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Cebu property market?


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Ozepete

How is the property market holding during this Covid19 crisis?  There may be interest in knowing what movements there are specially for those new to LinC or Cebu as much was previously considered overpriced . And has anyone started a real estate business that functions normally with proper listings rather had a string of opportunists playing games? :scratch_head:

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And ability to pay your mortgage which any house over 3 million most likely has no mortgage maybe prices will drop in the 1 to 4 million range  i have not asked everyone but out of the 30 home owners

Lots of optimism here but none of us has ever been through anything like the sort of economic damage this virus is causing worldwide and its only going to get worse. To sell anything requires a buyer

These are odd times. We haven't had a pandemic since 1918. As a real estate investor I can assure you that " odd"  doesn't necessarily mean " bad".    Don't reject a screaming hot deal just becau

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smokey

I keep looking to arizona expecting a drop but dont see it guess if virus.lasted years with unemployment we could see that but a few months the virus seems to be a flash downturn as it takes a good year to foreclose in us when that happens prices should drop . As to here this place is 85% no bank loan so even temp unemployment dont make for a sell off i think 

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smokey

How has the virus affected me personally finanically 000 as most foreigners live on pensions or savings if anything i have saved more ... As to realestate when your buying its overpriced and when selling its depressed only western countries who love 3% down home loans are worried if they lost their jobs

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govoner

I think Cebu condos are in for a price crash

How can they not be when the whole tourist economy is in lockdown . The air B&B  industry is finished for the forseeable future (long term renters negotiating rent reductions)  OFW remittances will dry up as they lose their jobs overseas. Foreigners running for the exits as the as they watch the flip flopping of the mayors and govoner, 

i think prices will be down at least 20% within a year to 18 months ( in line with most of the world)

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SkyMan

I saw an article that the housing market in Cebu was down 15%.  My guess is a lot of that fire sales of foreigners wanting to leave quick and some locals a bit desperate for cash.  I have no idea where they get the stats though as there really is no listing system here.  Perhaps from the BIR or something like that but how many sales have been going on in the last 2 months?  I kind of doubt it will last long after the lockdown.

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smokey

I think its pretty rare to have a big mortgage here so if your house is paid for it cost way less then renting my problem has always been the laws are too weak to be a landlord here if renting to a local i may be wrong maybe davao who has a track record of buying and selling can comment

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44 minutes ago, SkyMan said:

I saw an article that the housing market in Cebu was down 15%. 

I think the article said "are likely to decline by up to 15 per cent after", it is like predicting any future  market, stocks, real and nominal assets...who knows. Cebu property prices are still comparatively cheap to other developing countries and as said before it is not leveraged like in the US, so it is unlikely that it will come to the same scenario like in 1997 (as we have seen in the last financial crisis in 2007-2009 the Philippines property market was unaffected, while in the US it really "crashed"). 

Comparing US to the Philippines property market  cannot be made easily (or should not be made), as there are different (financial and other) structures. 

https://www.scmp.com/business/article/3083940/falling-ofw-remittances-rising-unemployment-push-down-property-prices?fbclid=IwAR1sMr20ziD8SVLomiRh26XNNsJ4PtONrERiEpKQtatCUsTAiGJdfI4k-Q0

 

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smokey
4 hours ago, govoner said:

I think Cebu condos are in for a price crash

How can they not be when the whole tourist economy is in lockdown . The air B&B  industry is finished for the forseeable future (long term renters negotiating rent reductions)  OFW remittances will dry up as they lose their jobs overseas. Foreigners running for the exits as the as they watch the flip flopping of the mayors and govoner, 

i think prices will be down at least 20% within a year to 18 months ( in line with most of the world)

Well in condos you could be right at 160.000 a sq meter and lots of fees they should come down some as for houses at 32.000 a square meter thats about replacement cost .. I have rented condo units in manila and for me i would need about 100 sq meters and in condo prices that would be 4 times over a house same space

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1 minute ago, smokey said:

Well in condos you could be right at 160.000 a sq meter and lots of fees

I think specially these condos will not come down in price, more likely condos over 15 years old, as there depreciation is faster as prices acceleration, specially in the low to mid priced condos  (this can easily be compared with the new condos coming on to the market).

