Megaworld goes for 'ultra high-end' development in P45-B McKinley West project

Andrew Tan-led Megaworld Corp. is spending P45 billion in the next 10 years to turn a property in Fort Bonifacio, Taguig City into an ultra high-end development, in response to growing number of inquiries for such an offering.

 

The plan is to build clusters of low-rise residential condominiums, senior vice president Noli Hernandez told reporters in a briefing in Parañaque City Tuesday.

 

"Our projects are high-end, and this is the first time we're coming up with an ultra high-end," he said. 

 

"We can feel we're on the verge of an upsurge. We have been getting inquiries regarding high-end properties, so we're just responding to the demand," Hernandez added.

 

"We think this [demand] is going to continue for two, three years," Hernandez said.

 

Next month, Megaworld is launching the first phase of the project consisting of 98 units.

 

In a separate interview with GMA News Online, Jones Lang LaSalle research, consulting and valuation head Claro Cordero Jr. said upcoming luxury development by Megaworld could still be absorbed by the market, noting  the ultra high-end segment comprises a mere 5 percent of total condominium units in the market today.

 

"It can easily be absorbed by the market, since there is already an existing market for that kind of product," Cordero said.

 

The market for ultra upscale condominiums is both local end-users and foreign investors, according to the Jones Lang LaSalle official.

 

"In the market, the supply is only 4,000 to 5,000 in the next four to five years and the market has long been looking for ultra high-end products," he added.

 

Sizes of the units will range from 79 square meters to 291 sqm, with a price tag of over P160,000 per sqm.

 

In 2010, Megaworld developed a portion of the 34.5-hectare property in its exclusive McKinley West Village for 285 lots.  

 

From a selling price of P75,000 sqm three years ago, the lots are now going for P160,000 per sqm.

 

Hernandez noted Megaword is banking on the location of the development between Bonifacio Global City and McKinley Hill.

 

"We want to maximize our landbank and this is the right time as this happens to be... the last remaining prime piece of property, sandwiched between the Global City and McKinley Hill," he said.

 

Apart from the low-rise clusters, Megaworld also plans to build a business park with office towers and commercial and retail buildings.

 

"We will have office towers that will cater to multinational corporations. We will also have retail spaces to be managed by Megaworld Lifestyle Malls," Hernandez said.

 

Construction of the business park will start next year, he added. – VS, GMA News