Davao touted as an attractive city for property investors
Davao touted as an attractive city for property investors
Located in southern Philippines, the city offers pluses and minuses in equal measure
In Part Three of this five-part series, take a look at the emerging real estate industry in Mindanao
In June 2015, the Philippines’ Department of Trade and Industry’s Assistant Secretary Ceferino Rodolfo called for more investments in Mindanao, citing the region’s immense land supply.
However, poverty is widespread in Mindanao and urbanised cities are few and far between.
Davao is essentially the Manila of the south, but with only one-sixth of the population and none of the congestion problems of the capital. It is also the largest city in the country by land area.
“I wouldn’t say Davao is a hot market, but it is attractive and properties are selling nicely,” shares Julius Guevara, director of research and advisory at Colliers Philippines.
The city is also touted as a safe location for residents due to the “zero tolerance” line adopted towards crime by Mayor Rodrigo Duterte, the front-runner in the 2016 national election. “Right now Davao is a market for bullish investors,” claims Guevara.
More: 5 things the presidential front-runner Duterte could do for Philippine real estate
Anticipating an influx of investors, the city government upheld a city ordinance last March that real estate developments must allocate 10 percent of green space.
Philippine Green Building Council chairman Ramon Fernando D. Rufino, whose company The Net Group is known for its commitment to sustainability, says there is growing awareness of environmental initiatives.
“Green building will definitely continue to gain traction and momentum in 2016 but we will need legislation at the national and local levels in terms of mandatory requirements incentives,” he says.
Davao’s environmentally sound credentials and perceived safety may just be the signal for it to stake a claim as one of the country’s top spots for real estate.
Come back for Part Four.
Deciding to invest in Mindanao real estate?
Pros: Areas like Metro Davao are rapidly emerging; magnet for aggressive investors; vast untapped portions of land
Cons: Too far from the financial capital; getting around can be difficult; close to conflict areas
What to buy in Davao City for…
Affordable: Arezzo Place Davao
Developer: Phinma Properties
Units: 1,080
Size: 30.6-32.5 sqm (avg.)
Price: PHP1.37 million (USD29,200) (avg.)
Completion: Ongoing
Distinguishing features: An Italian-inspired community with 60 percent open spaces built under triple-ISO standards
Mid-end: Abreeza Residences
Developer: Alveo Land
Units: 243
Size: 31 sqm (studio), 53-92 sqm (one-bed), 82-170 sqm (two-bed), 126-218 sqm (three-bed)
Price: PHP7.3 million (USD156,000) (avg.)
Completion: 2015
Distinguishing features: One of Davao City’s tallest tower at 26 storeys, with integrated, mixed-use components
High-end: AEON Tower Davao
Developer: FTC Group of Companies
Units: 473
Size: From 30-38 sqm (studio) to 200-300 sqm (penthouse)
Price: PHP4.4 million (USD94,000) to PHP9.7 million (USD207,000)
Completion: Q2 2016
Distinguishing features: With fiber optics installed, the 33-level building is smart home technology-ready, and will feature its own Skydeck facilities and helipad. Green technology is also used on UV-protected glass
Source: Property Report