Having a slice of the Big Apple in Cebu City
When you are looking for investment opportunities in the property sector outside Metro Manila, consider Metro Cebu because this is the largest residential hub outside of Metro Manila.
Property management consultant firm Colliers remains bullish as completion of residential units is likely to pick up in 2021. According to Colliers, the pre-selling market offers a degree of optimism as it expects a slight recovery as developers prepare for pent-up demand beyond 2021.
“We believe that demand for residential units in integrated communities are likely to continue despite Covid. Hence, we recommend developers further explore the feasibility of township developments. Developers should also consider fringe areas for house and lot projects and maximize new infrastructure as Cebu is a major beneficiary of the government’s massive infrastructure push,” Colliers explained.
In the first quarter of 2021, 813 condominium units were sold in the pre-selling market, a decline of 28 percent quarter-on-quarter from 1,122 units sold in the fourth quarter of 2020. Moving forward, there is a sign of slight recovery as Colliers expects higher takeup over the next three years, and this is likely to be supported by remittances from overseas Filipino workers (OFW) and the Covid vaccine roll out.
Colliers projects the annual delivery of about 4,760 units from 2021 to 2025. Cebu City and Mandaue City are expected to cover 81 percent of new supply during the period.
“Moreover, we see a 4 percent growth in condominium prices in 2021 as we see demand from investors and end-users gradually recovering starting in the second half of 2021. We expect prices to grow at a faster rate in 2022 as we project higher take-up from Mactan and Cebu City,” Colliers said.
The Lobien Realty Group (LRG), meanwhile, pointed out investing in Metro Cebu is a viable option as it is ranked as a center of excellence behind only Metro Manila. Moreover, Metro Cebu has top level business hubs such as Cebu Business Parks, Cebu IT Park, Mactan Newtown and Oakridge Business Park.
If you are in the hunt for highend properties, LRG observed that there was an increase of 10 percent in residential properties priced P7 million to P15 million and 5 percent for residential property worth P15 million starting in 1995 until the first quarter of 2020.
Starting the 2nd quarter of 2020 until 2023, LRG reported the rise in percentage in the P7 million to P15 million would be 16 percent price range; and 6 percent for residential properties worth more than P15 million. According to the Bangko Sentral ng Pilipinas, residential property prices rose to 27.1 percent year-on-year in the second quarter of 2020, the highest growth rate recorded by the Residential Real Estate Price Index (RREPI) since it started in 2016.
This makes a good case for investing in a unit in 38 Park Avenue, a joint venture between Cebu Landmasters Inc. (CLI) and El Camino Developers Inc. The P3.5-billion high-end tower, which recently held a topping off, is nestled right at the heart of the Cebu IT Park is envisioned to be among the most preferred residential locations in Cebu.
With a sales value of P5.5 billion, the 38-story tower is already 96 percent sold, bucking challenges such as the lockdowns due to the pandemic. Nevertheless, construction continued following strict compliance to health and safety protocols including Covid-19 testing. This was also driven by financial support to these third-party construction workers through weekly allowances on top of daily wages during the height of the pandemic.
The New York City-inspired 38 Park Avenue is the first phase of the three-phased mixed-use development within a 1.2-hectare property in the highest valued location in Metro Cebu. CLI plans to start turnover by the fourth quarter of 2021.
The mixed-use development is developed and managed by CLI in partnership with El Camino Developers Inc., a consortium of five homegrown property companies composed of Gothong Southern Properties, Acrissor Development Corp., 12Sika Holdings Corp, RKP Property Holdings Inc. and Cebu Landmasters.
The ritzy project offers 764 units with 459 studio units, 230 one-bedroom units, 56 two-bedroom units, 11 three-bedroom units and eight penthouse units. All units have been laid out around a soaring atrium that infuses light and energy to the entire development, according to top architectural firm Aidea Philippines and international design consultant Callison RTKL.
The Plaza, a generous park space with retail area. The next phases are currently under the planning stage.
“38 Park Avenue’s distinct sustainable design, its generous mixed-use master plan and premium location within the Cebu IT Park ensure that it will offer a new residential option not only for Cebuanos, but also for business and leisure travelers from other global markets. The Cebu property market remains to be one of the bright spots in the region with sustained demand and highly resilient property values,” CLI Chief Operating Officer Franco Soberano explained.
According to Cebu Real Estate Shop (www.cebu-realestateshop. com), prices range from P4.48 million for a 24.85-square-meter (sqm) studio to P28.3 million for a threebedroom unit. The 412-squaremeter penthouse is priced at P90 million.