After reaching its goal of launching its 35th township this year, developer Megaworld Corp. is bullish on the property sector next year as interest rates start going down.
In fact, Megaworld executive director Kevin Tan said they were looking at launching a minimum of two to three new townships in 2025.
“Our residential business continues to be strong, especially the luxury segment … so we continue to be very bullish on that as interest rates keep going down,” Tan told reporters last week.
Easing interest rates typically increase demand for properties, as lower borrowing costs boost customers’ confidence in applying for home loans.
This comes after the Andrew Tan-led developer unveiled the 117-hectare Upper Central township in Cagayan de Oro City, with an initial investment of P5 billion.
It is Megaworld’s 35th township project to date, and forms part of the company’s P350-billion expansion plan that it plans to finish by 2027.
According to Megaworld, the integrated lifestyle community will feature residential villages, a commercial and shophouse district, mixed-use developments and a town center.
The company is currently pursuing more projects outside Metro Manila as demand for residential properties in the capital region weakens.
Still, Kevin Tan said they were optimistic that the residential segment, Megaworld’s main income driver, would remain strong in 2025.
In the first nine months of the year, Megaworld’s net income jumped by 14 percent to P13.73 billion, buoyed by the real estate and tourism businesses.
Revenues likewise climbed by 23 percent to P59.78 billion.
The real estate segment climbed by 30 percent to P37.85 billion, as demand for the company’s township developments increased.
Hospitality under Megaworld Hotels and Resorts saw a 38-percent surge in revenues to P3.64 billion after the launch of two tourism-related townships. —Meg J. Adonis INQ