Metro Cebu’s high-end residential market has shown to be a more favourable investment as compared to other project classes, such as the mid-end and affordable sector, during the second half of 2015.
CBRE Philippines, in its latest research report published this week, said this stems from the city’s allure as a retirement haven to foreign investors, the increase in international companies that have chosen to locate in the vicinity, and purchasing power of OFW families given the higher conversion rate they receive from remittances.
Local developers have also acknowledged the increased demand in vertical residential units and, as such, have launched projects to meet this demand. The majority of existing condominium projects in the city have also started on succeeding phases of their developments.
Take-up rates for high-end and affordable condominium projects increased during the second half of 2015, with six and five units sold every month – showing the increased interest in investors for residential projects in the city.
High-end condominiums, such Avenir, Tambuli Residences Oceanus, La Nivea and Marco Polo Ocean View and Park View Residences, have take-up rates of between 8 and 12 units per month. Mid-end condominium projects slightly slowed with five units sold every month compared to the six units sold in the first half of the year.
Though other mid-end projects, such as Avida Riala, Bamboo Bay, and Mivesa Garden Residneces, have take-up rates of between 13 and 22 units per month. Cebu City has the highest average take-up rate with around seven units sold every month, followed by units in Mandaue City with six units sold every month and four units per month in Lapu Lapu City.
The mid-end projects continue to encompass majority of the residential condominium market with approximately 62 percent of the total stock, 29 percent to the high-end projects, and only 9 percent of the market deemed as affordable projects.
Accordingly CBRE noted the majority of units sold are also mid-end project units, followed by high-end and lastly affordable. The majority of the projects launched in the past were already mid-end projects and currently developers are still building the succeeding phases of these projects. However new projects that have been launched were high-end projects in response to the increased demand for high-end condominium projects in the city.
Condominium units in Cebu City rank as the most expensive, with an average price psm of approximately Php 104,000, followed by Lapu-Lapu City with Php 99,000 and Mandaue with Php 89,000.
Units in the Cebu City rack up a premium according to CBRE, given its proximity to major office areas such as Cebu Business Park and Cebu IT Park. Moreover, it also provides ease of access with the numerous public transportation vehicles available as well as the retail areas nearby.
Developers have announced pipeline residential projects for Metro Cebu such as Solinea Tower 4 by Alveo, Vista Suarez by Vista Land, Serulyan Seascapes Mactan by Filinvest, and Sunvida Tower by Sunkai Land were launched in the second half of 2015. Local developer Taft Properties partnered with international developer Hong Kong Land to develop a mixed-use development in Mandaue City. Phase one will consist of approximately 1,200 condominium units.
Image: Part of metro Cebu.