SM Prime brings decades of expertise to premium residential market
The Philippines’ property development leader is making an exciting entry into the premium residential market.
After leading the country’s retail, leisure and mid-market residential segments, SM Prime Holdings Inc. (SM Prime) is gearing to enter the high-end property landscape with a new venture dedicated exclusively to premium primary residential developments. Helping bring this direction into fruition is veteran property executive Jose Juan Jugo, now Executive Vice President and Head for the coming premium residential line under the SM Residences portfolio.
“This is a commitment to deliver excellence in a demanding segment,” said Jugo.
Exceptional resilience
According to Jugo, the Philippine real estate market has shown exceptional resilience, weathering economic shocks.
“The premium segment has been very robust, despite the various social and economic hurdles we’ve faced in local and global scales. Over the past decades, the segment stood firm despite the Asian financial crisis, the global financial crisis, the COVID-19 pandemic, and several turbulent local politico-economic episodes in between,” he explained. “We see that the opportunities are there for us today—it shows that overall, the residential premium property market, is on solid ground and is expanding.”
Changing preferences
He, however, pointed out that amid that continued growth are important shifts. You have the growing affluence of younger Filipino buyers looking for premium properties and wellness-centered spaces; that new generation of investors seeking better lifestyle experiences; and high-net-worth individuals who are still prioritizing exclusivity, world-class amenities, and prime locations along with unique services.
“Quality, location and track record—those are still some of the basic elements, they haven’t changed. Most major premium developers have the locations, the quality, and the resources. I sense that winning in this space will have to be done by the inches: Who delivers the finer details, the better customer service, and who communicates and markets in more precise ways?” Jugo said.
“At the end of the day, it’s about the brand, the constant track record of who has delivered the best. Even for the premium residential segment, it’s about reinvention. SM, for example, has done that successfully in the retail side. The SM department stores and malls we saw when we were younger have evolved so well with the times with the shifts in customer preferences and behavior. SM has successfully re-tooled and reinvested itself over the years allowing it to succeed in other premium markets through products like SM Aura, S Maison and The Podium. It has been a good story about an organization adapting, re-tooling and reinventing,” he explained.
Evolving aspirations
SM Prime’s entry into the premium residential market thus marks a deliberate step toward another kind of reinvention.
In further refining its offerings and broadening its markets, SM Prime is able to cater to the rising demand for premium living spaces. Filipino buyers, after all, are becoming more discerning, and SM Prime has already begun aligning itself with the changing aspirations of a more affluent and sophisticated market through this new residential venture.
Addresses of prestige
Details about this new venture’s maiden project however, are still under wraps. Even at this early stage, the planned projects are already generating buzz and interest.
Early indications hint at a blend of high-end residential towers and exclusive gated communities in prime locations in Mega Manila.
“The projects and properties we have pipelined are very special. We’re planning simultaneous formats. And if things go as planned, we can expect the first project to be horizontal… These will be excellent products and we’ll be building the experiences,” Jugo said. “We’re also partnering with globally renowned architects and leveraging the SM Group’s vast land bank.”
Exciting times
Jugo acknowledges the challenges of entering a segment defined by established players with impeccable track records.
He, however, remains confident. The Philippine premium market, once led by a handful of names, is a space that is now ready to welcome a new major player. Exciting times indeed lie ahead for the premium real estate market.
“It’s an opportunity, and it is a challenge that we welcome. We will have to be very thorough as we enter this space. The large differences will lie in the small details. “Okay” will not be enough for us to succeed in this segment.
“Right now, we have the resources, and we are preparing the organization with the right talent. It is comforting to know that we have the SM ecosystem behind us as we execute. We will work hard to make plans unfold. As they do, I’d expect the market to see robust activity from us soon,” Jugo concluded.
