The condominium market in Cebu’s vacation city is showing indications of a resurgence
Despite the coronavirus epidemic, demand for condominium apartments on Mactan Island, which is home to the international airport, is increasing, according to a real estate industry leader in the country.
According to Ramero Espina, vice president for sales and marketing of Cebu-based builder Primary Homes Inc. (PHI), “the lockdown last year had a significant impact on businesses, but surprisingly, condo unit sales increased significantly, especially considering the difficult economic conditions.” Espina made the remarks during a press briefing on Wednesday afternoon.
According to him, an increase in demand for value-for-money condominium apartments is boosting the sales performance of locally-based developers in the area.
Although the coronavirus pandemic has brought with it a number of difficulties and uncertainties, Espina said they have seen a high take-up of units in their company’s new resort condo project — the Royal Oceancrest Mactan — which they believe is an indication that there is a strong demand for such types of properties these days.
He claims that this PHP2-billion home construction is doing much better than expected, with more than 60% of the units sold during the height of the epidemic, according to him.
In addition, he said that “with billions of dollars worth of new industrial and world-class projects, Lapu-Lapu City is probably the best place to settle or invest in Cebu.”
Possibility of becoming a real estate center
As a result of the city’s modern international airport, the soon-to-be-completed Cebu-Cordova Link Expressway (CCLEX), export zones, first-class resorts and hotels, export-oriented manufacturing companies, and business process outsourcing companies setting up shop in the city, Mactan has the potential to become an attractive real estate hub in Cebu.
Colliers International Philippines assistant director for research, Joey Bondoc, was approached for comment and said that critical infrastructure projects such as the Cebu City Light Rail Transit (CCLEX) and the Metro Cebu Expressway are fueling demand for residential condominiums in Cebu.
In the opinion of the property expert, “these public infrastructure projects should assist in attracting additional developers and investors to acquire parcels of land around these big projects.”
The difficulties brought on by Covid-19 will continue to be managed by the nation, according to Bondoc, who believes investors and end-users in Cebu will continue to be interested in investing in properties located within integrated communities.
In her opinion, the majority of property purchasers nowadays are young professionals and families who are either seeking a more inexpensive living space that they can move into right away or those who are looking for a more meaningful purpose for their money, according to Espina.
They are often first-time homebuyers, and they include working professionals and individuals who want to start a company in the city and are seeking a desirable location for real estate investments.
Demand that has been building for a long time
Colliers expects the entire condominium stock in Metro Cebu to reach 73,900 units by the end of 2025, representing a 48 percent increase over the inventory at the end of 2020.
This year, according to Colliers International, the completion of residential units in Metro Cebu is expected to pick up speed.
The worldwide realtor expects a modest rebound in the pre-selling market in Cebu as developers prepare for pent-up demand that will continue until 2021.
“Despite Covid, we anticipate that demand for residential apartments in integrated communities will continue to remain strong. As a result, we suggest that developers continue to investigate the viability of township projects. Bondoc advised developers to explore peripheral regions for house and lot developments and to make the most of new facilities, pointing out that Cebu has been a key beneficiary of the government’s huge infrastructure initiative.