Affordable to mid-income residential projects continue to dominate Cebu’s housing market, sustaining demand even as luxury developments gain ground, property consultancy Colliers Philippines said.
In the first half of 2025, about 1,900 condominium units were taken up in Cebu, with more than 70 percent belonging to the affordable to lower mid-income bracket priced between P2.5 million and P7 million.
“This demand is partly sustained by investors who plan to rent out their units to outsourcing employees. Local investors and Filipinos working abroad are also fueling sales in these segments,” said Joey Bondoc, director for research at Colliers Philippines.
The same pattern is evident in the house-and-lot market, where nearly 70 percent of sales in the first half of 2025 came from the affordable to mid-income segment. Colliers attributed the strong take-up to remittance-backed households, with Central Visayas ranking among the country’s top sources of overseas Filipino workers.
Cebu retains lead as top residential hub
Despite the strength of mid-market projects, Cebu continues to solidify its stature as the largest residential hub outside Metro Manila. As of end-2024, Metro Cebu’s condominium stock stood at 69,000 units and is projected to expand to 102,000 units by 2028.
Some 33,000 condo units are expected to be delivered in Cebu between 2025 and 2028, surpassing the 17,000 units projected in Metro Manila’s Cebu Business Districts over the same period.
“The improving sentiment from businesses and individual investors and end-users will likely support the Cebu residential sector’s growth,” Bondoc said.
Upscale market gaining traction
Colliers also pointed to the growing appetite for upscale and luxury residential units, priced at P12 million and above. Cebu has begun to see a proliferation of such projects, led by Rockwell Land’s The Villas at Aruga, the most expensive residential development in the city to date. The project carries an average total contract price of P101.3 million (US$1.8 million) and an average price of P589,600 ($10,700) per square meter.
The consultancy noted that demand for luxury projects is expected to be supported by the recovery of tourism, which could spur renewed interest in leisure-oriented properties. Colliers recommended that developers explore specialized formats such as villas, condotels, and resort-type residences for Cebu.
Market outlook
In 2024, Cebu saw the completion of about 5,800 new condominium units. Colliers projects an average annual delivery of 8,300 units from 2025 to 2028, which will push the total stock to 102,500 units by 2027.
“Cebu presents interesting prospects across both commercial and residential property. Developers should continue to assess demand gaps in terms of product types, prices and amenities to capture opportunities from affordable to luxury markets,” Bondoc said. / KOC