THE real estate industry in Cebu is gearing up for a stronger rebound this year.
According to Colliers International Philippines, the real estate interest in the country has not waned despite the coronavirus pandemic. Most of this interest stems from the overseas Filipinos and property seekers looking mostly into provincial cities, especially those with large central business districts.
Colliers sees Cebu to continue reaping real estate investments, being the premier investment hub outside of Metro Manila.
Joey Bondoc, Colliers Philippines senior research manager, said Colliers projects a potential rebound in residential demand in 2021 and thus sees a faster pace of price increase from 2021 to 2022 to reflect a stronger residential market.
“The residential sector of the area is at a discount as compared to projects located within the country’s capital. The proliferation of both local and national developers in Cebu has raised land and property values,” he added. “This was complemented by the rising demand for integrated communities, resort-oriented developments, and projects on the higher end of the price segments.”
In 2019, launches and take-up in the province reached a record-high 10,500 units and 9,500 units, respectively. Given the impact of the pandemic, launches and take-up in the first half of 2020 reached only 1,700 units and 3,100 units, down 72 percent and 42 percent year-on-year.
But with the easing of quarantine protocols, construction initiatives have resumed to fuel recovery in the sector this year. Property seekers are seeing the potential of increased value of land assets with giant real estate players keeping Cebu at the forefront of their expansion plans.
The entry of premium developers has clearly been raising the property values in the areas in Lahug, Apas, Banilad and Bulacao.
“The market, surprisingly, is truly considering buying and investing in homes despite the current health climate as the market realized the value of convenience and accessibility of having a home that’s close to where they could just walk and get their essentials,” Noel Jan Te, Grand Land brand and marketing assistant, said in a report.
Welcome news
This market demand is welcome news for premium developers that have cemented their foothold in Cebu. The developments of Rockwell Land, Cebu Landmasters Inc. (CLI) and Ayala Land Inc. are among those already benefiting from the increasing market interest in premium developments.
Rockwell Land’s 32 Sanson in Cebu is one of those developments experiencing an increasing wave of inquiries from the secondary market. In addition, units ready for occupancy are also garnering interest.
Rockwell’s premier project in Mactan Island, the Aruga Resort and Residences, is also experiencing increased inquiries and significant reservation levels. Similar to 32 Sanson in Lahug, Cebu City, the resort’s development in Mactan is showing favorable effects on neighboring property values.
On the other hand, CLI’s top-tier projects, like 38 Park Avenue and Asia Premier in Cebu I.T. Park and Base Line Premier on Juana Osmeña St., Cebu City, also contributed to the rise in property values in Cebu. The firm logged high sales amid the Covid-19 pandemic with the launching of five new projects in 2020.
Despite increased competition, Ayala Land continues to pursue Cebu’s growing premium market. Its Amara seaside residential community in Liloan has manifested a positive impact in the community in terms of increasing economic activity and land values.
Integrated community
Moreover, Colliers in its latest market report said the pandemic has highlighted both the investors and end-users’ desire to be in an integrated community. It said demand for residential projects will likely hinge on integrated features such as immediate access to essential goods and services.
“We encourage developers to highlight these features of their projects as this will likely be among the major considerations of home buyers moving forward,” the research firm said.
Colliers said investors and end-users are likely looking for homes offering larger living spaces, open areas and outdoor space. These are among the factors that attract people to invest in premium real estate projects and when they do, the value of Cebu properties also increase as a result. (KOC)