Condominium units glut in Cebu may induce a price war
CEBU, Philippines – While the market for condominium units in Cebu is significantly increasing, the battle now for developers is on attracting these interested buyers through value-for-money price packages.
“A lot of people love Cebu. This is one of our edges, over other cities. The reason why, despite the increasing number of condominium inventories to be available in the next few years, the market interest is also getting stronger,” said Philippine Allied Chamber of Real Estate Brokers and Licensed Salesmen (PhilACRE) president Anthony Leuterio.
At present, Leuterio said most developers are “over-pricing.” However, buyers now are becoming wiser, and that condominium developers may experience a fiercer price-war in the next few months, as inventories are increasing.
“Prices may be changed as buyers demand for reasonable cost with careful attention to quality and details,” he emphasized.
Leuterio who leads hundreds of real estate brokers selling properties from all over the country, said that Cebu now is one of the hottest destinations for real estate investments. Condominium is the easiest way to own a property in Cebu. Over-pricing may discourage buyers, including foreigners.
The market attraction of condo-living in Cebu is also prompted by the fast moving prices of lot properties, which price rate increases at an average of 50 percent in the last two years.
According to Leuterio based on a study conducted by his Real Estate brokerage company, about 40 thousand to 50 thousand Cebuanos are now active in buying condominium as alternative home, or for investments. About 60 percent to 70 percent of which, are working abroad.
Leuterio said the market for condominium is here to stay, although almost all developers are capitalizing on it and some observers are afraid of an eventual condo inventory glut in Cebu.
The Filinvest project alone in South Road Property (SRP) will be building at least 12,000 condo units, excluding the company’s existing condo projects outside of SRP.
Almost every month, developers are introducing new condominium projects within Metro Cebu area. Some are even announcing future mid-rise to high-rise condominium projects in the next few months.
One of the biggest projects, is the announcement of Metro Gaisano-led Company, Taft Property Venture Development Corporation, to build the tallest building in Cebu’s skyline by far, of which the two buildings are expected to provide at least over a thousand affordable but quality condominium units in Cebu.
Giant developers such as Ayala Land Inc., SM Holdings Inc., Aboitiz Land Inc., respectively announced their multi-billion investments for Cebu to build more condominium communities that will be completed in the next few years.
Meanwhile, Leuterio announced that because of the booming real estate industry in Cebu, around 300 licensed brokers took their oath recently to the First Visayan Brokers Oath taking, as Real Estate Service Professionals. (FREEMAN) http://www.philstar.com/Article.aspx?articleId=684919&publicationSubCategoryId=108
