AN AVERAGE of 44.24 percent increase in land sales value had been noted in Davao City within the first quarter to the second quarter, said Prime Philippines Capital Markets and Investment (PPCMI), a real estate consultancy firm in the city.
According to PPCMI associate Raphil Saguan, their research study revealed no significant changes for the land value in the city for the second quarter until the present, however, the changes were mostly obvious from the first quarter to the second.
Saguan shared that the current pricing of land properties in the city’s poblacion area is at P40,000 to P70,000 per square meter. This has increased from the P35,000 to P60,000 during the first quarter. Properties located in Bajada to Lanang areas are now pegged at P50,000 to P100,000 per square meter compared to its first quarter price range at only P30,000 to P70,000 per square meters.
Properties in Matina area are now pegged at P20,000 to P50,000 per square meter from its previous P10,000 to P40,000 per square meter land area.
“There is still a high demand when it comes to spaces by professional services. Local companies are looking for expansion. South-based are looking for spaces up North and vice versa. That itself contributes to great demand of spaces especially office spaces. Aside from that, those investors or companies that are located outside Davao are also targeting the city to establish their presence here,” said Saguan.
Their study also shows that the increasing infrastructure development in specific areas in the city is also another reason for the land value’s increase. He cited as an example the road connectivity projects of the government that had been earlier announced to go through Davao City, if not the main location of the project.
Aside from the road connectivity and transportation developments, there are also a number of developers that had announced their plans to construct townships in the city. The city’s population has also been noted to have grown resulting to a higher demand of commercial and residential spaces.
“Despite the average land area prices, we also need to take into consideration the area’s frontage, the shape, and the slope. You have to take into consideration if the development would be for a high-rise building because there are Civil Aviation Authority of the Philippines restrictions right now. A lot of factors can go into it,” said PPCMI assistant manager for business development Jen Namis said.
Published in the SunStar Davao newspaper on September 28, 2017.
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