Davao Real Estate ( Post-Covid ) Developments
Economic Recovery Forecast In Davao 2022
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Real Estate In Davao |
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Davao real estate are gearing up for a faster recovery after post-covid development, Davao City for sure is an economic hub in mindanao retaining its stature as one of the more attractive residential investment hubs in the region. Despite the market disruptions due to Covid that almost halt all economic activity.
There's always an 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 are open.
We can see some foresight an improvement in demand beyond 2022 and this should play a crucial role in raising property prices and improving the feasibility of alternative sites for residential projects.
Theres a growing demand to maximize available infrastructure
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Real Estate Forecast In Davao |
Davao City 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, With the current trend in today's real estate industry in the city, We can difinitely say that you can find the right investment suited for your needs.
There's a lot to see in the coming months or years to come, in our view there's more horizontal projects coming up as more demands for housing projects are slated to increase in the coming years, that will remain an attractive investment option among Overseas Filipino Workers (OFWs). Hence, we encourage developers to look for viable sites in the fringes suitable for horizontal projects including Buhangin and Talomo and calinan district where the climate is more favorable. The improvement of roads and other public projects should raise the viability of these alternative sites for residential developments.
Decline in Sales of Vertical Projects Namely Condominiums in 2021
In 2021, only 841 condominium units were sold in Davao According to Colliers An Investment Management. This is significantly lower than the 5,000 to 6,000 units sold in 2018 and 2019, respectively. To recapture demand and encourages that developers offer more innovative discounts, promos and flexible payment terms to attract more end-users and investors. Some of the innovative promos being implemented in Davao include extended payment terms, discounts on spot down payments and free appliances
There's a growing demand for Horizontal Projects Namely House and Lot
According to Colliers An Investment Management Group has observed that H&L units were well received by the market and have generated significant sales, especially newly launched projects in Talomo, Buhangin and Toril. Hence, it is recommends that developers assess demand and look for attractive price segments beyond 2022. Among the attractive price segment for the condominium and horizontal market amid the pandemic is the affordable segment which recorded stable take-up from 2020 to 2021, as indicated in the Davao vertical take-up, 2020 vs. 2021 see graph below.
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Davao Vertical Take Up |
Complete & Up Coming Condominiums in Davao City
As of the end of 2021, According to Colliers An Investment Management Group Davao’s condominium stock reached 20,535 units, up 25% from the 16,441 units recorded in 2020. About 4,094 new condominium units were completed in 2021, higher than the 3,475 units delivered in 2020. Among the projects completed in 2021 are Amani Grand Citygate Davao, Camella Condo Homes, Centro Spatial, Maldives Oasis, Patio Suites, The Enclaves Residences, The Residences–Azuela Cove, Two Lakeshore Drive and Verdon Parc. From 2022 to 2025, Colliers sees the annual delivery of about 2,500 units, slightly lower than the 2,600 yearly completion from the pre-Covid period in 2016 to 2019.
With that in mind and the real estate forecast in davao will likely retain its stature as a viable residential hub post-covid. Data from the 2021 Cities and Municipalities Competitiveness Index showed that Davao City was ranked as the fourth most competitive.
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