Vol. XXII, No. 130 [BusinessWorld Online ]
Tuesday, February 3, 2009 | MANILA, PHILIPPINES
DAVAO CITY — Landco Pacific Corp. is revising its sales projection for its 33-hectare upscale residential-resort project on Samal Island because of slowing demand.
J. Danilo A. Manlangit, Playa Azalea project head, said the company had expected to sell the remaining 26 lots within the next two to three years. "But with the global crisis, my estimate is [it will take us] four years," he said.
Michael R. Reyes, company vice-president for the Visayas and Mindanao, said about 200 lots in Playa Azalea had been bought since May 2008, when the company started selling the project.
Playa Azalea is a joint venture between Landco and Anflocor Management and Investment Corp., which owns the 33-hectare property.
But Mr. Reyes said they had been surprised by the response of buyers. "When we entered the market, we were a bit apprehensive," he told reporters.
He said high-end buyers, many of them residents, were buying prime lots unmindful of the worsening global economic crisis.
The cheapest lot in Playa Azalea costs P1.2 million. "It is not really the price, it is value that you get," Mr. Reyes said, noting that real estate is among the few investments that do not devalue over time. Another surprise, he added, was that many of the buyers had paid in cash instead of installment.
Landco, he added, was determined to make the project one of the best. "We believe and we think that we are the leading beach resort developer." The company is developing Playa Azalea into a complete community.
Mr. Manlangit noted that aside from amenities, Playa Azalea is just 10 minutes by boat to Davao City, making it an ideal investment. The project is just one of three in the island city, which is known for its white beaches. — Carmelito Q. Francisco
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