AS QUARANTINE RESTRICTIONS EASE: Realtors’ profit grows 27.2% in H1

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Realtors’ profit in the second half of the year grew by an average of 27.2 percent as recovery accelerated during the period with the easing of quarantine restrictions, online stockbroker Colfinancial.com said.

Declines in real estate revenues were offset by strong recovery in mall leasing revenues and steady improvement in office leasing revenues, Colfinancial said.

First half profit of developers improved by an average of 12.5 percent.

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Residential revenues were down 15 percent in the second quarter and 9.2 percent in the first half.

“Slower revenue booking (as payments by buyers were stretched) and higher cancellations (due to the impact of the pandemic and challenging environment) this year led to the declines,” Colfinancial said.

It added developers still maintain a positive outlook on real estate sales and revenues going forward as they see demand recovery continuing.

Sales takeup continues to grow and was recorded at 32.6 percent in the second quarter to P103.2 billion and 13.3 percent in the first half to P206.7 billion.

First quarter mall revenues jumped 34.2 percent as the easing of restrictions led to higher rental revenues for mall operators. Operational gross leasable area (GLA), foot traffic, and tenant sales were higher compared to the previous quarter and the same period last year, Colfinancial said.

Discounts on fixed rent components of rent were less, it added.

Colfinancial said mall business outlook continues to improve as better mobility lead to steady improvement foot traffic in malls and growing tenant sales.

“Mall revenues will be further boosted by higher basic rent as most mall operators have started to collect full basic rent in July,” it said.

Office revenues in the second quarter were up 16 percent.

“Office landlords posted mid to high double-digit growth in office leasing revenues in the second quarter as contributions from newly- completed projects kicked in. Higher lease rates from programmed rent escalations also boosted revenues. For the first half, total office leasing revenue were up 11 percent,” Colfinancial said.

Hotel revenues grew an average of 136.5 percent in the second quarter as lower alert levels led to higher occupancy rates in hotels and resorts.

For the first half, revenues from hotel, resorts, and convention centers grew 95.1 percent.

Colfinancial said the outlook on the hotel and resorts sector continues to improve as domestic tourism momentum picks up and as more countries, including the Philippines, opens up its borders.

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