EDGE DAVAO
WHY INVESTING IN DAVAO
DAVAO INVESTMENT PORTFOLIO
SUSTAINING DAVAO CITY’S ECONOMIC GAINS INVESTING ON CONDO 101 THE BOOMING DAVAO WHY HOMEGROWN?
IS THE BEST OPTION
S2 EDGE DAVAO
DAVAO INVESTMENT PORTFOLIO
VOL. 8 ISSUE 81 • FRIDAY - SATURDAY, JULY 24 - 25, 2015
Why investing in Davao is the
BEST OPTION
By GREGORIO G. DELIGERO
F
OR as low as P2,500 per square meter, acquiring a parcel of land in Davao City’s commercial area is unarguably one of most affordable among the country’s highly urbanized areas. In the city’s Central Business District (CBD), however, the amount may run as high as P27, 000 per square meter. Yet, it is still cheaper as compared to P48, 000 per square meter in Manila or to the highly priced P440, 000 per square meter in Makati. Land affordability is among the factors that made Davao City to remain as one of the most competitive cities in the country since 2013. Competitiveness index is an annual ranking of Philippine cities and municipalities spearheaded by the National Competitiveness Council (NCC) with the assistance of the United States Agency for International Development (USAid). Only city in Mindanao This year, Davao City is the only city in Mindanao which made in to the top five in the highly-urbanized category dominated by Manila followed by the cities of Makati, Quezon and Cebu. According to NCC, the overall competitiveness score is based on the total values of data from several sub-indicators grouped through what it calls the main three pillars: economic dynamism, government efficiency and infrastructure. Economic dynamism is associated with activities that create stable expansion business and industries and higher employment from “a combination of the entrepreneurial spirit and the financial institutions that will channel
dynamism.” Government efficiency, on the other hand, refers to the quality and reliability of government services and support for effective and sustainable productive expansion while infrastructure refers to the physical building blocks that connect, expand and sustain a locality and its surroundings to enable the provision of goods and services. Cost of doing business While Davao City appears to have fared not at its best for only landing at number five, it remains a leading city when it comes to the cost of doing business. The cost of land is among the sub-indicators under the cost of doing business which include the cost of electricity, cost of water, price of diesel and the regional minimum wage rate. In terms of power consumption, Davao City has the cheapest cost of electricity at P7.45 per KwH for commercial use and P5.89 per KwH for industrial use. In Makati City, the cost is P19.31 per KwH in both commercial and industrial while in Manila, the cost is P13.26 for commercial use and P18.69 for industrial use. In Cebu City, it is pegged at P11.62 per KwH for commercial and P8.92 KwH for industrial. With abundant supply of water, Davao City is also among the lowest water rates from residential up to commercial and industrial uses. It has also the lowest daily minimum wage rates among the top five highly-urbanized cities. Incentives Aside from the lower cost of doing business, Davao City also offers incentives packages to inves-
tors engage into the city’s priority investment areas such as agribusiness and food processing, tourism and recreational facilities, light manufacturing and assembly, property development, establishment of health and wellness, educational and sports facilities, environmental protection and green projects, information and communications technology, generation of new sources of energy, transportation and infrastructure and Public-Private Partnership (PPP) projects. Through the Davao City Investment Promotion Center, the city government offers local fiscal incentive package such as the exemption from payment of business sales tax for a period of three years and exemption from payment of basic real property tax for a period of two years. The period of exemptions are extended up to five years in investment project is within the preferred districts of Calinan, Baguio, Marilog and Paquibato. Investors are also entitled to tax credit on raw materials, supplies and semi-manufactured products and additional deduction from taxable income for labor intensive projects and necessary and major infrastructure works. On top of these advantages, Davao City offers public utilities and amenities, market accessibility and linkages, social stability and safety and quality of human and natural resources which are at par with—if not better than —the cities in Metro Manila and elsewhere in the country. With all the favorable business conditions, there is no doubt why Davao City remains as the best option among investors.
