‘Makati remains a sought-after real estate hub, driven by strong end-user demand, limited new residential
supply, and investor
confidence.’
Avida Land Inc., the mid-market residential brand of Ayala Land Inc., said it does not see a glut in the horizontal market where it is also a significant player.
But the company said it will be careful and prudent in its launches given the “signs of the times”
“We… make sure that we bring products into the market that’s going to resonate to the buyers. (We’re) being very deliberate now, but we’re not going to stop,” said Raquel Cruz, president of Avida Land, in an interview on the sidelines of the launch of Avida Bespoke in Makati City on March 21.
Cruz said Avida Land continues to see demand.
“We have to show people the choices. They are still buying, whether it’s for investment, whether it’s something they can live in,” Cruz said.
But Cruz said the affordable segment is in a little bit more difficult position due to concerns not just on the real estate market, but on the economy as whole.
“We notice that before buyers approach us, they already do the research, they ask around before they make the final decision. It takes longer for the buyers to decide. (Buyers) still want to invest, but they want to stretch it a little bit,” Cruz said.
Colliers’ view
Joey Bondoc, head of research at Colliers, said the lower-middle income horizontal segment — or homes priced at P3.6 million to P7 million — is end-user driven and buyers purchase not for speculation.
Outside Metro Manila, Bondoc said prices of house and lots and lots- only are stable, citing Colliers data which showed between 2016 and 2024, price escalation averaged at a healthy rate of 3 to 10 percent.
Bondoc said takeup of house and lots and lots- only in Central Luzon, Calabarzon, Western Visayas, Central Visayas Davao region and Northern Mindanao is also strong.
Bondoc said in the affordable horizontal market — those priced at P2.5 million to P3.6 million — developers continue to bank on a strong end-user market
“The OFW (overseas Filipino market) is a sweet spot for affordable to low mid-income market of P2.5 million to P7 million given that remittances are growing every year. That market is stable,” Bondoc.
But Bondoc shares Cruz’ opinion that developers in lower mid-income market or those priced between P3.6 million and P7 million market should be careful in their launches in Metro Manila.
“Developers need to thoroughly assess given the price points gravitate towards the fringes (of Metro Manila) especially with the high cost of land and construction materials,” said Bondoc.
Bondoc said buyers are also tentative because interest and mortgage rates are still elevated.
“It is expensive to finance this segment, it is the most sensitive,” he added.
Colliers said with the oversupply of condos concentrated in Metro Manila, developers can launch relatively more affordable projects in the fringes, depending on location.
“There are some developers with a huge number of unsold ready-for-occupancy (RFO) units in parts of Paranaque, parts of Manila, parts of Pasig and parts of Makati. Not all developers and not all locations are affected,” Bondoc said.
Good showing
According to Bondoc, Avida is not in the list of vertical residential developers in Metro Manila with a marked overhang of RFO units “because it has not been launching a lot of projects.” The latest project Avida launched is the last tower of Avida Towers Makati Southpoint, just last month.
“That is a good showing for them,” Bondoc said.
Avida on March 21 announced P7.8-billion new developments in Metro Manila, Cavite, Laguna and Tagaytay.
“…expansion in key business districts and Ayala Land estate developments reflect the resilience of the real estate market demonstrating high investment potential,” the company said in a statement.
Avida Towers Makati Southpoint has seen strong takeup since its launch, with Tower 1 already 95 percent sold and Tower 2 at 70 percent sold, Avida said.
The first tower of Sentria Storeys Vermosa in Cavite offers mid-rise living within a pet-friendly community, while Crescela Nuvali will be the 11th addition to Avida’s project portfolio in the area since 2007.
Avida said Serin Terraces Tagaytay is set to be Avida’s first town home offering in Tagaytay.
Avida eyes to generate at least P6.56 billion in sales from the third tower of Avida Towers Makati Southpoint.
The last of the three-tower residential enclave is offering 924 units of studio and one-bedroom units with sizes ranging between 23.1 and 41.9 square meters (sq.m.) at a starting price of P7.1 million.
“Designed for urban professionals, the development features amenities for productivity and wellness, including co-working spaces, a jogging path, a wellness area, and leisure facilities,” Avida Land said of the 28-residential floor tower.
Sentria Storeys Vermosa meanwhile is located in the 700-hectare master-planned Vermosa Estate in Cavite.
Avida said the development offers modern, spacious units with pet-friendly spaces and expansive balconies. With units priced between P5.7 million and P8.5 million, it provides a convenient and sustainable lifestyle for those seeking a peaceful retreat within a connected community.
Crescela Nuvali, located within Ayala Land’s expansive eco-city, offers landscaped open areas, eco-friendly spaces, and a variety of amenities such as a swimming pool, clubhouse, and parks.
Avida said lot prices at Crescela start at P48,000 per square meter. It added the development is a long-term investment for families who value security, sustainability, and a community-oriented environment.
Avida said Serin Terraces Tagaytay features nature-inspired outdoor spaces and vacation-like amenities priced at P12.1 million to P15 million.
