Megawide Construction Corp. said Wednesday it will focus on developing affordable residential projects as it expands into property development.
Megawide chief executive Edgar Saavedra said during the annual stockholders meeting the company’s move to venture into residential development would boost its operations as net profit margin of property development is usually double-digit, compared with single digit for construction.
The property business requires a fourth of a construction company’s manpower, but generates four to eight times in earnings, he said.
“Majority of the products we are focusing on are below middle-income level which management deems as more essential,” Saavedra said.
He said the affordable segment is essential and more resilient part of residential market as seen during the pandemic. Venturing into residential development is also a natural progression for the company since it has been also been constructing various vertical and horizontal projects for various property developers, Saaverdra said.