High-end property market has recovered, Ayala Land says

MANILA, Philippines - Despite “recession" warnings issued for the Philippines this year, the country’s high-end property market has recovered, Ayala Land Inc. As proof, Ayala Land Premier, which serves high net worth families with a combined annual income of about P500,000, said sales have been picking up since February. Reservation sales had been hitting the P1-billion mark since the second month this year. “By February...people began to realize that we were not as exposed, or affected and the buying [began], cautiously at first, but gaining momentum with each month," said Tom Mirasol, Ayala Land Premier marketing and sales head. “In second quarter, all metrics went up," said Antonino Aquino, Ayala Land president. In the first three months of the year, ALI's net income in the first three months of the year dipped 50 percent to P907 million. In March, new reservations spiked, rising by 52 percent in value and then by seven percent in April. In May, new reservations also improved 76 percent and “June is expected to do about as well" for about four straight months of steady growth. The company is expecting the positive sales to continue for the rest of the year, barring any major discouraging economic news both here and overseas. “The trend line looks good, presuming that the current stability will continue...Our fairly good domestic market is helping push things along," said Aquino. Buyer confidence and “exciting new launches" are also seen to further boost Ayala Land Premiers prospects for the year. “New projects continue to be planned for [developments] going well into 2010 and the next five years," Mirasol said. Although the sales coming from overseas Filipinos have been reduced at 10 to 15 percent from 30 percent of the company's sales pie, cancellation had been kept at a “low single-digit". The company is on track to use all its P17-billion programmed capital expenditures for the year, with about half of that already spent in the first half, Aquino said. Ayala Land Premier products include Abrio in Nuvali in Laguna, which was dubbed as the next “Forbes Park," Westgrove Heights, located along the rolling hills of Silang Cavite; Anvaya Cove, seaside villas and leisure lots in Bataan; One Serendra, condominium units at the Fort Bonifacio Global City; Montecito, a high-end residential subdivision in Old Canlubang; and Ayala Greenfield Estates in Calamba, Laguna. Reservation fee for Ayala Land Premier projects is P50,000 and 10 percent of the unit price as downpayment. Shares of Ayala Land Inc. rose 30 centavos to P8.40 during Wednesday’s trading at the Philippine Stock Exchange (PSE). - GMANews.TV