High demand for residential condo in Davao continues

DAVAO CITY -- Martial law has not dampened the prospects for residential condominium market, a real estate consulting firm said noting the prevailing high occupancy rates.

In a report on Tuesday dubbed "Davao City's Property Market Highlights 2018 H1," Prime Philippines chief executive officer Jet Yu said the implementation of martial law in Mindanao bears no significant impact on the property sector's growth because the sales are driven mostly by local buyers and investors.

Yu noted the skepticism of investors in other sectors due to martial law, but said the property market continues to see improvements because of Mindanaoans' "low aversion" towards martial law as compared to Luzon and Visayas residents.

In addition, he said the increase in Overseas Filipino Workers (OFWs) arrivals in Davao City has supported the increase in condominium property uptake. Currently, the city's residential condominium market has an occupancy rate of 83 percent, he added.

Condominiums in the city have largely concentrated along downtown J. P. Laurel Avenue, though areas like Matina and Poblacion are also being eyed as potential areas for further condo developments because of high occupancy rates and low supply relative to other districts.

Yu said rates are also within acceptable ranges making them an opportunistic investment for developers and investors since these prices are still at par with the rates of Metro Manila condominiums.

Among Davao City's condominiums are Camella North Point, One Oasis Davao, Aeon Towers, Avida Towers Davao, Abreeza Place, Palmetto Place, Verdon Parc, Seawind Condominium Davao.

The upcoming condominium projects in Davao City as of 2018 are the Dusit Thani Residences of Dusit International, Mesatierra Garden Residences, Ivory Residences, Amani Grand Citygate, and the The Residences at Azuela Cove.

SM Development Corp announced in June the building of its first real property project, the Lane Residences, which is adjacent to the SM Lanang Premier Mall, while homegrown retail store NCCC will build a condominium in Maa.

Yu said the value of properties here has also gone up compared to last year.

In 2017, he said, the selling price was at PHP60,000 to PHP80,000 per square meter but it is now pegged at PHP100,000 per square meter. But these prices, Yu said, are still lower than in Cebu and Manila.

Chamber of Real Estate and Builders' Associations (CREBA) national president Dr. Malou Monteverde said the land value in the city has since multiplied at a minimum of 500 percent.

Monteverde attributed this largely to the interest in President Rodrigo Duterte, currently the city's most famous resident.

Monteverde said the real property industry in Mindanao remains "very robust" whether for land banking or active development. (Digna D. Banzon/PNA