THE current rising situation of the real estate industry in Davao City may slow down in several months, so now is the best time to develop, buy, and sell lands in the city, said a real estate consultancy firm.
According to Prime Philippines Capital Markets and Investments Associate Raphil Saguan, the current state of the real estate of the city, when basing on a standard real estate wheel, is on the rising quadrant which means that it is high-time for any real-estate development to take place. Developments may also include acquisition and selling.
“Our real estate wheel has four different quadrants with the cycling motion – we start with the drop, then boom stage, then slow down again, and so on. Right now, Davao City’s commercial rental leasing is currently on the rising stage. That’s why it is the best time to develop if you have plans on establishing real estate establishments or commercial establishments. Now is the best time to build it because you will have a foothold before the arrival of the big developers,” said Saguan who was a guest during the Habi at Kape weekly press conference at Abreeza Ayala Malls on Tuesday, October 25.
Saguan added that this stage may fade out in a few months and would slow down as the cycle of real estate wheel goes on. When developments are done during these months, the owners and the developers may not be able to maximize their selling gains anymore.
In Bajada-Lanang areas, where the business districts in the city are mostly located, rent prices for office spaces are pegged at P500 to P600 per square meter. Most of the time these spaces are bare to warm shells or those with ceilings and proper flooring already.
Currently, government office, small and medium scale enterprises like agencies, and the business process outsourcing (BPO) industries are the primary tenants of these office spaces for lease.
In a previous statement by Saguan, he also said that the current pricing of land properties in the city have gone up at an average of 44.24 percent as per research study conducted by Prime Philippines.
Land price for those located at poblacion area is at P40,000 to P70,000 per square meter. Those that are in Bajada-Lanang are priced at P50,000 to P100,000 per sqm. Properties in Matina area are now at P20,000 to P50,000 per sqm.
“There is still a high demand when it comes to spaces by professional services. Local companies are looking for expansion. South-based are looking for spaces up north and vice versa. That itself contributes to great demand of spaces especially office spaces. Aside from that, those investors or companies that are located outside Davao are also targeting the city to establish their presence here,” he said.