ARTHALAND.COM

By Beatriz Marie D. Cruz, Reporter

SOME property developers expect continued launches in the high-end and luxury condominium segments amid sustained demand compared with other residential segments.

“We expect the high-end and luxury condominium segment to continue growing steadily between now and 2026. The market remains stable, but buyers have become much more discerning,” Oliver L. Chan, senior vice-president and chief sustainability officer at Arthaland Corp., said in an e-mail to BusinessWorld.

“We do anticipate more launches in this category. In fact, we’ve already heard that several developers are planning to introduce new luxury projects within the year,” he added.

Federal Land, Inc. President Jose Mari H. Banzon said the high-end and luxury condominium segments remain resilient amid challenges in the broader residential property market.

“The high-end and luxury condominium segments remain untouched despite broader market challenges, with a stable to slightly increasing demand in 2025,” he said in an e-mail.

The property arm of GT Capital Holdings plans to continue rationalizing its project launches in the high-end and luxury condominium segments, particularly in major business districts such as Makati, Bonifacio Global City, Ortigas Center, and Cebu, Mr. Banzon said.

“These areas remain attractive due to their proximity to top business hubs, established lifestyle destinations, and ongoing urban development projects,” he said.

The high-end residential condominium segment is expected to sustain its capital value appreciation, compared with the mid-end segment, which faces an oversupply of units and limited absorption rates, especially in Metro Manila, according to property consultancy firm Cushman & Wakefield.

“We expect the high-end (premium to upscale) and luxury (luxury to ultra-luxury) segments to continue to do well until 2026, as these segments weather inflationary and high-interest rate environments much better,” RLC Residences Senior Vice-President Chad Sotelo said in an e-mail.

“We also expect an increase in launches in these segments within the next one to two years, but not as aggressive as we had seen in the past years,” he added.

Buyer sentiment is expected to further improve amid cooling inflation and anticipated rate cuts by the Bangko Sentral ng Pilipinas (BSP), Mr. Banzon also said.

“Lower interest rates can make mortgages more attractive, making high-end properties more accessible to investors and end-users,” he said.

The BSP expects inflation to average 2.3% this year, well within its 2-4% target range.

BSP Governor Eli M. Remolona, Jr. said the Monetary Board could deliver two more 25-basis-point rate cuts this year, with the next cut possibly in June.

While macroeconomic conditions remain a key driver of demand, Mr. Chan noted that buyers are now more conscious of a development’s sustainability features, building specifications, amenity design, and overall construction quality.

“The market is not only interest-rate sensitive, but also increasingly value-conscious. Buyers are willing to spend, but they want to be sure that what they’re paying for truly matches the level of quality and experience promised,” he said.

“There’s a clear shift toward developments that offer long-term value and align with their lifestyle or investment goals,” Mr. Chan added.

Looking ahead, high-end and luxury condominium developments that incorporate sustainability and smart technology features are expected to generate strong demand among buyers, Mr. Chan said.

“The most desirable developments will be those that integrate sustainability and wellness into their core design while offering smart, tailored services that elevate everyday living,” he said.

Mr. Banzon also cited a growing preference for luxury properties developed through joint ventures.

“Developments with ties to international brands stand out by providing a seal of quality and presenting hotel-like amenities, green building features, and flexible layouts to cater to the evolving lifestyle needs of discerning buyers,” he added.