Cebu and Iloilo find increasing favour with young real estate buyers
Cebu and Iloilo find increasing favour with young real estate buyers
Buoyant growth is happening in the Visayas because of the robust BPO sector
In Part Four of this five-part series, take a look at the emerging real estate industry in the Visayas region
One of the reasons for the current strength of the Philippine real estate market is the booming business process outsourcing (BPO) sector. Metro Manila recently edged out India as the biggest BPO market in the world and major cities in the Visayas such as Cebu and Iloilo are poised to benefit.
“Cebu has progressed into an alternative BPO location,” says Michael McCullough, managing director of KMC Mag Group.
He credits the entry of outsourcing companies for the transformation of Cebu’s office sector. Manila-based developers like Arthaland, which recently announced plans to introduce green office spaces in Cebu, have great confidence in its growth potential.
With this development comes a shift in the preference of residential investors with buyers transitioning towards condos instead of houses.
Vertical properties in Cebu sell for an average of PHP96,000 (USD2,033) per sqm, which is certainly lower than those in Metro Manila’s most prime areas. In spite of this, the existing inventory in far-flung areas of Metro Cebu isn’t appealing to buyers, possibly because of worsening congestion problems.
Finding increasing favour with buyers is Iloilo City, another hub for the outsourcing industry.
Lamudi.com.ph’s managing director Jacqueline Van den Ende calls Iloilo a “buoyant growth city especially for the BPO sector owing to a high number of college graduates.”
The condo market is also diversifying in Boracay, but many locals have voiced their fear that overdevelopment could destroy the island’s future. Megaworld’s Global-Estate Resorts Inc, whose 150-hectare Boracay Newcoast project won at the Philippines Property Awards 2015, has taken steps to implement environmentally conscious urban planning to preserve the area and appease islanders.
Come back for Part Five.
If you’re thinking of buying real estate in the Visayas:
Pros: Abundant office space, especially in Cebu and Iloilo; capable English-speaking, diverse young population; lots of cultural activities
Cons: Worsening congestion problems in Metro Cebu; usually first area to be hit by typhoons; resort areas like Boracay are prone to overdevelopment
What to buy for…
Affordable: AppleOne Banawa Heights
Developer: Apple One Properties Inc
Units: 1,316
Size: 30 sqm (avg.)
Price: PHP2.5 million (USD53.270) (avg.)
Completion: 2016
Distinguishing features: A one-of-a-kind project located in Cebu Business Park, this development features a four-level car podium, five swimming pools, “pocket parks,” and an upscale roof deck restaurant
Mid-end: The Persimmon Studios
Developer: AboitizLand Inc
Size: 24-26 sqm (avg.)
Price: PHP1.8-2.6 million (USD32,000-55,400) per unit
Completion: Q2 2016
Distinguishing features: Located in the heart of the city and surrounded by an Asian contemporary-themed commercial neighbourhood dubbed Cebu’s first urban village
High-end: Boracay Newcoast-Oceanway Residences
Developer: Megaworld Corporation and Global Estates Resorts Inc (GERI)
Units: 993
Size: 250 sqm (lots), 36 sqm (condo) (avg.)
Price: USD1,000 per sqm (lots), USD3,600 per sqm (condo)
Completion: 2015 onward
Distinguishing features: The Mediterranean-inspired tropical enclave is reminiscent of Santorini will become one of the landmark, mid-rise developments on the popular resort island
Source: Property Report