Ayala Land Inc.’s core luxury business has been hammered by poor demand for its high-end condos and subdivisions in the first half of 2022.
Ayala Land Premier (ALP) reported a 26 percent fall in revenues to P7.81 billion in the first half this year from P10.54 billion during the same period last year.
ALP blamed the lack of inventory as it has sold out its available lots in Ayala Greenfield Estates in Calamba, Laguna and The Courtyards Phases 1 and 2 in Vermosa, Cavite.
Ayala Land launched 12 projects worth P35 billion in the first half this year with only two from ALP – Ciela Phase 1A Tranche 2 in Carmona, Cavite; and Anvaya Cove Seaside Point in Morong, Bataan. Ayala Land is set to launch P65 billion worth of new projects for the rest of the year.
The disappointing ALP sales eroded Ayala Land’s average gross profit (GP) margin of horizontal residential projects by four percentage points to 43 percent.
Ayala Land’s other residential subsidiaries were a mixed bag in the first six months this year – Alveo up 22 percent to O6.21 billion; Avida up 15 percent to P7.58 billion; Amaia down two percent to P2.26 billion; and BellaVita down 76 percent to P131 million.
The plunge in residential sales (down nine percent year on year to P27.36 billion in the first half) accelerated quarter on quarter due to cancellation of previous sales and stretched payment schemes which delayed bookings.