SM Prime ventures into horizontal housing

Sy-led property developer SM Prime Holdings, Inc. is expanding its real estate portfolio with plans to enter the horizontal housing market under its SM Residences brand.

The company said on Friday that it intends to develop over 1,000 hectares for SM Residences projects over the next five years, with around 85 percent dedicated to horizontal housing.

Additionally, SM Residences’ premium line is set to debut early next year with a 200-hectare development. To cater to demand within the high-end segment, additional projects with prices ranging from P25 million to over P100 million are in the pipeline.

SM Prime President Jeffrey Lim said a recent policy implemented by the government regulators enables the company to tap a broader market that would also address the growing demand for affordable and quality housing.

In line with this, SM Prime will consolidate all residential developments under the SM Residences brand next year, covering economic, medium-cost, premium, and leisure segments, to enhance its presence nationwide.

“As we move forward, our goal is to unlock the full potential of our extensive land bank through SM Residences and more integrated developments. This will enable us to sustain long-term growth across a broader business portfolio,” Lim said. 

Based on Joint Memorandum Circular No. 2024-001 from the National Economic and Development Authority and the Department of Human Settlements and Urban Development, the guaranty ceiling for low—and medium-cost housing packages was raised to P4.9 million and P6.6 million, respectively.

For the first nine months of the year, SM Prime reported a 12 percent increase in consolidated net income, reaching P33.9 billion from P30.1 billion a year earlier. 

Consolidated revenues rose by 8 percent to P99.8 billion. The mall segment led revenue growth, contributing 57 percent of total consolidated revenues, with mall revenues up by 8 percent year-on-year to P56.5 billion, driven by an 8 percent increase in rental income to P48.5 billion. 

Revenue from cinemas, event ticket sales, and other activities also grew by 4 percent to P8.0 billion.