HIGH-END property developer Alveo Land Corp. is looking to build more projects outside of Metro Manila, particularly in the Visayas and Mindanao, in response to the growing middle class and affluent households in the regions.
“Last year, we had 70 percent of our projects in Metro Manila and 30 percent in the provinces. But this year, we expect to have 60 percent of the projects in Metro Manila and 40 percent in provinces. We’re looking at more opportunities now to expand, and we’re going into these locations which we don’t have presence and where there are opportunities,” Alveo President Jennylle S. Tupaz said in a briefing on Thursday.
“We target the Visayas and Mindanao regions, not just Cebu and Davao. Definitely, we are interested in Batangas, also North Luzon is largely untapped, so we’re looking at that,” she added.
Alveo is targeting to launch 16 new projects this year — 14 residential and two office towers — with a combined value of P40 billion. Last year it launched nine projects worth P22 billion, delivering 2,265 units.
Tupaz said Alveo is tagged as a luxury brand in the provinces because of its prices,w hich range from P140,000 to P180,000 per square meter (sqm) against the average price of P75,000 per sqm in the regions.
“But the demand is there,” she said, citing that rising incomes and the major infrastructure projects of the government are driving economic development also in the provinces.
“We’re launching projects this year that takes advantage of these infrastructure projects because access and
location are always very important. The government unlocks areas for us to enter which previously were not looked at,” Tupaz said.
“There are challenges in the provinces, but we do adjust,” she said.
To date, Alveo has developed 84 projects on more than 400 hectares of land in 12 key locations. Its existing projects are mostly in Metro Manila but several are in Cebu, Davao, Pampanga, Laguna, Tagaytay, and Cavite.
Alveo currently has more than 1,000 hectares of land bank which can sustain its development projects in the next five years.
This year, its targeting P45 billion in revenues, up from the P38 billion in sales it logged in 2016.
Alveo is the high-end residential and commercial offices brand of the Ayala property group, which also includes Ayala Land Premier for the luxury market, Avida Land Corp. for the middle-class market, and Amaia Land Corp. for the economic housing segment.