Ayala Land Inc. subsidiary Avida Land Inc. is spending about P1.7 billion for the first tower of its second project in the city that will be located within the Abreeza District, a joint venture between the mother company and the homegrown Anflo Management and Investment Corp. of the Floirendo family.
Herbert M. Herrero, company vice president of project and strategic management group, said that the company, which is into property development for the middle market, decided to pursue the project because its first project, the Avida Towers Davao, has been well received by the market.
“We still feel (the new project) will have the same reception as we did the first project,” said Herrero at the briefing of the project Thursday as the company pointed out that the first tower’s value has increased by 53% as the initial price during the first launch in 2012 was P77,000 per square meter, the value has jumped to P118,000 per square meter with 1,053 saleable units.
Its first project, the Avida Towers Davao is located about about a kilometer southwest of the Abreeza District, where Ayala’s first mall and the name-bearer is located.
Herrero added that based on the timetable of the company, the construction for the new project is expected to start in the first quarter of next year and that turnover of units will be in 2023 as the plan is to build two towers in a two-hectare lot within the 10-hectare community and maybe add another tower when the need arises.
Just like the first project, Herrero said that the second tower will be built when the company is able to sell about 70% of the units as the program for the project is that the first tower will have 736 units in the 23 floors with an additional three more floors for parking spaces. Since its first launch in June, the company has sold about 180 units with a total takeup value of about P705 million as it is eyeing to generate sales within the year of about P2.7 billion.
Herrero said the company is looking at replicating its experience in the first project when it was able to sell out the project in three years and that the price increment has become unprecedented as usually price increase in these development is usually single digit. “Of course, we are optimizing because you have the mall and the Abreeza Dsitrict is established already, so they (buyers) can see (the developments),” he pointed out as another Ayala brand, the high-end Alveo Land Inc., has also built its condominium project in the property just next to Seda Hotel, also the company hotel.
“In real estate (development), you need to help your buyers visualize (the project and the community where it is located),” he added.
He said the good thing is that the market, just like the property developers, has seen the developments in the city with the setting up of key infrastructure projects that are aimed to boost its economy.
In the soft launch of the project about two months ago, Herrero said what the company told the
prospective buyers, aside from the pricing, “if they want to buy is to buy now.”
The project has a price range of about P2.9 million for a 22-square meter studio unit to P7.7 million for the biggest two-bedroom 52-square units.
Antonio N. Aquino, retired president of the Ayala Land, said during the start of the development of the Abreeza District in 2012 that the company is looking at developing the area similar to the Makati Business District which it achieved to develop in 50 years into a go-to economic place.
Aquino, however, said the phase of the development of the district would be faster. At that time when he made the prediction, now President Rodrigo R. Duterte was just the mayor of the city.
“It is really a gamble,” he added.
Managing Editor at Mindanao Times
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