Arthaland bets on Makati luxury market

MANILA, Philippines – Arthaland Corp. is pressing ahead with a high-end residential project in Makati, betting that affluent buyers will continue to seek premium addresses despite concerns over a slowdown and glut in the condominium market.

READ: Arthaland shrugs off condo glut on strong Laguna sales

The property developer recently broke ground for Sondris, a P12 billion, 37-story luxury residential tower in Makati City that it developed in partnership with Japan’s Mitsui Fudosan.

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The project signals Arthaland’s confidence in the resilience of the upper-end market even as some developers have become more cautious in launching new projects.

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Arthaland said the June 17 groundbreaking ceremony was meant to reassure buyers and investors of the company’s strength and commitment to delivering projects on schedule.

The company acknowledged the challenging environment but stressed that it has taken steps to manage risks arising from rising construction costs and global uncertainties.

To cushion itself from cost pressures, Arthaland said it has been locking in construction prices and negotiating competitive rates with suppliers.

It also secured long-term pricing arrangements for Grohe fixtures through its partnership with Lixil to help reduce exposure to cost volatility.

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The project targets high-net-worth individuals, affluent investors and end-users looking for what the company described as a premium and sustainable residence in Makati.

READ: Arthaland forges partnership with Mitsui Fudosan (Asia) for a premium green development in Makati

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Arthaland believes the city’s appeal remains intact despite growing competition from other business districts.

“Makati remains the gold standard for luxury condo buyers,” the company said, citing the city’s status as the country’s premier business and financial district and its ongoing redevelopment efforts.

Sondris will offer only 252 residences in a low-density configuration influenced by Japanese design principles. Units will range from one-bedroom residences starting at P22 million to garden units priced from P97 million.

The development combines Arthaland’s sustainability expertise with Mitsui Fudosan’s experience in neighborhood creation and urban design.

Residents are expected to benefit from low-flow plumbing fixtures, double-glazed facades and energy-efficient cooling systems that could reduce electricity consumption by at least 40 percent and water use by at least 20 percent.

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Arthaland said these features reflect its strategy of focusing on differentiated, sustainability-driven developments as it navigates a more challenging property market. INQ