Cebu set for wave of new condos by 2021

The Philippines’ second largest condominium market sustains demand through robust tourism and higher domestic purchasing power

Metro Cebu consists of the cities of Cebu and Mandaue and the island of Mactan in the Philippines. Aleksandar Todorovic/Shutterstock

A wave of condominiums is poised to come online in Metro Cebu over the next few years as they continue to stoke demand from foreign and domestic end users.

The condominium stock in the metropolis, the Philippines’ second largest, will likely top 45,070 units by 2021, up from 38,800 units last year and 33,325 units in 2017, Colliers Philippines reported via SunStar.

Cebu condominium unit prices are also expected to appreciate by three percent per year on average between 2019 and 2021.

Condos priced between PHP3.2 million (USD60,400) and PHP6 million (USD113,200) appear to attract the most demand. The pricing segments accounted for 69 percent of total condo take-up in 2018.

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A preference for higher-priced units is reflective of the rising purchasing capacity of Cebu residents and investors, explained researchers.

“Colliers sees the mid-income segment dominating Cebu condominium take-up over the next three years.”

The arrival of high-spending tourists will also buttress demand for Cebu condos. “Some of the foreign visitors who initially stay in Cebu for short vacations eventually decide to retire and invest in the city and its neighboring areas due to the comforts of an urban landscape balanced with natural attractions,” noted Colliers.

Resort-oriented projects in the island of Mactan, which forms part of Metro Cebu, are luring retirees from Japan. Meanwhile, the rise of offshore gaming businesses, which mostly employ workers from China, is funneling demand for condos in the neighbourhood of Mandaue.

Cebu welcomed 2.8 million foreign tourist arrivals in 2018, official figures showed.