AYALA Land Inc (ALI) announced that they are investing P100 billion which majority of it will be for the premium developments as the core properties or middle-income segment has staggered and is not performing the way they wanted to.

According to ALI President and CEO Meean Dy, about 80 percent of their capital expenditure for the year is earmarked for their premium properties under Ayala Land Premium and Alveo Land. 

Meanwhile, the remaining 20 percent is allotted to their core properties such as Amaia and Avida. 

But the premium market is said to be more robust, as the middle income segment is very vulnerable to price adjustments.

“I think it’s reflective our different segments of the market have been affected by the pandemic and the increase in interest rates. The core segment is very reliant on mortgages, the premium segment is less reliant on mortgages,” she said.

On the other hand, Dy said that Ayala Land will continue to develop its core properties, with the hope that the sector would rebound in three years. 

“But over the medium term, in a country like the Philippines, we need the core to come back, which is why we continue to nurture our Avida brand, we have the land bank and the projects,” she said.