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VisMin Market Intelligence: April 26, 2019

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AYALA LAND SUBSIDIARY ADDS MORE CONDO UNITS IN MANDAUE CEBU

NEWS

Amaia Land is launching a nine-storey residential building valued at PHP1.13 billion. The 288-unit Amaia steps Tower 2, located along UN Avenue corner Plaridel street, will offer studio to two-bedroom units ranging from PHP2.9 to PHP5 million. Construction of the new residential project will start before the end of the year and is expected to be completed by Q1 2022.

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RESEARCH VIEW

Colliers believes that offshore gaming operators that are starting to locate in Mandaue are among those likely to drive demand for residential units. This is due to employees’ preference of living near their workplace. Developers planning to expand their residential projects in Mandaue should consider the requirements of the offshore gaming sector as well as other office space tenants. We encourage property firms to start acquiring parcels of land in Mandaue while land prices are lower compared to other hubs in Metro Cebu. 

INNOLAND TOPS OFF ITS LARGEST PROJECT TO DATE

NEWS

Innoland Development Corporation has topped off One Montage located near Cebu’s Central Business Park (CBP). The 29-story grade A office is the first of the three towers to be developed within Innoland’s mixed-use Montage development. The lot, which is located along Archbishop Reyes avenue, is pre-certified LEED Silver and will house both local and international firms. Upon completion the tower will house a mix of office and retail tenants.

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RESEARCH VIEW

Offices opening along the fringes of Cebu’s major business districts may attract new and existing tenants planning to expand operations due to attractive rental rates. Cost sensitive tenants that are willing to operate outside the central business districts can consider fringe locations where rent is lower. The emergence of fringe areas of Cebu Business Park (CBP) and Cebu IT Park (CITP) indicates demand in these areas. As of end-2018 CBP fringe recorded a supply of 59,600 sq metres (642,000 sq ft) while CITP fringe had 20,900 sq metres (225,000 sq ft). The completion of One Montage and JEG Tower is expected to add around 64,000 sq metres (689,000 sq ft) of new office space in the next two years. We see CITP fringe’s leasable supply is likely to expand by 111,000 sq m (1.2 million sq ft) with the completion of Cebu Exchange in 2020. 

STAKEHOLDERS URGED TO BID, BID, BID

NEWS

Tourism developers and investors in Cebu are urged to prepare for the Meetings, Incentives, Conferences, and Exhibition (MICE) segment of the hospitality sector as the Department of Tourism continues its Bid, Bid, Bid campaign. Cebu is considered as a major target of the MICE segment due to its improved accessibility both local and abroad. Large international events, such as the 2019 Routes Asia scheduled in March and the Centre for Aviation Low Cost Carrier (Capa LCC) North Asia Summit in June are already set to be held in the province. Network of Independent Travel Agencies chairman emeritus Robert Joseph is now encouraging investors to take advantage of the high demand.

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RESEARCH VIEW

The modernization of the Mactan-Cebu International Airport should raise Cebu’s stature as a Meetings, Incentives, Conferences, and Exhibition (MICE) destination. The airport project’s completion should have a positive impact on Cebu’s leisure and retail sectors. Developers should capture thriving opportunities in Cebu by building more MICE facilities and hotel rooms. The growing demand for hotels and MICE facilities is likely to spillover to the retail sector as MICE delegates spend six times more than a regular tourist according to Bernadette Jingco, a hospitality educator of the Republic Polytechnic in Singapore.

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Related Experts

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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