By Bjorn Biel M. Beltran,
Special Features Writer
SALES swell for Ayala Land, Inc.’s (ALI) upscale property brand Alveo Land. And foreign businessmen from countries like China and Hong Kong are behind it.
There’s huge demand for high-end residential, commercial, and office developments in the country, Alveo Land told reporters in a media briefing on Feb. 28.
The upscale builder’s properties offered in 2017 were mostly sold out in less than a day from launch, said Alveo Land President Jennylle S. Tupaz.
“Twenty-six percent of our sales last year was attributable to international sales. That’s a growth of two percentage points from 2016’s 24%,” Ms. Tupaz said. “The top three sources would be Mainland China, accounting for 25% [of international sales]; Hong Kong at 18%; North America at 16%; and Taiwan at 8%.”
Alveo Land recently concluded its 15th year performance with a remarkable sales take-up of P45.6 billion, surpassing its initial target for 2017 of P40 billion, and reflecting a 20% sales growth from the P38 billion recorded in 2016.
The company introduced signature properties within ALI’s sustainable estates with launches in areas like Makati, Ortigas-Pasig, Quezon City, Cavite and Taguig. These include developments in Circuit Makati, Alviera in Pampanga, Vertis North in Quezon City, and Evo City in Cavite, among others.
Sales take-up of Alveo Land’s residential and office projects rose in the past year, especially in Circuit Makati. The company’s properties in the area include condominium developments Solstice and Callisto, as well as the office-for-sale The Stiles Enterprise Plaza.
The signature subdivision The Residences at Evo City in Cavite was sold out completely in one day, making it the fastest and highest-selling lot subdivision in the company’s history.
Ms. Tupaz admitted that the company was seeing such strong demand that it had to start limiting the number of properties that a single buyer, local or foreign, could purchase.
“We can’t give all the floors to a bulk buyer,” she said. “Sometimes for residential properties, we put a cap to the number of lots that one can buy or consolidate. Some people will want to buy blocks because they really can afford it, but what we want is a balanced and growing community.”
“I guess it’s a function of the confidence of consumers and investors today,” Rufino Gutierrez, Alveo Land vice-president and group head for project development, sales and marketing, said of the demand. “The market is very strong. The demand is strong every time we launch [a property].”
Mr. Gutierrez said that foreign nationals are locking in investments, optimistic that the Philippines will be one of the top 20 economies in the world by 2050. The effect of such high demand is an increase in prices, but even surging price points are not deterring buyers, he added.
Real estate prices in the Philippines, especially within the Makati, Bonifacio Global City, and Ortigas central business districts — as well as at its outskirts — have skyrocketed in the last decade, Ms. Tupaz said.
“Serendra’s a good example. We launched Serendra in 2004. We launched it at a price point of about P80 to P85,000 per square meter, and today, Serendra is going for about P200,000. That is, if anyone is willing to sell at all,” she shared.
“Our growth trajectory is just beginning. I think what it tells us is that the market has faith in the future of the country. For the economy over the long term, they continue to be optimistic,” Ms. Tupaz added.