Cebu condos still viable investments, but location now critical

CEBU CITY, Philippines  — Buying a condominium unit in Cebu can still be a worthwhile investment, but investors can no longer expect the easy gains that characterized the market in previous years.

Cebu’s condominium sector remains attractive, particularly in established business districts, but market conditions have shifted as supply continues to expand and buyers become more selective, economist Fernando “Perry” Fajardo said.

“A lot of people still think condos automatically mean guaranteed appreciation and passive income…But today, the story is more nuanced.,” Fajardo said.

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The economist emphasized that the question facing buyers today would no longer be whether condominiums would be generally safe investments but whether a specific project would be positioned to maintain demand over the long term.

Location still king

While condo investments delivered significant returns during periods when demand outpaced supply, the market has become more complex in 2026.

According to Fajardo, Cebu’s condominium landscape is now divided into distinct segments, with prime locations continuing to outperform projects in less established areas.

Units located in and around major commercial hubs such as the Cebu IT Park, Ayala Business Park, and Lahug remain relatively stable due to sustained demand from business process outsourcing (BPO) employees, young professionals, and students.

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These areas continue to benefit from healthy rental activity, reasonable occupancy rates, and relatively better liquidity for owners looking to sell their properties, he pointed out.

“The demand is still there in these locations… Rent still moves, occupancy is decent, and liquidity is okay,” Fajardo added.

However, the outlook becomes less favorable outside these prime districts.

Some areas, he warned, are beginning to experience signs of oversupply, characterized by a growing number of similar units competing for tenants and buyers.

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As a result, property owners may face longer vacancy periods and extended waiting times when attempting to resell their units.

“This is where the risks begin to emerge,” he said.

Occupation

For buyers intending to occupy their units, particularly in strategically located developments, condominium purchases remain a reasonable option.

However, those entering the market solely in anticipation of rapid capital appreciation may need to temper their expectations.

“Pure investment hoping for quick gains is much more uncertain now,” Fajardo said.

READ: Analysts: New SEC rules to make condotels pricierHe also pointed to the increasing number of promotional offers and extended payment schemes being offered by developers as another indication that the market was adjusting to higher inventory levels.

Despite these challenges, Fajardo stressed that condominiums remained a legitimate asset class for investors willing to take a more selective and long-term approach.

“Cebu condos aren’t a bad asset… But they’re no longer automatic winners.”

As the market evolves, he said buyers should place greater emphasis on location, demand drivers, and a property’s ability to remain relevant over the next five to 10 years.

“If anything, the real question today isn’t ‘Should I buy a condo?’ but ‘Can this specific condo still hold demand five or 10 years from now?'”

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