Cebu City eyes ban on condo showroom tricks that mislead buyers

CEBU CITY, Philippines — Property developers here may soon lose a common sales tactic that makes small condo units appear larger than they actually are.

A proposed ordinance set for public hearing on Tuesday, June 23, would prohibit developers from using custom-made, undersized, or unrealistic furniture in showrooms and model units if these distort a buyer’s perception of the actual living space.

Authored by Councilor Harold Kendrick Go, the measure seeks to regulate fully furnished and dressed-up showrooms used to market condos, subdivisions, townhouses, and other residential developments in Cebu City.

The proposal comes as Cebu’s condo market continues to expand rapidly, driven by urbanization and growing demand for vertical housing.

Tiny furniture, big impressions

At the center of the proposed ordinance lies a provision requiring “proportionate furniture display” in model units.

Under the measure, furniture used in showrooms must reflect realistic dimensions appropriate for the actual size of the unit and must not distort the available living space.

The ordinance would specifically prohibit developers, brokers, agents, and sales representatives from using furniture with “unrealistic or custom-reduced dimensions” that create a misleading impression of a unit’s size.

Such practices, according to the proposal, fall under “misleading practices” that may give prospective buyers a false impression of the actual layout, functionality, and livability of a property.

Consumer complaints over cramped units that appear significantly larger in showrooms have become increasingly common in the real estate sector, particularly in condo developments where space comes at a premium.

READ: Cebu condos still viable investments, but location now critical

Mandatory disclosures

Beyond regulating furniture displays, the ordinance would require developers to provide buyers with clearer information about what they are actually purchasing.

Developers would have to prominently display illustrations, photographs, or diagrams showing the exact turnover condition of a unit, both at the entrance and inside model units.

A disclosure board measuring at least two feet by three feet would also need to indicate the following:

The actual floor area and layout

Materials, finishes, and fixtures included upon turnover

Items and decorations displayed in the showroom but excluded from the purchase

Optional upgrades and their corresponding costs

The proposal also requires floor area labeling based on plans approved by the Department of Human Settlements and Urban Development (DHSUD).

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Stricter advertising rules

The ordinance likewise extends to brochures, advertisements, flyers, websites, and digital marketing materials.

Developers would have to clearly distinguish artists’ perspectives from actual turnover photos and include a disclaimer stating that furnishings and accessories displayed in promotional materials are not included in the standard turnover unit unless otherwise specified.

Marketing materials must also accurately reflect approved layouts, dimensions, and features.

At least one image or page must show the actual turnover condition of the unit.

READ: Condos as the heartbeat of modern township developments

Growing condo market in Cebu City

The proposal comes as condos continue to dominate Cebu’s residential market.

Data from real estate consultancy KMC Savills shows that condos now account for 63 percent of Cebu’s residential housing stock, overtaking subdivisions as the preferred housing format in Metro Cebu.

Analysts attribute the shift to rapid urbanization, rising land prices, and growing acceptance of vertical living among homebuyers.

With condo units becoming smaller and more expensive, consumer advocates have increasingly called for greater transparency in property marketing and sales practices.

Penalties

Developers found violating the proposed ordinance would face escalating penalties.

A first offense carries a ₱3,000 fine and mandatory compliance within 15 days.

A second offense would result in a ₱4,000 fine and suspension of showroom operations for up to 30 days.

Third and succeeding offenses could trigger a ₱5,000 fine, suspension of showroom operations for up to 60 days, and referral to the DHSUD for possible administrative sanctions.

The Cebu City Housing Board, Office of the Building Official, and DHSUD Regional Office would jointly enforce the ordinance through inspections and compliance checks.

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