Philippine Property Market: Mall Expansions, Hotel Growth, and a Rate Hike Shake Up the Sector

This week's roundup covers major developer moves from SM Prime, Megaworld, and Cebu Landmasters, alongside a fresh central bank rate hike and a big-ticket government land sale that could reshape a chunk of Quezon City.

SM Prime to add 70,000 sq.m. of mall space by Q4

SM Prime Holdings is expanding its mall footprint with roughly 70,000 square meters of new gross floor area spread across three projects in Western Visayas, Calabarzon, and Bicol, targeted for completion by the fourth quarter of 2026. The biggest of these is SM City Iloilo North Block, a mixed-use development contributing about 35,000 sq.m. to that total. The expansion comes as the company posted flat first-half net income of P24.5 billion despite a 5% rise in revenue to P71.7 billion, with rental income from malls, offices, hotels, and convention venues making up 61% of the total. According to BusinessWorld, the projects underscore SM Prime's continued bet on recurring rental income.

Megaworld creates new hotel group as portfolio targets 12,000 rooms

Megaworld Corp. has formed a dedicated hospitality unit, Megaworld Global Hotels and Resorts, to manage its expanding hotel business as it works toward a target of nearly 12,000 rooms by 2032. The move follows strong momentum in the segment, which generated P3.1 billion in first-half revenue this year, up 11% year-on-year and now the company's fastest-growing recurring income stream. Megaworld also recently opened its third Iloilo hotel, the 405-room Belmont Hotel Iloilo, pushing its room count in that city to nearly 1,000. According to BusinessWorld, the restructuring reflects hospitality's growing weight in Megaworld's overall business.

CLI starts 11-project rollout with P2.88-B Cebu tower

Cebu Landmasters has kicked off its P25-billion second-half project pipeline with the launch of Alto Ranudo, a P2.88-billion residential tower in Cebu City, after obtaining a conditional selling license from the Department of Human Settlements and Urban Development. The launch follows a strong showing at the 14th PropertyGuru Philippines Property Awards, where CLI was named Best Developer in the Philippines and picked up honors for Best Housing Developer as well as top developer titles in the Visayas and Mindanao regions. According to BusinessWorld, the Cebu tower marks the first of eleven planned launches this rollout.

Bangko Sentral raises key rate to 5% as inflation risks remain

The Bangko Sentral ng Pilipinas hiked its benchmark policy rate by 25 basis points to 5% on August 27, marking its third consecutive increase after hikes in April and June, as it flagged ongoing risks from oil prices, a potential severe El Niño, and rising wages. The tightening arrives even as the broader economy shows signs of strain, with second-quarter GDP growth slowing to just 2.3% and investment contracting 9.2% year-on-year. For property buyers and developers, the move signals tighter mortgage and financing conditions ahead. According to Rappler, the central bank remains focused on managing inflation risks despite the economic slowdown.

PSALM to sell QC property for at least P11.09B

The Power Sector Assets and Liabilities Management Corp. is moving forward with the sale of part of its Diliman property in Quezon City, setting a minimum price of P11.09 billion. A pre-bid conference is set for September 3, with bids due by September 24. PSALM had previously tapped WTA Design Studio to design a mixed-use commercial center for the site, hinting at the property's future direction. According to BusinessWorld, the sale could pave the way for a major new development in the capital.