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CLI: Cebu condo market still viable

CEBU, Philippines — Cebu Landmasters, Inc. (CLI) chief executive officer Jose Soberano III said that the condominium market, specifically in Cebu, is far from being saturated stressing that the "glut is not (yet) felt in Cebu."

Soberano added that in fact, developers have the whole world as a market for condominiums.

"There is so much potential sprouting. Condo living can still be very much around," said Soberano in reaction to the recent pronouncement made by property analyst Erique Soriano, saying the market for condominium in Cebu is already exhausted.

For middle to economic residential units, both in vertical and horizontal projects are still attractive in the Cebu market, said Soberano at the sidelines during the formal topping off ceremony of his company's 17-story Casa Mira Towers in Labangon, with 798 residential units already sold out.

Soberano on the other hand, agreed with Soriano that only those developers that are able to build their brand names properly and built their credibility in the market will be able to reap the discriminating but active property buying market.

Soriano, a professor and program director for real estate at the Ateneo Graduate School of Business (AGSB), said the warning signs of condominium over-supply in Cebu, is obviously here.

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Three years ago, the condominium inventory in Cebu hovered from 7,000 to 8,000. Today the market is flooded with awash inventory and Cebu has breached the 15 thousand to 17 thousand residential condominium up for sale.

There are several signs of an exhausted or a market which is on the verge of over-supply danger, this include; when sales velocity are no longer as robust as before; when buyers are mostly coming from outside Cebu, (as far as Mindanao); and when the breadwinner market — OFWs are no longer buying because they already bought one or two units.

The publicly-listed CLI on the other hand, is experiencing otherwise, in fact it is seeing good and sustaining demand in the long term.

"Due to the success of Casa Mira Towers — Labangon and the continuing demand for these affordable living spaces, we will soon launch Casa Mira Towers — Guadalupe. A fifth of Casa Mira series that offers the same features and convenience in another prime location," Soberano added. (FREEMAN)

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