The real estate market in Cebu is poised for growth in the coming years as limited land supply in the city drives up property prices, said industry expert Ric Inting, Chairman & President of Land Asia Realty.
Cebu, the second largest city in the Philippines, has only 7% flat land, with the remaining 93% being mountainous terrain. This geographic constraint has concentrated development in the city center, causing land and property prices to steadily rise.
“If you try to look at Cebu, it’s only 7% of flat land. 93% are mountainous. Most of the investors are looking for flat land which is the center. So what will happen? The price will go up,” Inting told reporters.
This supply-demand dynamic is expected to continue benefiting real estate developers in Cebu, especially with major upcoming projects at the South Road Properties (SRP).
However, Inting cautioned that developers need to carefully target the right market segments to avoid oversupply and foreclosures, particularly when it comes to the overseas Filipino worker (OFW) market.
He noted that some developers have been marketing high-end properties priced between P5 million to P20 million pesos (around $90,000 to $360,000) to OFWs, but these buyers cannot afford the monthly mortgage payments of P60,000 to P80,000 pesos ($1,100 to $1,450) when their monthly incomes are only P50,000 to P100,000 pesos ($900 to $1,800).
“If you sell the project to the OFW, the OFW cannot afford to buy because if they buy P8 million, the monthly mortgage is about P60,000 to P80,000 per month. What happens is the mortgage will be foreclosed because of misrepresentation,” Inting said.
Calls for stricter regulation
Even as the real estate market of the country remains robust, Inting said stricter regulation is needed to curb unlicensed brokers and protect buyers.
He pointed out that the lack of enforcement of the Real Estate Service Act (RESA) has led to widespread violations, such as misleading advertisements and unauthorized sales on social media platforms.
“Many individuals advertise and sell new properties on Facebook even without a license to sell. There’s no monitoring, and no one has been penalized in the Philippines yet,” Inting said.
Inting stressed that only licensed brokers should be allowed to handle transactions to avoid misrepresentation and ensure transparency.
“Real estate in the Philippines is very hot, but brokers should be both qualified and held liable for their actions. We need stricter enforcement to maintain the integrity of the market,” he said.
Expansion plans
Land Asia Realty, which operates offices in Bacolod, Dumaguete, Ormoc, Butuan, Cagayan de Oro, and Davao, is set to expand to Batangas and Pampanga this year to tap into growing markets outside Metro Manila and Cebu.
Inting, a licensed broker in the United States since 2002, emphasized the importance of professionalism and global standards in real estate practices.
“We want to bring the same level of professionalism to the Philippines. Our main office in Las Vegas and branches in cities like San Diego, San Francisco, and Sydney allow us to connect Filipino buyers with quality properties,” he said.
With nearly 35 years of experience in the real estate industry, Inting is a licensed Real Estate Broker in both the Philippines and the USA. He also holds licenses as a Real Estate Consultant, Appraiser, and Environmental Planner.
Recognized in Who’s Who in International Real Estate, Inting has been a Certified International Property Specialist (CIPS) designee with the National Association of Realtors (NAR-USA) since 2005.
Business News Asia