Property research firm Colliers Philippines made this projection following Sta. Lucia Land’s (SLI) launching of its new condo project in Cebu City.
SLI is expecting at least P8 billion (US$135 million) in sales from 128 Nivel Hills in Barangay Lahug, Cebu City.
The two-tower residential project is now in its early stage of construction.
The first tower will have 366 residential units and 210 condotel units. Meanwhile, the second tower will have 613 units ranging from studios to four-bedroom units, with sizes between 28 and 163.9 square meters (301–1,764 square feet).
Prices of each unit will range from P3.5 million to P10 million ($59,300 to $169,500). SLI expects to turn over the project by 2027.
“The renewed demand for leisure-oriented properties with the easing of travel restrictions should support the take-up of upscale and luxury projects in Cebu moving forward,” the Manila-based property consultant said.
Demand for these projects will also be supported by the strong inflow of overseas remittances. Money sent home by Filipinos overseas rose four percent to US$3.15 billion in September, bringing the first nine months of remittances to $26.49 billion.
As of the second quarter of 2022, condominium stock in Cebu had reached 57,900 units, the largest residential market outside Metro Manila.
Cebu City accounted for 67 percent of the total supply in the province, followed by Lapu-Lapu (19 percent) and Mandaue (13 percent). In the first half of 2022, Colliers recorded about 2,800 condominium units sold in Cebu, up 67 percent year-on-year, with the economic to mid-income segments (P750,000 to P6 million or $12,700 to $101,700) accounting for 86 percent of total take-up.
The share of upscale and luxury projects (P6 million and above or $101,700 and above) rose to 14 percent in the first half of 2022, from eight percent a year ago.
Joey Bondoc, Colliers’ associate director for research, said the Philippine real estate sector is expected to finish strong in 2022, an optimism that is expected to persist through 2023 as recovery prospects are boosted by strong macroeconomic fundamentals.
Colliers noted a rebound improvement in office leasing deals, office leasing deals, and a rise in hotel occupancies moving forward.