Cebu still needs more projects: developer

SOME 173 real estate projects are currently being completed in Metro Cebu but a developer said Cebu needs even more.

Manuel Colayco Jr., chief operating officer of Taft Property Venture Development Corp., who presented on the state of Cebu’s real estate during a forum on emerging industries, showed figures indicating the demand for housing projects is so much higher than what the industry is able to supply.

An average annual demand of 20,050 units has seen only a supply of 9,647 units. This represents three percent of the national demand for housing. The combined 173 real estate projects in Cebu can provide 10,000 units, 30 percent of which are vertical projects while the rest are horizontal projects.

Crediting the Housing and Land Use Regulatory Board (HLURB) for his figures, he said at least 90 national and local developers share all these projects. Some 78 percent of the vertical supply is within Cebu City while 70 percent of the horizontal supply is outside greater Cebu.

In Cebu City, some 30 developers are completing 52 projects to provide 2,500 units.

Lapu-Lapu City comes in second with 21 projects from seven developers and 2,000 units.

There are 16 projects in Mandaue City, some 800 units being built by six developers.

In other areas of Cebu, there are 84 projects for 5,000 units being undertaken by 52 different developers.

The highest demand in the industry is for economic and socialized housing, which have a price range of P.3 million to P1.25 million. Only 1,283 of socialized housing units are available to the demand of 5,213 while only 3,418 units are available to meet the 5,213 demand for economic housing.

The lowest demand is for a simple subdivision unit, which has a price range of P1 million to P2.5 million. Still, only 151 units are available while there is a demand for 401 units.

There is a demand of 2,406 condominium units, which range from P2.5 million to P4 million. There are only 1,196 units that have been supplied. There is also a high demand for medium cost and open market projects and these segments also have a low supply.

With a shortfall of about 52 percent, Colayco said the market is under served and means more opportunities for investors in the industry.

All the building projects, he said, is not just good business for developers. He said landowners can benefit from joint venture partnerships while suppliers of materials gain revenues from different types of projects.

Aside from the business sector, Colayco said the government stands to gain as well, as they will benefit from the collection of annual real property taxes.