Boasting the largest condominium stock outside of any metropolis outside Metro Manila, Metro Cebu is well-prepared to capture demand post-Covid-19. According to Karla Domingo, Colliers Director of Advisory Services, Cebu’s strength as a residential location lies in the variety of market segments that it serves. However, buyers have become more sophisticated and complex, so developers must be able to provide value-for-money amenities and features to capture the discerning eye of the Cebu buyers.
Colliers data show in H1 2022, a total of 2,767 condominium units sold in Cebu, up 67% YOY. Condo take-up is expected to be supported by OFWs, investors, and end-users’ demand for leisure properties. Approximately 10,141 new condominium units are expected to be completed in Cebu in 2022, while from 2022 to 2026, approximately 5,160 units will be completed annually, with Cebu City covering nearly half of the new supply.
In terms of price, Colliers recorded a 9.0% HOH increase in condominium prices in Cebu; mid-income and luxury projects covered about 79% of new launches during the period. This growth should be sustained as national developers assess Cebu’s viability for higher-priced units.
Colliers projects a recovery in residential demand beyond 2022. This should be supported by regional economic growth, inflow of remittances, and sustained BPO investment. Developers should further explore opportunities in the market, but these strategies should revolve around the continued offering of attractive promos and flexible payment schemes as well as exploration of alternative locations for residential development.