DAVAO City is a major economic center on the island of Mindanao. With its linkages, infrastructure, and generally peaceful environment, it is no wonder that many have made their home in the city.
Throughout the years, many have migrated to or temporarily lived in Davao City to work, study, or settle down.
With people and businesses adapting to a post-pandemic society and the new normal, the city has also slowly gotten to its feet. Infrastructure developments have resumed, more investments are coming, and more opportunities are being created.
Therefore, it could be expected that there will be an increase in demand for residential units as more people come to Davao City.
In the October 2022 study by Colliers Philippines, it said that "Davao is likely to retain its stature as one of the most competitive residential markets in Visayas-Mindanao corridor."
It added that the vital infrastructure projects that will be built in the city "should further solidify the city’s attractiveness as a residential investment hub" once it is completed.
Among the existing infrastructure projects being developed in Davao City by the local government unit and the national government include the Davao City Coastal Road Project, Davao City Bypass Construction Project, Samal Island-Davao City Connector (SIDC) Project, and the High Priority Bus System, just to name a few. Davao City is also part of the first segment of the Mindanao Railway Project.
According to the Colliers study, there has also been an increase in condominium units sold in Davao City.
"In H1 (first half) 2022, 1,656 condominium units were sold in Davao, a 160% increase YOY. The mid-income segment accounted for about 63% of total take-up during the period," the Colliers report reads.
It also forecasts that around 3,500 units will be sold by the end of 2022 and an average of 4,100 units annually from 2022 to 2026.
“The Davao City residential market has finally turned a corner and is seeing take-up rates reminiscent of 2016-2017 figures of around 3,500 to 3,700 units annually," Karla Domingo, Colliers Philippines Director for Advisory Services, said in a statement.
In 2022, Colliers Philippines also reports that 1,529 condominium units will be completed in Davao City. However, this is a decrease of 147 percent year-on-year.
"We see completion picking up in 2023 with the completion of 7,066 new units. From 2023 to 2026, we project the average completion of 3,400 units per annum," Colliers said.
At present, some of the projects being built or completed in the key economic centers of the city include Anchorland's 202 Peaklane, Euro Towers' Vivaldi Residences, Cebu Landmasters' The East Village at the Davao Global Township, Santos Land's Ivory Residences, Avida Land's Avida Tower Abreeza, Cebu Landmasters' Casa Mira Towers Davao, SMDC's Lane Residences, and Suntrust Properties' One Lakeshore Drive, just to name some.
"Bulk of the new supply concentrated in Poblacion, Buhangin, Lanang, and Talomo districts," Colliers added.
While there has been an increase in condominium units sold, Colliers reported that affordable to mid-income projects continue to dominate the residential market in the city.
"In H1 2022, 1,656 condominium units were sold in Davao, up from 640 units taken up a year ago. Colliers has observed that demand mirrors the number of new launches in the city," Colliers reports.
Data from the firm showed that from 2017 to 2021, it recorded an annual average take-up of 3,900 units while average launches during the period were at 3,800 units per year.
"The affordable and mid-income segments accounted for about 92% of the total take up. Similarly, demand for H&L units was also driven by affordable and mid-income projects during the period, covering 94% of total units sold," Colliers said.
The firm said remittances from Overseas Filipino Workers (OFWs) "remain to be one of the primary drivers for these price segments."
"Colliers believes that Davao’s competitiveness and stature as an outsourcing hub, backed by regional economic growth should retain the city’s attractiveness for more residential projects," Colliers said.
It added that the entry of national developers such as SMDC, Megaworld, Ayala Land, and Filinvest Land have also "strengthened Davao’s position as a property investment destination in the VisMin area." RJL