DAVAO CITY — The market value of properties in prime commercial locations in the city, particularly at the Bajada-Lanang area near the airport, have gone up by as much as 25% over the last two years, but the number of potential buyers remain robust.
In its 2019 Davao Property Market Report released in May, real estate consultancy firm Prime Philippines said the most expensive area within the three-kilometer Bajada and Lanang stretch could fetch between P65,000 to P125,000 per square meter (sq.m.).
The same lots were initially priced between P50,000 and P100,000/sq.m. in 2017, the report said.
Maria Luisa R. Abaya, Prime Philippines regional operations head, said aside from that stretch — where shopping malls, hotels, office buildings, and condominiums are already located — other areas near the downtown have also become expensive.
She 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 told BusinessWorld last week, adding that the prices are fueled by speculation that major property developers are on the lookout for possible ventures.
Maria Lourdes G. Monteverde, a realtor and former president of the Davao City Chamber of Commerce and Industry, Inc., said the seeming expensive prices of real properties of the city has not dampened the interest of buyers.
“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 added that the implementation of big ticket projects will also help investors remain keen not just on the city but the Davao Region as a whole.
Under the government’s 2017-2022 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. — Carmelito Q. Francisco