Major real estate companies in the Philippines are accelerating the development of luxury residential projects to meet the growing demand from affluent local and foreign buyers in the country. Prime residential prices in areas like the Makati financial district have seen a significant increase, with prices climbing by 26% in the 12 months through March 2024. This growth can be attributed to the robust economic performance of the Philippines, as well as significant infrastructure investments in and around Metro Manila.
Ayala Land, one of the leading real estate developers in the Philippines, started marketing its most luxurious project, Park Villas, last year. This 51-story residential condominium, located in the heart of the Makati central business district, offers 45 single-floor apartments with unobstructed views of the Ayala Triangle Gardens. With a price tag of about 500 million pesos ($9 million) each, the project has already sold about 20% of its units. The company’s residential projects launched in 2023 mostly catered to the premium segment, reflecting the rising demand for high-end properties.
Other major developers like Robinsons Land and Megaworld are also focusing on high-end residential developments in key locations such as the Bonifacio Global City. Robinsons Land, in a joint venture with Shang Properties, has sold 83% of the units in the luxury Aurelia Residences condominium, with prices ranging between 120 million pesos to 210 million pesos. Megaworld, controlled by billionaire Andrew Tan, has around 80% of its projects catering to upper-middle and upscale segments. The company plans to launch 10 new residential projects this year, including Tower Two of Uptown Modern at the Bonifacio Global City.
Despite rising borrowing costs and the peso’s depreciation, real estate developers like Megaworld remain optimistic about the industry’s growth. The company has seen a significant improvement in international sales, with about 29% of housing revenues coming from overseas buyers. Vista Land is also diversifying into vertical residential projects to maximize its landbank across the Philippines. The company launched 10 billion pesos worth of high-rise condominiums in the first quarter, with plans to continue with project launches throughout the year.
Overall, the demand for luxury residential properties in the Philippines remains strong, driven by factors such as rising consumer confidence, economic resilience post-Covid, and strategic infrastructure projects. Developers are optimistic about the industry’s growth potential and are continuing to invest in high-end residential developments to cater to the demand from affluent local and foreign buyers. With the Philippines being one of the best-performing prime housing markets globally, real estate companies are seizing opportunities to tap into this resilient market and offer million-dollar homes to discerning buyers.
