Cebu’s Booming Condo Market: What You Need to Know in 2024
Cebu’s condominium market is booming! In 2023, a whopping 5,600 condo units were sold, with a big chunk of those being in the lower mid-income range, specifically units priced between PHP 3.2 million and PHP 7 million. With new projects popping up all over and prices expected to keep climbing, now’s the time to pay attention to what’s happening in the Queen City of the South.
Cebu Condo Market: A Deep Dive
New Condo Units Galore
Metro Cebu saw the completion of around 10,500 brand-new condominium units in 2023, according to Colliers. And it’s not slowing down! Projections show that between 2024 and 2028, most of the new supply, a massive 97%, will come from Cebu City, Mandaue, and Lapu-Lapu. If you’re looking to invest, these are the areas to watch. In fact, experts predict that Cebu’s total condominium stock will hit about 87,600 units by 2025. That means around 6,800 new units are expected to be completed each year between 2023 and 2025. Sunstar Cebu mentions that Cebu City and Mandaue City will likely make up 80% of this new supply. Prepare for even more choices!
Rising Prices: Get in Early!
If you’re thinking about buying a condo in Cebu, keep this in mind: prices are going up! Forecasts suggest condo prices will grow by around 5% each year from 2024 to 2028. Colliers believes this steady increase makes investing now a smart move. As of early 2023, the average price was about PHP 143,800 per square meter. Sunstar Cebu reports that experts expect capital values to grow by 3.5% annually from 2023 to 2027. So, if you want to get the best deal, sooner is better! This appreciation also makes condos attractive investments that can generate passive income through rent or resale value in the coming years.
Who’s Buying? The Demand Drivers
So, who’s snatching up all these condos? During the first few months of 2023, Sunstar Cebu reported that about 1,100 units were sold. Most of the demand is coming from people looking for affordable to lower mid-income options. These units, priced between PHP 2.5 million and PHP 7 million, made up almost 80% of all condo sales. Inquirer.net confirms that roughly 62% of the total condo units sold in 2023 fell within this affordable to lower mid-income price range (PHP 2.5 million to PHP 7 million). This popularity is fueled by a few things. Many investors are buying these units to rent out to employees in the booming outsourcing industry. Also, local investors and Filipinos working abroad see these condos as solid investment opportunities. Overseas Filipino Workers (OFWs) and local professionals find the condos to be within budget while providing opportunities to generate rental income. The demand is also high for house-and-lot packages in the same price range, with about 55% of units sold in 2023 being in this segment, supported by OFW remittances from Central Visayas.
Major Players Expanding in Cebu
Big developers are taking notice of Cebu’s hot property market and are diving in headfirst. Manila Bulletin reported that DMCI Homes is investing a whopping PHP 20 billion in a new project in Barangay Guadalupe, Cebu City. They’re betting big on the city’s potential. RLC Residences also launched Mantawi Residences, a premium condo project in Mandaue City with four 40-story towers that are equipped with smart home devices. RealEstateBlogPH highlights that the project aims to cater to the upscale market in Cebu, and it features spacious living areas. These kinds of projects are a sign that Cebu is becoming a prime location for both national and international property developers.
Awards and Recognition for Developers
It’s not just about building; it’s about building well. PrimaryHomes, Inc. proved this by winning four awards at the PropertyGuru Philippines Property Awards 2023, including “Best Sustainable Developer” and “Best Eco-friendly Condo Development” for Royal Oceancrest Mactan. Cebu Daily News covered how these awards highlighted the company’s commitment to sustainability and eco-friendly development. This kind of recognition showcases that developers are not only focusing on profit, but also on creating environmentally responsible and sustainable communities.
Cebu: A Residential Hub of Choice
Cebu is increasingly becoming a popular choice for national developers looking to expand outside of Metro Manila. They’re trying to grab not only the general demand, but also the increasing demand for upscale and luxury properties. Malaya Business Insight notes that Cebu’s strategic location, economic growth, and lifestyle offerings make it a prime location for both developers and buyers. Colliers also emphasizes that Cebu remains one of the most attractive residential hubs outside of Metro Manila, with developers feeling positive about future growth beyond 2024.
