Vol. XXI, No. 228-A [ BusinessWorld Online ]
Saturday, June 21, 2008 | MANILA, PHILIPPINES
Condominium and office developer Megaworld Corp. will launch 17 new residential projects this year on the back of bullish prospects for the real estate sector.
Megaworld Executive Director Kingson U. Sian said these projects would generate P26 billion worth of revenues. The projects are located in the company’s major township developments across Metro Manila.
Of the 17 projects, Megaworld launched three in the first quarter — One Central at the Makati central business district, Parkside Villas in Pasay and Morgan Suites in Forbes Park, Makati.
"Real estate remains a preferred asset class to hedge against inflation," Megaworld Chairman Andrew Tan said in a statement on Friday.
Mr. Sian said Filipinos, including those working abroad, would continue buying properties given the availability of credit.
Megaworld earlier said it expected net profit to hit P3.8 billion this year, almost four times higher than in 2007.
"Sales this year remain strong, with the domestic and overseas markets continuing to drive growth," Mr. Tan said.
From January to May, total reservation sales went up by almost three quarters. Sales overseas, which account for almost 10% of total residential sales, more than doubled.
Asia had the highest share of overseas sales at 38%, followed by the US and Middle East at 28% and 25%, respectively, Mr. Sian told reporters.
Megaworld’s sustained sales momentum demonstrates the market’s favorable view on property ownership as a way to preserve investment value, he added.
About 42% of Megaworld is owned by listed conglomerate Alliance Global Group, Inc., which is owned by Mr. Tan. It is the second largest developer by market value after Ayala Land. — Lovely Nica P. Lee
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