Development: Making the city rich | SunStar

Development: Making the city rich

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Development: Making the city rich

Wednesday, May 17, 2017

WITH the residential and commercial infrastructure construction anywhere in Davao City, it is indeed safe to say that the real estate industry in the city is on its booming stage.

The arrival of real estate investors from the different parts of the country and the expansion of homegrown developers can attest to the industry’s growth. One of the huge names from Cebu City, the Cebu Landmaster’s Inc., earlier announced its presence in Davao City with a vertical residential development to ground break within the year.

Homegrown real estate companies such as Damosa Land Inc., (DLI) had also further ventured into other real estate developments not just residential. According to DLI vice president Cary Lagdameo, Damosa Fairlanes and Damosa Seawind, some of its pioneering residential developments , are still continuing to sell really well. Later phases of construction for the two developments are still ongoing.

According to Davao Board of Realtors Foundation, Inc president Hardinado Patnugot, Jr., this arrival of different investors also gave wider opportunities both for real estate practitioners and the clients.

“On our part, the opportunities also got bigger. We were given more projects to bring to clients and sell. It is a great help for us, real estate practitioners. Compared to last year, we have more chances of selling now because there are also a lot of projects and choices for the clients at hand. The client are given a wider range of residential choices,” Patnugot said.

“Before, it is a quiet industry but because of the entry of investors coming from other places, it became bigger and competition got stronger as well. I can say the growth of the industry had been big,” he added.

When asked what he thinks made the influx of investors more prosperous, Patnugot said it really helped that President Rodrigo Duterte is from Davao City. They are expecting that real estate market would be improved in the city now. Aside from that, he said these investors have seen and proven that the city is indeed a good place in terms of investments.

Benefits from property development

While the business sector feels the economic boom of real estate industry, the report of the Office of the City Treasurer for the month of April for the city's revenue also speaks on how the city benefit from the emerging market of the real property in the metro.

Based on the published information, for April 2017 alone, Real Property Tax (RPT) contributed P378,999,590 to the city’s income.

It is the third largest contributor with 12 percent share; it followed Business Taxes and Licenses with 29 percent share, which followed the Internal Revenue Allotment (IRA) with 44 percent share.

The total revenue and receipts the city collected for April 2017 amounts to P3,191,715,420.

In an interview with City Treasurer’s Officer-in-Charge, Bella Linda Tanjili said that the collection of RPT has an increasing trend.

“Nag-increase ta kay sige biya mi ug disseminate ug kadtong wala kabayad, daghan nagbayad sa atong barangay ug mga districts nato, mao na isa jud sa RPT.(We have an increased collection because of our dissemination to those who were not able to pay, many paid from barangays and districts)," she said.

She said that among the hindrances they’ve have observed in getting timely RPT collection include migration of owners from another place.

Tanjili added that exempt from paying the RPT are those who availed the low cost housing, and as for the lot, they also have less RPT for the land.

Davao City Investment and Promotions Center Lemuel Ortonio in an interview said that only low cost housing are exempt from paying RPT, which means that those who build mid-rise and high rise buildings in the city are not free from RPT payments.

He said that they grant exemptions mostly for the purpose of attracting investments for an area which badly needs improvement, real estate, however, do not belong to the list.

Published in the SunStar Davao newspaper on May 18, 2017.

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