This was the assessment bared by Colliers International on Wednesday, Dec. 28, when it released its outlook for Cebu’s property market.
“Cebu remains a preferred destination of BPO firms while more retailers are likely to test the Cebu market’s viability especially for high-end merchandise,” said Joey Bondoc, associate director for research. “Opportunities definitely abound for the Cebu market and we see more developers positioning to capture recovery in pre-selling condominium take up. Hence, we see more launches in the near to medium term.”
Colliers pointed out that improving infrastructure connectivity should also play a crucial role in Metro Cebu’s recovery. This should benefit both property developers and investors.
The Philippine property market is likely to finish 2022 strong backed by improvement in office deals across the country; a rebound in mall consumer traffic; and a rise in hotel occupancies and average daily rates.
Colliers sees this optimism persisting through 2023 as recovery prospects are boosted by strong macroeconomic fundamentals.
Cebu office market
Office developers should take advantage of a rebound in leasing within and outside Metro Manila including Metro Cebu by constructing new office towers and offering more flexible workspaces.
Colliers is optimistic of greater office space absorption in the provinces as occupiers revisit their business continuity plans and expand operations by tapping provincial talent.
Developers are keen on capturing this demand outside the capital region by building more office towers.
Key areas
Among key areas with substantial new supply up to 2024 include Cebu, Bacolod, Iloilo and Davao, according to Colliers.
Colliers encourages developers to assess the viability of launching more master-planned communities to take advantage of the government’s infrastructure projects.
“Overall, we see Cebu reaping the benefits of a recovering property market. With the largest condominium stock outside of Metro Manila, Colliers believes that Cebu is well-prepared to capture demand post-Covid,” Bondoc said.
Options
Metro Cebu has options that cater to the demands of end-users and investors.
The region also has diversified projects that serve the residential needs of young employees to the more discerning investors.
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.
“With more projects in the pipeline covering vertical and horizontal developments, Colliers believes that it is essential for Cebu developers to further differentiate to stand out in a fiercely competitive market and satisfy the demands of discerning consumers,” the research analyst said.
Homegrown developers should explore the viability of forming joint ventures with national and even foreign developers.
“We expect more projects that will feature green and sustainable features, more open spaces as well as amenities. Developers should also test the upscale to luxury markets especially now that investors and end-users start to gravitate towards more expensive projects,” he said.