REAL ESATE LAWS AND REFERENCES 4.1

Real estate boom in Cebu to take peak in 2011

CEBU, Philippines – As big and small developers started to pour in their investments in 2010 to dramatically change Cebu’s real estate landscape, the year 2011 ushers in a new dimension of the industry’s boom.

The renewed confidence of investors and market for the Philippine economy in general will benefit the entire real estate industry, especially in Cebu—the new second-home attraction for both local and foreign markets, said Philippine Allied Chamber of Real estate Brokers and Licensed Salesmen (PhilACRE) president Anthony Leuterio.

“The year 2011 will be the most exciting year real estate sector in recent years. A golden rabbit is a great sign for all of us. The influx of tourists and with the renewed confidence brought about by the new government will make the Philippines, especially Cebu more attractive for real estate buyers all over the world,” said Leuterio.

Aside from condominiums, which fuels the growth of the real estate sector in Cebu, Leuterio said increasing demand for middle-range and economic housing projects is projected to strengthen, and that OFWs are the main target market for this segment.

Although, there is also a good market outlook for high-end and sophisticated retirement residential projects, Leuterio said this particular segment only accounts for minimal percentage of the entire real estate growth for 2011.

Multi-billion pesos real estate projects will be started in Cebu this year, a combination of commercial and residential developments.

In 2010, Cebu gained the attention of the country’s top developers, where billions of pesos had been allocated to change the landscape of the Queen City of the South—making it a truly world-class urban center.

Established developers such as SM Prime, Filinvest, Ayala Land Inc., Aboitiz Land Inc., and among others are just few of the dozens of real estate capitalists that in the Philippines that officially announced their serious investments in Cebu in the real estate sector.

With limited availability of land in the island Province, developers have opted to build high-rise buildings for condominiums, commercial and BPO facilities, shopping malls, hotels, and re-creation centers.

The most awaited development which was announced in the middle of this year, is the conversion of the 30-hectare lot at the South Road Properties (SRP) for a mixed-used development of the SM Prime Holdings, which include the establishment of one of the world’s largest malls in Cebu.

Hans Sy, SM Prime Holdings president said that the company will spend at least P20 billion of the development of the SRP lot in the next few years, of which planning and construction activities started in the latter part of this year.

According to Sy, Cebu’s well-managed economy is one of the reasons why the company has put its moneyhere.

“We are confident of how the whole Cebu is being managed. We are going to duplicate in Cebu what we’ve done in Manila,” he said.

Gotianun-led Filinvest Land Inc. (FLI) started its P25 billion project also at SRP in 2010, with the introduction of Citta di Mare or “City by the Sea,” a project, in partnership with the Cebu City government.

FLI’s Citta di Mare is a master-planned community that intensifies the attraction-wealth of Cebu—the resort living.

Aside from the 12 thousand to 15 thousand condominium units that will be constructed, the development will also construct integrated facilities, such as commercial, waterfront lifestyle strip, and a residential cluster, among others.

CIPC managing director Joel Mari S. Yu earlier announced that CIPC and the real estate and tourism sectors in Cebu will together formulate a roadmap in making Cebu as an International “Second Home Destination” not only in the world.

Selling condominiums to foreign national buyers, is the easiest way as it does not restrict them from owning one. Owning a land property on the other hand, requires foreigners to have a legal linkage with a Filipino partner, in most cases (for residential purposes)—a Filipina wife.

In June of this year, Ayala Corporation chairman and chief executive officer (CEO) Jaime Augusto Zobel de Ayala expressed his confidence of Cebu’s real estate sector, saying country’s giant conglomerate will advance its presence Cebu’s real estate landscape, disclosing interest to buy more lands in the province.

Zobel said that the company’s interest through its various subsidiaries in real estate development group led by ALI will be magnified here.

AboitizLand Inc. on the other hand, announced to launch at least two to three projects by 2011, mostly are into residential and commercial condominium facilities.

Newly established real estate company, Innoland Development Corporation recently announced its P1 billion investments for the “The Calyx Center”, a 26-story building will offer over 200 residential and commercial condominium units that will target the growing mobile professionals and technology workers in Cebu.

Robinsons Land Corporation also will complete its latest project ahead of schedule its first tower in the AmiSa Private Residences, the residential component of AmiSa, its master-planned five-star leisure resort community in Punta Engano, Mactan, Cebu.

The property development arm of the J. King and Son Inc., Fuente Triangle Realty Development is also currently building more condominium properties in Metro Cebu, including its condo-tel projects around the country.

Aside from these developers, there are also a growing number of new entrants in the real estate sector in Cebu, taking advantage of the booming real estate business here.

New entrant Cebu Green Peaks Development Inc., recently launched the all -residential garden high-rise condominium project located on Molave Street in Lahug, this City. The project will provide a total of 165 units of one-bedroom, two-bedroom, and garden villas and suites.

Other real estate developers are also scouting good locations for countryside residential developments, to re-enforce Cebu’s positioning as a retirement and second home destination in the world.

This active momentum of real estate investors to change the landscape of Cebu into a world-class metropolis, has given real estate sellers and brokers opportunity to expect 2011 as a “wealth” generator year, added Leuterio, who also owns the Leuterio Realty company in Cebu.

Economists said that the low interest rates have made it more attractive for people to buy real estate properties, while banks have also expanding their loan offerings especially to residential property buyers.(FREEMAN)