SMDC gets sales boost after offering discounts on condos

Jan. 15, 2012 - PRLog -- Speaking during ANC Business Nightly's year-end roundtable discussion, SM Investments Corp. (SMIC) chief finance officer Jose Sio defended SMDC's decision to offer steep discounts on some of its condo units.

Sio said the sale was a marketing strategy for the holiday season, similar to the way SM department stores and malls hold sales to dispose of some of its supply.

The huge discount offered by SMDC had sparked fears of an over-supply of high-rise condominiums in the market.

"Parang sapatos, you have the sizes of 4 to 10 and the sizes are not complete, you make a sale during the holidays to dispose of those... Because of our retail background, we (SMDC) said we had so much product. May mga off-sizes na hindi ma-benta because of the location. So we said, sell these and we make long-term good will to our customers," Sio said.

SMDC has so far recorded P2.5 billion sales in December alone, already a jump from the average monthly sales of P2 billion.

"We sacrificed by selling our units at 60 to 50% discount and behold, our normal sales are usually P2 billion, our sales in December are P2.5 billion. And we're targeting P3 billion. If we have to do it again, we will do it again to increase our sales," Sio said.

The Bangko Sentral ng Pilipinas also dispelled fears of a glut in the property market, saying there was no evidence of an asset price bubble.

"So far, if you would look at the various indicators, we are nowhere close to an asset price bubble in the real estate industry," BSP Deputy Governor Diwa Gunigundo said.

In the first nine months of 2011, SMDC sold about 7,900 residential units worth approximately P17.6 billion.

As of end September, SMDC has 16 residential projects in the market, including M Place@Ortigas and Mezza 2 Residences.

In 2012, SMDC is looking to launch at least 5 more projects.

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SMDC is a fast-growing residential property developer focusing on the premium middle market, expertly balancing key housing factors of quality, style, durability, and affordability. Contact arv.smdc@gmail.com, +63917-9473347or http://smdcorp.multiply.com