Makati’s Ultra-Luxury Tier Is Writing Its Own Rules: What Ayala’s Pause and Arthaland’s ₱12B Bet Tell Buyers

On April 20, 2026, Ayala Land took an unusual step for luxury developers in the Philippines by halting sales of the Laurean Residences, a 67-storey building in Makati’s Legazpi Village that was set to be the tallest residential structure in the country and had already generated over ₱10 billion in sales with fully sold four-bedroom units. Ayala paused the project due to concerns over construction costs and risks related to the US–Iran conflict.

Five months later, Ayala’s CEO reported that half of Laurean’s buyers opted not to take a refund with interest and decided to wait. Meanwhile, on Arnaiz Avenue, Arthaland and its Japanese partner Mitsui Fudosan had already started construction on Sondris, a 37-storey tower expected to generate ₱12 billion in revenue.

The paragraph highlights that the common narrative about Metro Manila’s 24.7% condo vacancy rate and developer pullback doesn’t capture the full picture. While the vacancy rate is true, it represents a different market. This guide will clarify the situation in Makati, the contrasting decisions of two developers nearby, and implications for buyers, holders, or investors at ₱20 million and higher.

Colliers reported a 24.7% vacancy rate for condos in Metro Manila in early 2026, representing around 75,000 empty units. The exit of POGO led to a loss of tenants, while the BSP’s rate hikes in 2024 made mortgage payments tougher. Many small investors who bought units during the boom were hoping to rent them out, but when they couldn’t find tenants or afford payments, they abandoned about 4,800 units in just the first quarter of 2025.

A ₱35-million unit in Makati has little competition. By early 2025, only 5% of high-end projects were unsold, according to Colliers. Lobien Realty Group reported an 85% take-up of upscale and luxury pre-selling properties by late 2025. Ayala Land’s 2026 data shows a similar trend: premium condominium sales increased by 29% in the first five months, while total residential sales dropped by 22% in the first half of the year.

Sources: Colliers Philippines, Lobien Realty Group and Ayala Land disclosures, as cited at the end of this article.

The top tier isn’t immune; its risks come from a different angle, as shown by the Laurean pause.

The project

Laurean Residences is the main residential building in Dela Rosa Gardens, Ayala Land’s redevelopment on Dela Rosa Street in Legazpi Village. Ayala Land Premier began selling it in late 2025, with prices starting at ₱35.7 million and exceeding ₱258 million.

Why Ayala hit pause

Ayala’s statement mentioned “growing cost pressures and uncertain delivery timelines.” The cause was the US–Iran conflict, which increased fuel, steel, and shipping costs. The Philippine Constructors Association projected that construction costs might go up by 10% to 30%. For a 67-storey tower, this kind of increase can determine if the project is profitable and raises concerns about the delivery date.

Ayala paused its operations as part of a larger change. It cancelled The Heights Katipunan in Quezon City, didn’t start any new residential projects in early 2026, and redirected funds to malls, hotels, and offices for steady income.

What buyers were offered

Buyers have three options. In April, Ayala mentioned a project review in mid-2027; in September, CEO Meean Dy confirmed the 2027 review, but no restart date was set.

Dy stated in September, “50 percent chose to stay with us and wait for a decision.” That’s a significant figure for a project without a restart date. Three reasons account for this.

These buyers aren’t under pressure. A ₱35-million unit is usually purchased by buyers who can afford it easily. Many pay large down payments or in full, so they aren’t affected by rising rates. In Ayala’s residential projects, cancellations were high at 7.6% in the second quarter. Laurean’s buyers had a smooth exit, yet half still chose not to take it.

Waiting costs them little. Because Ayala offers refunds with interest, buyers who wait mainly lose access to their cash, as long as the refund option remains if the project doesn’t restart. This decision relies on trusting the developer to pay later, which is why the brand and financial stability are crucial at this price.

The address is hard to replace. Legazpi Village is located in Makati’s central business district, where available land is scarce and new luxury units often come from demolishing older buildings. A new four-bedroom unit there is rare and won’t be available again soon. Buyers who wanted that address had good reasons to hold onto it.

The project

Sondris is located on Arnaiz Avenue in Legazpi Village, where the former Atlas Land building site was. Arthaland, a smaller developer known for eco-friendly buildings, launched it in January 2026 with Japan’s Mitsui Fudosan. The project has 37 storeys and 252 units. The ₱12 billion mentioned is the expected revenue from unit sales, not the building costs.

