For years, Davao City has branded itself as a haven in a country where crime concerns often shape property investment decisions.
Early-2026 data from Numbeo showed the city with a Crime Index of 28.6 and a Safety Index of around 71.4, scores that rank it among the safer urban centers in Southeast Asia and help distinguish it from other cities across the Philippines.
That reputation has fueled real estate demand for years. Now industry leaders warn the market faces a major test: proposed revisions to official property values that could raise assessments by 300 percent, 500 percent, and, in some projections, nearly 800 percent.
If adopted without adjustment, they say, the increases could weaken competitiveness, deter investors, and push ownership beyond many residents’ reach.
The issue surfaced publicly Feb. 19 at a forum on the proposed 2026 Schedule of Market Values. Oscar D. Tabjie, president of the Chamber of Real Estate and Builders’ Associations, and Councilor Danilo C. Dayanghirang outlined concerns, sometimes aligning and sometimes diverging on how to manage what observers describe as the city’s most significant property challenge in years.
Sudden jumps vs. steady growth
Developers draw a sharp line between normal appreciation and what they call “sudden appreciation,” large valuation hikes that quickly translate into higher taxes.
“The very reason why we really organized this forum here is that we would like to listen also from our members, on the sudden appreciation of the market values,” Tabjie told in a media interview. “We are not against appreciation, but sudden appreciation … that there could be a 300 percent, 500 percent increase, even up to almost 800 percent. We want realistic values that can still be competitive in the market."
Safety as an economic asset
Developers credit the city’s peace-and-order record for attracting buyers, including foreigners allowed to own condominium units.“The strongest point is that we are enjoying peace and order,” Tabjie said. “As long as we maintain safety … foreigners are coming. It is all about affordability. It is all about sustainability.”
Safety has proven more than a slogan. Local media and development reports in recent years show steady occupancy in midrange residential projects in Davao, a sharp contrast to oversupplied condominium markets in Metro Manila.
Developers continue to roll out mixed-use sites, offices, and housing complexes, citing security and quality of life as key selling points. Retirees returning from abroad, professionals seeking stability, and investors chasing moderate but reliable returns still find the city attractive.
However, average condominium prices have climbed into six figures per square meter in prime districts such as Lanang and Bajada, while single-detached home values rise unevenly. Analysts say the price curve is beginning to flatten compared with national hotspots. If demand weakens or prices outpace household incomes, they warn, proposed valuation hikes could exceed what the market can absorb.
Policy scrutiny and taxpayer pressure
While Tabije stresses competitiveness and investor confidence, Dayanghirang centers his position on taxpayers’ capacity and social impact.
As chair of the city finance committee, he reviews policy changes that could reshape revenue streams and household expenses.
Dayanghirang said he urged assessors to slow the process and consult the public more broadly.
He said the consultation process, limited in reach and participation, does not adequately explain to nearly two million residents how revisions could affect individual tax bills.
“Residents are already struggling with the existing tax burden, including VAT and Ebat,” he said, noting the strain consumption and business levies place on households and entrepreneurs.
Dayanghirang also criticized what he called a uniform formula crafted by national authorities and passed down for local adoption.
“A formula is made in Manila and then sent back for us to pass as an ordinance,” he said. “We will scrutinize that to make sure it’s balanced against the public’s ability to pay.”
He said valuation reforms must reflect local income levels and living costs to prevent undue financial pressure on residents.
Financial strain and real-world impacts
Dayanghirang warned that a sharp rise in assessed values could hit households hard.
“We might be forcing people to sell their properties just to afford necessities,” he said, describing a middle class squeezed by rising costs and flat wages.
Residents and business leaders alike point to mounting pressures, from higher utility rates to tuition and daily expenses. Dayanghirang said the risk extends beyond taxes: property, long viewed as a family safety net, could turn into a financial burden if ownership costs climb too quickly.
Shared goal, different priorities
Despite different focuses—market competitiveness for Oscar D. Tabjie, taxpayer protection for Dayanghirang—both agree that Davao’s property sector must grow sustainably and transparently.
“We are still positive that things are going to happen accordingly for our industry,” Tabjie said, citing continued sales and investor interest. “The political situation may just be a temporary thing.”
Dayanghirang said he supports updating valuations but wants broader consultation. He has called for joint recommendations from realtors, business owners, and taxpayers to ensure revisions reflect local economic realities.
Sustainability over shock
The future of Davao City as a real estate hub hinges on balance—maintaining its safety edge while rolling out valuation adjustments that reflect market conditions and residents’ ability to pay.
If leaders manage the process with transparency, broad consultation, and gradual increases, the city can keep attracting buyers and investors who look past short-term figures and prioritize long-term stability.
If, however, the valuation adjustments are perceived as sudden or unfair, the very attributes that made Davao’s market attractive, safety, predictability, and affordability could be undermined.
At its core, this is not simply a technical debate over numbers. It is about whether Davao can maintain its identity as a safe, investible, and people‑centered city in an increasingly competitive Philippine real estate landscape. And that, more than any index number or tax calculation, may prove to be the true measure of its success. DEF