A PROPERTY and research firm has observed a higher rental take-up in luxury condominiums in Cebu fueled by multiple factors, including tourism and the burgeoning number of multinational company executives residing in metro Cebu.
“High-end units (in Cebu) continue to enjoy low vacancies and stable growth in lease rates,” said Colliers International in a report.
Condominiums in Cebu Business Park, Cebu I.T. Park, and Mactan Newtown are examples of master-planned communities where some high-end condominiums nestle, at the same time where large outsourcing companies locate.
As a key investment destination, Cebu attracts high-ranking local and foreign executives employed by top outsourcing and industrial firms.
“The outsourcing sector’s contribution to total demand for luxury condos should be sustained by the continued inflow of foreign outsourcing investments into the city,” the report reads.
However, Colliers has advised that this projected increase in the demand be complemented by the national government’s push to decentralize developments in the country by providing additional fiscal incentives to Business and Knowledge Process Outsourcing (BPO and KPO) companies willing to locate outside of Metro Manila.
In addition, high-spending foreign tourists, largely Japanese, Taiwanese and Singaporeans, also contribute to the sustained take-up in luxury projects. Colliers said Chinese investors too are becoming more aggressive in acquiring properties outside China. The property management and research firm sees this demand spilling over to the Philippines, including Cebu.
Aside from their strategic locations, luxury condominiums in Cebu continue to enjoy high occupancies due to their hotel-like amenities and proximity to beach resorts and other tourist destinations, added Colliers.
Luxury condominiums generally have gyms with top-of the-line equipment, resort-like pools, spacious residents’ lounges, and function rooms where business executives can hold social or business gatherings. These high-end projects also offer adequate open space suitable for family-oriented events and round-the-clock security service. The average monthly rent of luxury three-bedroom condominiums is P150,000.
“The sustained demand for luxury residential condominium units is providing impetus for both local and national developers to intensify development of luxury projects across Metro Cebu,” said Colliers.
Colliers said holding firm Udenna Corp. recently obtained a provisional license from the Philippine Amusement and Gaming Corp. (Pagcor) to develop a US$300 million integrated gaming resort in Cebu dubbed the Lapu-Lapu Leisure Mactan. The project will also house luxury condominium units, among other developments.
Another recently launched luxury project in Metro Cebu is The Residences at The Sheraton Cebu Mactan Resort--Sheraton’s first branded resort residential development in Southeast Asia.
Published in the SunStar Cebu newspaper on May 23, 2017.
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