REAL estate brokers in Cebu are calling on developers to accelerate their residential projects, particularly condominiums, to keep up with the high demand in the market.
“There are a lot of buyers but there are no projects. Developers have to build more,” said Anthony Leuterio, founder of Cebu-based Leuterio Realty and Brokerage, in an interview.
“If there’s one big problem the brokers and agents are facing now, it is that they don’t have projects to sell,” he stressed.
Leuterio said the high demand is coming from the overseas Filipino workers (OFW) and foreign buyers from the USA, Europe, Australia, Japan and Korea.
According to Leuterio, 80 percent of the demand in real estate are those condominium units priced P60,000 to P75,000 per square meter. He said those developers that are catering this kind of market have already recorded fast sales take up.
“If you happen to have projects that are not selling, it could be because there is something wrong with the price. Developers must consult the market,” he said. About 60 to 70 percent of condo buyers in Cebu are investors.
Due to the fast take-up of the Mivesa project in Lahug, Cebu Landmasters Inc. president and chief executive officer Jose Soberano III, in earlier interviews, said the five-year development program for the seven-tower condominium residential complex will be shortened to a three-year development.
He said they will likely start selling the units of the sixth building this year.
Michelle Cutang, marketing manager of Primary Homes Inc. in a text message said there would be more projects Prohomes will announce this year.
The company recently launched its “first garden walk-up condominium” called The Courtyards in Banawa, which is being positioned by the company as an income-producing property, especially for investors who want to cash in on the booming property rental business in Cebu.
Leuterio also noted that foreign developers from Korea and Japan with Filipino counterparts are also exploring Cebu for condominium developments.
“These foreign investors will be building projects for their own countrymen already residing here and for their fellows who are eyeing Cebu as their retirement destination,” said Leuterio, who is also the founder of Rent.ph.
Citing scarcity of property and expensive lot rates, he foresees more vertical projects to be erected in the city in the next few years.
Years ago, house and lot packages in Cebu City were priced at P2 million. Now, house and lot prices have gone up to P5 million to P7 million, he said.
“These factors will push developers to go vertical. In two years’ time, Cebu will become the next emerging city for condominium developments,” he said.
He added tourism will play a crucial role in attracting more buyers to acquire some property here. He noted a need for government to expedite infrastructure projects such as road networks following the boom in real estate and tourism.