MACTAN Island remains an attractive destination for office locators and emerging businesses amid the rising popularity of other destinations like Iloilo and Davao, a property expert said.
Speaking at Megaworld’s Property Briefing on Oct. 1, 2024, Joey Roi Bondoc, research director at Colliers Philippines, emphasized that Mactan offers a unique combination of abundant talent, affordable living costs, competitive lease rates, vibrant leisure options, and proximity to the international airport.
Bondoc noted these factors make the island particularly appealing to executives in information technology and business process management (IT-BPM) firms.
Lease rates in The Mactan Newtown, for example, are relatively lower compared to Cebu City’s central business districts. Another major draw is its master-planned leisure development which appeals not only to foreign expat executives but also to residential owners seeking a vibrant and well-rounded community.
In terms of talent availability, Bondoc said outsourcing companies can tap not only into the island’s rich talent pool but also from nearby areas like Mandaue City. Mactan Newtown’s proximity to Mactan-Cebu International Airport also further enhances its appeal.
“If you’re looking to expand or establish a new business in Cebu, Mactan Newtown’s offerings make it a competitive choice,” Bondoc said.
Mactan Newtown is a 30-hectare township development in Lapu-Lapu City, Cebu, known for its integrated urban design that blends residential, commercial and leisure components. It offers office spaces, residential condominiums, retail hubs, hotels and schools, creating a self-sustaining community.
Bondoc said that Cebu remains a vibrant business hub worth watching, particularly as the office market shows signs of recovery and growth. He noted that they are observing positive trends and an upward trajectory in Cebu’s office space sector, signaling renewed interest and opportunities for businesses in the region.
“Our vacancy forecasts are looking very well for Cebu… and what’s interesting is that the likes of Accenture, Concentrix, all these major companies, call centers are still gravitating towards Cebu. What’s very positive for the Cebu office market is that while we saw the impacts of the pandemic especially in office vacancies, we’re projecting a better scenario now, a more positive outlook,” he said.
Bondoc said they see office vacancies dropping from 21 percent to 8.6 percent in 2028.
In the first half of the year, Cebu cornered 45,000 square meters of office space which is the largest amount of office space closed outside of Metro Manila.
“There’s no doubt companies will continue to expand their presence in Cebu,” he said.
Bondoc highlighted the decision of FPT Software, a Vietnam-based software engineering firm, to establish its first office in Cebu rather than in Metro Manila, driven by the availability of highly skilled and talented manpower in the region.
“You have universities churning out high-quality skilled manpower graduates that continue to be employed by these BPM companies,” he said.
Residential
On the residential side, Mactan’s stunning beaches and close proximity to the international airport make it a prime choice for both homeowners and investors. The island’s natural beauty combined with its convenient location continues to attract those seeking lucrative residential investments and vacation properties.
Mactan Newtown’s leisure-oriented developments are seeing strong sales, with properties like Positano Mactan Tower 2, Pearl Global Residences, and La Victoria Global Residences recording high take-up rates.
“The demand for leisure-oriented properties will be driven by the recovery of travel and tourism, with interest from both local and foreign investors,” Bondoc added.
Cebu was the final stop in Megaworld’s series of property briefings in the Visayas. / KOC