KMC Savills is pleased to present the latest Office Briefing for 4Q 2018
. The report provides current data on rental rates, vacancies, and supply pipeline in Cebu's central business districts and submarkets for the previous quarter.
Key Highlights:
- The improvement in Cebu's office vacancy rate was short-lived as it reversed back to 6.0% in 4Q/2018 compared to 5.5% last 3Q/2018. The pullback was primarily caused by the significant rise of vacancies in Cebu IT Park, pegged at 7.6%. On the other hand, conditions in the Cebu Fringe continued to recover as the vacancy rate slid to 9.8%, while Cebu Business Park was still very tight at 1.6%.
- Average rental growth picked up as it grew by 3.7% YoY to PHP 567.2 per sq m / month. This was supported by the reversal of Cebu Fringe's negative rental growth last quarter at 0.6% YoY to 2.3% YoY in 4Q/2018.
- With the large influx of office stock coming in for 2019, vacancies are expected to increase despite robust occupier demand in Cebu Business Park and Cebu IT Park. However, the improving market conditions in Cebu Fringe should be able to mitigate this impact. Overall rents are expected to rise continuously albeit at a slower rate.
Written by
Fred Rara
Senior Research Manager
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- Cebu
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