Support sectors growing

By Jose Santino S. Bunachita |May 04,2018 - 10:23 PM

The expected growth of the tourism industry with the opening of the Mactan Cebu International Airport Terminal 2 (top photo) has also prompted more property developments in Cebu, which in turn has benefited several other industries like retail and support sectors like food and even bathroom fixture businesses. CDN FILE PHOTO AND CDN PHOTO/LITO TECSOn

Other sectors continue to reap benefits of Cebu’s property boom

Other sectors and industries are also reaping the benefits of Cebu’s booming real estate and property sector.

With properties and lifestyle strips mushrooming left and right within the province, sub-sectors have been seeing possible expansions and increasing demands for their products.

According to property management and research firm Colliers International Philippines, there is a need for support businesses to provide more products and services to augment the number of condominiums, office spaces, and retail areas being constructed by developers.

“For me, the central theme revolves around the fact that the growth of Cebu’s economy is spilling over to other sectors such as property, even benefiting support sectors such as bathroom fixture businesses,” said Colliers Research Manager Joey Bondoc.

“Definitely also those into food and beverage, clothing and footwear, etc. to support retail needs of employees. Hotels because of booming tourism and need for MICE facilities. Warehouses and logistics firms due to e-commerce,” Bondoc said.

According to the Philippine Statistics Authority (PSA), Central Visayas’ gross regional domestic product (GRDP) growth rate was at 5.1 percent in 2017.

This is lower compared to the 8.6 percent noted in 2016.

Executives of Kohler, an international brand specializing in bathroom fixtures show their products to the media. CDN FILE PHOTO AND CDN PHOTO/LITO TECSON

Economic drivers

Nevertheless, economic experts remain optimistic that the region’s economy will bounce back this year through its major economic drivers – tourism, and information and communications technology (ICT).

The P17.5 billion Terminal 2 of the Mactan Cebu International Airport (MCIA) will be opening in June. It is expected to cater to up to 13 million passengers annually.

On the other hand, the Cebu IT-BPM Organization (CIB.O) has noted an industry growth of between five to seven percent in 2017. This translates to over 300 IT companies, employing around 150,000.

Real estate growth

Both tourism and information technology-business processing management sectors have been pushing real estate growth in Cebu with more properties to cater to incoming tourists through hotel and resort rooms, and offices spaces.

Consequently, these additional properties are also propelling the growth of other product providers such as those from the bathroom fixture industry.

This demand prompted international brand Kohler to expand aggressively into the Cebu market.

In a recent media briefing, officials of Kohler Philippines said they have started their presence in Cebu in August 2016, relying mostly on their distributors to market their bathroom products.

“Kohler is still young here in Cebu. But in that short period of time, we have already acquired a lot of premium projects,” said Kohler Area Sales Manager Junefer Llena.

Major contracts

In fact, Kohler has already secured contracts for at least six major and upcoming developments in Cebu including the new MCIA Terminal 2 (T2).

For a contract price of P14 million, Kohler is providing all bathroom and comfort room fixtures as well as plumbing systems for the MCIA T2 which will be opening in June and will be the home of international flights to and from Cebu.

According to Llena, their biggest contract so far is with the Sheraton Cebu Mactan Resort by AppleOne. It is priced at P33 million.

“These are the kinds of projects being targeted by Kohler. Kohler is a premium brand. Products of Kohler are intended for the Class A market,” Llena said.

“What we’re seeing is that all big developers are seeing the benefits of using premium brands or partnering with a premium brand because it will add value to their projects. There is a shift now for developers to partner with brands that are of high quality,” he added.

The other developments that are partnering with Kohler in Cebu include Citadines Aparthotel and 38 Park Avenue by Cebu Landmasters Inc. These areas are located at Baseline, and Cebu I.T. Park in Cebu City, respectively.

They are also partners with 32 Sanson Road by Rockwell in Barangay Lahug, Cebu City, and Dusit D2 by Grand Land located on Gov. M. Cuenco Ave. in Cebu City.

Llena said the company is upbeat in expanding to Cebu as they see the province as the second biggest market next to Metro Manila.

“The focus of Kohler now is to strengthen our footing in Cebu. Among the reasons is the strong tourism industry, and the strong real estate business,” he said.

By July 2018, Kohler will be opening a showroom at the Filmon Finishing Studio along Escario St. in Cebu City.


Colliers International Philippines sees Kohler’s expansion plans as another sign of Cebu’s booming real estate sector.

“The firm’s plan to aggressively expand in Cebu is only indicative of the burgeoning property market in Cebu. The growth is benefiting all property segments that need bathroom fixtures such as condominiums, office buildings, malls, and hotels,” Bondoc said.

“The company’s expansion also supports the surging demand for condominium units and office space in Cebu. More end-users and investors are acquiring office space and residential condominiums while Cebuanos’ rising purchasing power is fueling the demand for additional retail space,” he added.

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