A New Davao Arises!

Bringing you what’s new in the city and upcoming to Davao!

Davao investments grew in 2011

In terms of business, 2011 had been a good year of Davao City. It was a year when the first Ayala Mall in Davao City opened. It was also the year when big ticket projects which will soon change the cityscape of the city were launched – projects such as the 26 storey Abreeza Residences and the 30 plus storey Aeon Towers. It was also the year when we had our very first Davao Icon (Investment Conference) that led to investment  commitments of around P11.87 billion.

(Davao City Investment and Promotion Center) DCIPC chief Jason Magnaye said the total investment grew in terms of amount of business capitalization at P187 billion in 2011. The establishment of new businesses in the city also showed an increase of 47.6 percent in 2011 with an accumulated amount of P3.68 billion from P2.5 billion in 2010.

Jason Magnaye shared that the increase mostly came from real estate projects or property development projects here in the city.  The BPO (business process outsourcing) and tourism industries also helped in the increase of both capitalization and new business establishment.

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Filed under: Davao Business Updates, Real Estate/Construction

20 storey Ateneo de Davao University Tower

—-UPDATE as of January 20—–  : Instead of a 20 storey building, ADDU changed its plan to 12 storey building once it will be approved by the Society of Jesus in Rome. Original proposal is 20 storey but reduced to 12 floors for the main reason that they would want to use the extra funding for the improvement of the sports facility as well. 

Here is the rendering of the proposed 20 storey Ateneo de Davao University Tower (Community Center)

Rendering courtesy of halfmasked posted on SSC Davao (halfmasked.blogspot.com)

Availability of the rendering is not possible if not shared publicly by Paolo Villanueva. http://www.facebook.com/macster7

Availability of the rendering is not possible if not shared publicly by Paolo Villanueva on October 1st, 2011. http://www.facebook.com/macster7

Proposed 20 storey Ateneo De Davao University Tower. Proposed 20 storey Ateneo De Davao University Tower. Photo Credit: This photo is courtesy of one of the forumers from SSC Davao.

Proposed 20 storey Ateneo De Davao University Tower

According to Arch. Christopher Ong who presented the concept and overall design, the tower which will serve as a community center will house the student plaza (for student offices), faculty lounge, wellness gym, jog track, and a fitness center. It will have a 3 level convention hall that can accommodate upto 5000 people. Skybridges will connect the tower to Finster and Jubilee.

Proposed 20 storey Ateneo De Davao University Tower

Proposed 20 storey Ateneo De Davao University Tower

With a budget of around 1.2 billion pesos,the community tower will occupy a 6,000 sqm area. Once everything will be agreed upon by the proponents, construction will start in January 2012.

Filed under: Davao Business Updates, Real Estate/Construction, Urban Developments in Davao

SM Annex in SM City Davao

SM City Davao in Ecoland

SM City Davao in Ecoland as of April 2011. Photo courtesy of Jon V.

After 8 months…..

SM City Davao in Ecoland with SM Annex as of December 2011

SM City Davao in Ecoland with SM Annex as of December 2011. Photo courtesy of Gilles H.

SM Annex in SM City Davao, though just an expansion, looks more like another stand alone mall coz of its sheer size. At 49,000 sqm, the first floor of SM Annex will be for retail and dining, the second floor would serve as its cyberzone, and the third and fourth would serve as an IT center for business process outsourcing (BPO) firms such as call centers and back offices.  The first two floors can accommodate upto 127 tenants. SM Annex is linked to SM City Davao through two glassed bridges.

Filed under: Davao BPO Industry, Real Estate/Construction, Urban Developments in Davao

Evolving downtown Davao

We have been dazzled by the construction frenzy in the northern part of Davao City and the expansion of residential estates and even the rise of new malls in the southern part of the city, but let’s not forget the evolving cityscape of downtown Davao.

Downtown Davao can normally be equated to the streets of CM Recto or local Dabawenyos normally refer to as Claveria, areas in Bolton, Ilustre, San Pedro, Magallanes, Bankerohan, or even the areas surrounding Quirino.

