A PROPERTY DEVELOPER is taking a cautious view of the second half of 2026 as economic uncertainty weighs on consumer spending, but it is pressing ahead with a P2-billion investment in Cebu through 2029, betting that strong underlying housing demand will continue to support the market.
The planned capital spending underscores the developer’s confidence in Cebu’s long-term property prospects, with demand for housing remaining intact even as rising fuel prices, geopolitical tensions and higher land and construction costs weigh on buyers.
“The challenge is how do you maintain affordability, enticing the market to buy despite what is happening in our economy,” said John Paul Escario, vice president for operations for Visayas at Pueblo de Oro Development Corp. “But the demand is still there.”
The planned capital expenditure includes about P1 billion for the company’s existing project pipeline and another P1 billion earmarked for expansion initiatives, including potential land acquisitions and new residential developments.
Escario said the company remains cautiously optimistic about the second half, citing population growth, infrastructure expansion, employment opportunities and resilient remittance inflows from overseas Filipino workers (OFWs) as key supports for residential demand.
However, buyers are becoming more deliberate in their purchasing decisions, comparing prices, locations, financing terms, amenities and long-term value more closely.
Pueblo de Oro’s strong first-half performance in Cebu provides some support for its expansion strategy. Reservation sales surged 324 percent year on year, reaching 423 percent of the company’s 2025 level. Escario did not disclose revenue or profit figures.
Cebu remains one of Pueblo de Oro’s most important growth markets outside Metro Manila, supported by demand for affordable and mid-income housing from first-time buyers, families and OFWs.
One of the company’s biggest growth drivers is its 10-hectare Pueblo de Oro Townhomes Carcar, a P1.2-billion project launched in January. The 900-unit development generated more than P200 million in reservation sales in the first half, making it one of the strongest contributors to the company’s Cebu portfolio in terms of units and reservation value.
Emerging growth corridors
Escario said the project’s early take-up reinforces the company’s strategy of expanding into emerging growth corridors south of Metro Cebu, where buyers can find homes at more accessible prices.
The traditional Cebu market has become increasingly expensive, prompting more buyers to consider areas outside the urban core in search of better value, he said.
The company is also seeing a larger contribution from overseas-funded purchases. About 68 percent of its Cebu sales in the first half were funded from abroad, up from 55.1 percent in 2025, while local funding accounted for 38.2 percent.
Escario said horizontal developments will remain an important part of the company’s Cebu strategy, particularly for the affordable and mid-income market. But rising land values in established areas are also prompting the developer to explore vertical projects.
The company is looking at a mid-rise development in Lapu-Lapu City, which Escario said would complement its horizontal portfolio and allow the company to offer more space-efficient housing in established urban locations.
The company sees the biggest unmet demand in Cebu’s affordable to mid-income segment, particularly among first-time homeowners and working families who are increasingly priced out of established urban areas.
Escario said the company is seeking to preserve affordability through efficient layouts, practical unit designs, construction efficiency, strategic locations and financing options rather than simply reducing unit sizes or specifications.
“We want to preserve the features that matter most to homeowners — structural quality, functionality, community amenities and overall livability — while being disciplined about costs,” he said.
Largest condo market
Cebu is expected to remain the Philippines’ largest condominium market outside Metro Manila, accounting for about 17,000 of the 45,000 new units expected across the Visayas and Mindanao (VisMin) from 2026 to 2029, according to property consultancy Colliers Philippines.
Cebu’s condominium stock is projected to reach 108,900 units by end-2029 from 92,270 in 2025.
Despite the pipeline, Colliers said demand remains strong, supported by affordable and mid-income buyers, overseas Filipino workers and infrastructure investments. About 86 percent of condominium units launched in Cebu have already been sold, while inventory life stands at about three years, compared with 6.8 years in Metro Manila.
Leisure-oriented projects, particularly in Mactan, are also attracting local and foreign buyers as tourism recovers.
House-and-lot developments remain strong, with VisMin projects posting about 92 percent average take-up, while lot-only projects are nearing 90 percent.
Colliers said it expects Cebu’s residential market to remain resilient amid infrastructure expansion, tourism recovery and economic growth. / KOC