A reverse migration trend will boost the Davao residential market as people are moving back to the city, encouraged by its economic growth in the recent years, a Davao-based developer said.
“What we’ve seen over the last couple of years is that there’s been kind of a reverse migration back into the provinces, at least that’s what we’ve personally seen in Davao,” Damosa Land Inc. Vice President Ricardo Floirendo Lagdameo told reporters in a recent interview.
Lagdameo noted that people who have been based in Manila or other parts of the world have been going back to the provinces to set up their businesses.
This is driven by Davao’s diverse market, which now caters to various industries aside from it being originally agriculture-oriented, he added.
With people going back to the provinces, or Davao in particular, the demand for residential properties is seen to increase along with the rise in the city’s population.
“Davao is not a small market. The city has 1.8 million people. When you take the whole region that’s about 5 million people. So the market is quite big,” Lagdameo emphasized.
He noted that this is attracting the country’s major developers to the Davao property market.
“So that’s why aside from the local guys, a lot of Manila-based developers are looking at it as a next major destination as well,” the vice president said.
Jones Lang Lasalle Philippines country manager Lindsay Orr agreed that the country may see a similar reverse migration trend from property developers.
“I think you’re going to find a lot of focus on developers from the Mindanao area to perhaps go back to the Mindanao area and focus on developments there, which will all add to the decongestion efforts,” Orr said.
Orr noted that aside from decongesting Metro Manila, developers have been expanding their portfolio to provincial areas as part of spreading the country’s growth to other parts of the nation.
“I think it’s really a question of opening up the country in all aspects. There’s really a lot of concentration in the NCR, where if it was spread out it would open up the whole country and it would provide opportunities for those people living in provincial location,” Orr said.
Moreover, with more people going back to the provinces, particularly in Davao, Lagdameo expressed a bullish outlook on his company’s residential segment, which is expected to boost the company’s revenues this year.
The vice president noted that the firm targets a 50 to 70 percent revenue growth this year, driven by its residential unit.
“Our estimate is about 50 percent to 70 percent [growth]from last year to this year,” Lagdameo said. “A lot of it is going to come from residential. That’s probably going to be number one and then followed by our commercial leasing and then followed by our office spaces.”
He said Damosa Land recorded revenue growth of 40 percent last year but declined to give actual revenue figures.