Filinvest Land bullish on growth despite market oversupply

MANILA, Philippines — Filinvest Land Inc. (FLI), the property arm of the Gotianun family, is forging ahead with its aggressive nationwide expansion, staying resilient amid market oversupply challenges.

“We have a lot of inventories that can support our growth. We are in a lot of places and the places where we are not necessarily (present) are where the problematic supply is,” FLI president and CEO Tristan Las Marias said.

Cushman & Wakefield, a global commercial real estate services firm, said in its recent report that office rents in Metro Manila are likely to further decline this year due to an oversupply of vacant space.

In the third quarter of 2024, the vacancy rate in the Metro Manila office market was at 18.2 percent, the highest level since the second quarter of 2004.

Las Marias, however, said the company remains “very confident” about its growth prospects on the back of its diversified portfolio that enabled it to be “more resilient given this oversupply in select areas.”

For years, FLI has grown its presence across the country, building a rich portfolio that includes best-value homes, townships, mixed-use developments, condominiums, office buildings and shopping centers.

“Primarily, the mission of Filinvest Land is to build the Filipino dream. And there are Filipinos also outside Metro Manila,” Las Marias said.

The listed property developer is optimistic about its residential segment, especially with the possibility of another interest rate cut this year.

“That’s good news, particularly for the residential segment,” Las Marias said.

After a series of rate cuts last year, the Bangko Sentral ng Pilipinas has indicated that monetary policy remains restrictive, suggesting there is still room for further easing this year.

The Monetary Board has slashed interest rates by 75 basis points since August last year, bringing the key rate down to 5.75 percent.

Interest rates are directly correlated with the residential segment, as lower rates result in lower monthly mortgage payments for homebuyers, making it more affordable to purchase a property.

According to Las Marias, FLI is leveraging the stronger peso-dollar exchange rate, which makes it more attractive for overseas Filipinos to invest in properties here in the Philippines.

“So at least around 30 percent of our sales come from OFWs (overseas Filipino workers). When dollars are up, when the exchange rate is good, you have more purchasing power,” the executive said.

“They tend to look at investment as the first priority in their mind. So that’s good for us, and we’re one of those developers who have expanded our international sales channel early,” he added.

The peso closed at 58.425 against the dollar on Tuesday and is expected to breach the 59-level by the second quarter this year.

“OFWs come from various places, and when they invest, particularly for rental, they’ll choose places where they’re more familiar with. It helps if you’re a developer who’s present in as many cities,” Las Marias said.

Currently, FLI is present in 50 cities and 24 provinces that include Cagayan de Oro, Cebu, Davao, Palawan and Metro Manila.