Osmeña to regulate housing rental rates

CEBU, Philippines - The administration of Cebu City mayor-elect Tomas R. Osmeña is bent on regulating the rental rates of residential units or rooms, specifically those located near cyberparks or where  Business Process Outsourcing (BPO) companies are operating.

The soon to be installed Cebu City Business Economic Development and Investment Promotion (CCEDIP) will be tasked to look at the rental rates within the peripherals of BPO offices, or IT parks.

CCEDIP head Joel Mari S. Yu said this is in line with Osmeña’s goal to encourage and protect BPO workers in Cebu in its bid to hit the target of 200 thousand BPO employees working in Cebu in the next three years.

At present, over 130,000 are working in the BPO sector in Cebu. Osmeña is looking at increasing the number to hit at least 200 thousand mark by 2019.

“He wants to know the aggravating factors that discourage people from working in the BPO sector,” said Yu, adding that aside from the plan to regulate the rental rates of for-rent rooms and houses near BPO centers, issues on transportation, security, are also being looked at.

Yu said Cebu will have to maximize its potential to capture BPO investments, and that creating conducive environment for workers is vital.

First, the city will make an inventory of lodging houses, for-rent rooms, apartments, or condominiums near the IT Park, and will find out the average monthly rate within the area, so that rates can be well regulated.

A recent study released by global property website Lamudi Philippines indicated that despite the increasing supply of for-rent residential accommodations in Cebu, the city's rental rate remains sky high.

"Accommodations are a bit costly in Cebu. Like Metro Manila, however, Cebu City has a number of residential spaces for rent," Lamudi study indicated.

Typical for highly urbanized areas, Cebu’s residential rental inventories, intended for students and young professionals, are largely composed of condominium units.

A rate of P10,000 a month is sufficient for a studio unit in the city, measuring 18 and 25 sqm of floor area and can accommodate one or two occupants.

Expectedly, accommodations cost higher at the center of the city, but outer areas like Brgy. Banilad could provide affordable options yet remain in good proximity to a number of schools, the study further revealed.- (FREEMAN)