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Real Estate on Solid Ground (2015 Review)

NEW LANDMARK. Unvld n 2014 was th trutur n SM Sd City n the South Road Prrt. SM Development
Corp. rdnt Jffr Lm d th tl trutur represents th trngth nd tblt of Cbun. Vwd frm any
angle, th structure wll look th same, which h d a rfltn f the consistency f th SM Gru in trm of
ult and rv. (SUN.STAR FILE)

A FAVORABLE nm environment fueled th strong grwth f th rl tt industry lt


r. Fnnl nttutn hld lrt tht grwth with fvrbl offers t numr,
ndutr ffl d.
Dvlr d th sectors rfrmn rflt th und nm ndtn f Cbu,
where the rv sector like th Business Pr Outurng (BPO) nd tourism, overseas
Filipino wrkr (OFW) remittances, nd trng private numtn hv always been the top
contributors of th ndutr.
Cbu h continued t hw strong rgnl growth thrughut th r. Th favorable
economic nvrnmnt h had a tv effect on residential dmnd fr md t hgh-nd
gmnt, d Mgwrld Cbu Prrt In. rdnt Nl Hernandez.
Fnnng
Unlike in rvu r, hwvr, financing kg bm mr bl nd ntrt rates
mng fnnl institutions turnd out t b mr competitive and appealing t hmbur n
2014, rdng t Subdvn nd Hung Developers Atn In (SHDA) Cntrl
V president Alexander A Stt.

The vw w hrd b Cebu Bnkr Club president Gn Gnzl.


The Hm Dvlmnt Mutul Fund (Pg-bg) lowered t housing ln ntrt rt t 6.9
rnt compared to the rvu r 7.3 rnt.
Pg-bg business dvlmnt drtmnt manager R Teves rlr reported tht hung
loans n Pg-bg V exceeded by 114 rnt th P3.187-blln trgt. A of Nvmbr,
housing loans lrd rhd P3.633 billion.
Bnk, meanwhile, ffrd but the m rt Pagibig, rdng t Gonzales.
Mxmum hung loans fr Pgbg r nw at P6 mlln. Tv said this rnfrd th sales
in residential rjt.
A rrt frm the Ntnl Enm Dvlmnt Authority 7 Director Efren Carreon hwd
that there were 1,760 ntrutn rmt ud n th first hlf f th r, with mr than 80
rnt r 1,430 of th r fr rdntl buldng. Th ttl value was ld at P8.98 blln.
Ttl cost
Ardng t the numbr f License to Sell (LS) ud b th Hung nd Lnd U Rgultr
Board frm June to Dmbr th r, ttl project cost w ggd t P19.43 blln. Th
project cost f rdntl rjt tht wr rld with temporary LS w not nludd n
th valuation.
Frm June t December, thr were 36 LS ud, nludng th tht were awarded tmrr
LS. Of th, 20 r for subdivision rjt whl 16 are fr condominiums. This is uvlnt
t 818 hu nd 4,408 ndmnum unt n Cbu.
The industry is tll grwng mnftd b th ntnud trust level and confidence f bg
(ntnl and ll) lr n Cbu, said Cbu Rl Ett Board In. (Crb) rdnt Samuel
Lao. H said there tll a td dmnd for rdntl rrt nd finding th rght ltn
wll ntnu t become a hllng among rl tt players.
Calamities
In rt dun with developers, th ntd tht whl BPO, tourism, and OFW
rmttn remain t be th engine of Cbu rl estate industry, the twin lmt in 2013
reinforced th dmnd for residential projects, particularly n Cebu.

Developers ntd tht the last urtr f 2013 xhbtd a lwdwn n rl tt rjt,
attributing this t the 7.2-mgntud rthuk in Otbr nd ur thn Yolanda n
Nvmbr.

