Property developers will likely benefit from president-elect Rodrigo Duterte’s plan to adopt a federal system of government, an executive of Vista Land & Lifescapes Inc. said Thursday.
Vista Land president and chief executive Manuel Paolo Villar said property developers were expected to benefit from federalism, as this would spur developments of key cities outside Metro Manila.
“I think it benefits everybody and it benefits us because even before he [Duterte] decided to run [as president], we have already pursued developments outside Metro Manila. It benefits us just because federalism means that there will be developments outside Metro Manila,” Villar said.
Duterte earlier announced a plan to push for a federal form of government in a bid to empower the provinces and develop Mindanao.
Vista Land has presence in 95 cities and municipalities and plans to venture in five more area within the year to hit its target of 100, according to Villar.
Vista Land said net income grew 17 percent in the first quarter to P2.1 billion from P1.8 billion a year ago as consolidated revenues improved 6 percent to P7.9 billion from P7.1 billion. Reservation sales increased 2 percent to P14.5 billion.
Villar said the single-digit growth in the company’s revenues and reservation sales in the first quarter was due to slowdown in sales to OFW market.
Villar said OFW sales, which accounted for 60 percent of the company’s total residential sales, were affected by the slump in oil prices in the world market.
He said for the rest of the year, he expected the growth of real estate revenues to remain in a single-digit level.
Meanwhile, recurring revenue in the first quarter jumped 89 percent to P944 million from P498 million a year ago, as the company added 221,748 square meters of gross floor area by opening four malls and one BPO commercial center.
“2016 promises to be another record year for Vista Land. We are pleased to have been able to achieve solid growth over the past years and should have no problem continuing the trend this year,” said Vista Land chairman Manuel Villar, Jr.
“Our positive outlook for the year is due to the expansion of our commercial assets in addition to our core housing business on the back of a sound Philippine macroeconomic fundamentals and hopefully with the new government’s push to accelerate infrastructure development,” he said.