Property developer Ayala Land Inc. (ALI) on Thursday said it is beefing up its residential pipeline across three developments in South and Central Luzon as end-user demand outside of the National Capital Region (NCR) supports new supply in the company’s master planned estates.
The launch pipeline includes new phases of developments in its Nuvali Estate in Laguna and in Lipa, Batangas and a new residential development in Cresendo Estate in Tarlac.
Together, the projects reflect Ayala Land’s focus in markets supported by infrastructure investment, expanding employment centers, and growing economic activity.
‘The sustained demand, coupled with more stable operating conditions, gives us confidence to offer new product in these markets’ Anna Ma. Margarita B. Dy, the company’s president and CEO, said.
‘We are starting with a focused pipeline of horizontal developments where our integrated estates continue to create lasting value.’
The move comes as Ayala Land’s residential inventory has been brought down to the pre-pandemic level of 15 months of supply.
Mike Jugo, chief commercial officer of Ayala Land, said end-users continue to underpin demand. ‘The market today is driven by end-users making long-term decisions about where they want to live. We continue to see healthy demand particularly among families seeking larger living spaces, integrated amenities, and strong connectivity.’ The projects are located in growth markets benefiting from continued infrastructure investment, including Cavite-Laguna Expressway and the North-South Commuter Railway, alongside expanding economic activity and employment centers, the company said.
Ayala Land said its income fell 19 percent to P11.5 billion in the first half from the previous year’s P14.17 billion mainly on jittery market conditions caused by the war in the Middle East.
Revenues for the period fell almost 10 percent to P75 billion from the previous P83.06 billion.
Dy said the company had a challenging first quarter and Ayala Land had to stabilize its business in the second quarter by bringing down its inventory to 15 months for the quarter, reducing additional costs and halting projects so as not to clog the market with unsold units.
She said the company is still on track on delivering its projects, as Ayala Land will launch mostly horizontal residential projects.
Sales for the second quarter fell to P26 billion from the P27 billion in the first quarter. This was done without any launches, which would have given the company a bump in its revenues, Dy said.
Ayala Land’s property development business had P41 billion in revenues for the first half, buoyed by second-quarter revenues of P20.6 billion, flat compared to the first quarter of the year.