1. Residential Properties:
- Demand and Sales: In 2023, approximately 5,600 condominium units were sold in Cebu. The lower mid-income segment (priced between PHP 3.2 million and PHP 7 million) accounted for nearly half of the total take-up.
- Supply: Colliers recorded the completion of 10,500 new condominium units in Metro Cebu in 2023. From 2024 to 2028, Cebu City, Mandaue, and Lapu-Lapu are expected to contribute to 97% of the new supply.
- Price Growth: Condo prices are projected to grow by 5% annually from 2024 to 2028.
- Upscale and Luxury Market: Developers should explore upscale and luxury residential units, as this market is likely to expand.
2. Office Sector:
- Recovery: The office sector in Cebu is gradually recovering. Vacancy levels averaged between 11% and 35% during Q4 2023.
- Emerging Business Hubs: Growth cities like Dumaguete are outperforming traditional central business districts (CBDs). Investment incentives from PEZA and BOI enhance the appeal for developers.
3. Infrastructure and Urban Renewal:
- Government Initiatives: Increased public spending on infrastructure development and urban renewal creates opportunities for real estate. Developers should explore areas adjacent to these projects.
- Mixed-Use Developments: Sustainable mixed-use constructions are gaining traction.
4. Tourism and Connectivity:
- Tourism Potential: Efforts to alleviate traffic congestion and promote connectivity will boost tourism. Properties in tourist-friendly locations may see increased demand.
5. Overseas Property Buyers:
- Lead Sources: Cebu’s top five overseas lead sources are North America, East Asia, South Asia, and the Middle East.
- Dynamic Demand: Each price segment (economic, low-cost, upscale, and luxury) receives a significant share of leads from property buyers.
- Rental Demand: Rental demand is primarily concentrated in affordable segments.
6. Considerations for Property Buyers:
- Legal Aspects: Foreign buyers should be aware of legal restrictions and requirements when purchasing property in Cebu.
- Market Research: Thoroughly research specific areas, property types, and developer reputations.
- Alternative Sites: Due to rising land values in Cebu City, property firms should explore alternative sites for development.
- Resort-Themed Projects: Developers can consider launching more resort-themed projects.
In summary, Cebu remains one of the most attractive and largest residential hubs outside of Metro Manila. National developers continue to launch projects in Metro Cebu, optimistic about its growth potential even beyond 2024. Property buyers should stay informed and consider market dynamics for informed investment decisions.
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.