THE anticipated completion of Mactan-Cebu International Airport (MCIA) terminal 2 project is expected to provide impetus for developers to ramp up construction of hotels and resort-oriented condominium projects.
Citing Colliers’ Top 10 Predictions for 2018, Joey Roi Bondoc, the firm’s research manager in the Philippines, said leisure and industrial sectors will drive expansion of Cebu’s property sector.
With increased tourist arrivals year-on-year, Bondoc said high occupancy rates of deluxe and first-class hotels indicate a continued influx of high-spending tourists.
MCIA’s Terminal 2 is slated for opening in the first half of the year.
“Cebu’s rising attractiveness as a tourist spot and growing competitiveness as an investment destination should support a 15 to 20 percent growth in tourist arrivals over the next 12 months. This should sustain hotel occupancy of between 65 and 70 percent across Metro Cebu over the next 12 months,” the Colliers’ study revealed.
The Hotel, Resort, and Restaurant Association of Cebu (HRRAC) has described 2017 as a banner year due to increased tourism arrivals and tourism-related activities.
HRRAC president Carlo Suarez said that city hotels saw high occupancy due to the influx of the Chinese market. They expect sustained high booking levels this year, as more foreign guests continue to visit the province.
“The opening of the expanded MCIA will further boost tourism in the province,” said Suarez, in earlier interviews.
“Condotel investments in the right areas can take advantage of the tourism boom,” said Bondoc. He added that branded residences typically do well due to brand familiarity.
Moreover, Colliers believes Cebu will remain one of the most feasible industrial locations outside of Manila due to its strategic location and skilled human resources.
It sees demand for warehouses and container yard spaces becoming more pronounced over the next 12 months.
Mandaue City recently implemented an ordinance that disallows the presence of warehouses and container yards around the Mandani Bay area. Several firms involved in shipping, logistics, and container yards are now in a rush to relocate, the study said.
Colliers also sees industrial land values in the northern parts of Mandaue, Consolacion, and Liloan growing by at least 10 percent annually over the next two to three years with the transfer of the Cebu International Port to Consolacion town.
Currently, the range in Mandaue is P25,000 per sq.m. or $500 per sq.m. while prices in Consolacion and Liloan range from P10,000 per sq.m or $200 per sq.m. to P30,000 per sq.m or $600 per sq m.
“The increase in rates will be supported by rising demand from logistics and warehousing firms due mainly to expansion of e-commerce platforms Lazada and Zalora in Cebu,” said Colliers.
It added that the plan of San Miguel Corp. to develop an industrial estate will support Cebu’s growth as an agro-industrial hub in the Visayas.