Visayas-Mindanao developer Cebu Landmasters Inc. (CLI) saw a 41.3 percent increase in reservation sales in the first half as local residents’ demand for affordable houses outpace Overseas Filipino Workers’ amid the COVID-19 pandemic.
CLI said its reservation sales grew 41 percent to P7.43 billion in the first six months due to the strong-take up of its residential projects in key VisMin cities impacted by the pandemic, as end-users seek safer and more secure homes.
The bulk of the sales, at 40 percent, was recorded particularly in Cebu City where the enhanced community quarantine has been extended. Iloilo City and Cagayan de Oro took up 23 percent and 19 percent of the sales, respectively.
Meanwhile, other low-risk areas Bacolod and Bohol accounted for 10 percent and eight percent of sales, respectively.
“The pandemic has heightened the realization that good housing means good health. In March, we began helping our buyers to afford home prices by offering stretched payment terms and other promotions. Market response has been overwhelming and we are now speeding up plans to offer our flagship Casa Mira residential brand to more VisMin cities,” CLI chairman and chief executive officer Jose Soberano III said in a filing to the stock exchange.
Casa Mira is CLI’s fastest-selling economic housing community which took up 65 percent of sales in the first half. On the other hand, the developer’s garden series, targeted towards mid-market buyers with higher disposable incomes, took up 26 percent of the sales.
Uptick in VisMin sales
Prior to the pandemic, CLI said it has already observed high sales in its economic and mid-market residential units due to the housing backlog in VisMin, which it said is estimated to hit 2.85 million homes by 2022 as per Leechiu Property Consultants’ study
CLI said OFW accounted for 40 percent of its buyers as of end-2019, but that market’s share dropped 20 percent while VisMin was under lockdown in the second quarter, with local residents taking over the demand.
Located in 15 key VisMin cities, CLI is looking at launching 14 projects in 2020 primarily in the economic and mid-market segment worth a total of P19.4 billion as it continued the construction of majority of its projects even during the lockdown period.