MORE than a month after martial law was declared in Mindanao, business climate builds up as investors are restarting to inquire about expanding in Davao City.
Janine Salanga, Prime Philippines assistant manager for property investments, acquisition and disposal, told reporters at the sideline of Wednesday’s Habi at Kape media forum at the Abreeza-Ayala Mall that investors are over their “wait-and-see” attitude and is inquiring again about the prospects in the city.
Salanga cited that five foreign and local branded budget hotels are eyeing to expand here. She added that four of the interested hotel developers and operators are Asean-based underscoring that “Asean investors are the main businessmen attracted to Davao City.”
“We’ve seen arise in hotel operators and developers, not just for acquisition of lands but also hotel operators who want to be situated here and are looking for joint-venture agreements and leasing lands minimum of 15 to 20 years,” she said.
She said that one interested hotel operator is from Thailand.
Apart from hotel players, Business Process Management (BPM) investors and manufacturing firms are eyeing the city as their next expansion area.
“We have one business investing for a 10-hectare property in Bunawan,” she said.
She also said that more investments are going to the southern part of the city.
As a real estate service and consultancy firm, Prime Philippines will release a 2017 Property Market Report by the end of this year.
Jen Namis, Prime Philippines assistant manager for business development, said that the study which started late last year will guide current and future prospective investors of the city.
The study will feature an in-depth presentation of the city’s current land values, leasing prices of different properties, real estate industry, demand and supply of properties in the city, tax code amendments and the effects of martial law to the business industry, among others.
The firm also released to the media yesterday an initial report about the Davao market. The initial study shows an overview about the city, demographics and geographics, areas for investments, zoning, hazards, major real estate developments, land values, selling and lease rates, commercial and industrial sector, and upcoming major projects.
In a previous interview, Jettson Yu, Prime Philippines’ founder and managing director emphasized that the city is indeed ripe for big investments, however, some security threats in Mindanao affect, in ways, the business climate in the area.
The investment confidence here was unfazed because of its strong and effective local governance.
“Out of all the cities in the country, you can replicate any development but the discipline of people and safety are hard to replicate, that is the best asset of Davao,” he said.
Prime Philippines provides clients and prospective investors in-depth research and sound advice about the real estate industry in the city.