This recent years, Davao enjoyed big investments from big developers such as Ayala Land and Anflocor which built the Abreeza business district in Bajada (an area for the soon to rise 26 storey Abreeza Residences,  11 storey Kukun Hotel, and a multilevel BPO/IT building), the upcoming 30-plus storey twin tower residential condominium called Aeon Towers by FTC Group, or Robinsons Land that built Robinsons Cybergate – a business process outsourcing facility with a commercial component. SM Prime Holdings is currently building SM Annex (in fact, with how massive it is,  it looks more like another mall)  to be linked to SM City Davao, and a larger SM supermall in Lanang which will house SMX Convention Center and Park Inn Hotel by Radissons.

We’ve read all about these in the news, from online forums, and blogs. But have you also noticed the small constructions and new developments in downtown Davao?

Well, one of our friends Jay Salva took some photos of street scenes in downtown Davao. Check these developments that were never there three or even four years ago.

Blue Velvet Hotel and Caffe in Davao City

Blue Velvet Hotel and Caffe in Davao City (downtown area - Claveria/CM Recto)

This is Blue Velvet Hotel and Cafe along Claveria or today known as CM Recto St. It opened just this year – very homey yet affordable with rates starting at around 650 pesos. Owned by the Oropesas who will soon be opening another commercial arcade in this same street to be called as OroDerm City.

With the dream to revitalize the downtown area again, Neil Oropesa (President and CEO of Oroderm Group of Companies) spearheaded this project which will house a boutique hotel and a commercial arcade.

oroderm city davao city

Oroderm City along CM Recto (Claveria) - photo courtesy of El Bartolo

Farther from downtown Davao, well it’s actually part of Chinatown Davao, is Hari Royale Suites. This opened sometime in 2009 minus the noise.  A six-storey structure along Sta. Ana Avenue with a resto, a spa, and 33 suites. Today, this is just one of the new structures in Sta Ana Avenue. Some of which are the recently opened The Peak on top of G-Mall Davao, our answer to Trinoma’s Skygarden or SM North’s, and a hotel with green architecture that opened few years back which is Pinnacle Suites.

Hari Royale Suites

Hari Royale Suites (early morning fun run) along Sta Ana Avenue

 

Sta Ana Avenue in Davao City

Sta Ana Avenue in Davao City

And if you’re a Dabawenyo or a frequent visitor, im sure you know that few blocks from here is Sta Ana Shrine Parish – which recently went through a facelift.

Sta Ana Shrine Parish in Davao City

Sta Ana Shrine Parish in Davao City

Going back to the heart of downtown Davao – near Ilustre is Mt Mayon St and its vicinity with some new structures such as Midorri Inn, the second building of  Sampaguita Tourist Inn that opened few years back, and some new restos and shops in the area. Did you know that Midorri Inn is one of the two Philippine hotels that are part of Green Hotels Association (the other one is Le Soleil De Boracay Hotel).

Sampaguita Inn and Midorri Inn

Sampaguita Inn and Midorri Inn

Now these are just few of the many new developments in downtown Davao. Not to mention the newly constructed condominium complex in Magallanes called Magallanes Residences – a three 8 storey condominium complex, the soon to rise Eurotel near City Triangle, the upcoming Avida Towers by Avida Land (one of the property arms of Ayala Land), and the recently announced Ateneo de Davao University Tower which will be taller than Marco Polo Hotel in Davao City after its completion. Downtown Davao is indeed evolving. And who knows what’s next?

Filed under: Davao Business Updates, Real Estate/Construction, Urban Developments in Davao

SM Lanang in Davao City – a construction time line Part 1

SM Lanang site - the former Lanang Country Club

SM Lanang site - the former Lanang Country Club

Lanang Country Club ceased operations on July 31, 2008. A notice was published to the public stating as follow: “The Dakudao and Sons, Inc. cannot sustain the operation of the property as a golf club anymore. This property is just not viable as a golf course anymore”. “We sincerely appreciate your patronage through all these years. In the almost 3 decades that Lanang Country Club has been operating, we hope to have touched your lives in a positive way. We hope to be of service to you in some other capacity in the future. Thank you very much.”

