LAND and property prices near the major infrastructure projects in Metro Cebu could further surge moving forward, thanks to these projects’ ripple effect on the real estate business.
The modernization of the Mactan-Cebu International Airport and the ongoing construction of the third bridge linking mainland Cebu and Mactan Island are driving this foreseen uptick in property values.
Joey Bondoc, senior research manager at global realtor Colliers International, said the completion of these big-ticket projects will further jack up land and property values in areas near them.
“A few condominium projects in Cebu have recorded increases in prices per square meter, and we partly attribute this to the modernization of the airport,” Bondoc told SunStar Cebu.
Cebu opened last year its modern international passenger terminal, which opened new routes to various overseas destinations and brought an increase in tourist arrivals to the country’s second largest urban center.
The completion of the third bridge is also expected to spark economic activity in the municipality of Cordova and the south area of Cebu.
“These infrastructure projects, once completed, would definitely raise land and property values,” said Bondoc, who tracks developments in the country’s major property markets. “The improved connectivity from the city to the fringe areas should unlock land values in the peripheral areas around Cebu’s major business districts.”
That, he pointed out, should encourage developers to build more integrated communities and result in further development of office, residential and retail projects.
For instance, he said, asking prices for lots in Mactan and Mandaue City have increased 20 to 40 percent due to the expansion of Cebu’s international airport.
“We have seen more office construction in Mandaue, and this should be complemented by new condominium projects in the area,” Bondoc explained.
The government is embarking on massive infrastructure spending to raise its contribution to the annual gross domestic product to around five to six percent.
“We believe that the current administration’s goal of spreading economic opportunities and intensifying infrastructure development outside Metro Manila should provide impetus for national developers to be more aggressive in pursuing mixed-use projects in Cebu,” he said.
Cebu’s aging infrastructure has long stalled its potential to become a major economic hub on a par with major Asian cities, with its poor mass transport system and road infrastructure putting the metro in traffic gridlocks in recent years.
Despite these challenges, Bondoc was optimistic.
“Investors are keenly awaiting the completion of these projects. Cebu is definitely on their investment radars,” he said.
Cebu’s contribution to the country’s economic output is seen to surge over the next five to 10 years given its rising attractiveness as an investment hub and the development of crucial air and road infrastructure projects which should significantly bring down the cost of doing business in the southern economic center.