Friday, October 24, 2008 [ manilatimes.net ]
BY Likha Cuevas-Miel, Reporter
The middle-income real estate arm of the SM Group, SM Development Corp. (SMDC), may downsize its spending tack for next year seeing that the global financial crisis may dampen demand for housing.
Rogelio Cabuñag, SMDC president, said the company is now adopting a cautious stance regarding the launch of its new projects in the pipeline to prevent any oversupply of condominiums.
“We’re pacing our program for supply to meet demand. We’re now in the middle-income market and we’re experiencing good sales takeup. Based on that, we’re proceeding with our program. All we have to do is wait for the demand,” Cabuñag said.
Because of this, the company’s spending tack for next year may be lower than the P4 billion it has earmarked for this year.
He added the company is still on schedule with its product launches and construction of projects as sales have not yet slackened. SMDC has launched and sold units in Chateu Elysee in Parañaque, Mezza Residences, Grass Residences and Berkley in Quezon City, Field Residences in Parañaque and Lindewoods Residences in Laguna.
Meanwhile, Henry Sy. Jr., SMDC vice chairman and chief executive, said the company, unlike other property firms, does not plan to expand to the provinces.
“Until such a time there is already the economies of scale, we will go there,” he told reporters at the sidelines of the Sea Residences launch.
Sy said Cebu may be a possible destination, but SMDC would remain focus on Metro Manila where demand for condominium units is concentrated.
The recently launched Sea Residences within the SM Mall of Asia Complex has six 15-storey towers occupying 18,480 square meters of land, with units costing P2.4 million to P5 million.
Phase I, which has a budget of P2 billion, will include the construction of towers 1 and 2, basement parking, ground floor amenities. SMDC will start offering the units to the public upon securing the license by the end of the year.
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