Property developer Ayala Land Inc. said its residential business started to see encouraging signs in the second quarter even as the country continued to feel the impact of the coronavirus pandemic.
Ayala Land president and chief executive Bernard Vincent Dy said in a virtual forum held by the Makati Business Club the residential business recorded increasing sales in the second quarter while the enhanced community quarantine was in effect.
“We’re seeing a pick-up in activity in residential sales as early as now. We hope that the positive trend will continue,” Dy said.
Dy said Ayala Land was banking on the strength of the Philippine economy to help the real estate industry recover from the impact of the pandemic.
“Low interest rates, low inflation rate and stable exchange rates—these factors are conducive for investments,” Dy said.
Dy said each sector in the property segment was bound to see different stages of recovery. He said Ayala Land’s office and warehouse logistic units continued to operate without significant effects.
Its mall business, however, was affected because of the implementation of quarantine measures since March, prompting consumers to stay at home except for essential needs.
The lockdown measures also significantly affected the hotel and resorts segment, which Dy said would recover only once people began to travel.
He said that amid the negative impact of the pandemic on the economy, the real estate industry remained one of the best investment options in the country as land values continued to increase.
“If you look at long term trends of property, taking into account various economic cycles, I believe property continues to be one of the best, if not the best, performing asset class,” Dy said.
He said Ayala Land had not yet seen a meaningful price correction during the pandemic. He said if any correction occurred, it was not expected to repeat the price reductions seen during the Asian financial crisis.
Dy said the record-low interest rates should also keep asset prices stable, while there remained ample liquidity in the market in search for investment options.