DMCI unit faces inventory hurdle

With its earnings now starting to recover, Consunji-led DMCI Homes still expects that it will take about two years before its performance returns to pre-pandemic levels, as it continues to deal with excess inventories while sales are still affected by higher interest rates.

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In an interview, DMCI Homes President and CEO Alfredo Austria said that returning to the pre-pandemic level will mean disposing of all the firm’s ready-for-occupancy (RFO) units, as sales were then for units of recently launched projects with zero unsold inventory. The firm currently has more than 2,000 RFO units.

He noted that, aside from unsold units, their RFO inventory also grew due to forfeitures, as buyers defaulted on the installment for the down payment since 2022, when the moratorium on forfeitures was lifted after the pandemic.