Cebu 2Q 2017 Provincial Property Market Reports

We are pleased to share with you our latest Provincial Property Market reports.

In this release, we have identified key issues and opportunities in the province of Cebu particularly in the office, residential and retail sectors.

View all provincial reports
Cebu’s ranking in the Tholons survey declined to 12th this year from 8th in 2016. Despite this, the provincial location still recorded strong take-up from Business Process Outsourcing (BPO) companies for the first half of the year. The BPO firms’ share to total transactions reached 57%. Major tenants with new accounts include Real Page, Ripe Concepts, Iploy, Channel Fix, and Weserv Systems, among others. Offshore gaming is emerging as an office space demand driver, cornering 37% of total transactions during the period.  Between now and 2020, about 500,000 sq m (5.4 million sq ft) is expected to be added to Cebu’s office stock, majority of which is still concentrated in Cebu CBP and IT Park. Colliers sees the continuous growth of Cebu's office market and we see this being complemented by the completion of crucial infrastructure projects.
The Cebu residential market has seen mixed demand for both vertical (condominiums) and horizontal housing (house and lots). Despite a noted decline in take-up, differences on a year-on-year basis have been minimal. Within Cebu City, the influx of new condominium projects at price points largely comparable with horizontal options in Mandaue and Lapu-Lapu City, has brought in stronger demand in the provincial capital. Supported by a steadily growing business center in Cebu City, Colliers expects demand to continue, particularly for affordable and mid-income segments. We suggest that developers build projects within the We suggest that developers build projects within the PHP 2.0 million (USD40,000) and PHP4.0 million (USD80,000) price points to take advantage of the opportunity. Buyers meanwhile are advised to carefully select their investment especially with an expanded range of options as vertical and horizontal stock across the province continues to increase.

Cebu remains a major retail hub outside of Metro Manila due to the proliferation of outsourcing companies; the continued deployment of Filipino workers abroad whose monthly remittances fuel household spending; the influx of local and foreign tourists; and the sustained generation of employment opportunities by traditional companies. Colliers has observed that, despite the substantial increase in retail stock since 2008, overall vacancy remains low as the additional supply is offset by a continuously expanding local economy which effectively boosts Cebuanos' disposable incomes. Over the next 12 to 36 months, we see the completion of new supply from both local and national developers. Given the competitive retail landscape in Cebu, we encourage developers to exhibit a more interesting mix of F&B and fast fashion brands to sustain visitor traffic. Operators should use the pockets of vacancy in a number of malls as an opportunity to overhaul their tenant mix. We also recommend that developers look at emerging areas in Metro Cebu such as Consolacion that have the potential to become key hubs for neighbourhood and district mall development.

Download the full reports by clicking the links below.

2Q 2017 Cebu Office Report

2Q 2017 Cebu Residential Report

2Q 2017 Cebu Retail Report


The Freeman

SunStar Cebu

Business World

SunStar Cebu

Philippine Daily Inquirer

The Philippine Star

SunStar Cebu

The Manila Times

The Philippine Star

SunStar Cebu

Colliers International | Manila 11F Frabelle Business Center, 111 Rada Street Legaspi Village, Makati City 1229 Philippines | Tel: +632 888 9988