Summer of 2009, SM Prime Holdings announced that it will soon open an SM City Mall branch in Lanang. In an interview with Debby Go in April of 2009, SM regional manager for Mindanao, confirmed that it will be constructed at the Lanang Golf and Country Club site.

In June 2009, SM Investment Corporation (SMIC), a holding company of the SM Group through SMIC executive vice president and chief financial officer Jose Sio confirmed that the new mall that will rise in the former Lanang Country Club will be bigger than SM City Davao in Ecoland.

In November 16, 2009, reports obtained by Sun.Star Davao (as published on their newspaper and online portal) also showed that SM Lanang will be twice the size of SM City Davao and will be complemented by a residential condominium project of SM Development Corporation, the residential property developer arm of SM Investments Corporation.

By January 2011, 3 years after the closure of Lanang Country Club, full swing construction of SM Lanang began. In March 2011, Edge Davao (a local news outlet), reported that the gross floor area of SM Lanang is 175,000 sq.m. which is indeed twice the size of the existing SM City Davao in the Matina-Ecoland area. SM Cinema officially announced that it will have its first IMAX theater in Davao City at  SM Lanang. While SMX Convention Specialist Corporation (SMX Corp.) is a subsidiary of the SM Hotels and Conventions Corporation also shared to the public the construction of SMX Convention Center within the complex.  SM Hotels will also be bringing in an international hotel brand Park Inn by Radissons  (luxurious yet affordable).

SM Lanang Artist Perspective

SM Lanang Artist Perspective

In August 2011, Teresita Sy-Coson, vice chairperson of SM Investments Corp. visited Davao City as a guest speaker during the 7th General Membership Meeting of the Davao City Chamber of Commerce and Industry, Inc. She did not divulge figure as to investments in the on-going construction at the former Lanang Country Club, but she emphasized that they would follow green architectural designs.

As of this writing, SM Lanang is already taking shape. Below are some photo updates shared and posted online by other netizens. You would also see the supposed rendering of SM Lanang inside and out once completed.

Construction Aerial Shot as of November 2011

Construction Aerial Shot as of November 2011 photo courtesy of Dynomite

Construction Update as of December 2011 - photo courtesy of Akositibing

Construction Update as of December 2011 - photo courtesy of Akositibing

And here are some artist’s perspectives inside SM Lanang courtesy of the design firm Point Design

SM Lanang and its Skygarden

SM Lanang and its Skygarden

Inside SM Lanang

Inside SM Lanang

Front Part of SM Lanang

Front Part of SM Lanang

Filed under: Davao Business Updates, Real Estate/Construction, Urban Developments in Davao

Davao as a good market for residential condominium projects

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:

– entrepreneurs
– local business moguls
– growing middle class
– ofws

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. 🙂

Filed under: Real Estate/Construction, Urban Developments in Davao

Entry of major players in the call center industry

Two big players in the global call center industry are set to expand in Davao City.

VXI which will be occupying Robinsons Cybergate Davao. VXI is headquartered in Los Angeles in California with operations in Makati and Quezon City here in The Philippines. Davao City, once operational, will be their fourth facility in the country.

Then we also have Convergys which is also finalizing its plan to operate in Davao City. No specific location yet but there are news within the industry about the soon to be completed facility in Damosa IT Park as a possible location of Convergys. Another rumored location is the soon to be constructed Abreeza Technohub.

Another IT Building will soon be completed in SM City Davao. To be dubbed as “The Annex”, the mall expansion will house retail shops, bistros, and the upper floors will soon serve as an IT building for call center locators.

The call center industry which is a segment of the business process outsourcing industry, though existing in The Philippines for more than a decade now, is still considered as the country’s  sunshine industry.  As of 2010, the bpo industry in the country had a revenue of $9 billion and employing  525,000 Filipinos, most based in Metro Manila. Though there are call centers in Davao City, compared to cities in Metro Manila, Davao is still playing catch up.  Hopefully, the entry of these 2 big companies would also serve as an invitation to other bigger players to set up facilities in Davao.

Filed under: Davao BPO Industry

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