Traffic is a nuisance in most urban areas of the Philippines. Trips that should take 20 minutes require upwards of two hours depending on the time of day. It’s a source of frustration for just about everyone. One expert noted gridlock could even halt Cebu real estate market growth in the near future.
Filipino Homes Founder and Chief Executive Officer Anthony Leuterio believes increasing congestion on Cebu’s roads could negatively affect people’s desire to purchase new homes. He also noted the government could ask the real estate sector to be a part of the solution.
“The boom is already there. But it could be halted or stopped because of traffic,” Leuterio told Inquirer. “Why not call all the developers and congregate all the projects and maybe align with some of the roads or open some roads.”
The completion of the Metro Cebu Expressway is expected to ease some gridlock. However, it won’t solve all the region’s traffic issues. For that to happen, a mass transportation system is needed. Work on the Cebu Bus Rapid Transit System began last year, although the narrow scope of the much-delayed project has seen some question its potential effectiveness.
This problem could eventually impact Cebu real estate market growth as people may look elsewhere when buying a new home or condo or delay purchasing decisions until there is more clarity regarding government plans to reduce congestion.
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Does this impact the positive outlook for the Cebu real estate market?
The traffic problem could be the only thing that derails the Cebu real estate market. In 2022, the Accredited Real Estate Salespersons in the Philippines (ACRES Philippines) said the future of the Cebu property sector was bright due to a number of positive factors working in the region’s favor. Unlike other areas of the Philippines, the Cebu property sector avoided a major slump which is why many experts are bullish on its outlook.
“Personally, I would like to say that we are up for better times ahead because we are seeing a recovery already. The recovery has already started sometime in 2021 and I am very, very happy to say that despite what has happened from 2020, the growth of the real estate did not really get into the dumps, we did not have any nose dive or anything,” Chris Malazarte, ACRES-Cebu South President, was quoted as saying by the Manila Bulletin.
While annoying, it is hard to believe that traffic issues in Metro Cebu will do much to derail the local property market. That being said, more investment in infrastructure, including a robust plan for public transit, would certainly boost the region’s already promising prospects.
