THE Metro Cebu low-cost housing sector may present further growth opportunities as gaps in an otherwise matured market remain unfilled, a real estate consultancy firm said.
The residential property market has reached its maturity due to the development in the past few years, but it doesn’t mean it doesn’t mean it has reached a plateau, Pinnacle Real Estate Consulting Services Inc. said.
“There are still gaps in the market and some market inefficiencies that shrewd players may take advantage of,” the report said.
Among these opportunities is low-cost housing.
“The recently approved vertical socialized housing, and the increase in the price and loan ceiling of economic housing may extend the boom in the residential sector,” Pinnacle said.
In 2013, the Housing and Urban Development Coordinating Council (HUDCC) lifted the minimum price ceiling for socialized horizontal housing from P400,000 to P450,000.
Apart from the low-cost housing market, another opportunity developers can venture into is township development.
“New township developments may spread out the centralized development in Cebu City,” the report said.
The Metro Cebu residential stock is now at approximately 22,284 condominium units, Pinnacle noted.
“This is a considerable growth of 148 percent from about 9,026 units in 2013. In addition, an average of 5,000 units will be delivered in the next couple of years,” the report said.
On average, 5,000 condominium units are absorbed by the market annually in the past four years.
“This is to say that the projected increase may be comfortably absorbed by the market,” Pinnacle said.
The average selling price of a Metro Cebu condominium is at P99,000 per square meter, up 18 percent from P84,000 per sqm in 2013.
“Like most mature markets, healthy competition brings out the best designs and products at attractive rents and prices,” the report concluded.