Cebu Real Estate Market to Bounce Back in 2021
The firm attributed this optimistic outlook to the Visayan metro remaining to be a top choice when it comes to investments made outside the capital region. The developments that have happened over the past years also contribute to a revival in property interest.
The value of real estate property in Cebu has increased as more national and local developers invested in the area. According to Colliers, the market outlook proves optimistic as interest in mixed-use estates, resort-oriented communities, and luxury properties brews.
Status of Market Segments
Mid-income condominium units have been performing well in Metro Cebu. It represented more than half of the take up during the first half of 2020. According to Colliers, this is a manifestation of the strong buying power of investors and end-users in Cebu. They are confident that the mid-income segment will sustain its performance, contributing to the resurgence of demand this year.
As for other real estate types, house and lot projects continue to see a resilient performance. Overseas Filipino workers (OFWs) represent a large portion of the horizontal market, as they are the end-users. For this reason, Colliers advises developers to emphasize sanitation and emergency preparedness in their property management protocols to accommodate end-users’ safety concerns.
Meanwhile, in another report, the office segment will continue to be in demand, as it plays a vital role in corporate culture. Experts from Jones Lang LaSalle (JLL) asserted that workspaces in Cebu will remain important for companies even as organizations reconsider their “real estate footprint,” Cebu Daily News reported. The real estate firm said that Manila-based tenants will look to the Visayan metro for “cheaper” office options outside the capital region.
A vital industry, real estate is considered a major driver of Cebu province’s economic recovery. The urban metro, for instance, eyes the South Road Properties, a prime lot sold to the SM-Ayala consortium, to fund their COVID-19 response efforts in 2021, according to Rappler.
Investment on Infrastructure
Cited in a report from Rappler last month, the Cebu province approved its 2021 budget with a major emphasis on infrastructure development to reboot the local economy amid the health crisis. From the P15-billion budget, the development fund represents 55 percent of the total, which is P8.2 billion.
Projects under this allocation include the construction of roads, bridges, government buildings, community sites, and drainage systems; and the creation of water supply programs. The building of airports and seaports in the province will likewise be under this budget.
Cebu’s 2021 budget is higher than last year, which is at P12 billion, an amount acknowledged as the biggest approved budget in the province’s history at the time.
Projects on the Rise
The Department of Public Works and Highways (DPWH) has been firm in its commitment to support Cebu’s efforts to reboot its local economy through supply chain and logistics infrastructure projects.
The province is a recipient of a portion of the department’s flagship project Philippine High Standard Highway Network Program, which aims to build 1,066 kilometers of high-standard highways all over the country, as reported by Business Mirror.
The Cebu High Standard Highway Network consists of the Metro Cebu Expressway, Cebu-Cordova Link Expressway, and the Cebu Mactan-Bridge.
In October 2020, Sunstar reported the ongoing construction of the third segment of the Metro Cebu Expressway, which links Naga City in the south to Danao City in the north. The 2018 project component reached 38.78 percent completion, 38.78 percent on the 2019 project component, and 73.42 on the 2020 project component.
The Cebu-Cordova Link Expressway, meanwhile, was 61 percent finished back in October, according to CNN Philippines. Once completed, the thoroughfare will link mainland Cebu from Cebu City to the Municipality of Cordova in Mactan Island.
In June last year, the government formally signed the loan agreement with Japan International Cooperation Agency (JICA) for the construction of the fourth Cebu-Mactan Bridge, amounting to 55.8 billion, as reported by Cebu Daily News.
The rise of the new infrastructures in the province is seen to contribute further to real estate demand recovery in Cebu.
Sources: Manila Times, Cebu Daily News, Rappler, Business Mirror, Sunstar, CNN Philippines