OVER the past several years, Davao City has grown to become a major economic hub in the country. It is the gateway of Southern Mindanao and the base of Mindanao operations for many companies.
As an economic hub, the city is an investment destination for many companies. From information technology-business process outsourcing (IT-BPO) firms to manufacturing firms, investors have been pouring their money into the city. Among those investing are real estate firms, particularly in the residential sector.
The city in recent years is seeing the construction of high-rise buildings with Aeon Towers and Vivaldi Residences being the two tallest towers not only in Davao but also in the whole of Mindanao.
But with the continuous growth of the city, real estate experts are seeing an emerging trend -- mixed-use developments, which include townships and master-planned communities. These are developments where commercial and residential projects have been put in one area.
Mixed-use developments are not a new concept in the city. Damosa Land's Damosa Complex, Torre Lorenzo's Ciudades, and Abreeza, a joint venture of Ayala and Anflocor, are among those that were first established in Davao City.
"What also developed over the past few years is the expansion of townships. More developers, both national and homegrown developers, are looking at the viable parcel of lands they can acquire and they can eventually develop into integrated communities," Joey Roi Bondoc, Colliers Philippines Associate Director for Research, said.
Davao City Planning and Development Office (CPDO) coordinator Ivan Cortez said mixed-use developments are "a beneficial type of development in the context of achieving completeness of basic commercial and institutional goods, services and facilities.
"Like in a complex, or a one-stop-shop, if you offer more products and services, the tendency will be for people to conduct their business for the day in that complex without the need to travel to another location to get what is missing in the previous location," he said.
Cortez said the best areas for mixed-use developments will be areas (1) With enough population in say 1-kilometer radius for feasibility; (2) Must have availability of basic utilities (water, power, telecoms, etc); and (3) must be accessible on at least two access points for ease of traffic and for a better response during emergencies.
At present, the large mixed-use developments that are currently being built in Davao City are Megaworld's Davao Park District (DPD) in Lanang and Aviana Development Corp.'s Azuela Cove.
Property giant Megaworld is investing P15 billion in the development of the DPD. The P1.2 billion Davao Finance Center, one of the components of DPD, is already completed and now houses several businesses. For the residential component, Suntrust Properties Inc.'s One Lakeshore Drive is nearing completion.
Meanwhile, the 25-hectare Azuela Cove is a P20 billion joint venture by Ayala Land and The Alcantara Group. At present, The Shops and The Tent are among the completed projects in the mixed-use development. Currently under construction is The Residences by Ayala Land Premier. The residential project "is a two-tower, low-density, all-suite development where all residential spaces face seaward."
Cebu Landmasters, Inc. (CLI) also is pouring in a large amount of investment as it is currently developing three townships with different partners. One of its major projects is the Davao Global Township (DGT) with YHEST Realty Development Corp. The 22-hectare DGT, which was the former Matina Golf Club, will feature an office tower, two residential towers, retail buildings, a Cineplex hall, and a convention center.
CLI's other project is Paragon Davao, which is in partnership with Davao Filandia Realty Corp. and Yuson Strategic Holdings Inc. under the joint venture of YHES Inc. The project will include a 26-storey residential tower, called One Paragon Place; a 263-room Citadines Paragon Davao, which will be managed by The Ascott Limited; The Paragon Davao Convention Center; and The Paragon Davao Lifestyle Mall.
The other mixed-use development of CLI in Davao City that is currently underway is the LPU Town Center, which will rise on a 17-hectare property in Buhangin. This is in partnership with the Lyceum of the Philippines University, which will have its LPU Davao campus in a 5.2-hectare area at the back of the property. The front portion of the development will have the hotel and commercial components; the center will have the offices and residential components.
Meanwhile, existing mixed-use properties in Davao City are getting some improvements.
Damosa Land has recently announced the completion of the Damosa Diamond Tower in the Damosa IT Park, which is part of the Damosa Complex. The 16-storey Grade A tower features “green architecture” designs it is the first office building in Mindanao to get an Excellence in Design For Greater Efficiencies (EDGE) certificate.
Earlier this year, Damosa Land Inc. (DLI) president Ricardo F. Lagdameo said global coffee shop chain, Starbucks, will be putting up its first drive-thru branch in Mindanao in Damosa Gateway, which is also within the Damosa Complex.
Avida Land is also adding the Avida Towers Abreeza to the roster of residential towers within the Abreeza complex. The four-tower residential condominium will feature community amenities like a multi-purpose court, garden areas for sitting, outdoor fitness zones, adult and kiddie pools, a clubhouse, children's play area, and open spaces and pocket gardens. Last year, the company reported that Tower 1 is already 90 percent sold since its launch in 2018 while “Tower 2 shows promise after it has generated approximately P500 million of revenue or equivalent to 105 units when it was relaunched earlier in 2021.”
These mixed-use developments, most of which have residential components, promise Dabawenyos to have the things they need within reach -- work, play, and some basic necessities.
"Davao is such a big city and it is very hard to travel from one place to another. Bringing in office location nearer to the residential locations would be a plus for developers," Karla Domingo, Colliers Philippines Director for Advisory Services, said.