Is it worth buying condos in Davao?

Is it worth buying condos in Davao?

There is a lot of constructions in Davao already and more are to come in the next year. So it is no longer a secret place to make money. Many small and especially the big construction companies are pushing to Davao. First of all there are the big companies, like Ayala Land, Mega World and SMDC. The buyer can choose from a variety of purchase options.

According to a statement of the company LAMUDI DATA there are at the moment  about 2,400  offers for houses, townhouses and condos. And who wants to rent, there are about  130 options to choose from.

It is not surprising that in Davao there are a number of super homes that cost more than 40 million pesos, followed by about 130 deals, which cost 10 million pesos and more. Most of the offers are well below 10 million pesos. This explains that the average price is around 4 million pesos.

It is also interesting what is the price of  1 square meter of a new constructed condo . You must spend an average of about 71,000 pesos per square meter. According to a statement of the company LAMUDI DATA  the possible rent is about 650 pesos per square meter. This means a  return of investment  of just under 1%. Not much.

One should note that these are average values - but to compare the offers in Davao it is worth to know these actual numbers.

With best regards,

Ludwig from Davao

Townhouses for 1,250,000 pesos

3. 12. 2014

The real estate market in Davao is in motion. Now there are the low-priced real estate providers that have been run with success  its concept already in Manila or Cebu .

Some weeks ago  the company JOHNDORF VENTURES came first. It offers  very interesting designed townhouses,  a 2-storey building with an attractive facade in the “Portside Davao”. In total, a townhouse has 52 sqm and a lot of 44 sqm. In the first floor there  are living room, kitchen and bath room. In the 2^nd floor are 2 sleeping rooms. That’s all. And the price is really unbeatable with about 1,250,000 pesos.

At a cost of about 24,000 pesos / sqm, it is also really cheap. Other construction companies start from about 55,000 pesos / sqm. It is necessary to consider that these other  houses are also in a much quieter and more  expensive location.

The  company will pack ca. 420 townhouses on the 2.7-acre plot. It will be really close-to-close. The lot is near to the Davao airport and depending on the wind position you will get the aircraft noise – some times. The company has perfectly calculated the demand for  its townhouses: More than  35% are  already sold  within 14 days off the plan. A real low-cost house with conversion possibility. Not only Filipinos have bought , but also a lot of foreigners who want to have a rest house in Davao.

With best regards

Ludwig from Davao