This week, Colliers Research provides insights on Cebu Landmasters’ latest condo project in Davao City and why the city continues to be an attractive residential investment hub in Mindanao; and the Board of Investments signing an agreement with the Environmental Management Bureau and InsightSCS Corp. to develop a cold chain integrated supply chain solution aimed at forecasting supply and demand for cold chain services, among others.
CLI sells out first condo in DGT
Cebu Landmasters Inc. (CLI) generated PHP4.1 billion (USD79.8 million) in sales after selling out three towers of The East Village, the residential component in its Davao Global Township (DGT). The project will include amenities such as a basketball court, lap pool, and a chapel. The East Village is part of the first phase of DGT, along with a lifestyle mall and a cultural center. The six-tower residential project is scheduled for groundbreaking in Q2 2022 with completion by Q3 2026.
Results from the 2021 Cities and Municipalities Competitiveness Index showed that Davao City ranked as the fourth most competitive city in the Philippines. In our view, the city will continue to be an attractive residential investment hub in Mindanao due to its competitiveness. From 2017 to 2019, the average annual take-up of condominiums in the city reached 5,360 units. Meanwhile, take-up in 2021 reached 841 units, up 28% YOY. We expect condominium demand to pick up in 2022, supported by regional economic growth and overseas Filipino worker remittances. Data from Philippine Statistics Authority showed that Davao Region accounted for about 79,100 OFWs, or 5% of the total OFWs deployed in 2020. Colliers recommends that developers tap the potential residential demand by assessing the viability of townships in Davao, which feature residential, office and retail components. Colliers also sees the completion of infrastructure projects such as the Mindanao Railway, Davao City Bypass Road, and Davao Airport Expansion raising the attractiveness for integrated communities in the city.
Local cold chain industry to be developed
The Board of Investments signed a memorandum of agreement with the Environmental Management Bureau and InsightSCS Corp. to develop a cold chain integrated supply chain solution in the country. The agreement aims to map out cold chain operators and forecast supply and demand for cold chain services. The project is expected to benefit agriculture and fishery producers, retailers, end-buyers, and logistics and delivery-service providers. The pilot project will launch in provinces such as Benguet, Cagayan, Isabela, Nueva Vizcaya, Nueva Ecija, Batangas, Quezon, and Camarines Sur. The project will also focus on priority commodities, including meats, fruits, vegetables, dairy, and fisheries.
The Board of Investments projects that revenues of the country’s cold chain industry will reach PHP20 billion (USD392 million) by 2023 brought about by the increasing demand for cold storage facilities from the food and pharmaceutical sectors. Colliers believes that demand for cold chain facilities will also likely be anchored by the thriving e-commerce sector especially with the increased preference for perishable and ready-to-cook food items. This should also be complemented by the government’s continued roll-out of Covid-19 vaccines. To meet the growing demand, Colliers recommends that developers construct more cold storage facilities or refurbish existing warehouses to include cold chain features such as pre-installed chillers and increased pallet capacity.
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