MANILA, Philippines – The property arm of the Sy-led SM group sold the most number of residential condominium units in Metro Manila in the second half of 2011, according to property research firm Colliers International Philippines.
SM Development Corp. (SMDC) sold more than 6,000 condominium units in the country’s capital, corresponding to a 24% market share, said Colliers.
Property developers sold more than 25,000 units from July to December 2011, according to Colliers’s study.
“This trend continues for the entire 2011, where the Metro Manila condominium market was characterized by strong competition as approximately 145 residential towers, more or less 50,000 units, were launched,” SMDC said
In December, SMDC held a Christmas promotion that slashed prices of select units by as much as 40%.
SMDC is a unit of SM Investments Corp. (SMIC), which operates the country’s widest network of shopping malls.
SMIC’s chief finance officer Jose Sio once remarked that their business model for their real estate business is the same as that for retail business. He even likened selling condominium units to selling shoes.
SMDC has topped the property survey since July 2009.
However, in the first 9 months of 2011, Colliers reported that Andrew Tan-led real estate firm Megaworld Corp. will have the most number of residential condominium units completed in 2011 to 2016.
Megaworld’s completed units represent about 18% of the market, Colliers said.
Ayala Land, which previously lorded over the residential market, has decided to get more aggressive by offering more affordable and low-cost units, a far cry from its previous business model of going after the rich who can afford high-end units.
The boom in residential property market is pushed largely by purchases of local investors, overseas Filipino workers, and an overflow of the demand for office spaces, which, in turn, is a result of a healthy business process outsourcing (BPO) sector. – Rappler.com