Arca South Skyway Exit

On November 21, Ayala Land (ALI) signed an agreement with San Miguel Corp. for the Skyway on and off ramps to Arca South!

Background

+ Arca South is the old 74-hectare FTI (Food Terminal Inc.) land ALI purchased in 2012.

+ ALI purchased the property for 32,000/sqm, 71% higher than the second-highest bid.

+ Analysts were dumbfounded on why ALI would bid so high back then. Months later, ALI reportedly sold its first lot 5x what they purchased the property for–150,000/sqm!

+ Arca South is touted to be the next BGC (albeit smaller). For comparison, BGC is 240 has. and Rockwell Makati is 15.5 has.

+ Access to Arca South has remained challenging, having only two access points: East Service Road (a 2-lane street parallel to SLEX) and another 2-lane street at the side of the compound.

+ To solve this problem, ALI planned to have a direct Skyway exit. This exit was part of their marketing spiel when they first marketed the project.

+ However, construction of the on/off ramps was delayed due to the pandemic (?).

+ Due to the difficult access, secondary market prices in Arca South have remained lethargic relative to the run-up of prices in Makati and BGC between 2018 and today.

+ A story I’ve heard is that of a foreign buyer who reserved a unit and backed out at the last minute after traversing East Service Road traffic.

+ With the construction of the Skyway exit, I expect prices to catch up with BGC prices. Of course, I don't expect Arca prices to overtake BGC because BGC is BGC.

+ This Skyway extension is part of the plan to connect Skyway to Ortigas Extension (watch out Fairmount Hills!) and ultimately Batasan in Quezon City.

+ To cite an example of the rapid run-up in prices, lot prices in Alabang were at ~30,000 per sqm before the completion of the Filinvest exit of the Skyway. Then prices rose to 50,000. Then 100,000. Now at a high of 200,000.

+ So, to those who have purchased in Arca, rejoice! And for those who are looking for a more affordable, quieter alternative to BGC, you may wish to consider Arca South.