Despite the recent wave of negative events affecting the entire country, Cebu continues to rake in more large-scale investments from the nation’s leading conglomerates, most of which were firmly in place way before the Bohol and Marawi incidents took place.
Leading the way is Megaworld Corporation, which has earmarked over PhP30 billion for the next five to seven years to develop more residential condos, office towers, and three hotels at Mactan Newtown.
Ayala Land Inc. has allotted PhP8 billion for their mixed-use development at the Cebu IT Park. Dubbed “Central Bloc,” the development will include office towers, a Seda Hotel, and a new Ayala Mall.
Filinvest Land, Inc. will be spending PhP5 billion for the new Filinvest Cebu Cyberzone. Located beside the Cebu IT Park, the first office tower is already completed, while three more buildings are due to rise in the next five years.
Robinson’s Land Corporation has added 9,000 square meters of office space to its Robinson’s Galleria Cebu development. Aside from the mall, the company recently held its soft opening of the Summit Galleria Hotel last June.
According to Claro DG Cordero Jr., Head of Research, Consulting & Valuation of the Jones Lang LaSalle Phil., there are approximately 26,000 condo units completed for the first quarter of 2017.
Around 10,400 units are expected to be added in Metro Cebu until 2020. Majority of the units are primarily geared for the mid-end market.
Cordero named Ayala Land Inc. (10 percent), Robinson’s Land Corp.(9), and local developer Primary Homes Inc. (6) as the leading developers in Cebu for the past 20 years.
In terms of existing and future shopping mall gross floor area in Metro Cebu for the past 20 years, SM leads the way with a whopping 47 percent of developer share of existing supply. Leading the way are SM City Cebu, SM Consolacion, and the newly opened SM Seaside City.
“Regarding key real estate and investment trends in 2017, the uncertainty leading to portfolio optimization may lead to rise of ‘build-to-suit’ projects and corporate occupiers rationalizing respective space strategies,” Cordero stated.
On experiential real estate, the speaker foresees marketing innovations such as virtual reality marketing and hands-on authentic experience to marry traditional with e-commerce.
When it comes to automation and digital disruption, Cordero foresees technological evolution impacting real estate demand through digital mobility services impact on city planning and growth of sharing economy/culture.
Cordero was one of the speakers during the Cebu Annual Economic Briefing and Investment Forum hosted by the Cebu Business Club and Mega Cebu held at the City Sports Club.
By RICHARD RAMOS