Metro Cebu is the largest residential hub outside of Metro Manila. COVID-19 has disrupted the region’s economy and property market and we continue to see subdued take-up and completion in the city and its fringes.
Colliers believes that the completion of residential units is likely to pick up in 2021. In the pre-selling market, we project a slight recovery as developers prepare for pent up demand beyond 2021.
In our view, the property market is on its way to recovery and Cebu is among the first to rebound given the attention it receives from both developers and investors.
The prospects for recovery were discussed during a recent Inquirer webinar focusing on Cebu, aptly titled, “Cebu beyond the pandemic.”
Venture into projects within integrated communities
Colliers believes that as the country continues to manage the challenges brought by COVID-19, investors and end-users from Metro Cebu will likely remain interested in investing on properties within integrated communities. In the next four years, we expect the demand for residential projects, both house and lot (H&L) and condominium units, to likely hinge on integrated features such as the residents’ accessibility to essential goods and services and the proximity to transport networks. Colliers believes that developers should highlight these features on their residential projects to attract more buyers and investors.
Monitor infrastructure developments
Colliers sees pivotal infrastructure projects such as the Cebu Cordova Expressway (CCLEX) and the Metro Cebu Expressway stoking residential condominium demand in Cebu. These public infrastructure projects should help attract more developers and investors in acquiring parcels of land around these major projects.Take advantage of innovative and flexible payment terms
Given the decline in demand, property developers in Metro Cebu have started offering promotions to attract more buyers. Certain developers are offering lower downpayments, cash discounts, exclusive access to amenities and free items such as appliances and furniture.
In our opinion, investors and buyers should continue monitoring these currently available promos to maximize their purchasing power.
Green shoots of recovery
Similar to Metro Manila, certain factors provide a glint of optimism in the Cebu residential market. Colliers believes that the competitive mortgage rates, flexible payment terms offered by residential developers and sustained OFW remittances should help drive take-up beyond 2021.
Data from the Philippine Statistics Authority (PSA) indicate that 5 percent of deployed OFWs in 2019 came from the Central Visayas Region. Just like Metro Manila, Colliers believes that remittances from OFWs will continue to bolster demand for affordable to mid-income residential condominium units in Metro Cebu. In our view, Filipinos working abroad are likely to propel both investor and end-user demand in Cebu City and its environs.
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