Wednesday, April 18, 2007 Real estate demand increases By Malou M. Mozo Sun.Star Staff Reporter
WHILE it experienced a saturation point in the last three years, Cebu’s real estate is slowly picking up this year, so investors will do well to take their positions.
“Demand is beginning to climb this year,” said Virginia Locson, vice president of the Philippine Association of Realtors Boards Inc.-Visayas.
The upswing in the real estate industry, particularly in house and lot buying, will continue to be bullish in the next five years due to the confidence of developers in the local economy, she said.
In an interview with Sun.Star Cebu, Locson said there will be developments in residential condominiums, memorial parks, high-end to low-cost housing, which clearly indicate the industry is growing.
On the average, buyers are willing to invest P2 million to P3 million for a house and lot, and between P400,000 to P500,000 for socialized housing, Locson said.
She said several developers are looking for possible properties in both the northern part and southern parts of Cebu as “progressive areas” for residential housing.
“Cebu still has many available lots for development,” she said.
Infrastructure development in the province is also a factor.
The South Coastal Road, for instance, which cuts the travel time from Cebu City to the southern Cebu towns, has made the south a growth frontier, said Locson.
Earlier, Raffy Toledo of the Cebu Board of Realtors said Cebu and Lapu-Lapu cities will experience a different economic landscape, as the demand for residential housing in these areas will continue this year signified by the many expansion projects of existing developers.
High prices
As the flatlands of Cebu get more and more crowded, Locson said there is a growing demand for commercial spaces in uptown Cebu area, including Gen. Maxilom Ave., Gorordo Ave., Cebu Business Park and Asiatown IT Park. These areas are able to command high prices.
Although she has been getting price inquiries from potential buyers of condominium units, she said most developers are charging an average of P3 million to P8 million per unit, which is still perceived by most buyers to be quite expensive.
On the other hand, Locson said even memorial park lots are still considered “good investments.”
Major memorial parks in Metro Cebu now include Manila Island Memorial Garden, Angelicum Garden of Angels, Golden Haven Memorial Park, Evergreen Memorial Park and Celestial Meadows.
Locson said the healthy competition among memorial park developers in Cebu is a manifestation of the province’s acceptance of the market.
In a separate interview, Cesar Salimbangon, Mactan Island Memorial Garden chief executive officer, deem it wise for buyers to invest on memorial services now when prices are still affordable.
“People are now more conscious of their needs. They see it will be quite expensive later on,” he said.
Meanwhile, Locson noted that foreigners, especially Koreans, have been aggressively buying and leasing houses and condominium units because they have been opening businesses in Cebu.
She said expatriates and overseas Filipinos have been fueling the housing boom, making them the industry’s top market because of “their willingness to invest in quality housing.”
