Megaworld Corporation the Philippine home builder founded by billionaire Andrew Tan, isn’t seeing any slowdown in demand from overseas or local buyers despite the central bank Thursday delivering its fifith rate since May. The stock climbed to the highest in more than two months.

Kevin Andrew Tan who is son of the founder said that the market hasn’t been affected by higher interest rates as of now. We’re seeing strong demand from both foreigners and locals, although I have to admit it’s foreign demand that’s been pushing up prices.

Real estate in the Philippines has been the recipient of a steady flow of Chinese money as thousands of migrants flood Manila, in part motivated by the country’s booming gaming industry. Strengthening ties with China has also been a priority for President Rodrigo Duterte as President Xi Jinping pushes his ambitious Belt and Road initiative.

Demand isn’t only robust in Manila, but also in the provinces, where the impact on the housing market of money repatriated by Filipinos working and living overseas is very visible, according to Tan.

Revenue from pre sales could reach 130 billion pesos ($2.5 billion) this year, higher than the company’s previous guidance of 110 billion pesos, boosted by additional residential project launches, Tan said. Megaworld had 105.8 billion pesos in pre sales for 2018 as of September. 30, and started to market 78.4 billion pesos of new residential developments.

Source: Bloomberg

Fulya Altunyay/

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