Real property market still better, says firm

THE LOCAL real property market may have been shaken by the series of earthquakes last year, but a consultancy company believes the industry environment will continue to be rosy this year.

In its report released on February 5, Prime Philippines admitted that the city experienced a slowdown as a result of the earthquakes late last year, but the company continues to be optimistic of the market.

“Despite the major hurdles faced, an upcoming office building and continues expansion of flexible workspaces are expected,” the report said, pointing out that among the drivers are knowledge process and business process outsourcing operations as well as serviced offices.

The report said that last year, the ready for occupancy spaces were about 1.7 million square meters and that there is a foreseen addition of about 16,000 square meters this year. The report added that the rental rate is between P350 to P700 per square meter a month as the occupancy rate last year was at 89%.

The optimism in the market was the same outlook that prompted the Damosa Land Inc. (DLI) to sign a franchise agreement with the International Workplace Group Co., a company that carries for brands of workspaces.

Although admitting that the earthquakes impacted on the industry, Ricardo F. Lagdameo, DLI first vice president, said that the impact will be minimal as most of the buildings were able to withstand the tremors.

“We are still upbeat,” Lagdameo told TIMES as his company’s franchise agreement with the workspace operators would allow his company to set up eight centers in five years in Mindanao, starting with its first at its Diamond Tower building, a 17-floor project in its Damosa Information Technology Park, the first Philippine Economic Zone

Authority-accredited IT park in the city.

Meanwhile, the consultancy firm pointed out that the value of commercial land in the city on the average, went up by 5.26% in major thoroughfares in the city. At present, a buyer can buy a square meter of land in the commercial thoroughfares at a low P90,000 to a high P100,000 depending on the location of the property.

Despite the high prices, the report added, some landowners do not want to sell their properties. “Several landowners opt to hold onto their properties in Davao City and only offer their lots for long-term lease,” it added.

The land value, it added, will even continue to appreciate especially when key infrastructure projects in the city are completed. Among them the railway system that passes through the city and ends in Tagum City in Davao del Norte in the north and Digos City in Davao del Sur in the south.

Maria Luisa R. Abaya, Prime Philippines regional operations head for Visayas and Mindanao, told TIMES that properties along JP Laurel Avenue have continued to be the most expensive lots in the city.

“This is because it is where key projects are located like condominiums and shopping malls,” Abaya said as the stretch hosts four malls.