The Tamesis
Makati Central Business District skyline.
Getty
Ayala Land, controlled by tycoon Jaime Zobel de Ayala and his family’s Ayala Corp., has suspended construction and marketing of one of the country’s most luxurious residential condominium projects as construction costs soar as the war in Iran continues.
The Manila-based builder said it has reached out to buyers of Laurean Residences in Makati’s central business district to discuss options ranging from refunds to reallocation of payments to other Ayala Land projects.
“We have made the prudent decision to strategically pause sales of Laurent Residences,” Ayala Land said in a statement. “The current environment has brought increasing cost pressures and reduced predictability of delivery times, impacting our ability to execute on the level of certainty we promised our customers.”
Despite the ongoing oversupply of condominiums in Metro Manila, Ayala Land is sensing strong interest in the Philippines’ tallest residential skyscraper, starting marketing the 67-story Laurean Residences in the fourth quarter of 2025. Sales from the project reportedly exceeded 10 billion pesos ($170 million) before the company decided to suspend the project.
“This is the smartest thing to do,” said John Gatmaytan, chairman of Luna Securities. “The conflict in the Middle East and its effects were unforeseen and therefore they bear no legal responsibility for withdrawing from the project.”
Laurean is the centerpiece of a 1.3-hectare mixed-use property being developed by Ayala Land in the Makati Central Business District. Facilities include landscaped gardens, retail podium, resort-style swimming pool, fully equipped gym, function room, social hall and children’s play area.
The project offers buyers one- to four-bedroom apartments with built-up areas ranging from 75 square meters to 402 square meters. The units range in price from 35.7 million pesos ($600,000) to over 258 million pesos ($4.3 million). All four-bedroom units at Laurean are fully leased, according to property listings viewed. Forbes Asia.
Ayala Land said it is taking a more prudent approach to allocating capital, prioritizing projects with clearer execution, while strengthening its broader portfolio, particularly those with recurring income, such as shopping malls, hotels and office buildings.
With no resolution to the conflict in the Middle East, the Philippine real estate market should be prepared for other developers to pause similar projects, increasing the likelihood that construction costs will continue to rise.
“We will hear more of this as the war drags on – something that may already be happening unless developers stay silent as it will impact revenue six months from now,” Gatmetan said. “We will also see cancellations from sectors outside of real estate as all sectors are hurt by high costs and supply bottlenecks caused by the crisis.”
Ayala Corp. was founded as a winery in 1834 by the great-grandfather of family patriarch Jaime Zobel de Ayala. The Manila-listed company has since expanded into banking, energy, healthcare, logistics, utilities and real estate. The family has a net worth of US$3.4 billion, making it one of the richest families in the Philippines.
