Megaworld bucks residential property slump as 9-month pre-sales climb 9% to P96.6B

Insider Spotlight

• Megaworld bucked the residential property slump as pre-sales climbed 9 percent to P96.6 billion, reaching over 77 percent of its full-year target.
• Nearly half of residential pre-sales came from provincial projects, signaling sustained demand for township developments outside Metro Manila.
• Hotels led growth in recurring income with a 12 percent revenue increase, while malls and offices posted gains of 9 percent and 7 percent, respectively.

Megaworld Corp. bucked the slowdown in the Philippine residential property market as pre-sales rose 9 percent to P96.6 billion in the first nine months of 2026, putting the developer within striking distance of its full-year sales target.

The Tan family's property giant grew net income by 6 percent to P19 billion, outpacing a 3 percent increase in consolidated revenues to P66.5 billion.

Pre-sales represent properties buyers have committed to purchase, including homes still under construction, with Megaworld already achieving more than 77 percent of its P125-billion annual target.

Nearly half of these commitments came from provincial developments, while revenues recognized from property sales reached P40.6 billion as construction progressed on ongoing projects.

Management’s view

“Our nine-month results demonstrate the strength of Megaworld’s township model and the importance of prudent financial management in delivering growth amid property market and macroeconomic headwinds,” Lourdes T. Gutierrez-Alfonso, president and CEO, Megaworld, said in a statement on Tuesday. 

“Financial discipline remains central to our strategy, balancing investments in our townships with the need to preserve liquidity and maintain a sound balance sheet. This approach gives us the flexibility to navigate near-term challenges while pursuing opportunities that create long-term value for our shareholders,” she added. 

Rental businesses provide another boost

Megaworld's hotel business posted the fastest growth among its recurring income operations, with revenues rising 12 percent to P4.6 billion.

Mall rental revenues increased 9 percent to P5.5 billion, supported by 95 percent occupancy and a 10 percent rise in average daily sales at tenant stores.

Office rental revenues climbed 7 percent to P11.9 billion on demand from multinational companies expanding specialized business operations in the Philippines, while Megaworld renewed about 90 percent of office leases due to expire this year.

Expansion plans remain intact

"Financial discipline remains central to our strategy, balancing investments in our townships with the need to preserve liquidity and maintain a sound balance sheet," Megaworld president and CEO Lourdes Gutierrez-Alfonso said.

Megaworld ended September with net debt equivalent to 24 percent of shareholders' equity, indicating relatively modest borrowing after accounting for cash holdings.

The company aims to expand its combined office and retail leasing portfolio to three million square meters by 2030, building its rental income base alongside residential developments.

—Edited by Miguel R. Camus