More luxury, leisure-related projects seen to rise in Cebu

CEBU, Philippines -  Developments of more leisure-related projects are seen in Cebu amid its emergence as a key MICE (meetings, incentives, conferencing and exhibitions) destination outside Manila.

Colliers International Philippines, in its 2017 trends report penned by its research manager Joey Bondoc, said that more luxury and leisure condo developments are particularly expected in Lapu-Lapu City.

"Position condominium developments towards the leisure market (condotels that cater to business travelers)," the report said.

The property consultancy firm said the projected rise in leisure-related projects is also attributed to the rise in tourist arrivals in Cebu, being a jump-off point to Visayas and Mindanao destinations.

From January to October of 2016, domestic tourists in Cebu reached 1.72 million while the number of foreign visitors stood at 1.5 million.

Cebu accounted for bulk of the tourist count in Central Visayas region which stood at 4.39 million in the first 10 months of 2016, up 10.68 percent from 3.97 million in the same period in 2015. 

Cebu's domestic and foreign travelers accounted for 68 percent and 80 percent, respectively, of the total recorded in Central Visayas.

Collilers also expects the launch of more affordable condo projects as developers seek to acquire cheap affordable land.

The demand for larger condominium (two- to three-bedroom units) in Cebu City is partly driven by foreigners residing in major business hubs like Cebu IT Park and Cebu Business Park.

Meanwhile, the take-up for studio and one-bedroom units is fueled by the demand from local and foreign investors, BPO employees, and affluent college students from the city and neighboring towns and provinces, it said.

In the nine months of 2016, launches of vertical projects on a year-to-date basis is down 34 percent but take-up however is significantly up, owing to the international sales of most new projects such as those of Taft-HK Land joint venture, Megaworld and Filinvest.

"If this trend (1,745 units a quarter) continues, Cebu is expected to sell almost 7,000 units, the most since the condo market started in the Province," it said.

Moreover, the real estate agency said both launches and take-up for the horizontal market is on a downward trend.

"This may be attributed to the shifting preferences of the market, due to the escalating land prices, making the horizontal market less affordable than the vertical market. Should the velocity of almost 700 units continue, Cebu will only sell 2,772 units for the year, the lowest the Province has seen in recent years," the firm further noted.  (FREEMAN NEWS)