MANILA - Ayala Land said on Wednesday it remains bullish on the property sector as it plans to launch P100 billion worth of projects this year.
The company plans to launch 18,000 residential units in 2017, up from the 7,300 units launched last year, Ayala Land President Bernard Dy said.
Townships in Davao, Pasig City, and Quezon City will also be launched this year, he added.
“If you look at the way our country is growing, when you look at our population, demand for housing – there will be periods with higher number of deliveries, that could increase vacancies temporarily, but over time, because of demographics, economic growth, expect units will eventually be let out or used by the buyers themselves," Dy told reporters.
The company said it is planning to spend a record P88 billion in capital expenditures this year, higher than the P85 billion spent last year, as follows:
- P40.7 billion for residential projects;
- P11.8 billion for malls;
- P10.6 billion for land acquisitions;
- P9.2 billion for office projects;
- P5.5 billion for estate development;
- P4.8 billion in hotels;
- P4.9 billion for other projects and expenses.
Most of the capital expenditures will be funded through internally generated cash, but the bond market might be tapped as well, the company said.
“If interest rates increase gradually, the market can absorb it. It won’t have significant impact on demand for properties,” said Dy.
Ayala Land said its net income in 2016 grew 19 percent to P20.9 billion, driven by growth in its estates and core businesses.