DMCI rings up P4B in Valeron Tower sales

Consunji-led developer DMCI Homes has so far reached P4 billion in sales from one of its newest developments for the upper-middle income segment, reflecting stable demand within the thriving Ortigas central business district.

DMCI Homes on Friday said this represented 29 percent, or 343, of the 1,191 units of The Valeron Tower launched in January.

The 55-story condominium project is the real estate firm’s joint venture with Japanese conglomerate Marubeni Corp.

DMCI Homes president Alfredo Austria has said they were investing P15 billion into the project that was seen to generate P22 billion in revenues.

The Valeron Tower will be composed of 1,900 units and is “competitively priced,” starting at P7.62 million per unit.

Completion is expected by July 2029, according to Austria.

DMCI Homes noted that property prices in the Ortigas district had an annual growth rate of 8 percent, with preselling units averaging 229,000 per square meter.

Meanwhile, real estate investment management firm Colliers Philippines said in its second quarter property market report that prices of units in major central business districts across Metro Manila rose by 0.5 percent to an average P205,800 per sq m during the period.

Colliers predicts a 2.1-percent growth by the end of the year to P207,700 per sq m, and a 2.6-percent annual growth until 2028.

In the first half of the year, DMCI Homes contributed P737 million to the overall earnings of parent firm DMCI Holdings Inc.

This is down 43 percent due to lower real estate revenues and higher operating expenses.

However, DMCI said these were tempered by higher gains from joint venture construction revenues and rentals.

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DMCI chair and president Isidro Consunji previously said they expected the property segment’s performance to return to prepandemic levels by next year, banking on returns from new projects.

DMCI Homes, which is among the largest developers in the Philippines with at least 30 residential and leisure projects, plans to spend around P16 billion in capital this year mainly to launch up to five more developments.

Austria said their new projects would be a mix of residential and leisure buildings.

DMCI Homes Leisure Residences, the leisure brand of DMCI Homes, also plans to spend P6 billion to develop a new condotel project in Benguet province and serve a growing demand for vacation homes outside the capital region.

The company has already offered 552 units in one of Moncello Crest’s buildings for preselling following its launch in May.