WITH robust growth in the property market, the Housing and Land Use Regulatory Board (HLURB) 7 is expecting more housing applications to be filed in the remaining months of the year.
HLURB 7 Director Francis Ordineza said this outlook is anchored on the sustained confidence of investors who want to join the real estate industry. He revealed more Cebuano entrepreneurs are venturing into this business.
In the first half of 2018, 10 subdivision projects (across all segments) worth P2.5 billion were granted licenses to sell (LTS) and certificates of registration by the HLURB 7. This translates to 2,093 house-and-lot units and 365 lot-only units.
The figure, however, is lower than the 2017 levels. During the same period last year, 18 projects were granted LTS by the agency with a total project cost amounting to P4.2 billion.
According to Ordineza, the slowdown was caused by the agency’s stricter rules in documentary compliance implemented at the start of the year. He said developers have to comply with and submit all documentary requirements before they will be given the LTS.
He noted some developers had difficulty obtaining building permits, which are secured from the local government units.
Moreover, 16 condominium projects (across all segments) worth P1.7 billion were granted LTS by the agency. This covers some 1,333 condo units.
Last year’s first half figure stood at 12 projects worth P7.5 billion with 2,642 units.
Including memorial projects, the agency recorded a total of 28 LTS approved projects worth P4.3 billion in the first half of this year, slightly higher than the 31 projects approved during the same period last year worth P11.7 billion.
Ordineza said he recently met with three Cebuano developers who are first timers in the real estate venture. Inquiries from Manila players to expand in Cebu have also steadily grown.
“We expect more applications to come in because there are new players entering the industry,” he said.
He added Cebu remains an attractive destination for more real estate projects, citing the big-ticket infrastructure projects being built around the city.
Manila-based real estate service provider, Santos Knight Frank, noted Cebu will continue to enjoy the gains in the property sector on the back of its strong local economy, thriving tourism, abundant labor pool and new infrastructure projects.
“Cebu is well on its way to becoming a global city. The Metro Cebu real estate market recorded an upbeat performance across all sectors, showing no signs of slowing down,” said Rick Santos, chairman and chief executive officer of Santos Knight Frank, during his recent visit to Cebu. (KOC)