Cebu’s upbeat growth to boost Phl economy
Cebu’s contribution to the country’s economic output will be surging over the next five to 10 years given its rising attractiveness as an investment hub and the development of crucial air and road infrastructure projects, Colliers International said.
In a special report entitled "When Giants Invade: National Property Developers Redefining Cebu" released Monday, the property consultancy firm said that these projects should significantly bring down the cost of doing business in the region.
"We also see Cebu benefiting from the Duterte administration’s decentralization thrust or the spread of economic opportunities outside of Metro Manila," Colliers said.
Over the past few years, Colliers has 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. Its real estate sector is particularly unique as it is actively participated in by both local and national developers," the property consultant said.
The entry and aggressive expansion of national developers have redefined the Cebu property landscape.
Among the national developers present in Cebu include SM Prime, Ayala Land, Robinsons Land, Filinvest, Megaworld, Federal Land, Rockwell and Vista Land.
To survive in a fiercely competitive real estate market, Colliers recommends that national developers implement the following: develop mixed-use communities; differentiate integrated projects; expand presence into hospitality and industrial sectors; partner with local developers; maximize brand equity; and acquire reclaimed land.
"Cebu is recognized as the premier investment destination outside of the country’s capital and has undergone significant transformation over the past few years," Colliers also noted.
At present, business activity in Cebu is primarily driven by expansion of outsourcing firms which currently employ 130,000 workers and contribute one-tenth of national industry revenues; growing demand for horizontal and vertical residential developments, driven by strong OFW remittances and growing local and foreign businesses; sustained influx of local and foreign tourists effectively expanding Cebu’s consumer base and hotel occupancy; and strong manufacturing and export sectors that drive the region’s industrial growth.
Given these demand drivers, property values in Cebu have been on an upswing.
Colliers looks at the historical performance of the real estate sector in Cebu and how it was redefined by the entry of the Philippines’ major property players.
"We also assess how national and local property players have adjusted to the needs of the dynamic real estate sector in Cebu and the strategies that they have employed to survive in the highly-competitive real estate landscape," it said.