RESIDENTIAL real estate in Cebu is a hot market for East Asian buyers, according to real estate service company Santos Knight Frank.
Rick Santos, chairman and chief executive of Santos Knight Frank, said many foreigners are buying condominium units in the province.
“South Korea, Japan and China, which are the top sources of foreign arrivals in Cebu, are reported to purchase bulk condominium units,” said Santos.
A large volume of availed inventory was intended for employee housing of Chinese gaming companies, said Santos.
Prices across the residential real estate market have increased during the first quarter of 2018 year-on-year.
The affordable sector grew by 14.5 percent, mid-scale by 12 percent and high-end sector by 12 percent.
According to Santos Knight Frank, buyers mostly consisting of investors are motivated by capital appreciation and leasing opportunities.
He added that with the traffic congestion in the city, residential demand is also seen in city centers, which are closer to offices.
Of the over 40,000 residential units floated into the market, 88.7 percent or some 35,000 units were sold.
Fast sales takeup was recorded in Lapu-Lapu City, with an average monthly take up of 31 units, seven units in Cebu City and four units in Mandaue City.
Moreover, Santos sees a healthy demand for real estate products in Cebu, following the opening of Mactan-Cebu International Airport’s Terminal 2.
“While a number of cross-border transactions have recently been closed in Cebu, in particular from China, South Korea and Japan, the improvements to the airport will further increase tourism, facilitate greater inflow of capital and help continue the metropolis’ growth momentum in the coming years,” he said.
Santos added that with a strong economy, large pool of talent and new infrastructure in place, Cebu is well on its way to becoming a global city. (KOC)