Megaworld Corp., the Philippine home builder founded by billionaire Andrew Tan, isn’t seeing any slowdown in demand from overseas or local buyers despite the central bank Thursday delivering its fifth rate hike since May. The stock climbed to the highest in more than two months.
“The market hasn’t been affected by higher interest rates as of now,” Senior Vice President Kevin Andrew Tan, the son of the founder, said in an interview. “We’re seeing strong demand from both foreigners and locals, although I have to admit it’s foreign demand that’s been pushing up prices.”
Real estate in the Philippines has been the recipient of a steady flow of Chinese money as thousands of migrants flood Manila, in part motivated by the country’s booming gaming industry.
Strengthening ties with China has also been a priority for President Rodrigo Duterte as President Xi Jinping pushes his ambitious Belt and Road initiative.
Demand isn’t only robust in Manila, but also in the provinces, where the impact on the housing market of money repatriated by Filipinos working and living overseas is very visible, according to Tan.
Revenue from pre-sales could reach P130 billion ($2.5 billion) this year, higher than the company’s previous guidance of P110 billion, boosted by additional residential project launches, Tan said.
Megaworld had P105.8 billion in pre-sales for 2018 as of Sept. 30, and started to market P78.4 billion of new residential developments. (Bloomberg)