Property sector in progressive cities on the upswing

Thanks to a booming economy, the real estate sector of several progressive cities outside Metro Manila are on a roll, growing remarkably well over the last few years and expected to continue in the next decade or so.

More and more property developers are answering the growing demand for residential and commercial properties in Cebu, Cavite, Davao, Iloilo, Bacolod and Pampanga, leading the development boom in the country.

The growing interest from local and foreign investors, as bolstered by the national government’s robust infrastructure projects in these provincial cities, attracted a surge in interest among property buyers from here and abroad.

From 2017 to 2018, Pampanga registered a whopping 873-percent increase in leads on the Lamudi platform. During the same time frame, Cavite witnessed a 298-percent increase in leads, Davao raked in 69 percent, while Cebu and Iloilo also increased by 274 and 214 percent, respectively. Page views among properties in Bacolod likewise spiked by 38 percent.

In conjunction with this impressive upward trend in demand, the property supply in these cities followed suit. Based on Lamudi listings from 2017 to 2018, Davao enjoyed a 102-percent increase in listings while Pampanga saw a 202-percent spike. Likewise, Cavite’s listings spiked by 188 percent. Cebu-based listings increased by 27 percent while Iloilo grew by 29 percent. Bacolod, however, had more property searches than the available supply during the time period, where apartment and land searches were seven percent and 12 percent higher than the supply, respectively. This could mean that there is a well of opportunity for property developers in the city to answer the growing demand that is yet to be addressed.

Bhavna Suresh, CEO of Lamudi, moderated the media roundtable discussion. The panelists were Joey Bondoc, senior research manager of Colliers International Philippines; Charles Ong, COO of Innoland Development Corporation; Fernando Camus, senior consultant of Berthaphil, Inc.; Emmanuel Rapadas, CFO of Torre Lorenzo Development Corporation; and Richard Tay, business unit head of Property Company of Friends, Inc.

Page visits, which likewise signify interest among property buyers, also increased. From 2017 to 2018, Pampanga, Cebu, and Bacolod grew by 65 percent, 23 percent, and 38 percent respectively.

Iloilo, on the other hand, rose by 22 percent from the first quarter of 2018 to the first quarter of 2019.

Davao, despite being one of the country’s most competitive cities and investment hubs, remains affordable for prospective investors and home seekers. The average price of a condo property in the city is P4,622,195, where the average price per sqm. is tagged at P 100,377.

Meanwhile, Cavite’s residential sector also maintains its relative affordability, with an average price of Php 6,372,632 for houses. The average price per square meter is Php 50,576.

The most searched-for areas in Davao are Buhangin and Sasa, followed by Barangay 19-B, Ma-A, Talomo, Barangay 20-B, Bucana, Barangay 34-D, Matina Crossing and Matina Aplaya. 

In Cebu, it was for properties in Cebu City, followed by Lapu-Lapu, Mandaue, Talisay, Consolacion, Minglanilla and Liloan.

Bacoor, Dasmariñas, Tagaytay, General Trias, and Imus were the most searched cities in Cavite.

The towns of Pavia, Jaro, Oton, Guimbal and Mandurriao generated the most interest in Iloilo. In Pampanga, Angeles, San Fernando, Mabalacat, Arayat, Mexico, Bacolor, and Magalang. For Bacolod, the towns of Alijis, Estefania, Mansilingan, and Tangub drew the most interest.

Majority of these property seekers are interested in house and lots, although there’s also a growing interest for residential condo units. The majority also prefer to buy these types of properties compared to those who want to rent them. In Iloilo, for instance, the page views for houses were close to 62 percent among property seekers, about 52 percent when it comes to sessions, and 59 percent for leads generated, based on Lamudi’s data. The same is true for Cavite, where about 64 percent of the leads came from house searches.

The preference for house and lots, as well as lands, in these provincial cities, show that the prices of these property types are still relatively more affordable compared to Metro Manila.

With the property sector of these thriving provincial cities on the upswing, expect their economic landscape to evolve and benefit nearby towns and municipalities as well.

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