THE REDWOODS is DMCI Homes’ newest resort-themed community in Fairview, Quezon City
The property arm of conglomerate DMCI Holdings grew its first semester reservation sales by 80 percent year-on-year to P26.2 billion, hitting its full-year target way ahead of schedule on the back of strong demand from homebuyers.
DMCI Homes’ six-month sales performance – a record high for the semester and a welcome surprise for the property developer – was attributed to the double-digit growth in the number of residential and parking units sold during the first semester.
From 3,997, the number of residential units sold from December 2016 to June 2017 surged by 55 percent to 6,206. During the same period, total number of parking units sold rose 54 percent from 2,256 units to 3,473 units.
Unlike other real estate companies, DMCI Homes maintains a sales reporting period of December to November. Reservation sales are a leading indicator of the kind of revenue growth a property developer will see in the coming years.
“We were able to meet our annual sales target in just seven months. Our sales performance is a testament to the exceptional quality of our developments,” DMCI Homes president Alfredo Austria said in a press statement.
Leading the list of DMCI Homes’ top project performers is Oak Harbor Residences, the company’s first and only luxury waterfront property located in Paranaque City, followed by Prisma Residences, a three-tower development in Pasig City.
Brisk sales for projects outside Metro Manila, specifically Baguio City and Davao City, also contributed to the real estate company’s robust performance.
On a stand alone basis, DMCI Homes posted a first semester net income of P1.76 billion using the percentage of completion (POC) method of revenue recognition. This marked a 71-percent improvement from its restated net income of P1.03 billion during the same period last year.
The real estate firm shifted to the POC method in June 2017 to align with current accounting practice in the industry.
Under the POC method, real estate sales and related costs are recognized as profit or loss based on the progress of the development while the real estate unit is being constructed. Previously, DMCI Homes recognized sales only when the unit is fully completed.