CEBU, Philippines - A global real estate market update report cited that the pre-selling residential condominium market in Cebu performed strongly in 2012, posting a 35 percent year-on-year growth as the number of launches and take-ups further improved.
Last year, there were close to 7,000 condominium units launched across Cebu, Mandaue and Lapu-Lapu cities.
It was also reported that the increase in units launched was mainly attributed to the projects from both local and major developers.
Among those that were launched last year include 649 units from Taft Property’s Horizon 101 Tower 2, 632 units from Aboitiz Land’s The Persimmon Studios, 573 units from Megaworld’s One Pacific Residences Towers A,B and C and 621 units from Ayala Land’s Avida Towers Riala Tower 1.
Also, the number of take-ups registered a 25 percent annual growth to over 4 700 units.
Colliers International believed that the overall growth in take up is fueled by the healthy macroeconomic environment, low interest rates and affordable payment schemes.
“Developers have long been confident regarding the residential condominium market in Cebu. This is highly evident with new developments in recent years,†it stated.
Colliers further described the Cebu market as similar to Metro Manila wherein buyers generally opt for the broader category of smaller-sized units particularly the studio and one-bedroom types with sizes ranging from 14 to 58 square meters.
Such units were continuously considered as a preferable investment for young professionals, students and shorter-term renters from the neighboring regions.
The demand for studio and one-bedroom units, the report added, is estimated to account about 60 to 70 percent of the total number of units launched in 2012.
Meanwhile, the supply of completed residential condominiums registered a rapid growth of 60 percent since the first project in 2005.
At present, the total residential stock in Cebu, Mandaue and Lapu-Lapu cities is recorded to be at 6 765 units.
Colliers further revealed that a new supply of units is expected to improve at an annual average of 4,000 new units over the next three years.
“While major players such as Robinsons Land Corp. and Filinvest Land Inc. have delivered projects in the last five years, we are expecting the pioneer projects of Federal Land which is The Residences Marco Polo with 171 units and the Avida Tower 1 of Avida Land Corporation with 518 units to turn over in 2013,†the report stated./JOB (FREEMAN)