September 2024 Insights
Overview of the Cebu Rental Market
The Cebu rental market in September 2024 has shown significant trends and changes. This article provides a detailed analysis of the current statistics, forecasts, and recommendations for potential investors and renters.
Key Statistics for September 2024
- Active Listings: 5,404 (up 2.56% from August 2024)
- New Listings: 2,945
- Closed Rentals: 2,173 (down 16.62% from August 2024)
- Average Days on Market (DOM): 48 days (up 23.08% from June 2024)
- Median Occupancy Rate: 56%
- Average Daily Rate: PHP 1,731
- Annual Revenue per Host: PHP 368,000
Analysis and Forecast
The Cebu rental market has experienced a slight increase in active listings, indicating a growing supply. However, the number of closed rentals has decreased, suggesting a potential oversupply or a shift in renter preferences. The average days on market have increased, which could be a sign of renters taking longer to make decisions or a higher competition among listings.
Forecast: Given the current trends, we expect the rental market to stabilize in the coming months. The increase in active listings might lead to more competitive pricing, benefiting renters. However, landlords may need to enhance their property offerings to attract tenants.
Recommendations
- For Renters: This is a good time to negotiate rental prices due to the increased supply. Look for properties that offer additional amenities or flexible lease terms.
- For Landlords: Consider upgrading your properties or offering incentives such as free utilities or discounted rent for the first few months to attract tenants.
- Investors: Focus on areas with high demand such as Cebu City, Mandaue, and Lapu-Lapu. These areas are expected to see continued growth and offer better returns on investment.
Areas to Watch
- Cebu City: Continues to be a prime location with high demand for both residential and commercial properties.
- Mandaue: Emerging as a hotspot for new developments, particularly in the mid-income segment.
- Lapu-Lapu: Known for its resort-themed projects, this area is attracting both local and foreign investors.
Fun Facts
- Airbnb Popularity: Cebu City has 3,705 active Airbnb listings, with hosts earning an average of PHP 368,000 annually.
- Historical Growth: Over the past year, the average rental yield in Cebu has increased by 0.1%, reflecting a steady growth in the market.
Real-Life Example
A recent case study from a property in Mandaue showed that offering a 10% discount on the first six months’ rent significantly increased tenant inquiries and led to a quicker lease agreement.
The information provided in this article is for general informational purposes only. It does not constitute professional advice or recommendations. Readers are encouraged to conduct their own research and seek legal, financial, or real estate professionals’ guidance before making any property-related decisions. The author and publisher disclaim any liability for actions taken based on the content presented herein.