SM Prime launches luxury home brand
SM Prime Holdings Inc. is venturing into the ultra-premium residential market via a 284-hectare master-planned estate in Susana Heights, Muntinlupa, under the new Signature Series brand.
The initial capital expenditure will be P 25 billion for the development, where lot sizes will measure at least 750 square meters each and prices will start at P100 million.
There is no better kind of project to launch the brand with than something as significant, meaningful, and impactful as a high-end horizontal development in that area
SM Prime Executive Vice President Jose Juan Jugo told reporters on Wednesday.
Jugo said the Susana Heights development was part of SM Prime’s long-term plans, with the SM Group having decided that now was the perfect time to “unlock” its potential.
The property lies along the South Luzon Expressway and is considered to be one of the last remaining large-scale land banks in Metro Manila’s southern corridor.
SM Prime created a new wholly owned subsidiary, Signature Development Corp., to focus exclusively on high-end developments.
It said it was working with both local and international consultants to ensure the project appeals to global tastes while planning for long-term value.
We’re not just looking at what buyers want now, but how they want to grow over time — how their families, lifestyles, and investments evolve
SM Prime Vice President Jessica Sy said.
The Susana Heights project will take up most of the 400-hectare land bank and SM Prime expects the first turnover to happen within three to four years from the official launch.
Beyond Muntinlupa, the Signature brand is preparing for future projects in Parañaque, Pasay, Taguig, Makati, Cebu, Cavite, Tagaytay, Batangas and Manila.
Leechiu Property Consultants co-founder and CEO David Leechiu, who also attended the event, said SM Prime’s entry could significantly alter the landscape of the luxury property market, which has long been dominated by a handful of developers.
“The luxury market is a very competitive market dominated by just three players. SM coming into this market will do a shake-up because they have the firepower, they have the land bank, they now have the expertise, and the people,” he said.
Leechiu added that the P130,000 per square meter pricing for the Susana Heights project was “fairly and competitively priced” given current market conditions, especially as luxury property supply near Metro Manila remains tight.
“The only luxury projects we see are in Manila and maybe Cavite, Laguna and maybe Cebu. But there’s nothing in Pampanga ... Iloilo, Bacolod, Bohol, or Palawan. But the wealth in those areas will merit high-end luxury markets,” he added.
Leechiu also noted that the luxury market was very small and underserved.
“The luxury market is not for 1,000 units or 2,000 units. There is a select number of lots only or number of units only per project. You cannot do too much.”
SM Prime shares on Wednesday rose P 1.05, or 4.46 percent, to P 24.60 apiece, outperforming the 1.10-percent rise for the benchmark Philippine Stock Exchange index.