PROPERTY DEVELOPER Cebu Landmasters, Inc. (CLI) is still pushing through with its planned entry into the Luzon market despite the oversupply of condominium units in Metro Manila, a company official said.
“We’re definitely still on with our Luzon expansion. This includes one horizontal development in the Cavite area and potentially a condo development in Metro Manila,” CLI Chief Operating Officer (COO) Jose Franco B. Soberano said in a virtual briefing last week.
“If we do acquire land, we’re looking at launching in 2026. We are expecting this Metro Manila oversupply to correct,” he added.
Last month, Leechiu Property Consultants said there is an oversupply of condominium units in Metro Manila worth 29 months, equivalent to 67,600 units across 510 buildings, due to high interest rates and the change in homebuyers’ preferences.
Quezon City and Ortigas (plus fringe areas) have the most unsold condominium units at 18,000 and 13,500, respectively.
Despite the oversupply, Mr. Soberano said that CLI is banking on demand from the middle class for the planned Luzon developments.
“Our market is just too strong, and we will see that shining through with our emerging middle class and people entering the workforce,” he said.
“For condo development, we’re really looking at good value-for-money sites. When it comes to housing, we are very confident. We are looking at more than 20 hectares or 2,000 units,” he added.
CLI is expecting to launch two additional projects for the remainder of 2024. These include the two-tower upper mid-market project The North Grove at Pristina Town in Cebu with over 1,000 units, and the first three towers in the 14.3-hectare Manresa Town township in Cagayan de Oro.
For the first nine months, CLI recorded a 7% increase in its net income to P2.3 billion, led by the core business and recurring income streams.
Revenue climbed by 9.2% to P14.1 billion as property sales grew by 8.7% to P13.8 billion on strong demand across residential, mid-market, and economic housing segments, along with commercial lot sales.
CLI stocks were last traded on Nov. 15 at P2.82 per share. — Revin Mikhael D. Ochave