The Manila-based developer, a subsidiary of Ayala Corp., said it has reached out to buyers of the 67-story Laurean Residences in Makati’s central business district to discuss options, including refunds or redirecting payments to other Ayala Land projects.
“We have made the prudent decision to strategically place sales of Laurean Residences on pause,” Ayala Land said in a statement.
“The current environment presents increasing pressures on costs and reduced predictability in delivery timelines, affecting our ability to execute with the level of certainty we commit to our customers.”
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Images illustrating the design of Laurean Residences. Photos courtesy of Ayala Land |
The company began marketing the project in the fourth quarter of 2025, citing strong demand for what would have been the country’s tallest residential skyscraper, despite a persistent oversupply of condominiums in Metro Manila. The development reportedly generated more than PHP10 billion (US$170 million) in sales before the pause.
“It’s the smartest thing to do,” said John Gatmaytan, chairman of brokerage Luna Securities. “The Middle East conflict and its effects were unforeseen so they aren’t legally liable for backing out on the project,” he said, as quoted by Forbes.
Laurean Residences is the centerpiece of a 1.3-hectare mixed-use estate being developed by Ayala Land in Makati. Planned amenities include landscaped gardens, a retail podium, a resort-style pool, fully equipped gyms, function rooms, social halls and a children’s play area.
The project offers one- to four-bedroom units ranging from 75 square meters to 402 square meters. Prices run from PHP35.7 million to more than PHP258 million.
Ayala Land said it is adopting a more measured capital allocation strategy, prioritizing projects with clearer execution visibility while strengthening its broader portfolio, particularly recurring income assets such as shopping malls, hotels and office buildings.
Analysts warn that similar suspensions could emerge across the Philippine property sector as the Middle East conflict shows no clear resolution, raising the likelihood of sustained increases in construction costs.
“We will hear more of this as the war gets prolonged; it may already be happening except developers are keeping quiet for this will impact revenue in six months,” Gatmaytan said.
“We will also see cancellations outside of property because all sectors are getting hurt by high costs and supply bottlenecks fueled by the crisis.”
In February, Ayala Land said demand for its luxury and premium condominium units had been subdued, citing a slowing economy partly linked to a corruption scandal involving government infrastructure projects, Bloomberg reported.
For the current year, the developer is reducing the rollout of premium and core residential projects by half to PHP30 billion, as an oversupply of condominiums continues to weigh on home sales.
In contrast to previous years, the company is relying on its recurring income businesses, including malls and office assets, to support growth.
Founded in 1834 as a distillery by the great-grandfather of Jaime Zobel de Ayala, Ayala Corp. has since expanded into banking, energy, healthcare, logistics, utilities and real estate. With a net worth of $3.4 billion, the family ranks among the wealthiest in the Philippines.
