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Colliers Cebu Report Q1 2021 - Office and Residential

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Cebu on the radar
Landlords seize opportunities as Cebu remains a post-Covid option

Colliers saw Metro Cebu recording positive net office absorption in Q1 2021, ending two consecutive quarters of negative net take up. Among the deals recorded in Q1 2021 include those from the outsourcing and traditional segments*, occupying new office spaces in Cebu Business, IT Parks and Mandaue.

Metro Cebu tenants and landlords believe that a successful roll out of the Covid vaccine will play a pivotal role in the recovery of office leasing, our expectation is that a demand recovery will start between Q4 2021 and Q1 2022.

Colliers encourages tenants to take advantage of favorable market trends and maximize lower rents in exchange for longer lease terms while assessing post-pandemic options, including a hybrid of on site and working from home. Meanwhile, landlords should highlight availability of PEZA** spaces and Cebu’s competitiveness† to expanding outsourcing firms.

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Viable Post-Covid Option
Cebu to remain a major residential investment hub beyond COVID-19

Metro Cebu is the largest residential hub outside of Metro Manila. Covid has disrupted the region’s economy and property market and we continue to see subdued take-up and completion in the region.

Colliers believes that completion of residential units is likely to pick up in 2021. In the pre-selling market, we project a slight recovery as developers prepare for pent up demand beyond 2021.

We believe that demand for residential units in integrated communities is likely to continue despite Covid. Hence, we recommend developers further explore the feasibility of township developments. Developers should also consider fringe areas for House & Lot projects and maximize new infrastructure as Cebu is a major beneficiary of the government’s massive infrastructure push.

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Joey Bondoc

Associate Director

Research

Manila

Prior to joining Colliers in March 2016, Joey worked as a Research Manager for a research and consutancy firm where he handled business, political, and macroeconomic analysis. He took part in a number of consultancy projects with multilateral agencies and provided research support and policy recommendations to key government officials and top executives of MNCs in the Philippines.

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