Investors bet high on the President’s city

Property firms are expanding their presence in Davao City, as evident in the flurry of construction activities. Photos by: Jilson Tiu

Davao City—There is a reason why investors regard this city as a viable location to set up a business.

Even before President Duterte was sworn into office in June last year, his hometown was already regarded as a model city, praised largely for its peace and order situation, and known as the premier agricultural and trade center of Mindanao.

An industry group last year even cited Davao City as a “center of excellence” for the IT-business process management sector given the availability of skilled labor pool, adequate infrastructure, its conducive business environment, and competitive costs.

Roy Ryan II A. Rigor, assistant city planning and development coordinator, agreed that there are many reasons to explain the lure of business opportunities in Davao City.

In an interview, Rigor pointed out that the peace and order situation has been one of the strongest points of Davao City, along with the ease of doing business here that paved the way for a favorable investment climate. The cost of living is also more affordable compared to Metro Manila, and there is an available talent pool that companies can readily tap.

“We have a healthy business climate here. We do not require anything from the companies wanting to do business here except that they comply with all the local ordinances and the (pertinent) laws. As soon as they do so, we will then sign all the necessary clearances,” Rigor explained.

“Even back in 2007, we have already seen many potential investors flocking to the city due to these reasons. They were here to study the place. More so now when President Duterte won. Everything has changed and more companies want to come in and do business here,” he added.

While there maybe a stiff competition in the city, SLLI remains to be the biggest among the national developers in terms of land area.

Attracting real estate firms

Apart from the usual industries that found Davao City to be an attractive investment destination, large real estate companies have also started to expand their presence in this part of Mindanao, as evident in the flurry of construction activities across the city.

Although the entry of property developers is a welcome development, the city government has no qualms in ensuring the strict implementation of national laws and its zoning ordinances to ensure the long term sustainability of Davao City.

According to Rigor, developers must comply with the city’s urban land use and zoning policies, which include the need to provide additional green spaces, and to employ green architecture designs.

“We give importance to sustainability. We consider the impact of climate change because we don’t want to have a developed city that experiences flooding and traffic… Developers here, whether local or national, are so far compliant to our zoning ordinances. We are proud to say that we have already started to require property developers to have a green architecture design to ensure sustainability of the city,” Rigor explained.

Davao City has a total land area of 244,000 hectares, reputedly the largest city in the world. There is thus much room for more development in the city—whether for agricutural, commercial, tourism or residential purposes.

SLLI remains strong in Davao City, where it has 18 developments, including residential and recreational projects.

First mover

Today, there is a growing number of real estate players in Davao City.

“In terms of local players alone, we already have a lot. But we also have national players who have been here for a long time like Sta. Lucia Land Inc. And now, more property firms are coming in,” Rigor said.

“Sta. Lucia has already developed a lot of projects here—they’ve been here since 1997 when everybody else was not yet here. And Sta. Lucia, helped in the growth of the residential projects. Now, they even have a high rise development and a new project with a tourism component,” he added.

Sta. Lucia Land currently has 18 different projects spanning across more than 700 hectares in Davao City. Its first foray in the city was in 1997.

Liezel Tuason-Magpoc, chief executive officer and executive vice president of Sta. Lucia Ventures Inc., explained that Sta. Lucia Land has long seen the value of investing in the countryside.

“This is the reason why as early as 1997, when not too many national developers are daring to venture into the provinces, Sta. Lucia has already managed to establish a strong and steady foothold. This, I think, is what allowed us to grow and earn the trust and confidence of the market,” Magpoc said.

“Take for instance Sta. Lucia’s presence here in Davao, where we believe we had that first mover advantage. We did well in our first project wherein we sold 350 lots during the launch alone. This was followed by many projects that were also welcomed warmly by the Davaoeños. And right after President Duterte won, we experienced record high sales as more Filipinos wanted to invest in Davao through our projets,” she further noted.

Sta. Lucia’s projects in Davao City include Ponte Verde, Rancho Palos Verdes, Alta Monte Residential Estates, Ciudad Verde, Valle Verde Residential Estates, Centropolis, South Grove. The latest of these projects is the Las Colinas at Eden.

Roy Ryan II A. Rigor Assistant City Planning and Development Coordinator