Cebu's Real Estate Market Stands Out as Premier Investment Destination
Cebu continues to distinguish itself as one of the Philippines' leading destinations for real estate investment, bolstered by strong end-user demand, disciplined homeownership practices, and its pivotal role as the commercial and services hub of the Visayas and Mindanao regions. This assessment comes from Jose Franco Soberano, chief operating officer of Cebu Landmasters Inc. (CLI), who shared insights at the recent Cebu International Investments Summit.
End-User Market Drives Sustainable Growth
Soberano emphasized that Cebu's property market differs fundamentally from more speculative urban centers, with demand primarily fueled by buyers seeking homes for long-term use rather than short-term trading. "Cebu is not an oversupplied market. This is an end-user market where people buy homes to live in and protect as long-term investments," he stated. He pointed to consistently low cancellation and delinquency rates across CLI's residential portfolio as evidence of this stability, noting that several housing projects have recorded near-zero delinquency, reflecting strong payment discipline among homeowners.
Regional Hub Status Underpins Diverse Demand
Cebu's position as a regional hub for employment, education, logistics, and trade continues to support real estate demand across various segments, including residential, office, retail, and hospitality. Soberano highlighted that office occupancy has improved with the return of business process outsourcing operations, while retail space remains near full occupancy, driven by rising household incomes and increased consumer spending in the region.
CLI's Development Plans Address Housing Shortage
In response to this robust demand, CLI is planning to develop 10,000 homes, with a focus on affordable and mid-market segments. Soberano explained that this initiative aims to address the housing shortage rather than add excess supply, particularly in the socialized and economic segments where the need is most pronounced. "The housing shortage remains most pronounced in the socialized and economic segments, reinforcing the need for sustained development in these price points," he added.
Cebu as a Testing Ground for Expansion
Soberano revealed that Cebu has long served as CLI's testing ground for products, planning, and execution, with strategies refined in the province later extended to other cities in the Visayas and Mindanao. "Cebu is where we learn what works. What succeeds here can be scaled elsewhere," he said, underscoring the region's importance in the company's growth strategy.
Infrastructure and Fundamentals Key to Future Resilience
While continued investment in infrastructure and utilities remains critical, Soberano asserted that Cebu's fundamentals—including end-user demand, regional connectivity, and a growing urban economy—position it as a resilient and attractive location for long-term real estate investment. He concluded that these factors collectively ensure Cebu's ongoing appeal to investors and homeowners alike.
