DAVAO

Land value in city up by 5%

DAVAO. Property value in Davao City is expected to increase further following the completion of infrastructure projects in the city. (RJ Lumawag)

THE property value in Davao City has increased by 5.26 percent between 2018 and 2019 and it is not seen to slow down in the next five years.

In the report of the real estate advisory and research agency Prime Philippines, the growth was noted in most of the cities commercial thoroughfares.

The commercial land values are pegged at P90,000 per square meter (sqm) to P100,000/sqm as of 2019.

“There is an uptrend in the commercial values because the Dabawenyos still prefer to keep their lands and have it on long-term lease,” Prime Philippines head for VisMin Chai Abaya said.

It is also expected to increase further following the completion of infrastructure projects in the city.

Among the infrastructures targeted to be finished are the Davao City Coastal Bypass Road on 2021, Phase 1 of the Mindanao Railway Project which covers the Digos, Davao, and Tagum on 2022, Davao Public Transportation Modernization on 2023, the Davao-Samal Bridge on 2024, and the Phase 1 of the modernization of the Francisco Bangoy International Airport on 2028.

“When everything is done, we are still looking at spike in the prices of land in Davao,” Abaya said.

However, there is an upbeat in the residential sector as more residential condominiums were being built in the city.

Abaya said the residential units are “almost full capacity” in 2019 and trend is expected to continue in 2020.

The investments are driven mostly by local and foreign students, overseas Filipino workers (OFW), and other investors.

Prime Philippines reported that as of December 2019, there are about 25,740 sqm leasable area in the city and it is expected to increase by 18,000 ready-for-occupancy (RFO) units by 2022.

Among the upcoming residential condominiums are the joint projects of Cebu Landmasters, Inc. (CLI) and YHES Inc Mesatierra Garden Residences, which is set to be completed in the third quarter of this year, and its mixed-use development project The Paragon Davao set to finish by March 2020.

The report also noted that Davao City has a take up rate of 92 percent.

Selected mid-range to luxury condominiums are also sold at P184,000/sqm and a monthly rental rate of P760/sqm.


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