SM Prime Holdings Inc. plans to maintain steady capital expenditures of ₱60 billion to ₱80 billion next year, with a maximum ceiling of ₱100 billion, as the property developer navigates ongoing economic challenges.
President and CEO Jeffrey Lim stated that while the firm remains committed to investing across all of its business units, it will adopt a more selective approach.
“We will continue to invest across all businesses. We expect capital spending in 2027 to be roughly in line with this year, around ₱60 billion to ₱80 billion, ₱100-billion max,” Lim said.
“We will be more selective about which project to prioritize and when to proceed with them. For most, our priority is to complete ongoing developments and redevelopments,” he added.
While overall timelines may be adjusted depending on market conditions, expansion for hotels and convention centers will move forward as planned due to steady performance in the tourism and MICE sectors.
However, residential launches will target the stronger premium market, with core segment rollouts paused until sentiment improves. Office developments will also see a pause on new launches, focusing instead on current construction and boosting occupancy.
Lim noted that while 2026 presented significant economic hurdles, the company enters the coming year with strong fundamentals and a cautious, risk-managed strategy.
“There is no question that 2026 has been a challenging year, not just for the property industry but for the country as a whole. We have faced economic uncertainty, rising costs and a more cautious business and consumer environment,” Lim said.
“Looking ahead to 2027, we do not expect a quick or sharp recovery in the property market. But we continue to see opportunities, particularly in segments where demand remains strong,” he noted.