Geographic constraints drive Cebu’s rising property prices

CEBU, Philippines — Cebu’s real estate sector is set for promising growth as limited land availability in Metro Cebu continues to drive property prices upward.

Ricardo “Ric” Inting, Chairman and President of Land Asia Realty, highlighted Cebu’s geographic constraints, with only 7 percent of its land being flat and the remaining 93 percent consisting of mountainous terrain.

This topographical limitation has concentrated development in the city center, leading to a steady increase in land and property prices.

“If you look at Cebu, only 7 percent is flat land, while 93 percent is mountainous. Investors seek properties in the city center, which drives prices up,” Inting said. He holds a doctorate in real estate practice and has 35 years of experience.

This supply-demand dynamic continues to benefit real estate developers, particularly with major projects in South Road Properties (SRP) poised to further elevate Cebu’s property market.

However, Inting cautioned developers to strategically target the right market segments to prevent oversupply and potential foreclosures, especially in the overseas Filipino worker (OFW) sector.

He noted that many developers market high-end properties ranging from P5 million to P20 million to OFWs, but these buyers often struggle with monthly mortgage payments of P60,000 to P80,000, given their typical income range of P50,000 to P100,000.

“If an OFW buys a property worth P8 million, their mortgage payments would be around P60,000 to P80,000 monthly. If their income cannot sustain this, foreclosures become inevitable due to misrepresentation,” Inting explained in an interview.

Despite the robust performance of the Philippine real estate market, Inting stressed the need for stricter regulations to curb the proliferation of unlicensed brokers and protect property buyers.

A member of Certified International Property Specialist (CIPS) Designee by National Association of Realtors (NAR-USA), Inting pointed out that the lax enforcement of the Real Estate Service Act (RESA) has led to rampant violations, including misleading advertisements and unauthorized sales on social media platforms.

“Many individuals advertise and sell properties on Facebook without the required licenses. There is no proper monitoring, and no one has been penalized for these violations in the Philippines yet,” he said.

Inting underscored the importance of dealing with licensed brokers to prevent misrepresentation and maintain transparency in transactions.

“Real estate remains a hot market in the Philippines, but brokers must be properly qualified and held accountable. Stricter enforcement is necessary to uphold market integrity,” he added.

As Cebu’s real estate landscape continues to thrive, Inting announced that his company, Land Asia Realty is expanding its footprint beyond Metro Cebu.

The company, which already operates in Bacolod, Dumaguete, Ormoc, Butuan, Cagayan de Oro, and Davao, plans to open offices in Batangas and Pampanga this year to capitalize on emerging markets outside Metro Manila and Cebu.

Inting, a licensed broker in the United States since 2002, emphasized the need for global standards and professionalism in real estate transactions.

“We aim to bring the same level of professionalism to the Philippines. With our main office in Las Vegas and branches in San Diego, San Francisco, and Sydney, we connect Filipino buyers with high-quality properties,” he said.

As Metro Cebu continues to evolve as a real estate hub, experts see sustained growth, provided developers adapt to market needs and regulations keep pace with industry developments.