolia Place in Quezon City.
The company has completed a total of 20 projects with 12 active projects.
It became visible in the real estate market since 2006 as it developed projects closer to main thoroughfares. Much of the company's 70 hectare landbank is located in Taguig City.
The company now has projects that can be found in nearly all the cities in Metro Manila.
In 2009, the company booked a revenue of P7.1 billion, up from P3.9 billion the previous year. Net income this year is seen to hit P1 billion.
"Our order was to grow 20 percent a year," said Austria.
"If the buyer is a developer, they may pause buying if the interest rates go up, but if it's a family, they will still buy even if the rates go up a little," said Austria.
In reservation sales term, the company booked P9.5 billion last year, compared to P8.5 billion the previous year. This year DMCI is targeting a reservation sales of P10.5 billion, said is seen to exceed by about 25 percent, according to Austria.
This year, the company launched Cedar Crest, a medium-rise project in Taguig City, The Redwoods in Fairview, Quezon City, and Iris Tower at Tivoli Garden Residence.
For the second half of the year, DMCI Homes plans to launch La Verti Residences --- a twin high-rise tower located behind the Manila Adventist Hospital along Donada st., Taft Ave., Pasay; Flair Towers --- a two-tower high-rise along Reliance corner Pines st., near EDSA; Sienna Park Residences --- a medium-rise development in West Service Road, Bicutan, Paranaque; a medium-rise development in Visayas Ave., QC.; and another medium-rise property in Muntinlupa that will be set on a sprawling 3 hectare property. Total capex for the year is at P5.5 billion.
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