Ayala Land bullish on high-end residential market

Ayala Land Inc remains bullish on the high-end residential market and will launch another luxury condominium project in Makati City.

Ayala Land president and chief executive Anna Ma. Margarita Dy told a news briefing the company would launch the Laurean project this year, following the strong take-up of Park Villa last year.

"We envision Laurean to be an urban sanctuary in Makati—an oasis amidst the city’s hustle and bustle. More than half a hectare will be dedicated to resort-like amenities, wellness facilities, and lounge areas," Dy said.

Dy said ALI would remain focused on the premium segment, as the middle market continues to face challenges due to the high-interest rate environment and oversupply issues.

"We believe that wealth is actually being created in the Philippines. If you look at luxury car sales, they’re up 20 percent versus 2019 levels. If you look at our sales in Greenbelt, for example, we now have three times the number of luxury brands and almost seven times the sales since 2019. So, there is indeed wealth being created in the country," Dy said.

Dy said that aside from premium and horizontal developments, the company would also ramp up sales of commercial and industrial lots, which account for 10 percent of total sales.

"This is an area where we believe there are opportunities. Buyers want to include commercial properties in their real estate portfolios," Dy said.

Dy, however, admitted that market uncertainties could affect investor confidence in the real estate sector.

"Real estate is something you acquire when you have confidence—when you know what to expect. So, I think we need to watch out for those holding back due to uncertainty," Dy said.

On the oversupply issue, Dy said the 98-month inventory level is largely concentrated in the middle-income segment and in certain Metro Manila cities such as Pasay, Quezon City, Pasig and Parañaque.

She said the oversupply may take two to three years to normalize.

ALI is not significantly affected by the problem, as it currently holds less than two years' worth of inventory, she said.