Developers set sights on horizontal housing in regional growth areas

Property developers are targeting regional growth areas and pacing the rollout of horizontal residential projects this year, amid economic uncertainties and cautious buyer sentiment.

“We expect the horizontal segment to perform better, supported by steady end-user demand and a preference for larger living spaces,” SM Prime Holdings, Inc. President Jeffrey C. Lim said in an e-mailed reply to questions.

He added that demand for horizontal developments outside Metro Manila remains steady, supported by continued growth in overseas Filipino workers’ remittances, low inflation, and buyers’ increasing preference for larger homes.

Federal Land, Inc. President Jose Mari H. Banzon said the horizontal market remains a “safe investment,” but noted that external factors such as political concerns and geopolitical tensions could affect market sentiment.

“The current political and geopolitical noise have distracted the market from the fundamental soundness of horizontal residential investments,” he said in a Viber message.

Mr. Lim described SM Prime’s outlook for the horizontal residential segment as “cautiously optimistic,” citing potential risks from slower economic growth and weaker buyer confidence.

“As a result, we will remain selective in our 2026 project launches, focusing on locations where our developments have a clear market advantage and sound demand fundamentals,” he said.

The developer is also keeping its development phasing flexible depending on demand conditions while enhancing design and infrastructure to appeal to buyers.

Pueblo de Oro Development Corp. (PDO), known for its ‘live-work-play-learn’ communities, said more families and first-time buyers are seeking township-style living.

“PDO has a positive outlook for the horizontal residential sector in 2026, especially in regional growth corridors,” PDO President and Chief Operating Officer Prim B. Nolido said.

The company expects strong demand for horizontal residential projects in areas with robust economic growth, such as Batangas, Pampanga, Cebu, and Cagayan de Oro.

Mr. Nolido added that the segment could face challenges from rising construction and material costs, as well as competition from affordable housing.

For this year, SM Prime is set to launch a premium residential development within the Susana Heights village in Muntinlupa City and continue its Symphony Homes rollout in Pampanga.

Meanwhile, Federal Land plans to launch another residential subdivision in Biñan, Laguna, and General Trias, Cavite.

“We will also launch residential condominiums to replenish the depleting inventory of our successful projects in Pasig and Bonifacio Global City, catering to the high-end and luxury markets,” Mr. Banzon said.

Source: Business World

Cement industry to complete decarbonization plan soon

The Cement Manufacturers Association of the Philippines, Inc. (CeMAP) said it is looking to present a decarbonization roadmap for the industry to the Association of Southeast Asian Nations (ASEAN), which the Philippines chairs this year.

CeMAP President and Vice Chairman John Reinier H. Dizon said the group is working with the United Nations Industrial Development Organization in preparing a roadmap that will help reduce the industry’s carbon emissions.

“It is almost done … We will finish it next month, before the end of February,” he told reporters last week.

“We will try to present it at the ASEAN … We will be the second in the region,” he added, noting that the first such plan was completed by Thailand.

Under the roadmap, the Philippine cement industry will set a target every five years between 2030 and 2050, with net-zero as the ultimate goal.

“Cement and concrete in general contribute to around 6-7% of greenhouse gas, but we need cement to build houses and roads, so we are just doing our part on how we can reduce our carbon footprint,” he said.

The group aims to achieve the plan’s targets via the increased usage of alternative fuels, among others.

“Typically we use coal, which is fossil-based. And of course, it emits carbon dioxide,” he said.

He added that the process of cooking the limestone used for cement, also produces carbon dioxide.

“We have two main actions: we want to introduce more alternative fuels, and in the production of cement, we want to use less clinker,” he said.

In particular, he said that the industry is looking at waste-to-energy as an alternative, noting its role in reducing waste.

He said that the roadmap is also aligned with recently signed laws: the New Government Procurement Reform Act and the Tatak Pinoy Act.

Source: Business World

Infrastructure spending boost seen key to faster PH growth in 2026

A recovery of government infrastructure spending after a deep slump triggered by the flood control scandal would be the most effective way to accelerate growth, ANZ Research said, arguing that the boost from interest rate cuts is still debatable in an environment of weakening confidence.

In a note to clients, Sanjay Mathur, ANZ’s chief economist for Southeast Asia, said that while the Bangko Sentral ng Pilipinas (BSP) may opt for one last final rate cut to support the economy, there are repercussions from the graft fallout that may not be effectively addressed through monetary policy easing.

“There has been a downshift in the growth in the Philippines as repercussions from governance-related issues in public infrastructure projects have not receded,” Mathur wrote. “The resulting weakness in public spending, particularly on the capital side, has permeated into the household and business sectors.”

“The efficacy of the monetary policy easing cycle against the backdrop of low household and business confidence is debatable,” he added. “In our view, a revival in government spending is the most appropriate pathway to faster growth.”

Lowered growth target

Earlier this month, economic officials in the Marcos administration trimmed their 2026 growth target to 5 to 6 percent, from the previous goal of 6 to 7 percent, underscoring the economic costs of the sweeping investigation into anomalous flood control projects.

ANZ’s Mathur estimated that growth in the fourth quarter of 2025 may have settled at a “sub-potential” rate of 4.5 percent, which, he said, is likely to validate the need for an additional cut in the policy rate.

To help “compensate” for the effects of the graft fallout, the BSP cut its benchmark rate by a quarter point to 4.5 percent last December, bringing total reductions since the easing cycle began in August 2024 to two percentage points.

Source: Inquirer