Cebu real estate boom to continue until 2017

CEBU, Philippines - Cebu is projected to enjoy robust and sustained growth in the real estate industry until 2017 with the strong economic indicators, high investors’ confidence level, more condominium projects being developed and the new trend of building more hypermarkets in the locality.

This according to Anthony Leuterio, president of the Philippines Allied Chamber of Real Estate Brokers and Licensed Salesperson (PhilACRE, Inc.) and Leuterio Realty and Brokerage.

“Cebu is really growing. We will be enjoying a bright future ahead and we will enjoy it until 2017. The landscape of Cebu will be totally different,” he said.

He noted that the vibrant growth in the sector could be attributed to the remittances and investments of the Overseas Filipino Workers who mostly comprise the buyers’ profile of estate properties.

Evident to such is the continued sales turn-out of real estate projects, growing number of registered real estate agents at 8000.

Also, he added that the present administration, government’s transparency, the growing tourism industry and the South Road Properties development fuel the investors’ confidence in Cebu.

The tourism sector aims to reach its targeted 4.5 million local and international tourists in the country this year.

Leuterio cited that there are three types of buyers in the real estate. Majority of which are the investors such as OFWs and foreigners who buy a unit for vacation purposes and rent it out while they are out of the country. They are then followed by end-users at 38% who buy a unit for personal use and flippers who buy a unit at a low price and then sell it out once the price appreciates.

“Property rentals will be a very good business for everyone. Each buyer of real estate is enjoying much profit at their means,” he added.

 Now with the area’s improved economic development, he said that more investors are expected to buy properties.

In Cebu, he cited that an additional 100 condominium buildings would be completed by 2015 and another 170 to 200 buildings are expected to be finished by 2017.

He added that even Manila developers are coming to Cebu as they consider the Queen City of the South as the second home of the Philippines.

Another growth indicator is the current trend of mall development in the form of hypermarkets.

Leuterio said that 64 new hypermarkets will be developed in Cebu.

A hypermarket as he described occupies an area of 2000 to 4000 square meters.

It has a grocery as its main highlight that is surrounded with stalls and booths rented by tenants.

“Actually, we have received a lot of inquiries about hypermarkets. This is the trend in Europe and United States. The concept was then brought in the Philippines to cater to the high foot traffic and provide accessibility to wider market coverage,” he stated.

Further, he said that the real estate sector has also been open to prospective buyers by offering them various options to acquire properties.

Developers have partnered with government agencies such as Pag-ibig for affordable housing loan program.

The agency has increased its loanable amount from 3 million to P6 million and lowered its monthly interest rates from 10 percent to 7.985 percent. (FREEMAN)