Cebu is currently the seventh most-competitive outsourcing hub in the world, attracting multinational business process outsourcing (BPO) firms such as Accenture, Aegis People Support, Convergys, ePerformax, Teleperformance, and Xerox to expand their operations in the city. This accounts for the surge in demand for luxury residential units particularly inside Cebu Business Park and Cebu IT Park.
Property developers who have taken advantage of this influx in demand include the Ayala Group, with Ayala Land Premier’s 1016 Residences becoming one of the most in-demand condos in Metro Cebu. The property’s luxury three-bedroom unit is priced to rent at an average of P157,000 per month, giving tenants close proximity to Ayala Center Cebu as well as usage rights to the exclusive City Sports Club Cebu.
Robinsons Land Corp.’s Amisa is also one of the top luxury condominiums in terms of rent. Colliers cited Primary Homes’ Avalon, Cebu Landmasters’ Asia Premiere Residences, and Cebu Green Peaks’ Padgett Place as other key developments that command premium rents.
These properties are located in prime locations around the city where office, retail, and residential developments converge, such as Cebu Business Park, Cebu IT Park, and Mactan Newtown.
“Aside from their strategic locations, luxury condominiums in Cebu continue to enjoy high occupancies due to their hotel-like amenities and proximity to beach resorts and other tourist destinations,” the report said.
Colliers said that these condominiums usually feature gyms with top-of-the-line equipment, resort-like pool facilities, spacious residents’ lounges, and function rooms suitable for social or business gatherings.
Manufacturing and export firms located inside the Mactan Export Processing Zone also contribute to the demand in luxury residences, primarily from top foreign executives holding office within Cebu’s industrial hub.
High-spending foreign tourists further account for the demand, due to the presence of direct flights from Japan, South Korea, and China to the Mactan-Cebu International Airport. As a result, Cebu has become a preferred tourist location, according to Colliers.
“Some of the foreign visitors who initially stay in Cebu for short vacations eventually decide to retire to the city and its neighboring areas due to the comforts of an urban landscape balanced with natural attractions. These foreign retirees contribute to higher occupancies in Cebu’s prime residential condominium units,” the firm said.
The surge in luxury properties in Cebu has prompted local and national developers to develop luxury projects across Metro Cebu.
For instance, businessman Dennis A. Uy’s Udenna Corp. has recently obtained a provisional license from the Philippine Amusement and Gaming Corp to develop a $300-million integrated gaming resort, Lapu-Lapu Leisure Mactan. Once completed, the project will become the first gaming resort outside Metro Manila. The development is set to house luxury condominium units as well.
The construction of public infrastructure projects, such as the proposed light rail transit, Bus Rapid Transit, Metro Cebu Expressway, Cebu subway, Cebu-Cordova bridge, and Terminal 2 of the Mactan-Cebu International Airport should “further unlock opportunities for residential developments in Metro Cebu,” according to Colliers.
