THE National Capital Region will be a key market in the coming year for mass housing developer 8990 Holdings, the company’s president and chief executive officer said, projecting that Metro Manila will contribute 45 percent of 8990’s gross sales in 2017.
In an interview last week, 8990 President and CEO Januario Jesus Atencio told reporters that the NCR would significantly contribute to the company’s growth next year.
“What we are looking forward to in 2017 is the emergence of the NCR market as a major contributor to 8990’s growth,” he said.
Sales from the NCR market, which will mainly come from condominium projects in the country’s capital, are expected to account for almost half of the firm’s gross sales in 2017.
“If the projections that I have are right, in 2017, NCR sales, which is condominium, 45 percent [gross sales],” Atencio said.
In the first nine months of 2016, the company posted a total of P7.186 billion in gross sales, a three percent increase from the P6.997 billion in 2015.
Of the 5,676 fresh housing units delivered in the first nine months of the year, 45 percent or 2,545 completed units were in the Visayas region, Mindanao accounted for 36 percent or 2,015 units, while North and South Luzon combined for 16 percent, or 932 units.
By contrast, the NCR comprised only 3 percent of the total unit deliveries in the first nine months of the year, with 184 units valued at P261 million.
Atencio in an earlier interview spoke of the company’s optimism for the NCR market in 2017.
“Next year will be the year that 8990 becomes a force to reckon with in NCR condominium development, because we will now be offering condominium in NCR at low-cost housing prices,” Atencio said.
He noted that the firm is looking to launch projects in areas such as Ortigas, Cubao and Commonwealth in Quezon City.
“2017 will be known as the year that 8990 Deca Homes come into NCR in a big way. It establishes NCR as part of the universe of DECA homes 8990,” Atencio earlier said.
Meanwhile, Atencio said the firm is expecting to launch about eight projects next year, two or three of which will be located in the NCR.
Also included in next year’s launches are the three Davao projects — Deca Homes Toril, Deca Homes Mulig 1 and Deca Homes San Lorenzon — intended to be launched this year, but which were delayed due to the permit process.
Atencio said that the permit delays incurred in Davao were mainly caused by a newly approved land use plan in Davao, which called for the creation of an interagency committee.
“So it took awhile for the committee to be active, because the members of the committee have to be nominated,” Atencio said. “So my understanding is that finally the committee is now active and therefore is able to start releasing the applications for subdivision plans to the country.”
Moreover, Atencio noted that he expects 2017 to be a more “stable” year for the company.
“You’ll probably see in 2017, a more equitable distribution of performance in the quarters,” Atencio said.
The CEO explained that this year, the company’s performance is “queued towards the end of the year,” as he described it as a “watershed” year.
“This is the year when we were going to end 7 projects. This is also the year when we will be starting out or launching 14 new ones. So it’s a watershed in the sense that with projects ending, and new projects starting,” Atencio said.
Out of the 14 projects planned for launch this year, Atencio said the three delayed Davao projects would no longer be included for this year’s set of project launches.
Despite the delays in project launches, Atencio said that the firm expects to recognize sales from its Deca Towers Edsa project this year, as it is set to turnover around 600 units by the end of the year, a year earlier than the scheduled turnover in the second half of 2017.
“And this was in fact not part of the guidance in 2016. So this can be a big help towards making sure that we have a good performance in our annual basis,” Atencio said.
The turnover of the 600 units translates to around P800 million in sales.
Furthermore, asked if the company expects to reach its revenue target of P12 billion for full-year 2016, Atencio expressed his optimism for reaching the goal.
“Yes, I think we can. If we can’t make it, we’ll not be too far behind,” Atencio said.