Monday, June 8, 2009 | MANILA, PHILIPPINES [ BusinessWorld Online ]
THE LIMITED supply of luxury residences will serve as a "buffer" that will allow Sy-led Highlands Prime, Inc. to post strong growth despite the lingering economic slowdown, an analyst said.
The outlook came ahead of the high-end property developer’s launch of three projects this year.
"The property sectors that are [experiencing growth] right now are the luxury and middle income segments. For the longest time, there was no supply in the luxury sector which is why projects like Raffles Residences in Makati are experiencing high demand because class-A people saw them as a form of collection," CB Richard Ellis Philippines, Inc. Director Victor J. Asuncion said.
Mr. Asuncion said Highlands Prime could be considered a high-end luxury project because of its "uniqueness." The property analyst pointed out that there are no other residential projects in the country being developed in the same manner as the Tagaytay Highlands in the popular resort getaway outside Metro Manila.
"People who buy properties in Highlands put little value on the price. They buy these more because of their quality and location," Mr. Asuncion said.
This sets the Tagaytay development apart from high-end residential projects in Makati, which are experiencing a slowdown in sales. With an oversupply of high-end projects, developers should temporarily shy away from them.
Highlands Prime more than doubled its net income to P26 million from January to March, while revenues stood at P233 million from the P104 million it posted in the same period last year.
"The company can complete with the players in the property industry because of its products’ quality, uniqueness and location. Although our competitors are also engaged in high-end leisure projects, they have yet to launch large-scale, self-contained and community-type developments similar to Tagaytay Highlands," it said.
For this year, the company plans to launch the second phase of Woodridge Place at Tagaytay Highlands. The new phase will be composed of two buildings housing 56 condominium units and is expected to generate P1 billion in revenues.
The company will also start Milago of Tagaytay Highlands. The four-hectare Milago will be an exclusive mid-rise condominium development adjacent to the golf club and the chapel and will have seven buildings, with a total of 115 units.
Aside from these two projects, Highlands Prime will also launch The Cliff at Hillside, which will cover five hectares of land with views of Laguna de Bay, Tagaytay Highlands, Canlubang, Calamba, and Mt. Makiling.
On top of these three projects, Highlands Prime said it expects to generate more than P3 billion from the sale of its seven other projects, namely phase one of the Woodridge Place and the Hillside, the Woodlands Point, Pueblo Real Phase 1, the Horizon, the Alta Mira and the Lakeview Heights.
Highlands Prime focuses primarily on the high-end leisure property market.
Among its assets include the undeveloped land, subdivision lots, and residential units located around the vicinity of Tagaytay Highlands.
Shares in Highlands Prime stayed at P3.05 apiece on Friday. — Kristine Jane R. Liu
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