DEMAND FOR mid-income condominium units are seen to partially fuel the recovery of residential demand in Metro Cebu this year.
The latest market report of Colliers International Philippines noted that the demand for mid-income condominium units has been driving launches and take-up in Metro Cebu.
In the first half of 2020, the mid-income segment accounted for more than half of take-up during the period.
“This indicates the rising purchasing power of Cebuano investors and end-users over the past few years. We expect projects under the segment to partially fuel the recovery of demand in 2021,” the property research firm said.
Mid-income condominium units are those that are priced between P3.22 million and P5.99 million. This segment makes up 61 percent of the total launches in the first half of 2020 and 54 percent in the take-up.
“We recommend that developers continue serving the requirements of Cebu’s end-user market,” Colliers said.
Moreover, the firm believes that house and lot projects remain attractive among overseas Filipino workers (OFWs).
“Anecdotally, OFWs are one of the major drivers of Cebu’s horizontal residential market as they are also the end-user,” said Colliers.
OFW, local market to drive demand
Licensed broker Anthony Gerard Leuterio, founder and president of Filipino Homes, said OFWs and the local market are seen to propel the home buying activities this year.
He said most OFWs working in the health care sector are cashing in on properties, particularly in the affordable segment or those priced from P1.7 million to P3.19 million.
Leuterio also saw a strong appetite from the buyers in Dumaguete City and Bohol who would like to own property in Cebu.
According to Colliers’ report, the affordable segment makes up 39 percent of the total launches in the first half of 2020, while its take-up was at 28 percent.
Leuterio urged developers to continue investing in this segment, saying that failure to meet its demand would add to the already ballooning housing backlog. He said about 80 to 90 percent of the six million housing backlog are those that belong in the P2 million and below price segments.
Meanwhile, given the impact of the coronavirus pandemic, developers should also highlight their sanitation and emergency preparedness protocols.
Colliers noted that the Covid-19 pandemic has raised the need to live within a building that employs strict property management procedures. (KOC)