Empire East Land Holdings Inc., a subsidiary of billionaire Andrew Tan’s Megaworld Corp., is leaning into the middle-income housing market, betting that a shift away from luxury developments will shield it from broader real estate headwinds.

During the firm’s annual stockholders’ meeting, Empire East President and Chief Executive Officer Anthony Charlemagne Yu said the domestic housing sector is entering a more sustainable phase.

This transition, Yu noted, is increasingly driven by genuine end-users looking for homes to occupy rather than speculative investors hunting for rapid capital gains.

“Demand does not disappear—it becomes more defined,” Yu said, noting that the mid-income segment tends to be more resilient during economic recalibrations. He added that this shift is forcing developers to re-evaluate how they create value, putting a premium on projects that prioritize accessibility, livability, and long-term relevance.

Yu emphasized that while market conditions continue to evolve and become more selective, the company's strategy remains clear: “We will continue to build where demand is real, operate with prudence and discipline, and deliver on our commitments.”

Addressing concerns about a potential oversupply in the condominium market, Empire East clarified that these risks are concentrated in investor-driven segments and select urban locations, rather than the industry as a whole.

“Oversupply is not uniform across the market—it depends on the segment and location," Yu explained. "In the mid-income segment, particularly in accessible locations, demand remains steady. The key is alignment: price point, location, and product must match actual buyer capacity.”

Because of this alignment with actual housing needs, Empire East noted that its projects are less exposed to the risks of idle inventory. “Our focus on end-users allows our developments to move in line with real demand. That reduces the risk of unsold or unused inventory,” the company added, reiterating that sustained demand underpins the stability of its portfolio.

Meanwhile, Yu acknowledged that rising construction costs remain an industry-wide challenge influenced by global developments and geopolitical tensions. However, he stressed that the impact has remained manageable due to disciplined planning and strong operational fundamentals.

“We continue to manage costs through careful planning, strategic procurement, and close coordination with our contractors and suppliers," Yu said. "Our long-standing relationships within the supply chain allow us to negotiate more effectively, maintain continuity in project execution, and mitigate exposure to sudden fluctuations.”