CEBU, Philippines - The expanding labor market in Cebu led by the Business Process Outsourcing (BPO) fueled the demand for condominium units particularly in projects situated within or near business districts.
A study conducted by one of the world’s largest commercial and real estate services firm, CB Richard Ellis Group Inc., revealed that aside from the growing labor market that pulled up the sales of condominium units in Cebu, the protracted growth of overseas remittances spurred end user demand of OFW (Overseas Filipino Workers) families for residential units.
Moreover, the leasing market continues to gain ground with the rising volume of expatriate housing requirements from BPO companies.
For the second half of 2011, a total of six residential condominium developments were launched, four of which are projects of national developers.
Project developers of condominium projects are taking advantage of the existing housing backlog coupled with increasing prices of available lots in subdivisions.
Residential condominium units for instance situated in Cebu Business Park are being sold at a range of P95,000 to P170,000 per square meter for penthouse and three bedroom units.
The total number of upcoming residential condominium units in Cebu Business Park as of last count, reached 785 units with take up level of 61 percent.
Likewise, there are handful of upcoming residential developments in Asia Town IT Park with prices average at P89,000 per square meter.
At present, there are a total of 4,551 condominium units in Cebu, this would translate to 227,550 square-meters.
In another report released by Colliers International, by 2012 Cebu will be adding another 1,317 residential condominium units, while additional 1,961 units for the residential market will be added in the following year in 2013.
Real estate marketing consultant and educator Jun Garing said that because Cebu is slowly learning from the pitfalls of condominium marketing experienced particularly in Manila, the industry is expected to continue in the upswing path. Specifically with its unique marketing preposition in maximizing the resort-feel and urban living in an island.
“Cebu will be saved from the supply gut in the next three years, and inventories of condos will be sustained by strong interest especially from the foreign market,” said Garing in an earlier interview.
As of latest count, there are a total of 36 developers whose projects have been approved for condominium buildings. This is worth over P100 billion worth of investments.
CB Richard Ellis report indicated that the high take up of 98 percent in the condominium sales in Cebu is mainly supported by the demand from BPO employees, while leasing deals of condo units are strengthen by the growing number of expatriates coming to Cebu, mostly executives from multinational BPO companies.
A total of 9,532 residential condominium units are expected for turn-over this year and within the next five years.
By 2014, an additional supply of 1,195 units will be turned over. While in 2015, about 1,275 units are for turn-over followed by 590 units in 2016. (FREEMAN)