Traffic, high rents fuel co-living shift

Traffic, high rents fuel co-living shift
DEMAND. Ayala Land Inc. soft-opened its second CityFlats property, located along Leyte Loop in Cebu Business Park. The development houses 392 fully furnished, move-in-ready rooms. / KATLENE O. CACHO-LAUREJAS
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CO-LIVING communities are expanding rapidly in Metro Cebu as worsening traffic congestion and rising rental costs push young workers toward housing options that shorten commutes and reduce monthly expenses.

With daily travel often taking nearly an hour each way and traditional rentals taking up a large share of income, demand for flexible, centrally located units is strengthening.

In an interview on Tuesday, Dec. 2, 2025, Bryle Mendaros, Ayala Land Inc.’s (ALI) estates development manager for Cebu, said ALI is refining its offerings as the co-living segment matures.

“When you buy a condo, you deal with many additional expenses. Here, you only pay rent and utilities. You’re in a secure place,” he said.

On Tuesday, the company soft-opened its second CityFlats property, located along Leyte Loop in Cebu Business Park (CBP). The development houses 392 fully furnished, move-in-ready rooms.

Mendaros said this new project will be ALI’s last co-living development in Cebu “in the interim” as the company focuses on absorbing current inventory. ALI opened its first CityFlats in Cebu IT Park in April this year with 466 rooms in total, composed of 396 co-living units and 70 hostel rooms.

He said the existing stock can be filled by tapping the large workforce in CITP and CBP, as well as students. A majority of renters at the CITP site come from

Cebu’s neighboring islands, he added.

Citing market insights, Mendaros said they’ve loosened earlier lease restrictions after seeing strong demand for short-term stays. Originally limited to three- to six-month contracts, units may now be booked for as short as one to two months, attracting project-based workers and transient residents.

Each floor at CityFlats CBP also includes units designed for persons with disabilities.

Eighty percent of CityFlats CBP units are dedicated to co-living, while the rest operate as hostel rooms priced to compete with Airbnb but offering hotel-style services such as daily housekeeping and Wi-Fi.

In a separate interview on Tuesday, Joey Roi Bondoc, research director at Collier Philippines said, co-living facilities address two main issues important to employees: traffic congestion and affordability of suitable housing.

“As more business process outsourcing employees and entry-level professionals work in central business districts the demand for similar facilities should rise,” said Bondoc. “Developers should differentiate in terms of amenities and rates.” / KOC

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