The property boom driven by a growing business process outsourcing (BPO) sector in the Central South of the Philippines City of Cebu is expected to continue this year, with the accelerated buildup at the twin business districts of Cebu Business Park and Asiatown IT Park.
Ayala Land, Inc. and its local units, affiliate Cebu Holdings, Inc. and its subsidiary Cebu Property Ventures and Development Corp. (CPVDC), will pour in P5 billion worth of property projects at the two business districts this year to accelerate construction activities there and meet the growing office and residential needs of the BPO sector.
At the 50-hectare Cebu Business Park, now the largest IT business park in the country following its accreditation last year with the Philippine Economic Zone Authority as an economic zone, three more vertical projects are seen to start this year, said Francis O. Monera, president of Cebu Holdings, which developed the business park.
"Three [development] plans have been submitted to us for review. The accelerated efforts of landowners are in response to the declaration of Cebu Business Park as an IT zone," Mr. Monera said, without identifying the landowners.
Five projects are under way, including the expansion of the Ayala Center Cebu mall that will add 36,000 square meters of leasable space as well as new BPO and residential developments that will add 43,000 square meters of gross floor area.
"We will also be pursuing more projects which will address the continuing demand for office spaces for the BPO industry in this area," Mr. Monera told Cebu Holdings stockholders on Friday last week.
At the 23-hectare Asiatown IT Park, Mr. Monera said more vertical residential projects are projected to be undertaken with the development of a two-hectare expansion area into a residential hub.
Asiatown developer Cebu Property Ventures, through special purpose vehicle Asian I-Office Properties, Inc., is about to complete the 16-level eBloc Tower 2 that will add 26,500 square meters of leasable space there. Another ongoing project at the cyberpark is the Avida Towers Cebu, with a total of 100 residential units.
"With the brisk take-up of Avida, more residential units will be offered to complete the live-work-play lifestyle within Asiatown. CPVDC is also eyeing to expand the retail component to accommodate the changing needs of its growing population," Mr. Monera, who is also the president of Cebu Property Ventures, added.
Antonino T. Aquino, Ayala Land president, said the growing work force, especially in the BPO sector, at the two business districts has paved for the accelerated buildup in the two areas. "The largest concentration of workers in Cebu now is in Cebu Business Park and Asiatown," he said.
Asiatown alone employs about 20,000 workers. Together, Cebu Business Park and Asiatown host 76% of the BPO locators in Cebu.
The buildup at the two districts last year brought an additional 144,680 square meters of gross leasable area for the BPO and IT sectors as well as 122,712 square meters of gross floor area for condominium developments, the Cebu Holdings annual report showed.
The construction surge in the two areas has also paved the way for developments in their vicinities. A total of 15 hotels with some 2,566 rooms, or 14% of Cebu’s hotel room supply, as well as six condominiums are being built near the two districts, the report added.
A surge in condominium projects has been noted in Cebu since last year. Over 20 projects, including a 55-storey residential tower, are seen to rise in the next three to five years, Housing and Land Use Regulatory Board regional director Roy T. Lopez said. As of February, 19 have been issued licenses to sell while five projects had pending applications for preliminary approval and locational clearance, he added.
