SY-LED property developer SM Prime Holdings, Inc. said it plans to develop its first premium residential properties in Metro Manila and Cebu.

“We plan to enter Metro Manila, hopefully within the year, but we also have properties ready for development in key cities like Cebu,” SM Prime Holdings Executive Vice-President and Premium Residential Line Head Jose Juan Z. Jugo said in an interview aired on Money Talks with Cathy Yang on One News on Monday.

“If things go as planned, you’ll be seeing a lot of activity from us, robust activity from the premium line in Metro Manila, in Luzon, and in Cebu.”

Last year, SM Prime announced plans to expand its residential portfolio to include high-end horizontal and vertical principal homes.

The company also said it aims to launch its first upscale residential project this year, a master-planned subdivision with sustainability, convenience, and community features.

According to Mr. Jugo, SM Development Corp. (SMDC) will continue to serve the mid-market segment, while pricing for its entry-level premium product will start at P15 million.

“Then, we plan to produce premium residential units, probably in the P25 to P30 million range, all the way to luxury units in the P50 to P60 million range,” he said, adding the company’s openness to venturing into the ultra-luxury segment.

The high-end residential segment, which is priced between P12 million and P68 million, saw a 15% quarter-on-quarter increase in sales in the January-March period, according to property consultancy firm Leechiu Property Consultants.

“Despite all the challenges the industry as a whole has faced, this segment has performed quite well,” Mr. Jugo said.

He added that the country’s declining inflation and strong economic growth prospects would make the high-end residential market attractive to foreign investors.

“The Philippines has performed ahead of the curve, which means that this opens the door for investors overseas to choose our country to put their money into rather than put it somewhere else,” Mr. Jugo said.

“So, it’s a good time to enter a very stable and very progressive market.”

Headline inflation averaged 2.2% in the first quarter, well within the Bangko Sentral ng Pilipinas’ 2-4% target. Meanwhile, the Philippine economy is projected to grow between 6-8% this year.

SM Prime, the real estate subsidiary of Sy-led conglomerate SM Investments Corp., has launched over 185,000 residential units. Its portfolio also includes 87 local malls and 22 office towers.

For 2025, SM Prime has earmarked P100 billion in capital expenditures for its malls, residences, and integrated property developments.

The listed property firm’s consolidated net income rose by 14% to P45.6 billion in 2024, as revenue increased by 10% to P140.4 billion.

On Monday, SM Prime shares declined by 0.62% or P0.15 to P24.05 apiece. — Beatriz Marie D. Cruz