DMCI unit eyes P40B in reservation sales

Property developer DMCI Homes has upgraded its reservation sales goal this year to P40 billion, matching last year’s record level, factoring in stronger-than-expected residential condominium demand from mainland Chinese buyers.

The property development arm of conglomerate DMCI Holdings was originally projecting to sell only P31 billion worth of residential condominium units this year, lower than last year’s P40 billion reservation sales.

In an interview after the stockholders meeting of parent DMCI Holdings, DMCI Homes president Alfredo Austria said the group had thought that last year’s record-breaking sales level was but a “fluke” in view of the offering of an upscale property project called “Oak Harbor Residences” along Manila Bay, which sold faster than expected.

This year, Austria said DMCI had no new upscale project to launch but residential demand remained strong as demand from mainland Chinese condo-buyers was complementing demand from domestic home-seekers. Given this, DMCI Homes now aims to replicate last year’s feat in terms of reservation sales.

From December 2017 to April 2018, Austria noted that mainland Chinese buyers accounted for P6 billion out of P21 billion worth of reservation sales.

“Our bright spots will be real estate and coal. We believe that the robust economy coupled with the superior quality and unique features of our real estate projects will sustain customer demand. Strong interest from Chinese investors will also bolster sales,” DMCI Holdings president Isidro Consunji said in a report to shareholders.

DMCI Holdings has earmarked P40 billion for capital outlays this year, up from P34 billion last year. Excluding the budget for affiliate Maynilad Water Services, capital expenditure this year is seen at P31 billion, up from P20 billion last year.

DMCI Homes will account for the bulk of this year’s capital expenditure amounting to P16 billion, followed by Semirara Mining and Power Corp., P13 billion.—DORIS DUMLAO-ABADILLA