Prtl (it affected the ndutr), m bur dld putting in thr mn t observe
th mrkt, d Flnvt Lnd In (FLI) v rdnt fr trtg business lnnng fr
V nd Mindanao Alln Alfn.
However, in 2014, developers said th calamities have brught n mr people t Cbu. Grnd
Lnd Inc. rdnt Rn Brnrd G said people frm nghbrng provinces rfrrd t
rlt to Cbu, wth mlmnt rtunt and top dutnl nttutn present in th
r.
In ddtn, th ffl said th lmt hv l md Cbu mr knwn t ntrntnl
mrkt.
Fr Grnd Lnd rjt, Go d a gd number of t condominium bur r frgnr
who buy either for nvtmnt r for personal u.
I didnt rv n mlnt from n dvlr tht they hv been fftd. Atull, t
nrd our mrktnd developers hld b relaxing thr (ln) rurmnt, added
Stt, wh also 8990 D Hm v rdnt fr ntrutn nd ngnrng.
Better n 2014
Alfn d that n trm f l fr FLI, l grwth w bttr last r thn n 2013.
While th rl estate scene n Cbu is bullish, the government has lld n dvlr t
nr their rtfl f ffrdbl hung. Lopez d th hung backlog for 2014 now t
5.3 mlln. Th hghr thn last r fur million.
Eght rnt of th hung backlog m from ffrdbl housing, Lz said.
Under the lw (Republic At 7279), developers are required t allot 20 rnt of a hung
rjt ttl t fr th ntrutn f lzd hung units. Each lzd hung unit
huld hv a price of not more thn P450,000.
With the rt of lnd nwd n Cbu urbn areas, Lopez urgd dvlr to ndr
lzd mdum-r buldng (MRB) instead f th trdtnl hu and lt kg.
H said n developer in Lapu-Lapu Ct h started out the development f a socialized
ndmnum. The nm f th project nd the developer w not disclosed as f press tm.
B nxt year, w h t mr dvlr t dt this (lzd medium-rise buildings)
knd f mln, Lz said.
Dvlr, mnwhl, expressed optimism n the ndutr n 2015.
Ardng to nm trends, thr is n rn t xt a lwdwn. Cbu () th nd

mt vbrnt hotspot fr property nvtmnt n th untr, Hernandez said.


Brkr are l xtd wth th entry f ntnl players. Lao d SM nd Robinsons will
launch nxt r their residential rjt n Cebu whl DMCI, another ntnl lr,
already searching fr potential ltn fr ndmnum dvlmnt.
Exnn
Amd the aggressive xnn f ntnl players, L d hmgrwn rrt developers
tll continue t mt hd-n wth th bg nm n th industry.
Anthn Lutr, n of Cbu t brokers, l xrd tmm for th r hd but
xrd nrn lk scarcity f lnd nd the blt f kt xnn tht can fft
the industrys growth.
Big dvlr wll hv a hrd tm acquiring bg properties nd th wll be frd t d
kt (mll-l) rjt, Lutr said.
In ddtn, rblm like traffic and flooding, if nt ddrd rrl, wll fft nt nl rl
tt but Cebus entire nm well, said Cbu Bun Club president Dnd Jh, wh
l th lnnng committee hrmn f the Mg Cbu Dvlmnt and Crdntng
Brd (MCDCB). Jh stressed th nd for proper planning before ll th rblm tht come
wth rgr will worsen.
Also t fault
Althugh th government gets most f th blame, Joseph d the rvt sector l t fult
fr paying thr w t gt rund rgultr rurmnt nd vltng buldng d b
building vr wtrw nd nt providing enough tbk fr dwlk.
Wth the full ntgrtn f th Atn f Sutht An Nations, dvlr nd brokers
mttn gng tougher.
Go ndrd th as a tv ndtr f th industrys grwth.
Developers l d tht th ltn n 2016 wll nt stop thm from investing mr n Cebu.
Pr nr r l n nxt r, wth Lz rjtng a 15 t 20 percent hike.
B Jeandie O. Gll | Wednesday, Dmbr 31, 2014
Published in th Sun.Str Cbu newspaper on Jnur 01, 2015.

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