Property developer Megaworld Corp. plans to launch P20 billion worth of real estate projects this year, down 31 percent from last year’s level amid an oversupply in the condominium market.
Despite fewer launches, Megaworld is targeting reservation sales of P130 billion, slightly lower than P131.9 billion in 2024.
The company also plans to establish two new township developments this year, adding to its current portfolio of 35.
Megaworld introduced four major townships in 2024, adding nearly 400 hectares to its land bank.
To finance the development of ongoing and upcoming projects, Megaworld earmarked P50 billion for 2025 capital expenditures.
The company said up to 80 percent of the amount would be for project development, while the remaining 20 percent would be for land acquisitions.
Megaworld is set to launch nearly six office projects offering 140,000 square meters of gross leasable area (GLA) from 2025 to 2026. These projects are located in Iloilo City, Pampanga, Bacolod, Davao and Bulacan.
The property firm also intends to launch six commercial developments in the same period.
These projects, which offer 151,100 sq. m. of GLA, are located in Taguig City, Boracay, Pampanga, Cavite, Cainta and Bacolod City.
Megaworld also plans to launch eight new hotel projects from 2025 to 2029, with a combined total of 3,570 room keys.
These include Chancellor Hotel Boracay, Grand Westside Hotel – North Wing, Belmont Hotel Iloilo, Kingsford Hotel Bacolod, Savoy Hotel Palawan, Savoy Hotel Capital Town, Paragua Sands Hotel – Palawan and Arcovia Hotel in Pasig.
These office, mall and hotel developments are expected to boost Megaworld’s leasing revenues.
Megaworld posted a record net income of P21.7 billion in 2024, a 12-percent increase from the previous year’s, as sales grew at a double-digit rate.
Consolidated revenues also rose 17 percent to P81.7 billion, driven by strong performances across its real estate, leasing, and hospitality businesses.
The real estate industry is facing an oversupply issue due to prevailing macroeconomic conditions.
Leechiu Property Consultants earlier reported that new residential project launches dropped 77 percent, with only 1,347 units launched in the first quarter of 2025 compared to 5,928 in the previous quarter.
It said developers are focusing on marketing existing inventory, particularly in the mid-range segment before launching new projects.
