Robinsons Land Corp. (RLC) is expecting this year’s take-up of residential units to be as strong as last year’s record despite geopolitical risks and interest rate hikes.
“Last year was actually a record year for Robinsons Land, just speaking for the Residences, it was our highest take-up ever in history. This speaks well about the reopening of the economy, the confidence of people not just in the company but in the industry as a whole,” said John Richard B. Sotelo, senior vice-president and business unit general manager of RLC Residences, said in a media briefing last week.
“We expect it, cautiously, to be as strong this year. Obviously, there are some risks and headwinds, geopolitical risks and interest rates going up, but I think at the basic level the demand is still there,” he added.
Mr. Sotelo said developers working with the government also helped in securing the growth of the property market along with the move by its partners to take a “slow and responsible approach to not overbuild in certain areas, diversify, and go across all spectrums.”
Meanwhile, Mr. Sotelo said he expects the effect of rising interest rates to be felt more in the second half of 2023.
“So far, we are not seeing the full impact of rising interest rates yet, I’m sure we will feel it maybe in the second half of the year but not enough, I believe, that would drastically slow down the market,” he added.
According to Mr. Sotelo, the slowdown resulting from the rise in interest rates might be offset by market demand and the sector’s strength.
“But currently with what has been happening, we don’t think it’s going to substantially impact,” he said.
However, he added property companies would need to manage their portfolio and spending as expenses continue to go up.
Meanwhile, Mr. Sotelo said RLC Residences would continue building up its core market as it tries to have more offerings in other segments.
“Obviously, we are seeing faster growth in certain segments. One of them would be the premium luxury segment and we are trying to have offerings at that level but we will continue to build our core, so we will continue to have offerings at the mid to mid-high segments,” he said.
Mid to mid-high segments consist of product offerings with price points starting from P5 million, said Mr. Sotelo. — Justine Irish D. Tabile