Condo Glut In Cebu May Induce A Price War

[Mr Lee]

Well I have been saying it is bound to happen for a while now, now it seems someone agrees with me. I wonder if the price correction will be limited to condos, or also apply to land? CEBU, Philippines - While the market for condominium units in Cebu is significantly increasing, the battle now for developers is on attracting these interested buyers through value-for-money price packages.“A lot of people love Cebu. This is one of our edges, over other cities. The reason why, despite the increasing number of condominium inventories to be available in the next few years, the market interest is also getting stronger,” said Philippine Allied Chamber of Real Estate Brokers and Licensed Salesmen (PhilACRE) president Anthony Leuterio.At present, Leuterio said most developers are “over-pricing.” However, buyers now are becoming wiser, and that condominium developers may experience a fiercer price-war in the next few months, as inventories are increasing.“Prices may be changed as buyers demand for reasonable cost with careful attention to quality and details,” he emphasized.Leuterio who leads hundreds of real estate brokers selling properties from all over the country, said that Cebu now is one of the hottest destinations for real estate investments. Condominium is the easiest way to own a property in Cebu. Over-pricing may discourage buyers, including foreigners.The market attraction of condo-living in Cebu is also prompted by the fast moving prices of lot properties, which price rate increases at an average of 50 percent in the last two years.According to Leuterio based on a study conducted by his Real Estate brokerage company, about 40 thousand to 50 thousand Cebuanos are now active in buying condominium as alternative home, or for investments. About 60 percent to 70 percent of which, are working abroad.Leuterio said the market for condominium is here to stay, although almost all developers are capitalizing on it and some observers are afraid of an eventual condo inventory glut in Cebu.The Filinvest project alone in South Road Property (SRP) will be building at least 12,000 condo units, excluding the company’s existing condo projects outside of SRP.Almost every month, developers are introducing new condominium projects within Metro Cebu area. Some are even announcing future mid-rise to high-rise condominium projects in the next few months.One of the biggest projects, is the announcement of Metro Gaisano-led Company, Taft Property Venture Development Corporation, to build the tallest building in Cebu’s skyline by far, of which the two buildings are expected to provide at least over a thousand affordable but quality condominium units in Cebu.Giant developers such as Ayala Land Inc., SM Holdings Inc., Aboitiz Land Inc., respectively announced their multi-billion investments for Cebu to build more condominium communities that will be completed in the next few years.Meanwhile, Leuterio announced that because of the booming real estate industry in Cebu, around 300 licensed brokers took their oath recently to the First Visayan Brokers Oath taking, as Real Estate Service Professionals. (FREEMAN)The story HERE

[Old55]

My thoughts exactly Lee. Knowledgeable friends in the business think the future is still good and there is demand for that growth. Frankly I don’t see it, but what do I know? What about Cebu’s infrastructure how will basic services keep abreast of so much load? On the other hand Filipinos are very resourceful and usually find a way to squeak by.

[Art2ro]

Yeah, I'm truly amazed at the selling prices of condos in Cebu in the middle of a global recession! So, why are condos so inexpensive in Florida, the "Sunshine State" or is it the orange capital of the world or is that in California? Well anyway, real estate is flourishing in the Philippines still, due to the low cost of living due to cheap labor even with the high cost of gasoline and food commodities! Where we live in Northern Central Luzon, it's still a construction boom of affordable single family homes in nice upscale gated subdivisions in the suburbs, where infrastructures are up to par with the surrounding developments. Fortunately for us the price of homes where we live have doubled in price since 12 years ago and I'm sure Cebu isn't any different and overall putting more and more retirees out of the purchasing market for single family homes and looking towards condos instead in the 3 to 5 million peso range, because where we live, it's now in the P7 million and up ranges!

[Dave Hounddriver]

I know it is oversimplified, but it seems that the Philippines follows behind the west in so many things, why wouldn't we expect the 'world crisis' to come along on filipino time?

[Jollygoodfellow]

I know it is oversimplified, but it seems that the Philippines follows behind the west in so many things, why wouldn't we expect the 'world crisis' to come along on filipino time?

Americans or people from those country's that are hard hit by the global financial crises seem to forget that not all the world has suffered or are suffering from itAustralia is still booming along and did not really take much of a hit at all,I think most Asian countries are the same.

[Papa Carl]

What goes up.... must come down! (well certainly for most things anyway) (no sex jokes required here) :as-if:The trick is having money when things are down. It seems lately I have money when things are up and don't have money when things are down......, well thinking about it no. It appears I don't have money anytime lately!!!! Ha, still got my sense of humour though!!!I know some of you wise old men, have invested well and deserve your profits, but for me....., I'm looking forward to things coming down!! this time.My day will come, and hopefully I will revert to the old Carl and have money to spend!Carl

[Dave Hounddriver]

I know it is oversimplified, but it seems that the Philippines follows behind the west in so many things, why wouldn't we expect the 'world crisis' to come along on filipino time?

Americans or people from those country's that are hard hit by the global financial crises seem to forget that not all the world has suffered or are suffering from itAustralia is still booming along and did not really take much of a hit at all,I think most Asian countries are the same.

Thats not what I heard. When the world crisis hit almost 3 years ago now, all we could hear all over the Philippines was Aussies whining about how they were only getting 30 pesos to the dollar. Things sure turned around for you guys though.

[Jollygoodfellow]

I know it is oversimplified, but it seems that the Philippines follows behind the west in so many things, why wouldn't we expect the 'world crisis' to come along on filipino time?

Americans or people from those country's that are hard hit by the global financial crises seem to forget that not all the world has suffered or are suffering from itAustralia is still booming along and did not really take much of a hit at all,I think most Asian countries are the same.

Thats not what I heard. When the world crisis hit almost 3 years ago now, all we could hear all over the Philippines was Aussies whining about how they were only getting 30 pesos to the dollar. Things sure turned around for you guys though.

Well even so if some got a dip on exchange rates, on the home front in Australia life is still pretty much been booming along for the last 3 years. My point being is that some countries did not get hit much and most Asia pacific countries like the Philippines and Australia wont end up in the same crises as we are talking about.Oh, as for exchange rates back then maybe 38 was about the tops for the AU to PHP if my memory serves me correct.