The timing is important. Sondris was on sale when Ayala paused Laurean, so it didn’t respond to the pause. After that, Arthaland set a ₱12 billion revenue target on June 1 and started construction on June 17. It continued while its bigger neighbor halted.

Prices moved up, not down

The one-bedroom increased from ₱21 million in January to ₱22 million by June, about 5% rise in five months. By early July, 14% of the project was sold, with individual buyers purchasing smaller units and wealthy families from southern Metro Manila buying three-bedrooms.

Price per sqm is U-Property PH’s arithmetic on reported starting prices. Actual prices vary by floor, view and payment terms.

How Arthaland is handling cost risk

Sondris faces the same cost risks as Laurean. Arthaland has chosen to secure costs early by fixing construction prices, negotiating supplier rates, and partnering with Lixil for long-term pricing on fixtures. A 37-storey building has less risk than a 67-storey one. The company aims for certifications like LEED, WELL, EDGE, and BERDE, with cooling systems designed to use at least 40% less electricity, benefiting buyers with lower power bills for years.

The Mitsui Fudosan factor

Mitsui Fudosan is a major property company in Japan, known as the “Tokyo Disneyland developer” because its former president helped create Oriental Land Co., which built Tokyo Disney Resort in 1960. For Sondris buyers, it’s important to know that Mitsui Fudosan invests in urban areas, providing strong support for a smaller Philippine developer.

In July 2026, the SEC fined Arthaland for misclassifying items in its cash flow statements. The company fixed the filings and paid the fine. While the fine doesn’t directly impact the project, it’s important for a buyer at this price to be aware of it.

Put the two projects side by side, and the difference relies more on scale and exposure than on optimism.

Ayala is taking on a larger investment with a ₱28-billion, 67-storey tower, facing higher construction costs, while also having malls, offices, and hotels to invest in instead. Arthaland has a smaller tower with costs set before they could increase. Each company’s decision is logical for them, but neither indicates that the market has changed.

Arthaland referred to Makati as “the gold standard for luxury condo buyers,” and the data backs it up. Colliers observed that office, residential, and retail vacancies in Makati CBD are lower than the Metro Manila average. During the 2020–2021 downturn, prices in the upper-mid to ultra-luxury segments remained stable, while affordable segments dropped. Their research valued top-end Makati units at ₱700,000 to ₱900,000 per square meter.

Two main factors contribute to this situation. First, the land is limited. The central business district is nearly fully developed, with new luxury buildings replacing older ones, as seen with Sondris on the old Atlas Land site. Second, Ayala has a plan for the area focused on connectivity, mixed-use spaces, and greener, walkable streets, starting with Dela Rosa Gardens. The district continues to improve even as some towers are on hold.

BGC competes with newer buildings and wider streets, while Ayala’s Park East Place contributed to its 29% sales growth. Rockwell offers a quieter area. Makati’s strength lies in its established neighborhoods, corporate offices, embassies, and hotels, all close to the towers. For families wanting to live near work and school, this combination is hard to beat.

The best choice at this price depends on your reasons for buying. Here’s how the Laurean and Sondris stories relate to four common scenarios.

That ₱91,700 is the gross amount, excluding dues, taxes, empty months, and furnishings. Check the rental prices of similar units in the same village and see if a short-term or long-term lease is allowed by the building’s rules. For international buyers, the peso’s drop to ₱62.57 to the dollar reduces the dollar cost of a unit, but it increases the cost of imported materials, which developers will pass on through future price hikes.

If you’re holding a unit in a paused project

Laurean is the main case, but it might not be the only one. In April, Luna Securities chairman John Gatmaytan warned that other developers might stop their projects if the conflict continues. If that happens, you will likely have the same three options that Ayala suggested.

The law protects you even if a developer is not as generous as Ayala. Under PD 957, if a developer does not build as planned or on time, the buyer can stop payments and get back what they paid. Our guide to DHSUD’s new escrow rule for pre-selling payments explains how new projects need to safeguard buyers’ money before turnover.

Arthaland’s gamble might pay off, but several factors could lead to failure, and these apply to any luxury pre-selling purchase in 2026.

None of these factors affect the top tier. They suggest judging a purchase based on its long-term value to you rather than its quick price increase. Our breakdown of the BSP’s Q3 2026 rate moves explains the impact of the August rate hike at turnover.

The next year will reveal which developer understood the market best. Here are the signs to look for.