Rockwell registers brisk sales in Cebu
Upscale developer Rockwell Land Corp. has gained ground in Cebu a few years after diversifying out of Metro Manila, with its first two residential projects—one condominium enclave in the city center and one beachfront estate in Mactan—posting brisk sales. For the beachfront residential condominium that will rise as part of a 5.3-hectare Aruga Resort and Residences in Punta Engaño, the first 100 units are selling for P250,000 to as much as P370,000 per square meter or comparable to some of the upscale condominium developments in Metro Manila.
Colliers has observed that while local developers are bringing in foreign hotel and serviced apartment operators, national developers i.e. those investing across the Philippines, are maximizing the popularity of homegrown brands. In Cebu Some of these local brands were first introduced in Metro Manila, and in less than six years these brands were able to carve out a niche in the Visayas market.. Rockwell Land is developing its own Aruga brand as it cashes in on its image of providing exclusivity and ample open space to travellers. Colliers believes that Rockwell is among the national developers that will benefit from increased local and foreign arrivals in Cebu. In our opinion, developing more integrated leisure attractions is a practical route for local and national developers to benefit from Cebu’s booming tourism sector.
Real estate contributes P7 B to C. Visayas economy
The real estate sector contributes more than R7.026 billion to the economy of Central Visayas, coming from approved 43 projects composed of subdivisions, condominiums, and memorial parks this year, according to the Housing and Land Use Regulatory Board (HLURB) in the region.
HLURB Regional Officer Francis Ordeniza said in a forum Tuesday real estate development in the region is robust. From 2016 to September 21, 2018, HLURB received 340 applications for housing, condominium, and memorial park projects and approved 236 projects.
Cebu is a major contributor to Central Visayas’ economy. Cebu is recognized as the premier investment destination outside of the country’s capital and has undergone significant transformation over the past few years. We see Cebu’s contribution to the country’s economic output surging over the next five to ten years given its rising attractiveness as an investment hub and the development of crucial air and road infrastructure projects which should significantly bring down the cost of doing business in the region. We also see Cebu benefiting from the Duterte administration’s decentralization thrust or the spread of economic opportunities outside of Metro Manila.
Mactan airport now home to an economic zone
The two parcels of land owned by the Mactan-Cebu International Airport Authority (MCIAA), which are adjacent to the Mactan Economic Zone (MEZ), have been declared a special economic zone under Proclamation 590, which was issued by President Rodrigo Duterte.
The five-hectare property is now called the Macro-Asia Cebu Special Ecozone, pursuant to Republic Act 7916, or the Special Economic Zone Act of 1995.
It’s currently rented by Lufthansa Technik Philippines (LTP), a joint venture of MacroAsia Corp. and Lufthansa Technick AG of Germany, for P2.95 million a month.
Colliers believes that well thought-out real estate strategies can play a significant role in making infrastructure projects more bankable – raise the projects’ investment yield - through value creation and revenue generation schemes that are attractive to private sector investors. They are particularly effective in closing the financing gap for transportation infrastructure, including airports, seaports and mass rapid transit systems. In our opinion, the expansion of Mactan-Cebu International Airport complements the aggressive development of resort-oriented townships in Mactan and the declaration of two parcels of land owned by the Mactan-Cebu International Airport Authority as a special economic zone.