For top end condos 160k/sqm is the norm and will be difficult to get one already (not that I would buy....)

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smokey

Just saw a vlog on angeles city real estate there should be good deal with bars closed now that has to kill the hotel condo buisness

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1 hour ago, smokey said:

Just saw a vlog on angeles city real estate there should be good deal with bars closed now that has to kill the hotel condo buisness

Good point. I think commercial properties will be under pressure, as well because of home office etc....Maybe in the Philippines a little bit different.

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Kabisay-an gid

Cebu Landmasters Sees Strong First Half Sales As Lockdown Doesn’t Weaken Demand

https://www.dotproperty.com.ph/blog/cebu-landmasters-sees-strong-first-half-sales-lockdown-doesnt-weaken-demand

July 20, 2020

The lockdown brought on by COVID-19 wasn’t enough to dampen property demand in Cebu. Property developer Cebu Landmasters recorded a 20 percent increase in housing sales during the first half of 2020 when compared to the same period last year. The homebuilder sold PHP6.2 billion worth of residential units between January and June.

“Our projects have maintained high sales velocity indicating strong demand for houses in Visayas and Mindanao particularly now that owning a home has become a priority,” Cebu Landmasters Chief Executive Officer Jose Soberano told The Star Online. “The pandemic is making buyers realize the necessity to live in safe and secure communities. It serves as an added push for families to buy their much-needed home, and they see that Cebu Landmasters housing brands fulfill their requirements particularly our economic and mid-income communities.”

Despite a lockdown preventing the public from traveling or visiting showrooms between April and June, the firm still managed to sell more than 1,500 properties in the affordable and mid-market segments during these three months.

In order to help accommodate buyers during the lockdown, Cebu Landmasters improved its digital capabilities that ensured it could keep up with demand. The developer digitized the transaction process to make buying possible even if buyers couldn’t meet them in person.

“Even prior to the lockdown, we had already foreseen the need to go digital. Early on, we took the necessary measures to make the buying transaction accessible and convenient to our sellers and buyers online – from the selection of properties up to the payment of reservation fees and down payments,” Cebu Landmasters Vice President for Sales Rose Yulo said.

Cebu Landmasters believes there was a reason buyers were active during the lockdown, even if logic dictates sales would normally slow down during a time like this.

“We can see buyers now putting even higher priority in owning a home. Perhaps this is their way of securely dealing with the many uncertainties and investing in housing is as stable as it is necessary,” Soberano noted.

 

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Rocketman
On 5/17/2020 at 4:12 PM, govoner said:

I think Cebu condos are in for a price crash

How can they not be when the whole tourist economy is in lockdown . The air B&B  industry is finished for the forseeable future (long term renters negotiating rent reductions)  OFW remittances will dry up as they lose their jobs overseas. Foreigners running for the exits as the as they watch the flip flopping of the mayors and govoner, 

i think prices will be down at least 20% within a year to 18 months ( in line with most of the world)

I've been thinking the same thing for 14 years, but the condo market just doesn't seem to drop.  So many condos and so many more being built.  I live in a condo I rent, but will buy now, due to changes in my investment choices.  There are 4 towers and I would guess 50% are empty.  Prices haven't really gone up since they were built 14 years ago.  

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Ozepete

The market value of anything is directly related to market demand and that demand is contingent upon the purchasers ability to pay. This Covit19 crisis is going to reduce incomes dramatically and therefore restrict the purchasing power. Prices of real state everywhere will plummet except for those who can afford to hold on for many years.  If you're not selling it doesn't matter but good news for buyers specially early next year unless a vaccine is available very soon and that's not likely

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