Cebu still among key residential hubs in Phl

Despite the appeal to build homes in the urban outskirts, Cebu remains as one of the most attractive and largest residential hubs outside of the Philippine capital—Metro Manila, while also catering to the growing demand from burgeoning upscale luxury mark

According to the latest industry insights released by Colliers Philippines, national developers continue to launch residential projects in Metro Cebu, as they are optimistic about the locale’s potential for growth even beyond 2024.

“In our view, the improving sentiment from businesses and individual investors and end-users will likely support the Cebu residential sector’s growth,” said Colliers Philippines director for research Joey Roi Bondoc.

According to Bondoc, Colliers believes that the market for upscale and luxury residential units in Cebu is likely to expand.

“Developers should further text investors and end-users’ appetite for these units. Land values in Cebu city have been rising so property firms should look for alternative sites for development. Developers should also explore launching more resort-themed projects,” he suggested.

Among the recentlylaunched upscale and luxury projects include Rockwell Land’s The Villas at Aruga, the most expensive project in Cebu so far. The project has an average Total Contract Price (TCP) of PHP101.3 million (USD1.8 million) and an average price per square meter of PHP589,600 (USD 10,700). Meanwhile, Robinsons Land also launched an upscale project, Mantawi Residences, priced at PHP16.3 million (USD296,400).

The supply of upscale and luxury residential projects in Metro Cebu is relatively small compared to Metro Manila.

“But the supply is likely to be driven by local and overseas-based Cebuano investors looking for attractive investment prospects that are also viable hedges against inflation. Just like in Metro Manila, we see these investors banking on the capital appreciation potential of these upscale and luxury residential developments,” he added.

On the other hand, Colliers encourages national players as well as local/homegrown firms to look for alternative sites for condominium development outside of Cebu, LapuLapu, and Mandaue cities. These locations according to Colliers are among the most popular sites for condominium projects under the upscale and luxury price segments, offering condominium units prices at least P12 million per unit.

Colliers further recommended that property firms should look at parcels of developable land in Mandaue, Cebu IT Park, and Cebu Business Park that are ideal for higher-priced condominium projects. Established national developers may explore tie-ups with Cebu-based developers for their planned pockets of development. Other areas that developers should consider exploring include Talisay city, Liloan and Minglanilla.

Meanwhile, demand for leisure-oriented properties will partly be sustained by the recovery of leisure and travel.

Aside from local investors, the demand for these residential projects is also likely to come from foreigners.

“In our view, developers planning to capture demand from the foreign market should explore the attractiveness of leisure-oriented projects especially in Mactan,” he said.

Recently launched leisure and resort-themed projects in Cebu include Robinsons Land’s fourth tower of Amisa Condominium. The residential tower is now 86 percent sold after being launched in the market in May 2022.

Colliers recorded the completion of 10,500 new condominium units in Cebu in 2023. Among the notable completions during the year include Avida Land’s Avida Towers Riala, as well as Cebu Landmaster’s Mivela Garden Residences, Casa Mira Towers Guadalupe, and Casa Mira Towers Mandaue. Meanwhile, we also recorded the completion of Thyme Residences, the first condominium project in Minglanilla.

We see the substantial completion across Metro Cebu from 2024 to 2025,” he added.

By 2026, Colliers expects Cebu’s condominium stock to reach 93,100 units with the average annual completion of 5,000 new units from 2024 to 2026. Projects from national developers in the pipeline include Rockwell Land’s The Villas at Aruga, Megaworld’s Pearl Global Residences, 8990’s Urban Deca Homes Banilad (2 towers), and Arthaland’s Lucima. These projects, classified as affordable to luxury in terms of total contract price (TCP) per unit, are dispersed across Cebu Business Park, Mactan Newtown, Lapu-Lapu city and Mandaue city.