DMCI Homes, the mid-segment property development arm of the Consunji group, on Tuesday boosted its land banking by 49 percent in Luzon to 96.9 hectares from 65.1 hectares with the acquisition of properties in Batangas, Bulacan, Laguna and Pampanga.
With the expansion, DMCI Homes plans new development formats such as leisure, condotel and township projects.
“We recognize a demand for leisure properties and saw it as an opportunity to expand our product line. By offering quality and best value in this market, we hope to duplicate the success of our core residential line,” DMCI Homes president, Alfredo R. Austria, said.
Its Solmera Coast project, a tropical-inspired condotel project in San Juan, Batangas under the DMCI Homes Leisure Residences sub-brand, is scheduled for launch this month.
Under the condotel format, the condominium units are owned by individual investors who then rent out their units to guests through DMCI Homes Leisure Residences.
This business model allows the company to generate revenue from both the sale and rental of the units. Buyers, in turn, use the unit as vacation homes and receive a share in the rental revenue that helps offset the cost of ownership.
Aside from Solmera Coast, the leisure sub-brand include a Japanese-inspired nature park in Laguna and a mountain resort in Benguet.
DMCI Homes has earmarked P18.6 billion, from P15.8 billion, as capital expenditure this year for project development and land acquisition.
Its capital spending in the first quarter this year rose 27 percent from P3.3 billion to P4.2 billion, mostly for project development.
The company expects headwinds this year as high interest rates and hybrid work setups temper demand. Inflated raw materials cost could also erode their margins.
“To navigate these challenges, we will explore new product formats, such as leisure and premium offerings. We will also employ value engineering techniques to identify cost-efficient options, while exploring alternative business models, such as joint ventures, to further optimize our operations,” DMCI chairman Isidro A. Consunji said.
