CEBU’S residential property market has undergone a marked shift over the past decade, with condominiums overtaking subdivisions as the dominant housing type, according to KMC Savills.
Data presented by Alex Samuel, director for consultancy and valuation at KMC Savill, showed that condos now account for 63 percent of Cebu’s total residential housing supply, up from less than half a decade earlier. Subdivisions make up the remaining 37 percent, though they continue to cater largely to budget-conscious buyers with units priced under P3.6 million to remain within value-added tax exemption limits.
The acceptance of vertical living has grown alongside the rapid urbanization of Metro Cebu, Samuel said, with developers increasingly targeting the mid- to high-end market. Supply for upscale and luxury condo projects has now reached near parity, with a 44 percent and 45 percent share, respectively.
“Developers have recognized the potential in the upper markets, while affordable condominiums have become financially unviable due to rising land costs,” Samuel noted, during the Subdivision Housing and Developers Association-Central Visayas Housing Summit on Friday, Sept. 26, 2025.
High demand has kept take-up strong: 89 percent of the total condo inventory launched between 2015 and 2025 has already been sold. The lack of new affordable condo projects has further tightened supply.
Subdivision projects remain steady, particularly in northern and western Cebu, though absorption rates are softer at around 75 percent. Prices vary widely, from as low as P800,000 per unit for socialized housing to P50 million for premium residences. Developers have also moved into municipalities such as Bogo and Bantayan, but market demand outside Metro Cebu is still catching up.
By housing type, townhouses remain popular, particularly under the economic housing bracket. Affluent buyers are also driving demand for townhouses and single-detached units priced above P10 million. Overall absorption rates are solid: about 92 percent of inventory launched over the past decade has been taken up, led by medium-cost housing as local incomes improve and developers offer more flexible payment terms.
Despite strong market fundamentals, the national housing backlog persists.
The Philippines faces a deficit of 6.5 million units as of 2022, with about 600,000 in Central Visayas alone. Left unaddressed, the shortage could swell to 22 million units by 2040.
Private developers remain reluctant to enter the socialized housing segment, citing high land and construction costs, limited sites in urban areas, weak infrastructure in outlying towns, and lengthy permitting processes.
“Rising input costs and bureaucratic hurdles significantly deter private sector participation in the affordable housing space,” Samuel said.
The government has rolled out policies to address the shortfall, including the Pambansang Pabahay para sa Pilipino (4PH) program, which aims to shift focus from purely vertical projects toward subdivision developments and rental housing. About 13,000 units are expected to be delivered in Cebu in the coming years under this program.
Other measures being considered include raising price caps for socialized housing — already increased to P850,000 per unit from P550,000 — and providing tariff exemptions for construction materials. Passage of the proposed National Land Use Act could also help allocate more land for housing and infrastructure.
“Ultimately, solving the housing deficit requires a holistic approach,” Samuel said. “Private developers, national agencies, and local governments need to work together to create sustainable communities.” / KOC