Rising demand to prevent glut in Cebu’s condos, says realtor

By Mia A. Aznar

Tuesday, November 29, 2011

REAL estate brokers do not see a slowing down of condominium developments in the next five years, even with the sudden growth of such projects in Cebu.

Richard Azares, incoming president of the Philippine Association of Realtors Board (Pareb)-Cebu Realtors Board (Cereb), said they remain bullish on the market for condominium units.

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Azares noted that the bulk of the buyers are investors and overseas Filipino workers (OFWs), who make up 50 percent of the buyers of condominium units.

However, they also cater to starter families, retirees who don’t want the hassle of maintaining a big house, and those working in business process outsourcing companies.

Though majority of the projects are between the P1-million and P3-million range, Azares noted that there is a niche for the high-end condominium units, those that are over P5 million.

“You would be surprised,” Azares told Sun.Star, saying the more expensive condominium units are also selling fast.

While some still consider it as an investment, there are many who opt to live in condominium units.

The optimism for the condominium development comes from the fact that many of these units are already sold at the pre-selling stage, which is not happening in other countries.

Investors, on the other hand, feel real estate is the safest investment these days. “Some of them buy one unit in each development.”

Though most of these investors are Cebuanos, Azares noted business owners from Mindanao are among their buyers, particularly those who want to send their children to school here and buy condominiums for them to stay in.

He acknowledged that some are apprehensive about the sudden rise in condominium development but he allayed fears that too many are being built at the same time that there could be market saturation.

“For now, we don’t see that happening,” he said.

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House and lot units are also climbing steadily, although the growth is not as fast as with condominium projects.

Azares said that for Filipinos, they can never go wrong if they invest in real estate. Instead of just keeping money in the bank, which gives low interest rates, leasing or reselling property gives them more for their money.

He cited the case of Consolacion, which once sold lots for P1,000 per square meter.

With the opening of the Cansaga Bridge and the development of a new SM mall, Azares said lots in the town now fetch prices of not less than P5,000.

However, he still believes the development is heading south, with the South Coastal Road and South Road Properties paving the way.

Published in the Sun.Star Cebu newspaper on November 30, 2011.