THERE are promises that are meant to be broken. Such is the case of "many" condominium and housing projects in Cebu, according to an official of the Housing and Land Use Regulatory Board (HLURB) 7, that have not been turned over on time. One of the discouraged condominium buyers is an overseas Filipino worker based in Qatar who purchased a condominium unit from a local developer whose project is situated along General Maxilom Ave. in Cebu City.
Anna, who requested for anonymity during an online interview with Sun.Star Cebu, said she bought a 24-square meter condominium unit priced at P2.4 million in 2009. She placed a down payment of P480,000 for the unit and a monthly installment of approximately P42,000, which she faithfully paid for 48 months. In 2012, the condominium she bought was paid in full, and the developer promised to turn it over in 2014.
But until now, when more than two years have passed, the unit has not been turned over. "The condo was initially bought for investment purposes but since it isn't finished yet, we will decide whether for personal uses na ba or for investment purposes kung human na ang unit," Anna said. The developer informed her that it will be turned over in the first quarter of 2016, but Anna's daughter who is currently based in Cebu said the condominium building looks like "it still needs a lot of work." Anna and her family did not reach out to HLURB to complain about the delay.
Compliants According to HLURB 7 and 8 officer-in-charge Francis Ordeniza, half of the complaints that their office receives involve delay in the completion and turnover of the buyers' condomnium units. "Truth is, there are plenty (of this case). Usually, it is non-delivery of title and non-completion of the project," he shared. On average, HLURB 7 receives five complaints in a day. Upon receipt and acknowledgment of the buyer's complaints, the HLURB official said his office calls the attention of the developer for a mediation where both parties can agree or resolve the issue involved.
If this will not be settled during the mediation, Ordeniza said the buyer can resort to filing a case in court. HLURB may impose a penalty on erring developers, said Ordeniza, especially when the developer was found selling the housing or condominium project without a development permit and license to sell. When before extensions were allowed, Ordeniza said HLURB memorandum Circular No. 3, series of 2016, would no longer allow it next year. Ordeniza said developers have until Dec. 31 this year to request for the last extension. "Generally, there is no extension. We are giving all developers (until this year) to apply for a one-time, big time application," said Ordeniza. Good investment For Anna, investing in real estate is still a good avenue to spread her investments. Despite her bad experience with her first condominium purchase, the family purchased another condominium unit from a different developer just this year.
"The only regret is not having gone with a developer that has a good track record. The location of the condo is great. The developer's track record is important," she said. Inventory Currently, Cebu has an inventory of 22,284 condominium units. This is 148 percent higher from the 9,026 units in 2013, according to Pinnacle Real Estate Consulting Services Inc. in its Cebu market report. "In terms of take-up, the average take up is 5,000 condominium units per year. This is to say that the projected increase may be comfortably absorbed by the market," the market report reads. A stable increase in prices, according to Pinnacle, also shows the soundness of the local residential sector.
The average selling price in 2013 was approximately P84,000 square meter, in 2014 at P90,000 per sqm, and in 2015 at P95,000 per sqm. Currently, the average selling price of condominium units is at P99,000 per sqm, or an 18 percent increase from its 2013-level, the firm said.
Preliminary data from the Housing and Land Use Regulatory Board (HLURB) shows that from January to December 2, 2016, there were 58 new subdivision and condominium projects issued with a License to Sell in the region.This is equivalent to having 7,532 new houses in subdivision developments and 5,900 condominium units in Central Visayas.
Source: Sunstar | December 14, 2016
http://www.sunstar.com.ph/cebu/business/2016/12/14/broken-promises-515128
