CDO's 'The New City' in Lumbia: An Update on the 60-Hectare Vision!

Cagayan de Oro's ambitious 'The New City' in Barangay Lumbia is making progress! This 60-hectare mixed-use township project is central to the City Government's strategy to generate substantial revenue and provide comprehensive urban development.

Photo from: Northern Mindanao ETC

As of October 2025, the latest aerial progress shows Phase 1 land development has officially commenced, spearheaded by the Department of Housing Settlement and Urban Development (DHSUD).

🏗️ What is Planned for 'The New City'?

Envisioned for completion in four phases, this large-scale project aims to create a fully integrated, self-sustaining community, featuring:

• Residential Communities: Including the flagship Klarexville 7 City Heights Village—a cluster of 5-storey residential buildings under the national Pambansang Pabahay para sa Pilipino (4PH) Program.
• Commercial Hubs and Establishments
• A Convention Center and Hotel & Resort
• Low- to Mid-Rise Condominium Developments
• Essential Social and Public Facilities for health services, basic education, and social welfare.

This builds on the groundwork from last year, which focused on the Klarexville 1 socialized condo project to address the city's significant 30,000-unit housing backlog for the poor, a crucial initiative led by the City Housing Urban Development Department (CHUDD).

⚠️ A Critical Look: Learning from Global 'Ghost Cities'

While 'The New City' holds immense promise for CDO, large-scale, pre-planned urban developments worldwide serve as cautionary tales that must be considered.

Projects like Malaysia's Forest City (built near Singapore) and several of China's New Cities have struggled with low occupancy, earning them the label "ghost cities." Their issues stem largely from:

• Over-reliance on Speculative Investment: In China, many properties were bought as financial assets rather than homes, leading to high vacancy rates.
• Location and Economic Base: Forest City, despite its massive $100 billion investment, currently only houses around 20,000 residents out of a planned 700,000 (less than 3% occupancy as of early 2025). Its remote location and failure to attract the diverse businesses needed to support a large population were key factors in its lack of success.
• Building Ahead of Demand: Some Chinese New Cities were built fully before the population arrived, assuming rapid migration and growth that never materialized.

For CDO's 'The New City' to thrive, careful planning must ensure the township is not just built, but actively made attractive and viable for residents. This means prioritizing the development of job opportunities, accessible public transportation links to the main city, and a strong local economy alongside the housing units. The focus on socialized housing like Klarexville is a positive step toward meeting genuine, existing demand.

What are your thoughts on 'The New City' project? What is the most important feature that will make it a truly successful, living city?

To see the cautionary tale of one of these developments, check out this video: Every FAILED Megacity Project Explained in 9 Minutes. This video provides a detailed breakdown of ambitious megacity projects, including Malaysia's Forest City, that ultimately failed to attract a population.