WITH the rise of more buildings, townships, businesses, and better and improved infrastructures everywhere, Davao City's real estate industry has gotten stronger and more competitive by a mile.
“The national government has lined up vital infrastructure projects in the city which, once completed, should further solidify the city’s attractiveness as a residential investment hub,” Colliers Philippines, a property research and consultancy firm, said in a press release.
As relevant as it is, Davao City has found its growth in the real estate industry, particularly in the residential sector, with its direction leaning more to investment and business.
“Colliers recommends that developers assess the viability of Davao for more integrated
communities which will feature residential, office, and retail components,” Colliers said.
Colliers saw an average completion of 3,400 condominium units annually, and it also had seen delivery of 1,529 condo units in 2022.
“From 2022 to 2026, Colliers projects the annual completion of 3,030 units with the bulk of the new supply concentrated in Poblacion, Buhangin, Lanang and Talomo districts,” Colliers stated.
In the first half of 2022, Colliers recorded 1,656 condominium units sold in Davao, a 160% increase from last year. Condominium units in Davao are seen to add up by 1,529 condo units, which means more housing opportunities to address the residential demand in Davao. Most of these additional units are coming from multiple-tower projects which are set to be completed in the next five years.
Colliers had also observed “aggressive launches of township developments” outside Metro Manila, to address the occupancy and workspace demands of residents. Davao captured about 20,900 sq meters (224,900 sq feet) of office space.
“In our view, this should partly support residential demand in Davao moving forward,” Colliers said.
For housing preferences, Colliers also saw a demand for condominium units valued at P3.2 to P6 million in the first half of 2022, accounting for 63% of total units sold. Meanwhile, most houses and lots valued at P1.7 million to P3.2 million as of 2022 were sold. Lot-only areas were sold at an average of P12,200 per square meter in 2022, mainly in Buhangin and Puan areas.
“The completion of big-ticket infrastructure projects such as Mindanao Railway and the Davao City Bypass Road should also help prop up the demand for mixed-used developments in the province,” Colliers stated.
According to Colliers, Davao is also expected to maintain its appeal for residential projects due to its competitiveness as an outsourcing hub and the support of regional economic growth.
The presence of national developers has further solidified Davao's position as an attractive investment destination for properties in the Visayas-Mindanao (VisMin) area, in which Davao City belongs.
“Davao has always been the darling of the investors recently... precisely because Davao is a good primary example of growth, discipline and of course, land mass,” Chris Malazarte, Accredited Real Estate Salespersons of the Philippines (Acres) national president said.
“Those are the factors that have contributed to the fact that many real estate developers are looking for opportunities here,” Malazarte added.
Meanwhile, Gilbert Monecillo, Accredited Real Estate Salespersons of the Philippine (Acres)-Davao president, said there are limitless possibilities in investing real estate in Davao, especially with how the Davao City is moving forward to fulfill its being a “Mindanao hub” for businesses.
“There’s so much inventory and affordable [real property] monthly, so I encourage all of those who want to invest to take advantage of the booming real estate in Davao City,” Monecillo added.