Property investors told to maximize returns
Cebu property developers must continue to take advantage of the city's burgeoning property industry, real estate consulting firm Colliers International Philippines said.
"Cebu is recognized as the premier real estate investment destination outside of Metro Manila and has undergone significant transformation over the past few years," Colliers said in a report released yesterday.
To take advantage of Cebu’s upward trajectory, Colliers has recommended that Cebu-based property developers acquire land in large master-planned communities developed by national players; firm up partnership with global property management firms; focus on high-quality projects; and implement a unique development mix with national developers.
"Cebu-based developers should look at acquiring parcels of land within integrated townships developed by national players," the consulting company said.
Some of the developers that took advantage of the master-planned environment provided by Ayala’s Cebu Business Park and Cebu IT Park are Skyrise Realty with its Skyrise 4 Building; Apple One Properties with its Apple One Tower; and Innoland with its The Link and Calyx Residences.
"By building residential and office towers within the master-planned communities or business hubs developed by national players, local developers can maximize transportation networks and other infrastructures built by major developers," Colliers explained in the report.
Local firms, particularly those with limited property management experience, should consider tapping international real estate management services companies to take advantage of the global standard of service that these firms are known for.
These property management firms, Colliers said, can handle the daily operations of residential and office buildings including management, supervision, improvement and upkeep of facilities.
These firms also supervise the technical operations and maintenance of the projects’ various building equipment and manage the financial aspects of the building operations.
Colliers also said: "We believe that a property’s value is retained only if a building is properly maintained. Some high end projects do not sustain their premium because of bad management and poor upkeep."
Among the homegrown developers that recently signed a deal with Colliers’ property management arm is Taft Properties for its condominium project Horizons 101, considered as Cebu’s tallest condo development.
Other firms that have partnered with Colliers for the management of their properties include Grand Land, Norkis Cyberpark, Park Tower One Condominium, Avenir, Robinsons Land, Arcab Properties, Worldwide Properties, Landtraders World Properties, Enrison Holdings, Fuzionland and HT Land.
Local developers that own large parcels of land but are constrained by their lack of expertise in developing integrated communities should consider selling individual lots to national developers while retaining the greater part of the land holdings," Colliers further noted.
These developers with massive landbank should allow other firms to pursue their own pockets of developments as long as the projects are aligned with the local developer’s design guidelines. This should result in a more interesting development mix and landscape for the entire integrated community.
According to Colliers, despite the absence of partnership with national or regional developers, a number of local players have done well in Cebu due to continued delivery of highquality projects.
Among these local developers is Innoland. Following the strong take up of its Calyx Residences and strong leasing of its The Link and Calyx office towers, the Cebu-based firm is setting aside some P7 billion (USD137 million) for the construction of threetower mixed-use complex named Montage, located in a 1.3-hectare property along Archbishop Reyes Avenue. The project will offer an estimated 40,000 sq m (430,600 sq ft) of office space, 7,000 sq m (75,300 sq ft) of leasable retail space, and either a residential or hospitality component.
In 2010, Cebu Landmasters developed its first vertical project, Asia Premier Residences in Cebu IT Park. The homegrown developer was initially into horizontal residential projects but its first foray into vertical development recorded brisk take up as it banked on the quality and strong sales of its previous horizontal projects in Talisay and Minglanilla.
Colliers sees Cebu’s contribution to the country’s economic output surging over the next five to ten years given its rising attractiveness as an investment hub and the development of crucial air and road infrastructure projects which 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," it added.