CEBU, Philippines - Mass housing developer 8990 Holdings Inc. is launching at least three projects in Cebu this year.
Ariel Jose Mercado, the company's assistant general for Cebu operations, said these include two condominium projects and one subdivision.
"Within this year, we're launching three new projects, two condo projects to be built in Tisa and Mactan, and a subdivision also in Mactan," he said yesterday.
Currently, the mass housing builder has three ongoing projects in Cebu.
Mercado said the firm’s medium-rise housing project in Tisa is targeted to be completed by March this year.
Moreover, its ongoing subdivision project in Talisay City is targeted to be finished by 2018.
Likewise, its new medium-rise project in Hernan Cortes, which was launched last year is expected to be completed by first or second quarter of 2019.
He said these three projects are expected to deliver more or less 3,000 housing units this year through 2019. To date, the developer already has 16 completed projects here.
In the first nine months of 2016, the listed developer's net income reached P3.19 billion or up 1 percent from P3.17 billion booked a year earlier, following a 3 percent rise in revenues to P7.18 billion from P6.99 billion.
Shares of 8990 were at P7.30 apiece in afternoon trading yesterday.
In its recent report on the Cebu market, Pinnacle Real Estate Consulting Services Inc. said the Metro Cebu residential market shows a phenomenal growth in the past four years, solidifying the acceptance of Cebuanos to "condo-living."
In terms of residential stock, the Cebu Market now has approximately 22,284 condominium units. This is a considerable growth of 148 percent from about 9,026 units in 2013.
In addition, an average of 5,000 units will be delivered in the next couple of years.
In terms of take up, the average take up is 5,000 condominium units annually in the past four years. This is to say that the projected increase may be comfortably absorbed by the market. In the addition, stable increase in prices shows the soundness of the sector.
The average selling price in 2013 was approximately P84,000 per sqm; in 2014 at P90,000 per sqm; and in 2015 at P95,000 per sqm. At present, the estimated average selling price is P99,000 per sqm, or 18% increase from its 2013-level.
Overall, Pinnacle said the Metro Cebu real estate market is very developed and has reached its maturity.
There are still gaps in the market and some market inefficiencies that shrewd players may take advantage, it said.
The recently approved vertical socialized housing, and the increase in the price and loan ceiling of economic housing may extend the boom in the residential sector. New township developments may spread out the centralized development in Cebu City.
"The Industrial sector seems a looming winner as well. At any rate, Pinnacle maintains its advice of proper due diligence and detailed market study due to competition. Like most mature markets, healthy competition brings out the best designs and products at attractive rents and prices," said the property agency. (FREEMAN NEWS)