Major real estate companies in the Philippines are accelerating the development of luxury residential projects to cater to the resilient demand from affluent local and foreign buyers in the country’s top housing market. The Prime Global Cities report by Knight Frank showed that prime residential prices in the Makati financial district and surrounding areas increased by 26% in the 12 months through March 2024, the highest among 44 cities tracked. This growth is attributed to the Philippines’ strong economic performance and significant infrastructure investments in and around Metro Manila.
Ayala Land, one of the leading real estate companies in the country, launched its most luxurious project, Park Villas, a 51-story residential condominium in the heart of Makati’s central business district. With a price tag of around 500 million pesos ($9 million), the project offers 45 single-floor apartments with unobstructed views of Ayala Triangle Gardens. Another major player in the luxury real estate market, Robinsons Land, in a joint venture with Shang Properties, sold 83% of the 285-unit Aurelia Residences luxury condominium by the end of 2023. The project is located in Bonifacio Global City, just outside the Makati financial district.
Megaworld, controlled by billionaire Andrew Tan, is also focusing on high-end residential developments, with 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 Bonifacio Global City. Additionally, Vista Land, traditionally focused on horizontal housing developments, is diversifying into vertical residential projects to maximize its landbank across the Philippines. The company has launched about 10 billion pesos worth of high-rise condominiums in the first quarter alone.
According to Anna Maria Margarita B. Dy, president and CEO of Ayala Land, rising wealth among high net worth and affluent households is driving demand for the premium residential segment in the Philippines. Lance Gokongwei, president and CEO of JG Summit, emphasized that factors such as post-Covid resilience, booming infrastructure projects, and the strategic location of the Philippines in Southeast Asia are pushing up the value of luxury projects in the country. Kevin Tan, CEO of Megaworld’s parent company, Alliance Global Group, stated that real estate sales and demand are expected to sustain their trajectory throughout the year, with the stronger dollar benefiting overseas buyers.
As the leading real estate companies in the Philippines continue to see strong demand for luxury residential properties, they remain optimistic about the industry’s outlook. With a focus on high-end residential developments and vertical projects, these companies are aiming to meet the growing demand from affluent buyers in the country. Manuel Villar, chairman of Vista Land, expressed optimism about the industry as the company continues to launch new projects and diversify its offerings to cater to the evolving needs of the market. Overall, the luxury real estate market in the Philippines is poised for continued growth and development as demand remains strong from both local and foreign buyers.
