House-and-lot developers are most likely to be benefit from the recovery of the real estate market, Security Bank Equities Inc. president Warren Sy said Thursday.
Sy said in a statement the residential real estate market is on track for a rebound in 2022 after being severely affected by the pandemic.
“The valuation of residential houses in the market suffered a decline due to lower demand, with buyers reducing their risk appetites. However, with the Philippine GDP [gross domestic product] poised to recover as we reopen our economy, household incomes are expected to increase—which could lead to families being more willing to buy a home,” he said.
Sy said the government’s infrastructure development, including the 8-kilometer NLEX-SLEX Connector Road and the Cavite-Laguna Expressway would encourage more people to live in South Luzon, resulting in increased demand for housing projects.
“Developing the infrastructure of provinces, especially with the aim of making them more accessible to Metro Manila, will stimulate economic growth and increase business competitiveness in these areas,” Sy said.
Sy said mass housing developer Ovialand Inc. would be one of the housing developers that could see a long-term uptick in consumer demand.
“Ovialand is a mass-market housing developer with a focus in South Luzon—particularly Quezon, Laguna and Batangas,” Sy said.
”The company has ambitious growth plans for 2030, such as expanding nationwide and increasing its housebuilding capacity to 6,000 house-and-lot units from the current figure of 900,” he said.
Ovialand plans to raise P1.5 billion from an initial public offering in June.
China Bank Capital was tapped as the sole underwriter for the IPO.
Ovialand grew its revenues by 90 percent in 2021 to P873 million from P 462 million in 2020.
“Overall, there is generally a strong consumer demand within the mass market housing market, which Ovialand caters to with homes ranging from P2 million to P4 million,” Sy said.
