Skip to main content Skip to footer

Colliers Radar | Gearing up for recovery: Davao developers brace for rebound post-Covid

Download Report
Davao real estate, Davao condominium market

With economic recovery seen in 2022 and improvement in residential demand expected, developers are urged to continue lining up new residential projects in the city to capture pent-up demand.

 

Colliers sees Davao retaining its stature as one of the more attractive residential investment hubs in Mindanao. According to Theresa Teodoro, Colliers Senior Director and Head of Advisory Services: “Davao remains to be the preferred residential investment hub of Mindanao, given key indicators and upcoming infrastructure projects.”

In Colliers’ view, Davao’s residential market will continue to benefit from the region’s economic recovery beyond 2022. Despite market disruptions due to Covid-19, demand – primarily seen to be coming from overseas Filipino workers (OFW) and investors – is still expected to take up inventory as the country starts to ease mobility restrictions and economies open.

In 2021, 840 condominium units were sold in Davao City, up from the 655 units in 2020. We expect condominium demand to slowly pick up in 2022, fueled by regional economic growth and OFW remittances. In 2022, Colliers sees the delivery of about 1,790 condominium units, with the Talomo and Lanang districts covering 65% of the additional supply during this period. Condominium prices, meanwhile, are expected to grow by an average of 3% per annum from 2022 to 2026 as national real estate developers continue to launch new projects to cater to a mix of investor and end-user demand.

Colliers sees 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. We recommend that developers continue lining up new residential projects in Davao City to capture pent-up demand. Furthermore, we recommend that developers maximize available infrastructure and continue land-banking efforts outside of business districts.


DOWNLOAD FULL REPORT HERE


Davao real estate, Davao condominium market

Colliers Radar | Gearing up for recovery: Davao developers brace for rebound post-Covid

Download Report
Related Experts

Joey Bondoc

Associate Director

Research

Manila

Prior to joining Colliers in March 2016, Joey worked as a Research Manager for a research and consutancy firm where he handled business, political, and macroeconomic analysis. He took part in a number of consultancy projects with multilateral agencies and provided research support and policy recommendations to key government officials and top executives of MNCs in the Philippines.

View expert

Martin Aguila

Senior Analyst

Research

Manila

Martin Aguila graduated in February 2019 from the De La Salle University with a degree in AB Economics. He joined Colliers Philippines in the same month and works as an analyst under the Research department. He has presented in several property market briefings with developers and investors and has assisted in the preparation of reports related to property such as Market Intelligence, GDP Flash, Quarterly Market Updates and Radar Reports. He also helps the team maintain and develop databases.

View expert

Brent Respicio

Research Analyst

Research

Manila

Brent Respicio graduated in 2017 from University of the Philippines Los Banos with the degree BS Economics. Brent is a Research Analyst for the Research Department. Prior joining Colliers, Brent already worked for a real estate firm as a researcher as well. He is involved in conducting quarterly reports on residential and industrial sector and helps in maintaining databases for the use of research and other departments. 

View expert