March 01, 2013

Last Properties Middle-Income Earners Can Afford in Metro Cebu, Find Out Why

To those who are looking for the most affordable house and lot and condominium investment package in Metro Cebu with net disposable income that falls between Php 25,000 and under, feel free to browse the properties I prepared that are below 1.5 million. 

Apparently, you have to be at least in the low middle-income earner to afford a 1.5 million property - or at least get approved of by bank financing or Pag-ibig / HDMF for a housing loan. 

According to Philippine Institute for Development Studies indicative report in 2012 that you have to earn between 15,780 to 31,560 per month with a family of 5 to belong in the lower middle income.

buying a property in the Philippines and your income
This data is added by CHLL in 2020. Source: PIDS.gov.ph



Most of you would choose to live in Cebu City or somewhere closer like in Mandaue City perhaps. You may already notice by now that Cebu City and Mandaue City are not included in my list of house and lot package that are under the 1.5 million price bracket. 

Unfortunately we can no longer find properties with this price and level of affordability in Cebu City, Talisay City and Mandaue City. In my years of tracking developments in Cebu,  developers stopped producing properties that fall under 1.5 million pesos 5 years ago (2008); and in Mandaue City, roughly 3 years ago (2010). Talisay City got out of this bracket range almost a couple of years ago. 


For the complete details of the table above, you may open the spreadsheet version here.

Metro Cebu is a bustling and growing cosmopolitan area. Compared to Metro Manila's nearby towns like Laguna or Bulacan, those who wanted to afford a home had no other choice but to reside in these areas despite knowing the compromise of traveling for 2-3 hours to get to work. 

These new home buyers had to travel more or less 40 kilometers to Metro Manila, and we're not even talking about the extent of traffic in going there yet. Whereas in Cebu City, getting to Liloan is just 20 kilometers away and traffic is not as bad as it is in Manila, at least for now.

As cliche as this may sound, today is always the best time to invest. Do not wait until you can't afford anymore. Metro Cebu is getting more progressive. Progress has expanded to the outer towns especially in Mactan area. 

With The Mactan Newtown's promising influx of jobs and opportunities, developers will be very conservative with the use of their land, making sure every cost per square meter returns the best profit. This forward-looking approach to land development is apparent in the upcoming condominium projects in Mactan by top developers in the country; namely Megaworld and Taft Properties. Newcomers in condominium development are also building condominiums in the area like Saekyung Realty and Tambuli's TyTans.

Another thing that future home buyers have to be concerned about is the implementation of the National Land Use Act. When this will be implemented, there will be a limited supply of land available for residential purposes. National Land Use Act will prevent the conversion of agricultural land to non-agricultural purposes; or any land not classified for their purpose.

If there was National Land Use Act decades ago, Laguna and Bulacan or the other outlying cities will not become the residential enclaves that they are today. My projection is that Liloan will be the bottleneck of residential settlement in Metro Cebu North, and Minglanilla in Metro Cebu South.  Once this will happen, development will continue to spread towards Compostela and Danao in the North; and San Fernando and Carcar in the South as long as these areas have enough lands classified for residential use as the National Land Use Act allows for dwelling purposes. If the purchasing power and purchasing rate exceeds the rate of developments, I doubt that there will be enough land, unless land owners will start converting the classification of their lands now before National Land Use Act will take effect.


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