Sustaining Davao City’s economic gains T HE local government of Davao City continues to identify economic opportunities anchored on the natural competitive advantages of the city and its people and “those that will result in stable, socially empowered, gender-sensitive, and broad-based development in the provision of access to capital and other inputs.” As spelled out in the economic sectoral study which forms part of the Comprehensive Land Use Plan (CLUP) 2013-2022, the city keeps on pursuing livelihood opportunities that provide direct and concrete productive linkages between communities and established businesses “as well as those that harness the creativity, skills, diligence, and talents of the people of Davao, individually and collectively to produce goods and services that can compete with the world’s best.” Over the years, Davao City already made significant gains in various economic activities which it is determined to sustain, if not surpass, particularly in the following areas of the economy:
Investment Incentive applications particularly came in droves in 1995 after the introduction of the Davao City Investment Incentive Code. Initially implemented through “Invest in Davao” project, capitalization of new investments totaled to P3.3 Billion in 1995 which were poured in by 44 investors in the field of agribusiness, light manufacturing, property development, tourism and transshipment. A total of P67 Billion inward investments were poured into the city since the code’s implementation up to 2013. No registrations were made in 1998, 1999 and 2012, the years when the code underwent amendments. Last year, there were five investors who applied for incentives with a total P31.14 billion capitalization. In terms of business permits, a total of P109.03 billion of investments were recorded in 2006, and consistently surged in the succeeding years until 2013 when the investments reached P203.04 billion or an increase of 86.22 percent. From 2006 to 2013, total investments recorded by the business bureau totaled to P1.40 trillion. Last year, total capitalization of new businesses was P5.5 billion. Capitalization is defined as the aggregate valuation of a company based on its current share price and the total number of outstanding stocks. Property development Davao City experienced
a
construction boom since the late 1990s with the entry of various Manila-based property developers and expansion of housing projects of local real estate companies. The city now hosts a number of condominiums, malls and other high rise buildings that gradually changed Davao City’s physical landscaped during that past couple of years particularly in the central business district going to the northern part of the city where several construction projects are still ongoing. From 2006 up to 2013, the local government has issued 14,154 building permits for development projects amounting to a total of P70.84 Billion. The biggest investment was poured in 2013 with a total of P20.59 Billion. Last year, the city government issued 5,848 building permits to new projects totally amounting to P10.17 billion. Foreign trade Davao City’s port is Mindanao’s leading gateway of export products to neighboring countries and the rest of the world with banana remained as the leading export commodity which traditionally accounted for two-thirds of the total value of all the city’s export goods. Davao holds the distinction of being the largest producer and exporter of the Cavendish banana in the country making the Philippines the third largest producer of bananas in the world. Fresh and canned pineapple which ranked next to banana and which was followed closely by the rubber cup, activated carbon, banana chips, cement, tuna, desiccated coconut, finished wood products, coconut oil, and scrap steel or iron. Together, these constituted the top commodities in terms of value share in the export market sector. From 2006 to 2013, a favorable balance of trade was recorded at US$4.65 Billion. Of the total foreign trade amounting to US$11.90 Billion, the exports from Port of Davao registered a total amount of US$8.28 Billion while the total imports was recorded at US$ 4.46 Billion. Last year, the balance of trade was US$624.96 million from a total trade of US$3.50 billion.
Tourism Despite the image that Davao City and Davao Region have had for being physically a part of Mindanao, tourist organizations claimed Davao City still stand to be the most peaceful city in the region, in the country and in the Southeast Asia region. Over the years, tourist arrivals in the country continues to grow by
thousands both foreign and local visitors. The number of foreign visitors surged more than double from 46,728 in 2006 to 100,831 in 2013. During the same period, a parallel trend was also recorded among local tourists from 519,350 to 1.32 million in 2013, the year when the total number of tourists surpassed one million-mark with 1.42 million visitors. During the past eight years, the tourist arrivals in Davao City reached 6.47 million. In the same period, the total estimated tourist receipts registered at P91.37 billion while the estimated economic benefits posted a total of P201 billion. Last year, the total number of tourists reached 1.5 million with an estimated tourist receipts amounting to P17.13 million.
Employment Aside from holding regular job fairs in partnership with private companies, the city government’s tax incentive law has generated 22,230 direct employments from companies granted with fiscal and non-fiscal incentives. The fresh investments also generated a total of 40, 027 indirect employment. On the other hand, business establishments registered at the Business Bureau generated a total of 147, 333 employment in 2013, an increase of 91.85 percent as compared to 76,794 employment recorded in 2006. Last year, newly registered establishments generated 11, 361 employees while businesses which sought for renewal declared a total of 154, 105 total number of employees.
Other economic activities With its peculiar topographical, Davao City mainly relies from neighboring rice-producing areas for its staple food requirements but it produces high quality fruits such as durian, banana, pineapple, pomelo, mangosteen, mango, rambutan and marang. High-value commodities such as cut-flowers, vegetables, industrial fibre, oil crops and beverage crops are grown, together with production of livestock that includes poultry, dairy, fishing while forestry, coconut, rice, and corn growing are also common activities particularly in the upland areas. Aside from agriculture, major industrial activities of the city include the manufacture of industrial goods, food processing, furniture and joinery, metalwork, and the manufacture of gifts, toys, and household goods. Gregorio G. Deligero
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EDGE DAVAO
DAVAO INVESTMENT PORTFOLIO
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Damosa Land:
Damosa Land, Inc. breaks ground for its 6-tower condominium project, Seawind.
the Davao Region’s Partner in Growth
Ricardo F. Lagdameo, vice president for Residential of Damosa Land, Inc., says the company tries to capitalize on the goodwill that they have worked so hard to build up over the years.
