CEBU CITY, Philippines - After a surge of residential subdivisions built in 2005 and 2006, the trend moved towards condominiums and office space in 2007. Few new subdivisions were opened last year compared to previous years.
More condominiums and office buildings were launched instead. This trend is not because of the lack of interest to develop residential subdivisions but because of the dwindling supply of raw land in Cebu City and areas near the metropolis.
To some analysts, the driving force for the real estate industry this year will be commercial and office space, led by the high demand among business process outsourcing (BPO) firms.
Old business district
Rents in establishments in the old business district of Colon are cheaper and more affordable.
However, fewer people have been frequenting the place. Perhaps because of dwindling business there, maintenance has been neglected. Few units are being developed or upgraded. Unlike a decade ago, more and more empty spaces can be seen in the downtown area driving rental prices there to below P300 per square meter. There are spaces for rent at the ground floor of buildings at only P187 per square meter.
Mandaue
Mandaue has generally been an industrial city with many companies based there. Lately, more companies have been established there. and more commercial establishments there as an offshoot of the development of Cebu City. Many restaurants, bars, and office spaces have been flourishing in the A.S. Fortuna area.
Along the stretch of A.S. Fortuna, one can find places ideal for offices or shops at less than P500 per square meter. Units which are off the main road can go as low as P250 per square meter or less. Warehouses in Mandaue are generally below P100 per square meter.
Schools
Near schools where snack bars, carenderias, and restaurants flourish, small spaces are available for as low as P200 per square meter. These areas include P. Del Rosario or Junquera Streets as well as streets around Southwestern University in Cebu City. Space for rent is sometimes subleased to small carts and other peddlers. Most businesses here are in the informal sector.
Business process outsourcing
Lack of space and high rent prices in Manila have driven many BPOs to look elsewhere such as Cebu. In recent years, we have witnessed how these big companies struggled to look for space until they decided to build the buildings themselves.
As of August 2007, www.colliers.com reported that there was an estimated 80,000 square meters of space used by around 17 BPO companies in Cebu. The average rate is P313 per square meter, against P1,018 per square meter in Metro Manila. At the IT Park, the average rate is P413 per square meter while the Cebu Business Park averages P413 per square meter rental.
Colliers reports office vacancy in Cebu City averages 7.4 percent. It further says that ?Asiatown IT Park had the lowest vacancy of less than 1 percent due to increasing demand from the BPO industry. The Cebu Business Park was nearing 7 percent while the downtown area was recorded at 16.4 percent.? The IT park may have a lower vacancy rate because it is an economic zone and offers incentives for its locators.
Offices
Colliers estimates Cebu's available office space at 161,294 square meters and said that the amount of space has been growing at a compound rate of 10 percent per year since 1990. However, only 36 percent are considered Grade A, located in prime business districts. Colliers estimates that 102,812 square meters of office space will be added in the next year or so in Cebu City. Commercial value in these prime areas like the Cebu Business Park is around P29,000 per square meter.
globalnation.inquirer.net
Linggo, Pebrero 5, 2012
P3B set aside for 3 ventures
HOMEGROWN developer Cebu Landmasters Inc. is earmarking P3 billion for capital expenditures starting this year, for the development of three residential projects in Cebu under a joint venture with RDAK Transport Equipment Inc. (RDAKLAND) Cebu Landmasters Inc. president and chief executive officer Jose Soberano III said the programmed capex will stretch until 2014. The company broke ground last Saturday on its first residential project, Midori Plains, in partnership with RDAKLAND.
The project, which sits on eight hectares in Tungkop, Minglanilla, will house an initial 387 residential units with prices ranging from P1.6 million to P3.2 million. Average lot area is 120 square meters. Midori in Japanese term means “green.” Soberano described the project as an Asian-inspired, Zen-living development.
“The partnership of this project came in when I learned that RDAK and Cebu Landmasters are both eyeing the same property in Minglanilla. So we decided to work on the project together rather than compete with each other,” Soberano said, adding that this project is RDAK’s first venture in Cebu’s thriving real estate industry.
Branching out
RDAK’s core business is in the transportation and heavy equipment industry, which includes manufacturing and selling of several types of heavy, light and medium transport vehicles. Ricarido Delfin Abellana King, founder and owner of RDAK Transport Equipment Inc., said their venture into property development signifies their optimism and confidence in Cebu’s real estate industry. The two companies will pour in P500 million to develop Midori Plains, which will have nine house designs intended for the middle-class market. The firm also allotted some 50 lot-only units.
Midori Plains land development is expected to be completed within one year. Among the amenities are Club Chi, which features a swimming pool, open-air pool cabanas, function hall and entertainment rooms; and a gazebo. Aside from Midori Plains, Cebu Landmasters and RDAK are also set to develop two condominium buildings on A.S. Fortuna in Banilad and on Salinas Ext. in Cebu City.
According to Soberano, the A.S Fortuna project will have two 12-storey condominium buildings with 198 units each. This condo project is being pitched to the middle-class market, such as young professionals, with unit prices ranging from P1.3 million to P1.6 million. The Salinas project, on the other hand, will have seven mid-rise condominium buildings with a total of 1,200 condo units. This project is programmed for a three-year development.
According to Soberano, the low interest rate, strong domestic liquidity, huge housing backlog and strong inflows of remittances prompted them to be aggressive in building property projects in Cebu.
Familiarity
Cebu, he said, has always been a hub for work and education. He added local players like him are not threatened by the coming of big players in Cebu, as the province records a huge housing backlog. “They may have dominance in certain markets but local developers here have a good head start in the real estate environment because of our familiarity with local conditions,” he said. His company, for instance, is eyeing the middle market who can afford to acquire houses with prices ranging from P1.5 million to P3 million.
Cebu Landmasters’ first residential project is San Jose Maria Village in Balamban in 2003. Since then, he brought the brand to different areas such as Minglanilla in 2007, Toledo in 2009, and Talisay in 2010. The company made its first foray into vertical development with the 17-storey high-rise condominium project called Asia Premier Residences at the Cebu I.T. Park (formerly Asiatown I.T. Park). This was followed by the construction of the 18-storey residential condo the Baseline Residences along Juana Osmeña St. last year.
Soberano said there are more residential subdivisions being eyed by the firm in Tagbilaran, Cagayan de Oro, and Ilo-ilo cities, as part of their positioning to become a significant community developer in the Visayas and Mindanao.
Mag-subscribe sa:
Mga Post (Atom)