By Ehda M. Dagooc (The Freeman) Updated January 02, 2012 12:00 AM
CEBU, Philippines - With dozens of developers given the approval to construct more real estate projects in Cebu for 2012, property marketers are worried of what the robust development may entail, raising critical questions on Cebu's capability to provide ample water and power supply.
Cebu's real estate sector boom will be more magnified in 2012 as existing mid to rise projects as well as horizontal developments are expected to be completed in 2012 and added to that will be a significant number of projects set to start within the year.
Philippine Allied Chamber of Real Estate Brokers and Licensed Salesman (PhilAcre) president Anthony Leuterio said the real estate boom in Cebu should be complemented with ample supply of basic utility requirements such as water and electricity, otherwise, the lack of it will hamper Cebu’s strength to lure property investors both here and abroad.
While supply of condominium, house and lot packages, commercial buildings is sustained with active takers, Leuterio hopes that authorities in the Cebu government should be keen enough to look at this problem of looming supply shortage of water and electricity.
Leuterio said now has become one of the favorite property investment destinations for foreign investors from United States and Europe, while they are shifting their money to invest in Asia.
Besides, the corporate investors like Business Process Outsourcing (BPO) that need commercial buildings are zooming their interest on Cebu.
He said Cebu is expected to see the best of the real estate sector in 2012 as demand is more likely to double this year complemented with enough supply of real estate products.
In the last three years, Cebu was able to sell over 3,000 condominium units. Developers reported that in Cebu, majority of their buyers are local investors, taking advantage of the rising demand for condo-rental.
However, Leuterio said while local investors are also on an agressive move to get cheaper price of condo units for investment purposes, the overseas’ market, both OFW (Overseas Filipino Workers) and foreign nationals are also putting their investments on condominium ownership in Cebu.
For foreigners, Leuterio said some even buy more than two units, for investments, others are also making Cebu as its second-home and owning a condo unit here, which is more cost-effective for them.
This year alone, close to 40 developers have projects that have been approved for condominium units. This is worth over P100 billion inventory, and would supply thousands of units in the next few years.
Ayala Land Inc. (ALI) for instance, vowed to bring in all its real estate property brands in Cebu, in fact, few of which such as Alveo, Avida, Ayala Premier have already started their presence in Cebu.
International investors now, largely Americans and Europeans are shifting their investment interest for properties in Asia. Leuterio said bulk buying for condominium units is now being a trend for global investors.
Meanwhile, economist Bernardo Villegas of the University of Asia & the Pacific (UA&P) predicts that Cebu’s real estate boom will continue in the long term, and aside from other driver industries, real estate sector is seen to fuel Cebu’s economic vitality.
Another reknowned economist Jonas Ravelas of the Banco de Oro Universal Bank forecasted that developers will continue to build projects in real estate, specifically residential developments, while the Philippines still faces backlog in residential supply.
Locally, Ravelas said what also activates the market further, aside from the desperate demand for housing units, is the banks’ active stance to offer attractive loan packages for residential consumers, boosted by the low interest rate environment.
Cebu’s hard-to-resist attraction for investment has even prompted the Ayala Land Inc (ALI) to allocate at least P10 billion worth of investments in the next couple of years, all for the development of more residential and commercial condominium units, including the construction of the expansion of the Ayala Center Cebu shopping mall.
Big and small developers in the Philippines alike, are now looking at Cebu as their hottest investment destination for real estate investments. (FREEMAN)
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