SM Prime bullish on residential property market
Integrated property developer SM Prime Holdings Inc. expects sales of primary residential units to increase by 10 percent this year as it continues to scale up its presence nationwide.
In a presentation to investors, SM Prime said said sales of primary homes will grow to 21,145 in terms of the number of units from 19,156 a year ago.
SM Prime is also bullish on its leisure estate business as it sees sales growing 32 percent to 351 from 266 units.
By 2020, SM Prime expects to sell 22,852 primary homes and 435 leisure residential units.
“Our expansion program should allow us to sustain double-digit income growth over the next three years,” SM Prime said.
The growth will be driven by malls and residential operations complemented by the group’s office and hotel projects.
SM Prime has programmed to open four new malls this year — SM Center Dagupan, SM City Olongapo Central, SM City Butuan and SM Mindoro Citimall. Apart from this, It is expanding existing malls, SM Baguio and SM Fairview, to add 46,000 and 32,000 square meters of GFA.
From only 9.6 million sqm, the group’s GFA is seen to grow nine percent to 10.5 million sqm and further to 10.8 million sqm by 2020.
It has available land bank of almost 191 hectares, sufficient for development over the next 5 to 7 years.
SM Prime is looking to expand its reach in the countryside with the aim of covering most of Northern Luzon, Visayas and the progressive cities in Mindanao.