CEBU, Philippines - Amid concerns on oversupply in Cebu’s real estate sector, launching of various residential projects especially in the metro area continues as developers bet on robust demand.
For one, new developer SunKai Land Inc. of the Tio family announced on Thursday it is building its first project, a residential condo, in the Cebu North Reclamation Area as it still sees a demand in the market.
Company officials said in an interview the firm’s SunVida Tower is scheduled for construction by the fourth quarter of this year.
Michael Estomata, project development manager, disclosed SunKai is investing around P600 million for its first property venture, targeted to be completed in December 2018.
Estomata also said the company is launching 5 to 6 projects in the next six years but declined to reveal when asked about the capital expenditure the firm has set for its future developments.
He said the firm is looking at different types of projects to diversify its investments. The developer has aggregated parcels of land within Metro Cebu and even some areas outside the metro for its future real estate ventures, the manager added.
Officials also said they might launch another project which will probably be a condo or subdivision by the end of this year.
Catherine Palmero, marketing manager, reported that about 60% of the 543 units of the 30-storey condo have already been sold, noting the fast sales take-up has kept the company bullish on Cebu’s property market.
She said most buyers are investors and few are end-users, adding that they are mostly young professionals who see a potential in property investment.
While there are concerns that the real estate sector especially the residential segment may face the risk of oversupply, developers remain positive the demand rate still outweighs glut worries.
In an earlier interview, Alexis Roy Lopez, regional head of the Housing and Land Use Regulatory Board (HLURB), pointed out there is still an ample demand for residential projects in Central Visayas specifically in Cebu.
Lopez explained developers are still very much bullish and confident of Cebu’s property sector, which could mean that they still see more to be tapped in the market.
Official data from the housing board indicated that it issued property licenses to 43 real estate projects in Central Visayas in the first of half of 2015, totaling to about P11 billion. Most of these projects are located in Cebu spurred by its growing economic activity.
According to Lopez, Bohol and Dumaguete in Negros Oriental are now rising as growth areas for housing investments as some local developers have already set sight on them. — Carlo S. Lorenciana (FREEMAN)