Metro Cebu remains to be one of the most vibrant economic hubs in the Philippines. In the National Competitive Council’s 2016 Cities & Municipalities Competitive Index, Cebu City placed 5th among the country’s highly urbanized cities in terms of economic dynamism. In the same way, the cities of Lapu-Lapu and Mandaue both made it to the top 30 of the said index. The remarkable economic growth exhibited by the various cities and municipalities of Metropolitan Cebu makes the area an attractive target for diverse real estate investments.

 Affordable and high-end projects enjoys fast take-up

The demand for vertical residential developments has reached new heights as various stakeholders became rather more bullish about Metro Cebu’s local condominium sales market. The country’s sustained growth momentum and favorable demand-driving indicators, which lingered over the last 6 months of the year, has continued to fuel the interests of market players to partake in the province’s growing investment pie. 

A major acceleration in monthly take-up rates across all residential classifications was evident in the last semester of 2016. Affordable condominiums, with a monthly take-up rate that increased by 5 units from the same period last year, currently commands the highest with 11 units being sold per month. Demand was mostly pulled by pre-selling projects that were well-received by both foreign and local investors taking advantage of the growing local workforce, particularly in the business process outsourcing (BPO) sector. 

Condominiums targeting the upper middle to high income market likewise recorded a 5-unit increase from the previous half. At present, high-end projects are selling at 9 units per month which stems from foreign and local retirees as well as affluent individuals looking for residential units infused with a lifestyle-focused living concept. Some developers have already started incorporating such concept in their projects including Vista Land’s first undertaking in the province, Vista Suarez Cebu in Cebu City, and the world class development by Hongkong Land and Taft Properties in Mandaue, Mandani Bay Suites. In less than a year, both projects have already sold 73% and 93% of their
respective inventories.

The performance of mid-end condominiums, on the other hand, was a tad slower compared to the to the other classifications. Having been able to increase by 2 units from the same period last year, monthly take-up stands at 7 units per month originating from the brisk sales of pre-selling projects which, if compared to ready for occupancy (RFO) ones, offers relatively innovated concepts. This justifies the slow take-up for RFO units reflecting the changing appetite of the middle-income market, particularly new home owners. 

The upswing in monthly take-up rates provide enough attestation of a healthy residential market in Metro Cebu which further validates the current selling prices and flexible payment schemes. Condominium units in Cebu City, which are complemented by their proximity to major office and commercial areas, still rank the most expensive with an average price of approximately PhP106,300 per square meter. This is followed by resort and leisurethemed units in Lapu-Lapu City selling at an average of PhP105,700 per square meter, while typical condominiums in Mandaue starts at an average of PhP88,000 per square meter.

The growth in demand and residential prices has allowed property developers to ramp up the construction of their respective projects to meet turnover schedules. During the period, 9 projects, equivalent to 1,815 units, opened their doors to the market, specifically in the 4
th quarter, in time for the holiday season. Majority of the projects are situated in Cebu City such as Azalea Place by Robinsons Land, Avenir by King Properties, 32 Sanson’s Raffia and Gmelina buildings by Rockwell, 

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