SMDC sets its sights on Davao
Like a pungent durian dangling from its tree, the Davao Region is ripe for the picking. The region has been dubbed the ‘Silicon Gulf’ in recent years because of its growing BPO and ICT sector, which is currently valued at P170.2 billion.
In 2016, the region’s gross regional domestic product (GRDP) grew by 9.4 percent, according to the region’s National Economic Development Authority (NEDA) office. This growth is 1.2-percent higher than the previous year’s GRDP of 8.2 percent. The figure is also higher by 2.5 percent from the national gross domestic product (GDP) of 6.9 percent.
The service sector has the highest contribution to the region’s growth, at 51.1 percent of the GRDP. According to NEDA, the Business Process Outsourcing (BPO) and Information and Computer Technology (ICT) industries largely spurred the sector’s growth. The region already has 32 BPO and ICT firms, more than half of which are call center firms and most are located in Davao City.
Behind the service sector in terms of growth is the industry sector, which contributed 36.7 percent to the GRDP. Now valued at P122.1 billion, the sector’s growth was primarily driven by new investments in the energy and water subsectors.
Agriculture, the region’s traditional economic powerhouse, also continues to make substantial contributions. It contributed 12.2 percent to the GRDP, with the Cavendish banana and commercial fishing subsectors contributing much of the growth.
The region’s spectacular growth has also attracted a population boom. In the coming years, the region’s population is set to reach five million from the 2015 census figure of 4.9 million, according to the Philippine Statistics Authority (PSA).
Top-of-mind developer
As the ‘Silicon Gulf’ continues to experience stellar growth, SM Development Corporation (SMDC) — the country’s no. 1 real estate developer — is setting its sights on the region as its next market.
Rising incomes among urban dwellers, as well as the prevailing housing gap in the city makes it an attractive real estate market for the company. Expanding to the Davao Region is key to achieving SMDC’s vision of building a home for every Filipino in every major city in the country.
“I want the Philippines to be a nation of homeowners. I want everybody to be affluent so we will have a better life, primarily with a roof on our heads and a good, clean environment to live in. The environment plays a big role in your present and future because it shapes you,” says SMDC chairman Henry Sy, Jr. about his vision for the country.
Since its establishment in 2006, SMDC’s growth has coincided with the growth and expansion of its parent company SM Prime’s mall projects. For 12 years, the company has committed itself to providing its clientele with a luxurious urban living environment through vertical residential developments seamlessly integrated with commercial and leisure environments. Initially, wherever an SM shopping mall has stood, an SMDC residential project would rise. More recently, SMDC has built self-sustaining vertical villages that have its own shopping mall, cinemas, leisure and relaxation facilities and other amenities.
From its inception, SMDC has launched 38 projects throughout the country, has sold more than 100,000 units and delivered over 60,000 units to its clientele. Its projects are spread over a wide geographic area that includes Metro Manila, Cavite, Bulacan, Pampanga, and Laguna.
With a large and widespread portfolio of projects, backed by 12 years of reliable and credible construction experience, SMDC has made a name for itself as a trusted builder of quality vertical developments for any market segment. Moreover, it has contributed to the growth of its parent company SM Prime, one of two SM Group companies (the other being SM Investments Corporation) that breached the P1-trillion mark in terms of market capitalization.
Keys To success
SMDC is top-of-mind among residential buyers because of the prime location of its residential projects.
Most SMDC residential projects are beside or near existing SM shopping malls, such as Mezza I and Mezza II across SM City Sta. Mesa, Park Residences across SM City Sta. Rosa, Cheer Residences beside SM City Marilao, Hope Residences beside SM City Trece Martires and South Residences beside SM Southmall.
Some projects have also been built in key central business districts, like S Residences, Sea Residences, and Shell Residences near SM Mall of Asia in Pasay City; Red Residences along Chino Roces Avenue in Makati City; and Shine Residences in Ortigas Center, Pasig.
For residential buyers with school-age children, SMDC has opened projects located near key educational institutions like Green Residences near De La Salle University in Taft Avenue, Manila, Sun Residences near the University of Santo Tomas in España Boulevard, Manila, and Blue Residences near Ateneo de Manila University in Katipunan Avenue, Quezon City. In provincial areas, SMDC has completed projects that took advantage of the location’s breathtaking landscape, such as the Wind Residences in Tagaytay City, Cavite.
SMDC also pioneered several vertical developments have their own commercial retail and leisure amenities, like Breeze Residences along Roxas Boulevard, Pasay City; Jazz Residences in Bel-Air, Makati City; and Light Residences along EDSA in Mandaluyong City. Being located away from SM shopping malls, these projects have their own SM Hypermarkets, SaveMore supermarkets, Alfamart convenience stores, SM Cinemas, BDO branches, Watsons pharmacies, restaurants and other establishments.
Every SMDC vertical development comes complete with resort-styled amenities such as swimming pools, clubhouse, lush gardens, sporting and exercise facilities, and meeting rooms, regardless of the market segment it caters to. Entering each building’s lobby feels like living in a luxury hotel with its fine interior design.
The resort-like features of SMDC properties extend to its service to residents. Each building is put under the care of professional property management companies that take care of every unit owners’ needs from shopping and transportation assistance to laundry, parking and 24-hour security. It banks on the Filipino virtues of hospitality and treating everyone like family in providing quality property management service to every SMDC resident.
As SMDC sets its sights on expanding to the Davao Region, the company will provide Davaoeños with the same tradition of building properties in prime locations, properties that are fully integrated with commercial establishments, and properties with resort-styled, hotel-like amenities and property management.