Demand for condos hit 67% in H1

CEBU, Philippines — Residential condominium takeup in Cebu surged 67 percent in the first six months of 2022, an indication of an upbeat market post-pandemic.

A report released by Colliers Philippines revealed that Cebu’s residential sector is gradually recovering as major developers reported brisk sales performance.

Colliers recorded about 2,800 condominium units sold in Cebu, up 67 percent compared to the first half of 2021.

Economic to mid-income segments (Php750,000 to Php6 million) continue to dominate demand.

On the other hand, the share of upscale to luxury projects (Php6 million and above) to total take-up increased to 14 percent in the first half of 2022, from eight percent a year ago. According to Colliers, this positive development was partly lifted by the renewed interest in leisure properties as well as demand from local end-users and foreign nationals.

In a recently concluded property briefing held in Cebu, Colliers Philippines associate director and head of research, Joey Roi Bondoc said Cebu developers’ strong design and branding element, as well as the planned infrastructure building, are just a few of the factors which attract more buyers for condominium properties.

To take advantage of the high market interest for vertical villages within urban centers, like Cebu City, Colliers recommends that developers further diversify their projects and assess which price segments are attractive among end-users and investors.

It mentioned that the Gokongwei-led Robinsons Land Corporation (RLC) for instance, recently announced that it is seeking LEED (Leadership in Energy and Environmental Design) and BERDE (Building for Ecologically Responsive Design Excellence) certifications for all its future office buildings, which is a strategic move as developers and landlords should adopt and highlight the green and sustainable features of their projects to differentiate in the market.

Developers are also challenged to build sustainable buildings not only for offices but also for residential products.

According to Miguel Bengzon, Colliers Philippines assistant manager, one way of giving due to buyers, is for residential developers to push their envelopes in investing in sustainability and livability in their projects saying “Let's not underestimate our buyers.”

Bengzon reiterated the importance of building green buildings even for the residential segment as sustainability is part of the deciding factors of buyers nowadays.

“We are now seeing developers bringing up the game providing [sustainable] amenities for owners. Some give a little bit more of open spaces,” he added.