Cebu City's Real Estate Market in 2023: An Overview of Prices, Trends, and Challenges
Cebu City's Real Estate Market in 2023: An Overview of Prices, Trends, and Challenges
As a practicing license broker, I have observed a significant shift in the real estate development trend in Cebu City. From 2022 to the first quarter of 2023, there has been a notable transition from horizontal to vertical housing projects due to the scarcity of big land for major residential development.
Developers are facing various challenges, and it's becoming increasingly rare to find large plots of land for residential development. Raw lots for residential development are now priced at 15k to 25k per sqm and are usually located in inner barangay roads. Some road right of ways are narrow, ranging from 3-6 meters only. As a result, many locations are far from the center of the city, and most require two rides to commute to the city proper.
In response to these challenges, developers have adopted different strategies. Some are focusing on pocket development, acquiring small lots and building several houses. Others are building walk-up type condominiums and low to high-rise condominiums due to the high cost of land acquisition. Middle to high-rise towers are also being developed for locations at the heart of the city, within a 3 km radius from Fuente Circle, Ayala Business Park, and IT Park Lahug.
The prices of houses and condominiums in Cebu City have also been affected by these changes. Townhouses are priced between 4M to 6M, while single attached or duplex houses range from 6M to 9M. Single detached houses are priced above 10M, while economic condominiums range between 130k to 160k per sqm. Middle-range condominiums now range between 160k to 230k per sqm. Luxury condominiums, on the other hand, range from 250k to 300k and above. Parking slot condominiums are priced at 1M or more.
These observations can be useful for aspiring developers who want to enter the Cebu City real estate market. By understanding the current trends and challenges, they can create strategies to overcome these challenges and succeed in their endeavors. If you have any questions or clarifications, please feel free to contact me at 09173236123 Realtor SAMUEL LAO REBL No 1368 of Samuel O Lao and Associates.
