15/06/2023
Overall, real estate players eyeing Cebu should thoroughly assess the ideal product types for their target end-users and investors.
Cebu remains as one of the most attractive and largest residential hubs outside of Metro Manila. 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.
In the first quarter of 2023, Colliers recorded the take-up of 1,100 condominium units in Cebu, with demand primarily driven by the affordable to lower mid-income segments. Colliers sees the completion of 9,500 new condominium units in Metro Cebu in 2023. 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.
The launch of higher-priced condominium units outside of Cebu City indicates national property firms’ confidence in Cebuano investors’ purchasing power and rising affluence. According to Karla Domingo, Colliers Director of Advisory Services: “Cebu as a residential location has shown resilience during the pandemic and is likely to recover by the end of 2023. 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.”
Overall, real estate players eyeing Cebu should thoroughly assess 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
