CIPC readies marketing plan to avoid condo glut

CEBU, Philippines - A complementary marketing campaign is being crafted to sustain Cebu’s dynamic real estate market as well as to avoid the possibility of experiencing a condo glut in the province as developers are currently in construction frenzy.

Cebu Investment and Promotions Center (CIPC) managing director Joel Mari S. Yu said that Cebu’s attractiveness as a real estate investment destination for both local and international investors is going to continue in the long term.

This as, CIPC is intensifying its plan to further develop more programs, in pushing further the potential of Cebu as a “second home” destination in the world.

According to Yu, CIPC will be inviting prime movers in the real estate sector, including the Philippine Retirement Authority (PRA), as well as the Department of Tourism (DOT) to make Cebu as the premier “second-home destination” in Asia, or in the world.

Highlighting Cebu’s banner attraction to investors is the 300-hectare South Road Properties (SRP), wherein integrated facilities will be developed in the next few years, Cebu’s potential and second home destination will take off in just a short span of time, said Yu.

At present, there are a total of 4,551 condominium units in Cebu, this would translate to 227,550 square-meters.

According to Cebu Real Estate market Report conducted by Colliers International, by 2012 Cebu will be adding another 1,317 residential condominium units, while additional 1,961 units for the residential market will be added in the following year in 2013.

Real estate marketing consultant and educator Jun Garing said that because Cebu is slowly learning from the pitfalls of condominium marketing experienced particularly in Manila, the industry is expected to continue in the upswing path. Specifically, with its unique marketing preposition in maximizing the resort-feel and urban living in an island.

“Cebu will be able to be saved from supply glut inthe next three years, and investories of condos will be sustained by strong interest especially from the foreign market,” said Garing in an earlier interview.

As of latest count, there are a total of 36 developers whose projects have been approved for condominium buildings. This is worth over P100 billion worth of investments.

Yu said Cebu’s positioning to become a second home destination in the world, will intensify the strong attractiveness of Cebu, and the speed of condominium units’ take up.

 In the last three years, Cebu was able to sell over 3,000 condominium units. Developers reported that in Cebu, majority of their buyers are local investors, taking advantage of the rising demand for condo-rental.

Economist Bernardo Villegas of the University of Asia & the Pacific (AU&P) predicts that Cebu’s real estateboom will continue in the long term, and aside from other driver industries, real estate sector is seen to fuel Cebu’s economic vitallity.

Cebu as an island destination which is likens to Hawaii, is attractive for property buyers both local and foreign.

Another renowed economist Jonas Ravelas of the Banco de Oro Universal Bank forcasted that developers will continue to build projects in real estate, specifically residential deveopments, while the Philippines still facing backlog of residential supply. 

Locally, Ravelas said what also activates the market further, aside from the desperate demand for housing units, is the banks’ active stance to offer attractive loan packages for residential consumers, boosted by the low interest rate environment.  (FREEMAN)