The Cebu real estate market is seeing a slight recovery in 2021 with experts believing the situation will gradually improve over the coming months. Colliers International Philippines noted that pent-up demand is going to be a key driver moving forward.
According to the property consultancy, condominium prices are set to increase by four percent this year with investors and end-users likely to be active during the second half of 2021. Further price growth is expected in the years to come as the Philippines recovers from the COVID-19 pandemic.
“We expect prices to grow at a faster rate in 2022 as we project higher take-up from Mactan and Cebu City,” Joey Bondoc, Colliers International Philippines Associate Director for Research, stated. “From 2022 to 2025, we estimate a five percent annual growth in prices as Cebu City further recuperates from COVID-19. Stable OFW remittances should also support house-and-lot and lot-only price growth.”
The mid-income segment remains the most active in the Cebu real estate market. Research from Colliers showed these projects accounted for 38 percent of both launches and take-up in Metro Cebu during the first quarter. The growth in demand is being fueled by rising purchasing power among Cebuano end-users and investors.
“In our view, developers should constantly monitor demand drivers of the mid-income segment, including Filipinos working abroad,” Bondoc noted. “The government-projected economic recovery beyond 2021 should further stoke demand from the mid-income market.”
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Integrated communities have also become important for the Cebu real estate market. With COVID-19 changing what many people look for in a home, these have become more appealing to potential buyers.
“We believe that demand for residential units in integrated communities is likely to continue despite COVID-19. Hence, we recommend developers further explore the feasibility of township developments,” Bondoc said. “Developers should also consider fringe areas for house and lot projects and maximize new infrastructure as Cebu is a major beneficiary of the government’s massive infrastructure push.”
