SM DEVELOPMENT Corp. (SMDC) expects to generate another P22 billion in sales from the Mall of Asia (MOA) complex in Pasay City with the addition of two residential projects.

The swimming pool at SM Development Corp.’s Sea Residences project — SMDCSEARESIDENCES.COM

The residential development arm of SM Prime Holdings, Inc. has launched the S Residences and the last phase of Shore Residences, its Executive Vice-President Jose Mari H. Banzon said in a media briefing in Pasay City on Monday.

S Residences will have over 2,000 units priced between P3 million and P4 million or P7 billion, in aggregate, across three towers. The project, which takes the design of a Japanese-inspired boutique hotel, will be completed by August 2020.

Shore 3, meanwhile, will offer around 5,000 units in four towers at the same price points for a total of roughly P15 billion. This completes the largest in-city residential resort complex with a beachfront for the first tower, riverfront for the second and wharf front for the third.

SMDC launched Shore 3 and S Residences months ahead of schedule following a “very strong” demand particularly from overseas Filipino workers, who accounted for half of residential sales in MOA, Mr. Banzon said.

Shore Residences offers a total of 15,000 units, with about 90% of the first phase and 70% of the second phase already sold. SMDC expects to sell out the entire residential development within the next two years.

“The strongest selling projects are in the Bay area. The reasons are obvious — the MOA area is one of the prime [central business districts] anchored by the mall, which is among the largest in the world, and we have a church there, hotels and the Entertainment City nearby,” Mr. Banzon said.

In the last 10 years, SMDC has sold a total of 85,000 units in 28 developments located across the National Capital Region, including the Wind Residences in Tagaytay City. The company has turned over 50,000 units in 13 projects so far.

“We expect the sales to continue to be stronger. Even the government is expecting the strength of the economy to be sustained,” Mr. Banzon said, citing the company’s expansion outside Metro Manila as reflection of the positive outlook.

In the first nine months, SM Prime sourced 32% of its consolidated revenues from the residential business, led by SMDC. The contribution surged 10% to P18.7 billion during the period.

SM Prime attributed the improvement largely to the sale of ready-for-occupancy (RFO) units in Princeton Residences, M Place Residences, Mezza II Residences and Jazz Residences in the cities of Quezon and Makati, among other projects.

SMDC also recorded a 22% surge in reservation sales to P35.5 billion during the nine-month period from P29.1 billion with the strong take-up of projects within and near the MOA complex, following a 20% increase in sales volume to 12,579 units from 10,520 units.

Shares in SM Prime closed five centavos or 0.18% lower at P28.15 apiece on the Philippine Stock Exchange on Monday.