The real estate market in Davao City had indeed evolved. From low cost to mid rise horizontal projects or mass housing/residential subdivisions few years ago to mid – high rise vertical or residential condominiums today.
Many non-Dabawenyos and even some locales are still in doubt in terms of the marketability of condominium projects in Davao City. Well, is a sales record breaking 1.1 billion pesos or close to US$26 million one day sale not enough to prove the growing market in Davao City? Ayala Land claimed that the one day priority selling activity held in Davao City even broke the company’s sales performance record.
Also, there are several condominium projects which are now enjoying expansions. One of which is Camella Northpoint by Camella Communities part of Vistaland. The existing projects are fully sold out and today, the developer is constructing additional three 11 storey condominiums within the complex.
Few kilometers from the downtown area is Maa, where discreetly, another condominium complex is rising dubbed as Palmetto Place. And within downtown Davao is Magallanes Residences – with a recently completed third condominium building. And oh before I forget, did you know that another condominium project will rise within Chinatown Davao?
It is interesting to note that most Philippine real estate firms would start construction when the project is between 60% to 80% sold out. Hence, seeing these constructions and expansions in and around the city would suffice the query of condos’ marketability in the city.
So where are the buyers coming from? Who are they? They can be hardly identified but sales performance of current projects would say that the market is there. Well aside from the fact that Davao is one of the most populated cities in the country at almost 1.4 million people, the market is not exclusive to Davao City alone. Davao City serves as the business center of Davao Region with an estimated population of 5 million. And not only that it serves as the center of Davao Region, Davao City also serves as the business center and main trading hub in the island of Mindanao with a population close to 21 million. In terms of OFW buyers, as of 2002, Davao had produced around 27,000 OFWs. This data is from NSO as of 2002, no data yet for 2011. OFWs that would also serve as potential buyers of real estate projects in Davao City. We’ve also seen the influx of new investors and entrepreneurs in the city. We have homegrown businessmen with ventures that are starting to expand even outside of Mindanao. Other Dabawenyos who made Metro Manila, Cebu, or cities abroad as their extended addresses but would opt to invest in Davao.
The market may be categorized as such:
– local business moguls
– growing middle class
So is there a market for condominiums and new real estate projects in Davao City? The sales figures would say yes. Same as with the number of new constructions in the city. And ofcourse, the growing population and the increasing purchasing power would also agree. 🙂