The COVID-19 pandemic has put a damper on the Cebu and Davao property markets in 2020 but Colliers International believes both will rebound next year. There are several factors for the optimistic outlook including planned infrastructure spending in each region as well as well as a strong long-term economic outlook.
“Several key indicators point to some glimmer of optimism. Overseas Filipinos continue to send in money; foreign investments are starting to rise; mortgage rates remain low; employment figures are starting to improve; demand for mid-income, upscale and luxury condominium units holds firm; while queries for office spaces are starting to gain traction. These complement the positive and recent news about the production of an effective vaccine against COVID-19,” Joey Roi Bondoc, Senior Research Manager at Colliers, told the Philippine Daily Inquirer.
Several key infrastructure projects remain the pipeline and these could support the growth of the Cebu and Davao property markets. In Cebu, the Cebu-Cordova expressway, Cebu bus rapid transit, Cebu monorail and Metro Cebu expressway are a few of the possible infrastructure improvements.
In Davao, Colliers highlighted the Davao Coastal Road, Davao Monorail, Mindanao Railway Project and Davao Bus Rapid Transit as projects that needed to be assessed for their feasibility for residential developments.
The Cebu and Davao property markets have recorded significant growth over the past few years with the former becoming a real estate success story which is predicted to continue once the recovery begins.
“Over the past few years, we have observed the transformation of Cebu’s skyline with large-scale residential, commercial, retail and hotel developments. The property boom in Cebu offers an alternative metropolitan-paced business lifestyle at a discount to Metro Manila,” Bondoc stated.
Colliers is equally bullish on Davao with the consultancy noting that the city will continue to be a popular location for investors who are looking beyond Metro Manila.
“In our view, the (Davao) economy is ripe for further expansion and development,” Bondoc pointed out. “With a thriving real estate market, an abundant pool of quality labor, and a competitive business environment, Davao is set to attract future property investors to operate in the area.”