Opportunities for Developers
Colliers suggests several opportunities for property developers in Cebu. One key area is to test the market for more upscale and luxury residential units. As Cebu continues to attract a more affluent population, there’s potential for high-end developments. Due to rising land values in Cebu City, firms should look at alternative development sites to keep costs manageable. Exploring more resort-themed projects could also attract both local and international buyers looking for a vacation lifestyle. They also advise developers to monitor construction costs, pre-selling prices, and take-up to strategically time project launches. This data-driven approach can help developers maximize profitability and capture market share effectively.
Economic Growth Fuels Property Boom
Cebu’s property market is getting a boost from the region’s strong economic performance. Sunstar Cebu reports that Central Visayas saw an impressive 7.3% growth in 2023, with Cebu being a major contributor. This economic growth translates to more job opportunities, higher incomes, and increased consumer confidence, all of which drive demand for housing and property investment. Furthermore, according to Inquirer.net, Cebu’s condominium stock is expected to reach 93,100 units by 2026, with an average annual completion of 5,000 new units from 2024 to 2026, underscoring the continued expansion of the market.
Tips for Buyers and Investors
Whether you’re considering buying a condo to live in or as an investment, here are some tips to help you make the right choice:
- Do your research: Look at different developers, locations, and unit types before making any decisions. Consider your lifestyle, budget, and long-term financial goals.
- Consider the location: Think about accessibility, proximity to workplaces, schools, commercial centers, and other amenities.
- Check the developer’s reputation: Look for developers with a proven track record of delivering quality projects on time. Read reviews, visit past projects, and talk to existing homeowners.
- Understand the costs: Factor in not just the purchase price, but also association dues, property taxes, and potential renovation costs.
- Explore financing options: Compare mortgage rates from different banks to find the best deal.
- Consult with professionals: Seek advice from real estate agents, lawyers, and financial advisors to make informed decisions.
Expert Predictions
Industry watchers are optimistic about Cebu’s property market. Colliers emphasize the importance of developers catering to the evolving needs of the market by exploring various locations and innovating with resort-themed projects. Malaya Business Insight highlights Cebu’s emergence as a residential hub of choice, attracting both local and international interest. With continuous infrastructure developments, increasing economic activity, and a growing population, Cebu’s property market is expected to maintain its upward trajectory for the foreseeable future.
In summary, Cebu’s condo market presents numerous opportunities for buyers, investors, and developers alike. With rising prices, increasing demand, and substantial new projects, now is the time to pay attention and explore the potential of the Queen City of the South’s thriving real estate sector.
Frequently Asked Questions
Q: Is now a good time to invest in Cebu condos?
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A: Yes, with prices expected to rise and strong demand, investing now can be a smart move.
Q: What areas in Cebu are best for condo investments?
A: Cebu City, Mandaue, and Lapu-Lapu are expected to have the most new supply, so these areas are worth considering.
Q: What type of condos are most in demand?
A: Affordable to lower mid-income units (PHP 2.5 million to PHP 7 million) are currently in high demand.
Q: What is driving the demand for condos in Cebu?
A: Demand is driven by investors looking to rent to outsourcing employees, local investors, and Filipinos working abroad.
Q: Are there any sustainable condo developments in Cebu?
A: Yes, PrimaryHomes, Inc. won awards for their sustainable and eco-friendly condo development, Royal Oceancrest Mactan.
Q: How is the Cebu property market affected by economic growth?
A: The strong economic growth in Central Visayas, with Cebu playing a significant role, fuels demand for housing and property investment.
Q: What should developers focus on to succeed in Cebu’s property market?
A: Developers should explore launching more resort-themed projects and look for alternative development sites due to rising land values in Cebu City.
Q: What factors contribute to Cebu being a top choice for national developers?
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A: Cebu’s strategic location, economic growth, and lifestyle offerings make it a prime location for both developers and buyers.
Don’t Miss Out: Your Cebu Condo Opportunity Awaits!
The evidence is clear: Cebu’s condo market is booming, and it’s not slowing down anytime soon. Projections point to continuous growth in demand, rising prices, and exciting new developments. Whether you’re a first-time homebuyer, a seasoned investor, or a developer looking for the next big opportunity, Cebu is where you need to be. Imagine owning a piece of this vibrant city, generating rental income, or simply enjoying the dynamic lifestyle Cebu has to offer. But waiting could mean missing out on the best deals and opportunities. Don’t let this moment pass you by! Start your research, connect with local real estate experts, and explore the possibilities that await you in Cebu. The Queen City of the South is calling – will you answer?
