Property management firm Colliers is bullish on Davao retaining its stature as one of the more attractive residential investment hubs in Mindanao.
“In our view, Davao’s residential market will continue to benefit from the region’s economic recovery beyond 2022. Despite market disruptions due to Covid, demand, primarily seen to be coming from OFWs and investors, is still expected to take-up inventory as the country starts to ease mobility restrictions and economies open,” Theresa Teodoro, Senior Director, and Head, Advisory Services told the BusinessMirror in an online interview.
Teodoro added Colliers sees an improvement in demand beyond 2022 that should play a crucial role in boosting property prices and improving the feasibility of alternative sites for residential projects.
Moreover, Colliers recommended that developers continue lining up new residential projects in Davao City to capture pent-up demand. Furthermore, Teodoro urged developers to maximize available infrastructure and continue landbanking efforts outside of business districts.
Demand shifts to affordable
In 2021, Colliers noted about 841 condominium units were sold in Davao, slightly higher than the 655 units in 2020. The affordable segment (P1.7 million to P3.2 million) covered 89 percent of the take-up during the year, significantly higher than the segment’s share of only 48 percent in 2020. Meanwhile, demand in the house and lot market was also driven by affordable projects (previously dominated by mid-income in 2020) with the segment accounting for 73 percent of total take-up in 2021 from 42 percent in 2020.
“Davao will still remain to be the preferred residential investment hub of Mindanao, given key indicators and upcoming infrastructure projects. Current market conditions have led to a shift in demand for affordable products. There was also increased interest for horizontal developments, though opportunity remains for condominium developments with the right product, pricing, and innovative payment terms,” Teodoro pointed out.
Riding on Davao’s boom
Aside from Davao City, the province of Davao also has the cities of Tagum, Panabo, and Digos as other options for people who want to settle in Davao.
In response, Bria Homes is aggressively in these three places to enable more Davaoeños to benefit from the affordable housing products offered by the company.
Eduardo Aguilar, Bria’s division head, is bullish on the company’s prospects in Davao. “Bria Homes is reaching out to more Filipino homeseekers and investors, encouraging them to settle down, grow, and prosper at any of our three idyllic communities in Davao. Few locations would surpass these as the best places to spend one’s retirement years,” Aguilar told the BusinessMirror in an e-mail interview.
Tagum, the provincial capital of Davao del Norte, is highly acclaimed for its lively and colorful 15 festivals that highlight the remarkable skills and talents of Tagumeños in culture, sports, entertainment, arts, and music. Also dubbed as the Mango Capital of the Philippines, Aguilar said people go crazy for its luscious “carabao-variety mango,” sold locally and exported abroad.
Panabo, an agro-industrial city known as the “Banana Capital of the Philippines,” will be a tourist delight as it is host to numerous banana plantations.
Digos City, the provincial capital of Davao del Sur, will enable residents as well as tourists to enjoy Mount Apo Natural Park and quiet beach getaways like Dawis Beach. Adventure seekers, according to Aguilar, will gravitate towards Digos, which provides mountain climbers access to Mount Apo, the country’s highest peak, via its village called Kapatagan.
Just like other Bria projects, Aguilar shared Bria Homes in Tagum, Digos, and Panabo will come with modern, family-friendly amenities to spur residents into fostering wholesome and healthy communities. These will include multipurpose halls, covered basketball courts, playgrounds for little children, walkable paths, and open green spaces for leisurely strolls.
He is optimistic that Bria Homes will dominate the region with modern residential communities in Davao province’s Digos, Tagum, and Panabo. With these three new locations, Bria affirms its reputation as the “home of choice” for Filipinos, bringing more families close to major economic centers as they thrive in well-built and comfortable house-and-lot and condo units.
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The article was originally published in Business Mirror and written by Rizal Raoul Reyes.
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