REAL estate prices in Cebu could even get more pricey in the future. And the economic boom has so much to do with it.
Property analyst David Leechiu said Cebu will continue to experience a robust growth in land values and condominium development.
That could be sustained by big-ticket infrastructure projects with a total 229-kilometer network connecting the cities of Mandaue, Cebu and Lapu-Lapu.
He particularly pointed out the 8.25-kilometer Cebu-Cordova bridge, describing it as a major property driver once completed in 2021.
He also cited other crucial projects such as the fourth Mactan bridge, monorail transport system, Bus Rapid Transit project and the Metro Cebu Expressway.
“The third Mactan bridge bodes positive news for real estate. The Municipality of Cordova will be seen to reap the biggest economic boom from the third bridge. Land values and property developments will rise,” said Leechiu, chief executive officer of Leechiu Property Consultants during an investment forum Tuesday, Feb. 11, 2020, organized by the Mandaue Chamber of Commerce and Industry.
Leechiu said the new bridge, which is expected to have an initial traffic of 40,000 vehicles a day, will improve connectivity and drive developments in Cordova and southern Cebu.
Moreover, real estate values in Metro Cebu remain high across all sectors.
“We have seen the highest commercial land value inside Cebu Business Park (CBP) and Cebu IT Park peaking at P450,000 per square meter both located in Cebu City,” Leechiu said.
Cebu City has remained robust with the highest residential land value at P75,000 per square meter and the highest condominium price at P200,000 per square meter in The Alcoves of Ayala Land Premier.
Condominium prices are continuously increasing, attracting not only tourists but also potential residents and investors.
For the industrial sector, land values remain high but consistent due to scarcity of supply, especially in Cebu City and Lapu-Lapu City.
On the other hand, Mandaue City remains the top choice for industrial locators due to its affordability at P12,000 to P80,000 per square meter versus other key cities.
In Cebu’s high-end residential villages, land costs have also been rising in the last two decades.
For one, residential land prices in Maria Luisa Estate Park, home to Cebu’s rich population, have surged in the last 20 years by 957 percent to P65,000 per square meter, from just P6,200 per square meter in 2000.
Land values surged in 2016 brought about by the scarcity of land and growth in the domestic market fueled by big infrastructure projects.