Record Highs

Record Highs – Last July 5, 2023, Bilyonaryo.com quoted new record valuations, namely:

BGC

Shang Properties’ Horizon Homes - P881K/sqm (previously P810K/sqm).

Ayala Land Premier's (ALP) The Suites - P640K/sqm (Php470K/sqm).

Makati

In Makati, Rockwell’s Proscenium - Php415K/sqm.

ALP Park Terraces - Php380,000/sqm.

I believe these prices are likely "highs" and not average prices and, therefore, may be misinterpreted.

I say this because several units are priced lower than the quoted figures and, to this day, remain unsold. For example, if you try and search for units in "The Suites" online, you'll find units priced at Php460,000/sqm, 28% lower than the Php640,000/sqm quoted. I have a hunch that the Php640,000/sqm quoted is a special unit (e.g., penthouse unit, units with rare features), souped up with top-of-the-line furnishing. Moreover, it would be illogical for Shang Properties to price its upcoming project, Aurelia Residences, at ~Php510,000/sqm, significantly lower than the Php881,000/sqm quoted for Horizon Homes.

In conclusion, I recommend not using the quoted figures to price other (regular) units.

Then how do we interpret the quoted figures?

The quoted figures point to the resilience of ultra-luxury projects and, more specifically, their "special units." Notice how the condos mentioned are the top projects of the leading developers (Rockwell, ALP, and Shang–which are also my top 3 choices) and are all found in Makati and BGC.

The capital appreciation for the upper mid/mid-tier segments, or properties outside these two business districts, is not as high. I'll explain more about this in my mid-year report, which I'll release by month's end.