At the same time, the developer raised selling prices, suggesting it is countering the slowdown with price increases. Average selling prices rose 77 percent to about P7.5 million per unit during the fourth quarter of 2024. DMCI said this was driven by sales at its residential tower Anissa.
DMCI says construction costs, premium segments pushed up prices
In a message to InsiderPH, the group clarified the price increase was “not a response to the slowdown but is instead driven by factors such as rising construction costs”.
It added that average prices on a square meter basis rose 11 percent "driven by sales in premium developments".
The company also offered upscale and transit-oriented developments and regional projects.
Big picture
DMCI Homes is one of the biggest developers in the mid-market segment, which is bearing the brunt of Metro Manila’s condo oversupply.
Last month, Colliers Philippines warned that the condo glut worsened in 2024, with unsold units surging 77 percent to 74,000, worth P158 billion. If current conditions persist, it may take up to 8.2 years to clear the inventory.
Upward inventory spike
DMCI Homes provided a detailed breakdown of its recent numbers, showing total inventory jumped 23 percent to P92 billion in the fourth quarter of 2024.
• Ready-for-occupancy (RFO) inventory surged 66 percent to P30.6 billion.
• Pre-selling inventory increased 9 percent to P61.4 billion.
The company said the rise was driven by new project launches and newly completed buildings. Meanwhile, around 22 percent of the RFO inventory was leased thought its rent-to-own program.
Projects outside Metro Manila doing better
Meanwhile, sales and reservations fell 58 percent to 965 units, down from 2,292 units during the same period in 2023.
“Total units sold plunged on subdued market conditions,” the developer said, adding that 30 percent of sales came from its Kalea Heights development in Cebu City.
Unbooked revenues
Despite the sales slump, DMCI Homes continued to lock in pre-sales, with unbooked revenues rising 7 percent to P74.6 billion. These represent future earnings from pre-sold units that have yet to be realized.
Full-year results
For the full year, DMCI Homes’ sales and reservations dropped 22 percent to 6,461 units, while average selling prices rose 18 percent to P7.37 million per unit.
The total sales value of its projects declined 7 percent to P33.4 billion, data from the developer showed.
Overall, DMCI Homes has 16 ongoing projects with nearly 20,000 units worth P156.2 billion, with 69 percent already sold. The company plans to launch another 5,372 units across seven projects worth P35.1 billion in 2025.
DMCI issued a few clarifications to the article, stating that the price increases were not due to the ongoing market slowdown but were driven by higher construction costs, the low base effect from the previous year, and the launch of more upscale, transit-oriented projects that command premium pricing. The company also noted that 22 percent of its ready-for-occupancy (RFO) units are currently being leased through its rent-to-own program.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
