DESPITE the rising property value in Davao City, real estate property players continue to invest in the city as it is much cheaper than other metropolitan cities in the country.
Chai Abaya, Prime Philippines regional operations head, said during Habi at Kape media forum Wednesday, May 22, that despite the increasing property market values in the city, they still see influx of interest from local and foreign investors.
According to the 2019 Davao Property Market Report of Prime Philippines, commercial land value in the Bajada-Lanang area increased by 27.5 percent to P65,000 to P125,000 per square meter (sqm.) from P50,000 to P100,000 per sqm. in 2017.
Land value in the Poblacion area increased by 16 percent to P45,000 to P85,000 per sqm. from P40,000 to P70,000 per sqm.
In the Matina area, land value is at P35,000 to P65,000 per sqm., registering 52.5 percent land growth from P20,000 to P50,000 per sqm.
Meanwhile, the rental rates in the city grew by an average of 8.75 percent from 2017 to 2018.
In Bajada-Lanang area, office space rental is at P500 to P575 per sqm. in 2018, while only P400 to P550 per sqm. in 2017. Rental in the Matina area is at P450 to P570 per sqm. an increase from P400 to P500 per sqm. In the Poblacion area, rental is now at P525 to P675 per sqm. from P500 to P630 per sqm.
“Developers that are willing to expand in Mindanao are primary markets in acquisition while local developers are mostly averse in selling as they plan to hold on to their properties or develop them in the near future,” Abaya said.
For the 2018 price range of condominiums in the city, the studio unit is at an average of P2.9 million, one-bedroom unit is at an average of P5.3 million, and the two-bedroom unit is at an average of P8.5 million.