Cebu lot prices up 7 percent annually as affluent buyers shun condos

CEBU, Philippines — Affluent investors are driving strong demand for residential lots in Cebu, pushing prices higher as buyers seek alternatives to condominiums and favor larger, more open properties, according to Colliers Philippines.

Cebu had about 23,000 residential lots available as of the end of the first quarter of 2026, making it the second-largest lot-only market in the Visayas and Mindanao region after Negros Occidental, the property consultancy said.

Demand has remained robust, with an average take-up rate of 94 percent, highlighting the purchasing power of Cebu buyers even as residential property prices rise.

Luxury projects priced at P10 million and above accounted for all lot-only launches in Cebu in 2025 and represented about a quarter of residential lots sold during the year, Colliers said.

Projects including Sta. Lucia Realty Corp.’s Vista Verde Residential Estates, AboitizLand Inc.’s Priveya Hills and Duros Land Properties Inc.’s Golfers Village helped drive demand for the segment.

The strength of the market is also reflected in price growth.

Residential lot prices in Cebu rose an average 7 percent annually from 2016 to 2025, according to Colliers data. Some developments posted compound annual growth rates ranging from 8 percent to 27 percent, significantly exceeding the broader market average.

The performance comes as investors reassess residential property options amid changing returns in the condominium market.

Colliers said several factors are making lot-only developments more attractive, including price corrections in some condominium projects, improving infrastructure connectivity and declining rental yields in Metro Manila’s condominium market.

For investors, residential lots offer larger cuts, more open and greener surroundings and the potential for capital appreciation, the consultancy said.

The trend also reinforces Cebu’s role as a market where strong purchasing power and infrastructure improvements are supporting demand for higher-value residential developments.

According to Colliers, for investors, the appeal is increasingly shifting from rental income toward land ownership and potential long-term capital appreciation. — (FREEMAN)