PROPERTY developer Vista Land and Lifescapes Inc. on Wednesday said it sees steady growth this year from 2014 on the back of a consistent, organic growth.
Sales for the year will be “steady” regardless of the property challenges around the globe, Manuel Villar Jr., Vista Land chairman, said.
“Our business is good…Not really dramatic growth, but steady,” Villar told reporters on Wednesday.
In 2014, Vista Land recorded a “banner year” in both sales and profit to reflect a P5.7-billion net income from P5.06 billion a year earlier. Revenues also increased to P22.23 billion from P20.02 billion.
Villar noted that Vista Land is not affected by the significant impact of growth scenarios in the US on emerging markets, saying its buyers are mostly end-users rather than investors.
“Our buyers are really end users. They do not depend on economic indicators whether to buy a house and lot, or not. [The Philippines] is not investment market. Here, we don’t see much change [in real estate],” Villar said.
Villar said no substantial change will be made in capital expenditures for new and ongoing projects in 2016. Vista Land allotted P25.1 billion in capex this year.
The company is “confident” when it comes to development projects in the next few years because of a 2,000-hectares land bank, Villar said, noting that the company will only expand in the provinces once its land bank supply in a particular area runs out.
“It depends on the area, when you go to new places, you keep on buying. There are places we’re present in but have enough land bank there. If those are fully utilized, we will then expand,” Villar said.
When it comes to horizontal development, Vista Land has the largest market share particularly in the affordable house-and-lot market in which the housing backlog runs in millions of units.
As of end-June, Vista Land registered about 300,000 homes in its portfolio covering 86 cities and municipalities in 35 provinces.
The company has recently started to diversify into the hotel business.