Metro Cebu is the largest residential center outside Metro Manila. COVID-19 has disrupted the region’s economy and housing market, and we are seeing moderate uptrend and completion in and around the city. Colliers believes that the completion of residential units could take place by 2021. In the pre-sale market, we will project some recovery as developers prepare to create demand for paint-ups beyond 2021.
In our opinion, the real estate market is on its way to recovery and is the first to recover as it has received such attention from apple developers and investors. The possibility of recovery was discussed during a recent Inquirer webinar that focused on Cebu, aptly titled “The Pandemic beyond Sandu.” Colliers believes that as the country continues to address the challenges posed by COVID-19, Metro Cebu investors and end users will likely be interested in investing in properties within the integrated community.
Over the next four years, we expect that demand for both houses and lots (H&L) and condominiums for residential projects will likely depend on built-in features such as accessibility and proximity to the transportation network to residents ’essential goods and services. . Colliers believes developers should highlight these features in their residential projects to attract more buyers and investors.
Significant infrastructure projects such as the Colliers Cebu Cordoba Expressway (CCLX) and the Metro Cebu Expressway are increasing the demand for residential condominiums in Cebu. These public infrastructure projects should help attract more developers and investors to acquire more land parcels in the vicinity of these large projects. Take advantage of innovative and flexible payment terms. In the wake of declining demand, Metro Cebu developers have started giving promotions to attract more buyers. Some developers offer low down payments, cash discounts, free services and exclusive access to items such as equipment and furniture.
In our opinion, investors and buyers should continue to monitor these promotions currently available to maximize their purchasing power. Like Metro Manila, certain factors provide a glimpse of optimism in the Cebu residential market. Colliers believes that competitive mortgage rates, flexible payment terms offered to residential developers, and continued off-remittances should help keep them out of 2021.