Inflated land prices dampen investors' interest

CEBU, Philippines - Although there is a fast growing market for real estate investors looking for raw and developed properties in the countryside areas, high cost of lands have discouraged investors’ appetite.

Philippine Allied Chamber of Real Estate Brokers and Licensed Salesmen (PhilACRE) president Anthony Leuterio said yesterday that overpriced lands for sale in the far flung towns have derailed the development for real estate sector in the attractive countryside areas in Cebu province.

“There are a lot of properties for sale outside in different towns of Cebu province, but the major problem is they are pricing too high,” Leuterio said.

He mentioned a beach property now offered for sale in western part of Cebu in Balamban, which costs 5,000 to 10,000 per square-meter, “who would buy that?”

A fast growing number of local and foreign property buyers are looking for beach front properties and farm lands. Although there are enough for sale properties of these kinds, high prices have discouraged the interest of buyers.

Leuterio who owns a property brokerage firm said that about 20 percent of his company’s buyers are looking for beach properties.

He said if property sellers would consider the right assessment value of a property, especially in the non-urban areas, buyers will be more interested, thus paving the way to the development of retirement homes in the countryside areas.

However, what’s hot now in Cebu is the very active condominium market, which Leuterio described as “selling like hotcakes.”

The developers’ positive response to the strong demand for condominium developments in Cebu, would change the Metro Cebu’s landscape in just a shorter span of time.

The Overseas Filipino Workers (OFWs), Balikbayan, and Filipinos married to foreigners are the major market for both condominium and raw and developed properties whether within the metropolis or in the far flung towns, he said.

What needs to be considered by the property sellers is the pricing, too expensive properties discouraged investors, Leuterio added.

“We need to have good and attractive inventories of properties offered outside of the Cebu metropolis,” he emphasized.

On the other hand, more developers have expressed their interest to build housing or retirement homes in the far flung towns of Cebu, including the Islands of Bantayan and Camotes, but most developers are also experiencing difficulties in negotiating the right prices of eyed properties.

Earlier local developer Majestic Legacy Development Corporation (MLDC) announced its multi-million-peso commercial and tourism related development in the Island of Camotes.

This initiative is so far the largest investment in real estate development on the Island, following the availability of the Special-Use Agreement on Protected Area of SAPA.

Other developers such as the Cebu Landmasters Inc. (CLI) also announced its expansion to build residential projects in the countryside areas of Cebu. (FREEMAN)