Property consultant Colliers sees a rebound in the Visayas’ property market as economic conditions improve over time.
Colliers said opportunity in the area will capitalize on talent, infrastructure like the completion of Metro Cebu Expressway and Cebu Cordova Link Expressway and the current competitive rents vis-a-vis its Metro Manila counterparts t.
In the Cebu market alone, Colliers said key business districts will benefit from the various infrastructure projects being built in the province.
Cebu’s office market is expected to receive 65,000 square meters (sq.m.) of new supply this year, complementing the end-2021 supply of 1.3 million sq.m.
Colliers pegged vacancy rate in Cebu at 24.7 percent for the year, similar to last year’s as the area enjoyed a 35,000 sq.m. net take for 2021. Colliers said vacancy will start to stabilize this year after a series of upticks over the past quarters due to the ongoing coronavirus disease 2019 (COVID-19) pandemic.
Colliers expects Cebu’s residential market to post a healthy demand from investors and end-users.
Driven by an expected uptick in demand, developers are expected to be active in landbanking to line up projects beyond 2022.
Colliers said the uptick in demand for condominium units will partly be driven by a recovery in office leasing especially within integrated communities and the opening up of borders for condominium projects positioned in the leisure market.
The takeup for horizontal projects will pick up as the economy improves and overseas Filipino continue to remit money to the country.
Colliers recommends that developers be proactive in assessing the gaps in the market for horizontal developments in terms of product and price, and in tapping the demand for mixed- use communities. Developers should remain strategic with their landbanking initiatives.
Colliers pegs condominium units to hit 10,270 by end of the year, up from 6,627 units last year. Price escalation is expected to be at 2.5 percent this year, up from 1.4 percent last year, with a condominium unit expected to be priced an average of P4.2 million.
Colliers sees the completion of 6,500 units per year from 2022 to 2024. Cebu City, Mandaue City and Lapu-Lapu City should account for 99 percent of new supply during the period.
