MANILA, Philippines—Gotianun-led property developer Filinvest Land Inc. expects sales to rise in 2011 as it plans to accelerate expansion through higher spending compared to that of last year.
The company said the property market was still in the early stages of an upswing and that demand, particularly from the low to mid income sectors, would continue to grow amid the country’s massive housing backlog.
“If you look at the trends, the real estate market started to pick up in 2007, but there was a pause in 2008 and 2009 due to the global recession. So it’s just coming back and we are still just at the start,” Filinvest president Joseph Yap said.
“We do not see prices ballooning the way they did during the Asian Crisis a decade ago,” Yap told reporters after the company’s annual shareholders’ meeting yesterday.
Last year, the company’s revenue from sales reached P10 billion.
“Our target is to surpass that this year,” Yap said. “This year will still be a good year for the property sector.”
As a result, the company’s net earnings in 2010 hit P2.95 billion—up 46 percent year-on-year.
Strong demand for new homes has been partly driven by the availability of cheap loans from banks.
This year, Filinvest has set aside P12 billion for capital expenditures to fund the construction of new projects and the expansion of existing ones. This amount is more than double what the company spent last year.
Yap said the company would launch four low-cost housing projects, six “affordable” projects and two mid-rise residential developments this year, which would translate to P13 billion worth of sales once completed.
Also, Yap said the company would expand its available space for leasing activities by over a third in the next 24 months.
The amount of space the company has available for leasing contributes 31 percent to earnings.
For more details on Filinvest projects, you may contact Reby Ramirez @ +63 919.699.3572 / +63 922.883.9308 / +63 916.4044.555 / +632 404-4534 or e-mail her @ reby_ramirez@yahoo.com.
Lastly, FYI for related information on the new real estate law, RA 9646, please proceed to www.RA9646.com, the online repository of updated information on Real Estate Service Act of 2009 (RESA).
source: Philippine Daily Inquirer, April 15 2011
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