NEWSFLASH

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AYALA PREDICTS CONDO GLUT, PRICE FALL

Makati City, Oct.1, 1997 - The president of Ayala Land Inc. (ALI) painted a gloomy picture of the property market, projecting an oversupply that could last three to five years.

Jaime Augusto Zobel de Ayala told a forum that easy profits and pre-selling have become a thing of the past as prospective tenants want to see what they are buying or paying for.

"The period of quick and easy profits is over and the industry has entered a period of more intensive competition where profitability will be based on value and not mere speculation," Ayala explained.

He concluded, however, that the middle income housing sector will continue to be under- supplied, creating a demand of 320,000 units every year while the industry's capability remains at 150,000 to 200,000 units annually. This means a supply gap of 3.8 million units, Ayala noted.

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