“National developers continue to launch in Metro Cebu as they are optimistic about the locale’s potential for growth post-Covid-19 pandemic. In our view, the improving sentiment from businesses and individual investors, and end-users will likely support the Cebu residential sector’s growth,” noted Joey Roi Bondoc, Colliers Philippines research director.
In the report brief posted on the Colliers Philippines website, Bondoc said the launch of higher-priced condominium units outside of Cebu City indicates national property firms’ confidence in Cebuano investors’ purchasing power and rising affluence.
Karla Domingo, Colliers Director of Advisory Services, noted that Cebu as a residential location showed resilience during the pandemic and is likely to recover by the end of 2023.
According to Ms. Domingo, developers must maintain the momentum by introducing products that are right for their ideal markets. “Launching projects is one thing, introducing successful products is another. Developers should continuously evaluate whether their products are indeed preferred by and are a right fit for their target market,” she added.
Real estate companies have to assess thoroughly the ideal product types for their target end-users and investors.
Developers should also capture demand from a discerning market by securing sustainable certifications for their future residential towers.
Colliers Philippines recorded the take-up of 1,100 condominium units in Cebu in the first quarter of 2023, primarily driven by the affordable and lower mid-income segments.
Also, it reported that 9,500 new condominium units in Metro Cebu in 2023 were completed. In terms of capital value, Colliers expects condo prices in Cebu to grow by 3.5% from 2023 to 2027, as a result of stabilizing demand, especially for higher-priced units.
Colliers also maintained that Cebu must sustain its attractiveness as an outsourcing hub.
Metro Cebu remains one of the most attractive expansion hubs for outsourcing firms in the Philippines, it added.
Cebu led other provincial sites in terms of office space take-up estimated at 7,900 square meters in the first quarter of 2023 despite lower deals recorded for all key outsourcing destinations outside Metro Manila.
Colliers expects the net take-up for office spaces to reach 40,000 square meters for the whole of 2023.
“Metro Cebu is ripe for shared services and multinational companies as they take advantage of the existing skilled labor and infrastructure. With this, landlords should capture the demand by introducing high quality office buildings in their pipeline,” Kevin Jara, Associate Director of Office Services-Tenant Representation, said in the Colliers report.
Meanwhile, KMC Savills Research team, in their market briefing report, noted that Cebu is set to become the next top destination for a flourishing business in the Philippines. The report also noted that for those looking for their next business location in the country, now is the perfect time to consider investing in Cebu’s office real estate market.
