cebu REAL ESTATE MARKET REPORT

CEBU REAL ESTATE MARKET REPORT

OVERVIEW

The Cebu City landscape is continually shifting to an advanced metropolitan centre shaped by
large-scale property developments in the past few years. Recognised as the country’s oldest city,
it is currently positioned as a significant economic player in the real estate industry just behind
Metro Manila.
Cebu City, as part of Metro Cebu, is adjacent to two significant cities in the region, namely
Mandaue and Lapu-Lapu. As a centre of commerce, trade and industry in the Vis-Min region, Cebu
is home to most of the country’s domestic shipping companies, the second busiest sea port
(International Seaport of Cebu),and the second largest number of international flights in the
country (Mactan Cebu International Airport). Moreover, weather in Cebu is highly desirable as it
receives only minor typhoons and is nowhere near the earthquake belt. With this, it has continually
drawn investors as its economic environment makes the metropolis favourable for business
activities.
The influx of major industry players such as Ayala, SM and Filinvest strengthens Cebu City’s brand
as a major destination for businesses related to BPO (particularly call centres), hotel & leisure and
residential condominiums. Furthermore, real estate developments in the urban centre gave rise to
three business districts, i.e. Downtown Cebu, Asiatown I.T. Park and the Cebu Business Park.
Construction activities have become more dynamic at present with more developments in the
pipeline that continue to diversify from horizontal to vertical projects. This reflects the increasing
number of condominium units which is expected to grow by 74% to over 5,000 units to complete
in 2011, together with an expanding office space that may reach to some 460,000 sq m of usable
area or 15% more than in 2010.
In addition, the infrastructure facilities, including the 12 km four-lane South Coastal Road are now
in place together with the planned Bus Rapid Transit System which is intended to improve traffic
across the metropolitan area. This, together with the future projects in the South Road Property,
a 300 hectare PEZA registered property found near the coast of Cebu City, is expected to boost
commercial and residential development in the area including the planned 25 hectare mall by SM
Prime Holdings, and a residential condominium (Amalfi Oasis @ Citta di Mare) by Filinvest Land
Inc. of which the first building is set to complete by year-end.
Cebu’s BPO sector remains upbeat with the expansions of existing companies and the increase of
Call Centre and IT firms interested in locating in the city. Some of the new companies expanding
in the area include HP, Fluor Daniels, Dell and JP Morgan & Chase. BPO companies are continually
drawn to Cebu City as it benefits to a significant number of workforce and its healthy fiscal
environment. With an expected population of almost 1.5 million (Metro Cebu) by year-end
supported by nine large universities, the labor pool makes a wide selection of skilled workers.
Tourism remains a key growth driver in Cebu with more than 30 established hotels or some 6,000
rooms that varies from the first class to the economy type. Government data shows that Cebu
ranked as the third most visited destination last year with around 1.77 million domestic and
international visitors or a 9.7% increase over the same period in 2009. In the past few years, the
entry of foreign tourists, businessmen, balikbayans and local travellers amplified the range of hotel
accommodation in the city which now varies from boutique and businessmen’s hotels, leisureoriented
resorts, five-star luxury hotels & casinos to traveller’s inns.

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