Constructions in CV up 8.4% in Q4 2017

CEBU, Philippines — One of Cebu's key economic growth indicators is its construction boom.

And it continues to boom. Still.

Nationwide, Cebu and the Central Visayas region topped third with most construction activities as of the last quarter in 2017, based on latest data from the Philippine Statistics Authority.

Central Visayas, which includes Cebu, Bohol, Siquijor and Negros Oriental, saw a total of 2,804 constructions as of fourth quarter last year, up 8.4 percent.

Cebu, the region’s economic center, also saw a total of 1,593 constructions, up 4.8 percent.

Bohol also recorded a total of 1,168 constructions, up 3.5 percent, ranking eight among provinces nationwide.

The PSA said most of the constructions are residential projects.

Its statistics are based on the approved building permits.

Meanwhile, in a latest report, Colliers International Philippines said the residential market in Cebu is generally still strong.

"Sales of both horizontal and vertical developments are still at healthy levels," it noted.

The property consultancy firm noted however a shift in the market as condominiums have become slightly more viable given increasing land values in the city and worsening traffic situation which have forced individuals to look for residential options near the central business district.

Upcoming supply is also sizeable which makes the market more competitive.

One upcoming bright spot is the completion of the Mactan airport expansion scheduled by mid-2018.

Colliers believes that both infrastructure projects will have a strong impact on Cebu’s real estate sector.

"We suggest that developers build more residential projects that are leisure and lifestyle-oriented in anticipation of increased interest brought about by the infrastructure improvements. Already, we have seen some developers incorporate the resort-type feel in their projects to differentiate their products," said Colliers.

The Central Visayas economy, where Cebu is a major player, grew by 8.8 percent in 2016.

The region's growth last year was propelled by the 14.6 percent growth in the industry sector and the biggest contributor to this growth was the construction subsector which grew by 40 percent in 2016.

The National Economic and Development Authority had said construction activities in Central Visayas will continue to remain upbeat in the next plan period as the private sector continued to invest in real estate development projects, coupled with high government spending on infrastructure. (FREEMAN)