CEBU Landmasters, Inc. (CLI) recorded a 41% increase in sales during the first half of 2020 on the back of high demand for affordable housing despite the coronavirus disease 2019 (COVID-19) pandemic.

In a statement Wednesday, the property developer said its sales reached P7.43 billion in the six months to June, mostly coming from residential developments in key cities in Visayas and Mindanao.

Projects located in Cebu City took up 40% of the sales, despite the area being under a strict lockdown due to the high number of COVID-19 cases. Those in Iloilo City accounted for 23% of sales, in Cagayan de Oro for 19%, in Bacolod for 10% and in Bohol for 8%.

The company said it attributes the sales growth to the increased importance put on housing in the fight against COVID-19. “The pandemic has heightened the realization that good housing means good health,” CLI Chairman and CEO Jose R. Soberano III said in the statement.

To ride on the increased demand, Mr. Soberano said CLI offered stretched payment terms and promos to help buyers afford the company’s homes. “Market response has been overwhelming and we are now speeding up plans to offer our flagship Casa Mira residential brand to more VisMin cities,” he said.

CLI said the economic and mid-market residential units were recording high sales velocity even before the COVID-19 pandemic. Economic housing brand Casa Mira took up 65% of sales during the two quarters, while those targeted to mid-market buyers accounted for 26%.

The company also noted a shift in its types of customers over the period. Overseas Filipino workers used to make up 40% of its buyers in end-2019, but fell to 20% in the second quarter. This means local buyers propelled CLI’s sales during the six-month period.

“Our buyers today are mostly end-users who realized the importance of owning their own homes during the start of the lockdown period. COVID-19 seem to be prompting them to realign priorities…,” CLI Vice-President for Sales Marie Rose C. Yulo said in the statement.

CLI’s goal is to launch P19.4-billion worth of projects this year, totaling 14 new projects by end 2020, which are targeted to economic and mid-market buyers. It is setting aside around P10 billion for capital expenditures this year.

Shares in CLI at the stock exchange gained six centavos or 1.18% to close at P5.14 each on Wednesday. — Denise A. Valdez

Published in Business World