By Arra B. Francia, Reporter
SM Development Corp. (SMDC) looks to launch three residential towers in its two-hectare property in Chengdu, China by August, citing the demand for such a project in the area.
The residential arm of property giant SM Prime Holdings, Inc. has already launched two towers in Chengdu last year. The robust sales take-up allowed SMDC to sell out the two towers just a day after they were launched.
“We expect the same for the one we’ll be launching in August because the demand, especially the area we’ve selected, malakas ang demand,” SMDC Executive Vice-President Jose Mari H. Banzon told reporters before SM Prime’s annual stockholders’ meeting in Pasay City last week.
Mr. Banzon said the remaining two towers will be launched in 2019.
The residential development is located near the SM group’s shopping mall in Chengdu, which was opened in 2006.
Aside from Chengdu province, Mr. Banzon said the company also has some remaining land in Fujian province that may be developed into two or three projects. The SMDC executive said they are still considering plans for the project.
“We have about two or three, pero matagal pa. It will take a while,” Mr. Banzon said.
FEDERAL LAND JV
Here in the Philippines, SMDC expects to launch its joint venture with Federal Land, Inc. within the year. The property arm of tycoon George S.K. Ty has teamed up with the Sy-led developer for a 3,400-square meter property along Ayala Avenue. This will be SMDC’s first venture into the high-end residential market.
“This is a different class and design… Yung international quality with designers ay na-foster, cut above the rest… This is the last available piece of land for residential (projects) in Ayala, so we’re very excited,” Mr. Banzon said.
SMDC will be launching 15,000 residential units this year, with a sales value of around P45 billion based on an average selling price of P3 million each. The company is banking on the influx of demand from Chinese buyers in the market today, noting that 30% of its reservation sales for the first quarter of 2018 were Chinese buyers.
The higher demand has also prompted the company to increase its prices by 10% in 2017, particularly in the Bay Area in Pasay City, according to Mr. Banzon.
SM Prime Chairman Henry T. Sy, Jr. earlier said that they would have to increase their land bank in the area to serve the surge in demand.
Revenues of SMDC rose by 18% to P30 billion in 2017, while operating income went up 24% to P8.9 billion. The company was able to sell 17,259 units for the year, 4% higher than the 16,670 it sold the year before. Reservation sales on the other hand jumped 21% to P57.8 billion.
SMDC’s performance helped boost SM Prime’s earnings last year, as the latter booked a 16% increase in net income to P27.6 billion. Consolidated revenues climbed 14% to P90.9 billion for the year.

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