CLI keen on Luzon expansion despite Metro Manila condo oversupply

FILE PHOTO: One of the residential developments of the Soberano family-led Cebu Landmasters Inc. (CLI) in Davao City.

Soberano family-led Cebu Landmasters Inc. (CLI) is still keen on pursuing its Luzon expansion despite the current inventory oversupply plaguing Metro Manila, saying that the market will likely “correct” in the next year and improve demand.

Jose Franco Soberano III, CEO of CLI, told reporters last week that they were looking at building a condominium project in the country’s capital region and a horizontal development in Cavite province, marking CLI’s expansion outside Visayas and Mindanao.

“The good thing with our timing is if we do acquire [properties] early next year, these are inventory that will be available in 2026,” Soberano said during a media briefing.

“We are expecting this Metro Manila oversupply to correct,” the CEO added.

READ: Leasing, hotels lift 9-mo CLI income to P2.3 billion

Real estate investment management firm Colliers Philippines has reported that in the third quarter of this year alone, Metro Manila had 27,200 unsold condominium units.

Of the total, 32 percent are in the lower-middle income segment; 25 percent, upper middle income; 24 percent, affordable; and 13 percent, economic.

Still, Soberano said they expected demand to improve in Metro Manila and that their core market could buoy growth.
“Our market, our demographics [are] just too strong and we will see that shining through with our emerging middle class and people entering the workforce,” the CEO added.

Most of CLI’s projects in Visayas and Mindanao cater to the middle income segment, especially as other developers entering Cebu are launching high-end properties. Its projects are 89-percent sold as of end-September, CLI said.

READ: CLI prepares P3.25 billion for expansion

Asked whether they were worried about Metro Manila-based companies migrating to the provinces, Soberano clarified that they welcomed competition.

“It gives our buyers more options and it allows us [local] developers to level up our game,” he said.

“However, this is really our turf. I would believe that CLI is able to move faster, price better and even be able to construct at better efficiencies,” Soberano added.

CLI, which made its stock market debut in 2017, has so far launched P8.2 billion worth of projects this year totaling 1,664 residential units in the mid-market and economic segments.

In the first nine months of the year, CLI’s earnings grew by seven percent to P2.3 billion due to a surge in leasing and hospitality revenues.