SM Prime Holdings debuts in premium property segment
MANILA, Philippines — Real estate giant SM Prime Holdings Inc. has ventured out of the middle-income segment and into the premium market with a P25-billion investment in an existing property in Muntinlupa City.
The Sy family-led developer on Wednesday unveiled Signature Series, a high-end brand under its new SM Residences unit.
“One very promising aspect in the organization is the raw material is there, the land is there, nationwide,” Jose Juan Jugo, Signature Series group head, said during their launch in Makati City.
“It’s just a matter of us selecting the best properties available in our portfolio to develop into high-end primary residential communities,” Jugo said.
In this case, the first project to rise under the Signature Series brand will be within the 284-hectare Susana Heights, in which SM Residences has invested P25 billion.
Parent firm SM Investments Corp. last year acquired a vast tract of land in Susana Heights from Intercontinental Development Corp. This is the subsidiary engaged in subdivision property development.
READ: SM bags Muntinlupa land triple size of MOA
P15M to P65M price range
Jugo said that they have yet to begin construction as the project launch is scheduled “in the next few months.”
Although price points have not been determined yet, Signature Series units will range from P15 million to more than P65 million each, depending on the size and design.
Units at Susana Heights are seen to have big cuts spanning at least 750 square meters, Jugo noted, adding that they were expecting P100 million in sales from entry-level residential lots.
As for a vertical development, Signature Series will tap a strategic partner to build a premium project in Makati, one of Metro Manila’s central business districts that is already home to several high-rise condominiums.
“If we study the residential market in the Philippines, we see that the space for premium primary residential has not yet been addressed to its best capacity,” Jugo pointed out.
This will not be the first time that SM Prime partnered with another developer for a high-end project. In 2019, SM Development Corp. joined hands with the Ty family’s Federal Land Inc. to develop The Estate, a luxury residential tower along Ayala Avenue.
READ: BIZ BUZZ: The Estate Makati defies inflation woes
In the pipeline
The SM Group currently has 400 ha in existing land bank that may house Signature Series projects. These are in the cities Pasay, Muntinlupa, Makati, Manila, Parañaque, Taguig, Cebu, Pasig, Cavite and Tagaytay and in Batangas.
In finally entering the luxury space, Jessica Sy—SM Prime vice president and head of design, innovation and strategy—said that it had been a long time coming.
“This is not just a reaction to a market that’s changing, but it’s a plan that we’ve had for many years,” she said.
Data from real estate broker Colliers Philippines show that condominium units in the upscale and luxury segments, or those worth at least P12 million per unit, accounted for only 5 percent of the unsold inventory in Metro Manila. The middle-income segment, meanwhile, accounted for 35 percent.
Analysts earlier said the high-end market was less affected by inflation and high interest rates, especially since buyers in this segment had higher salaries.
