Real estate consultancy firm Prime Philippines revealed in its 2019 Davao Property Market Report that the market value of commercial properties in prime locations in the city by 25 percent in the last two years. Despite the increase, the property firm said the number of potential buyers remains robust.
The increase was most prominent at the Bajada-Lanang area near the airport which could command between Php65,000 to Php125,000 per square meter. According to the report, these same commercial lots were priced between Php50,000 and Php100,000 sq.m in 2017.
Prime Philippines Regional Operations Head Maria Luisa R. Abaya said locations housing retail establishments, hotels, office buildings, and condominiums, as well as other areas near downtown, have also become expensive.
She particularly cited the Matina area in the southern side where lot values could now range between P45,000-P85,000/sq.m. from just P40,000-P70,000/sq.m. two years ago.
“This is because there have been huge developments in these areas,” Ms. Abaya said, further noting that the prices are driven by expectations that major property developers are vying for possible ventures.
Maria Lourdes G. Monteverde, a realtor and former president of the Davao City Chamber of Commerce and Industry, Inc., said this unprecedented increase in real estate prices did not affect buyer interest.
“Their desire to get a piece of the (business) action in the city is still there,” said Ms. Monteverde, noting that her company, Verdemonte Realty, continues to receive inquiries from investors.
She further added the implementation of big-ticket projects continues to attract the attention of investors to the Davao Region as a whole.
Under the government’s Public Investment Program, Davao Region has the second highest value at P324.59 billion with 88 infrastructure project, next to the National Capital Region at P824.43 billion with 721 projects.
Among these projects are the first phase of the Mindanao Railway System covering the cities of Davao, Digos, and Tagum, and the planned rehabilitation of the Sasa Wharf and the Davao International Airport.