Ali bullish on real estate recovery

Ayala Land Inc., the listed property developer of the Ayala Group, sees the real estate industry recovering from the impact of the COVID-19 pandemic.

Ayala Land president and CEO Bobby Dy said the country is well positioned to recover from the crisis given its stable macroeconomic fundamentals.

“Low interest rates, low inflation rate, and stable exchange rates—these factors are conducive for investments,” Dy said in his opening remarks at a virtual forum held by the Makati Business

Club on June 16.

For the property industry, each sector is bound to see different stages of recovery, Dy said.

Ayala Land’s office and warehouse logistics units continue to operate without significant effects, while others see different results.

In its residential business, Ayala Land recorded increasing sales from April to May, and again from May to June during the effectivity of enhanced community quarantine.

“We’re seeing a pick-up in activity in residential sales as early as now. We hope that positive trend will continue,” Dy said.

On the other hand, the company’s mall business has especially been affected due to the implementation of quarantine measures since March, prompting consumers to stay at home except for essential needs.

The lockdown measures have also heavily affected the company’s hotel and resorts segment, Dy said.

Ayala Land expects travel to recover only when people are once again free to travel.

Amid these impacts, Dy argued that the property industry remains to be one of the best investment options in the country.

“If you look at long term trends of property, taking into account various economic cycles, I believe property continues to be one of the best, if not the best, performing asset class,” Dy said.

Ayala Land has yet to see a meaningful price correction during the pandemic.

Should there be any, Dy said the company does not expect a repeat of price reductions seen during the Asian Financial Crisis.

There remains to be ample liquidity in the market in search for investment options, he said.

The country’s historically low interest rates should also keep asset prices stable.