DMCI Homes deals with over 2,000 unsold condo units 

With its earnings now starting to recover, DMCI Homes still expects that it will take about two years before its performance returns to pre-pandemic levels, as it continues to deal with excess inventories while sales are still affected by higher interest rates, according to a report by Manila Bulletin.

In an interview, DMCI Homes President and CEO Alfredo Austria said that returning to the pre-pandemic level will mean disposing of all the firm’s ready-for-occupancy (RFO) units, as sales were then for units of recently launched projects with zero unsold inventory. The firm currently has more than 2,000 RFO units.

He noted that, aside from unsold units, their RFO inventory also grew due to forfeitures, as buyers defaulted on the installment for the down payment since 2022, when the moratorium on forfeitures was lifted after the pandemic.
DMCI Homes actually reported that forfeitures boosted its revenues, as they retain a portion of the equity paid by the buyer, who receives a refund for the bulk of their down payment.

Austria said buyers in the downpayment stage are more willing to forfeit a portion of what they paid since DMCI only requires a 10 percent downpayment.

“The market will eventually recover because the need for housing is there. Many people need residential units. It’s just that they cannot afford to buy now,” he explained, adding that this is due to the high interest rate and actual cost of the unit.

Austria said prospective buyers are having a hard time coming up with the equity portion before they can avail of a home loan from banks. To address this, he said DMCI Homes has offered rent-to-own packages, which have been welcomed by the market.

Those who cannot afford to buy a condominium unit have to rent from investors so their families will have a place to live. He said the rent-to-own units address both the need to rent and to invest for eventual ownership.

“It becomes aspirational. Once they get used to the comfort and convenience of condo living and they see their children happy there, Filipinos will try harder and maybe adjust their lifestyle and expenses to be able to eventually own the unit they are renting,” said Austria.

With the glut of condominium units in Metro Manila, DMCI Homes is also expanding its reach to the provinces.

“By venturing into regional markets like Cebu, we aim to address the housing needs of a broader audience while contributing to local economic growth through job creation and infrastructure development,” DMCI Homes Vice President for Project Development Dennis Yap said.

Yap added, “Our expansion strategy also aligns with our vision of enriching lives by providing sustainable and well-planned communities across the Philippines.”