Real estate developers in Davao City are still facing persistent difficulties in land acquisition, government permitting, and project marketability, with landowners playing a stronger role in pricing and negotiations, according to an official of the Real Estate Brokers Association of the Philippines (REBAP) Davao Region Chapter.
REBAP-Davao President Arnold P. Alderite, also known as “Mr. Broker,” said the key challenges in the industry remain the same, especially in securing properties and complying with regulatory requirements.
“So, challenges are always in the form of acquisition, which means price. Permits and licenses, which means government regulations. Those are particular challenges,” Alderite told Edge Davao.
He added that developers also face tough competition in the market, where pricing and project appeal directly affect sales performance.
“Marketability of the project, which means price competition, unique selling points of the project,” he said.
Alderite explained that while developers can adjust their strategies in pricing and design, delays in permits and licenses remain beyond their control.
“So ibig sabihin hindi nawawala ‘yan, that’s always a component part, especially in terms of acquisition of the property, in terms of government permits, because when we talk about government permits, it also involves efficiency, the release of timely permits, the release of timely licenses. So, which is, hindi kontrolado ng particular real estate developer,” he said.
He also noted changing behavior among landowners, saying their decisions are now shaped by both market conditions and personal financial needs.
“Always remember there are two things in real estate: market-driven” and “property owner-driven situations,” he said.
In high-demand areas like Davao City, he said rising land values have strengthened the position of property owners in negotiations.
“If for example, mataas ang demand, like for example dito sa area ng ating Davao City, so ibig sabihin yung acquisition cost mataas. Ibig sabihin medyo maangas yung ating mga land owners,” he said.
However, he pointed out that in some horizontal developments, landowners are more open to negotiations due to personal financial pressures.
“If you go to the horizontal property, yung mga land owners doon na naghahanap ng pera sa ngayon kasi medyo mataas na ang gasolina, si anak, si bunso magpapakasal na, so ibig sabihin madali lang silang lapitan,” he added.
Alderite emphasized that land acquisition outcomes often depend on whether market forces or individual property owners are driving pricing decisions.
“So ibig sabihin that depends also on the particular demand, the particular kung sino yung driven. Is it market-driven, is it a buyer’s price, is it the market price? So ganun,” he said.
