Cebu residential condo prices to spike this year

CEBU, Philippines —  Prices of residential condominium units in Cebu are seen to spike a bit starting this year, as demand continues to rise particularly within Cebu City and Mactan Island.

“We expect prices to grow at a faster rate as we project higher take-up from Mactan and Cebu City,” revealed Joey Bondoc, associate director for research at Colliers International Philippines, during the virtual market briefing for Cebu.

He said Colliers also sees a four percent growth in condominium prices this year as it sees demand from investors and end-users gradually recovering starting the second half of 2021.

As of first quarter of 2021, mid-income condominium projects accounted for 38 percent of both launches and take-up in Metro Cebu.

According to Bondoc, the rising demand from mid-income segment reflects to the improving purchasing power of Cebuano end-users and investors.

Colliers projection further sees that mid-income developments will continue to drive residential demand in the area as this segment is expected to deliver more or less 37 percent of the 6,563 units scheduled for completion in 2021.

Bondoc, a renowned property analyst, further noted that based on the research and market study done by the company, there is a need for developers to constantly monitor the market pulse, particularly the buyers’ profile under the middle-income segment.

Still, the Filipinos working abroad continue to be the leading buyers of middle-priced residential units going forward, he added.

In fact, the property buying spree of OFWs will continue at least in the next three years.

“The government-projected economic recovery beyond 2021 should further stoke demand from the mid-income market,” Bondoc explained.

In terms of supply, Colliers projects the annual delivery of about 4,760 condo units up from the initial forecast of 4,500 units from 2021 to 2025.

Cebu City and Mandaue City are expected to cover 81 percent of new supply during the period.

Towards the end of 2025, condominium stock in Metro Cebu is seen to hit 73,900 units, up 48 percent from the inventory recorded by end of 2020.