Property developer Ayala Land Inc. (ALI) is adopting a more cautious approach to the affordable residential market as its unsold inventory reached P200 billion by the end of March 2025.
ALI president Anna Ma. Margarita Dy told analysts in a recent briefing that 55 percent of the company’s unsold inventory is located in Metro Manila, with the remaining 45 percent situated in areas outside the capital.
The company stated it is closely monitoring industry-wide inventory levels and will be selective in launching new projects.
ALI plans to prioritize horizontal developments and proceed carefully with vertical projects in key Metro Manila markets.
“For the core market in particular, we have just become more cautious based not so much on our inventory levels but on the industry levels,” Dy said.
Dy added that the company is preparing to launch P80 billion worth of residential projects and P20 billion worth of commercial and retail developments.
“There are still some pockets of opportunities in Metro Manila for the core which we are well positioned to take advantage of, but we are very deliberate when it comes to launching vertical projects in Metro Manila,” Dy said.
Of the total unsold inventory, approximately 13 percent consists of ready-for-occupancy (RFO) units, a slight increase from the previous quarter due to recent project completions.
These RFO units are evenly split between the core and premium segments.
Dy said the current high unsold inventory in the affordable condominium market is prompting the company to prioritize horizontal developments.
ALI is offering selective special promotions to stimulate demand for RFO units.
“If a project is particularly challenged, or if it’s in a location with a lot of competition, we would bring down down payment rates or allow early turnover to encourage take-up,” ALI said.
Payment terms have also been extended for certain projects.
The company noted that its inventory life has improved to below 22 months, indicating stronger sales momentum.
Cancellation rates have also stabilized at around 8 percent, attributed to stricter buyer screening and faster recognition of cancellations.