An official of property consultancy and advisory company Prime Philippines bared that J.P Laurel Avenue remains the most lucrative area in Davao City.
Ruth Coyoca, head of Visayas and Mindanao operations of Prime Philippines, disclosed that in terms of land sector, J.P Laurel Avenue remains the most prime area in Davao City wherein topline spaces ranges from P90,000 to P120,000 per square meter (sqm) with those in the lower ranges extended throughout the commercial areas of the city.
Majority of the commercial properties, office spaces, and retail spaces are now situated at the heart of Lanang area, along J.P. Laurel Avenue.
Coyoca said in terms of location, majority of building completion from 2020 to 2022 are seated in Bajada-Lanang area along the stretch of J.P Laurel with the likes of Diamond Tower of Damosa Land Inc. (DLI), Cybergate Delta 2 of Robinsons Land, and Davao Finance Center of Megaworld.
“Starting off with the office sector in the Davao market. For the first half of 2021 we had an additional 6,500 square meters of supply which makes our office total supply currently sits at 185,000 sqm with the completion of Diamond Tower of Damosa Land an additional 20,000 sqm will be added in our inventory plus an additional 39,000 sqm of development until 2022,” Coyoca said in her presentation during the 8th General Membership Meeting of Davao City Chamber of Commerce and Industry Inc., (DCCCII) with the theme “Real Estate in Davao Region: Current Challenges and Opportunities” on August 27, 2021.
Coyoca said the Davao office market is still a cost-efficient option for office locators as Davao City still has the lowest rental rate.
She added that in terms of the rental rate, Bajada-Lanang area has still has the highest with P250 per sqm for commercial lot and P1,000 per sqm for in line space.
Coyoca said Davao City remains stable despite a 1.3 percent dropped in occupancy rates due to strong leases and stability through its BPO locators, amidst select pre-terminations and business closures among smaller players.
“We also have clients with main hub in the Bajada-Lanang area,” she said.
For the retail sector, according to Coyoca, in the first half of 2021, the retail sector still challenged to achieve stability with restaurants and other businesses.
“While we see movement of expansion from local and other brands, closing deals now really take longer than pre-pandemic time due to lockdown and travel restrictions,” she said.