By CHARLES RAYMOND A. MAXEY
D
AVAO City is now the battleground of the real estate property war, with big and small developers engaging in a stiff competition to have a piece of the market pie. One homegrown developer—Damosa Land Inc,--is in the heart of the battle and is proving to be one tough competitor in the highly challenging industry with its reputation and background. “There is no doubt that the last five to seven years have seen the emergence of new, major real estate projects from both Davao-based as well as Manila-based developers,” says Ricardo “Cary” F. Lagdameo, the young and energetic vice president of DLI-Residential. While Lagdameo acknowledges the entry to the city of big developers, he assured their company, the real estate arm of the Anflocor Group of Companies, is definitely ready for the battle. “While this is certainly a welcome development for the city, the competition means companies like Damosa Land have to constantly be on their ‘A Game,’” Lagdameo said. The young executive said Damosa Land, Inc. banks on several factors, from its rich heritage and background, being part of one of the oldest conglomerates in the city. Lagdameo said they also leaned on innovative new ideas which are constantly being applied to new projects. “As with all successful real estate developers, we try to capitalize on the goodwill that we have worked so hard to build up over the years,” he said. Damosa Land Inc. is a full complement real estate developer, having businesses in commercial and office leasing, residential development, and hotels. “We’re blessed to have full time teams on each of these businesses which we draw synergies with,” Lagdameo said. “Aside from this, we are
constantly building up our internal capabilities, from having a full-scale engineering team to a very capable design team,” he added. Two of the latest projects of DLI are the Damosa Fairlane and Seawind. Seawind, to be built in Sasa, will have a total of six middle-rise condominiums and a two-story commercial area. First phase of the development includes the construction of the road networks and land preparation for the building of a seven story condominium in the area. Perched on a sloping 2.8 hectare property in Barangay Sasa with an unobstructed view of the Davao Gulf and Samal Island, Seawind is targeting the young and vibrant market. For Lagdameo, it’s just but fitting that Davao City is now experiencing an unprecedented growth economically. “Smart developers will always be prepared for the down cycle. It’s hard to predict really when the downturn will happen,” Lagdameo said. “Fundamentally though, I believe we have a few more solid years. However, we can’t control and don’t know what external factors there are in store for us,” he added. Davao, Lagdameo said, is ripe for solid growth. “This growth will only last if there is strong support from government like favorable laws and incentives and easy permit processing, and responsible planning amongst developers,” according to Lagdameo. “The continued development of the city’s infrastructure will also be a huge plus,” he said. Damosa Land Inc. is a subsidiary of the Anflocor Group, the company that is responsible for developing business and lifestyle oriented commercial center Damosa District and the boutique residential community Damosa Fairlane.
S4 EDGE DAVAO
DAVAO INVESTMENT PORTFOLIO
Investing on Condo 101
VOL. 8 ISSUE 81 • FRIDAY - SATURDAY, JULY 24 - 25, 2015
By NEILWIN JOSEPH L. BRAVO
S
njb@edgedavao.net
O you are considering investing on a condominium prooperty? If so, how do you know if a condo is a good investment? There are several calculations you can go through, and questions to address, to determine the answer. It’s not like you buy in immediately to a sales agent or a broker who tells you that investing in condos is the next best thing since sliced bread. Investing in condos is a safe long term investment with a historical increase in property values significantly above inflation. Given that there are 3 certainties in life--death, taxes and the fact that real estate value will always increase over time. Experts in real estate investments will tell you three powerful ways to earn a return of investment--property value increase, paying down mortgage (equity), and monthly cash flow from rentals. First, property value increase means the historical increase in property values that is significantly above inflation. At any given time the Real Estate Market can be up or down, but over time it will always increase. The only time that people will lose money in real estate is when they are forced to sell.
Second, paying down your mortgage (building equity). The rental market is incredibly strong, as are rental prices. This means that if you invest in a condo, you can have someone else pay your mortgage down and build equity for you(hopefully without you spending a peso on anything other than upkeep). The transfer of burden is actually the main point of investment. Third, monthly cash flow from rentals. While most new condo purchases yield are “break even” investment up front, as rental prices increase over time (all things equal) the mortgage payment should actually decrease, which will create a monthly cash flow that will grow year over year. Once a prospective condo buyer understands the three powerful ways of earning ROI, the next thing to do is doing the math. Buying real estate property as a form of investment is not like buying an ordinary commodity. You have to realize how much you are spending including the ones that are not even anticipated but are considered “built-in” to the property. When considering a condo as an investment, you must accurately estimate:
The annual rent you may receive, and the annual expenses you will incur, including such things as: real estate taxes, insurance, maintenance and repairs. In addition you have to factor in the occasional expenses you may occur, such as legal fees, advertising costs to get tenants repair costs if a tenant damages the property, real estate taxes, insurance, among others. What if your condo will be vacant? You figure each time it is vacant you’ll need to spend on advertising costs, and you estimate this as a once a year expense. You also factor in that maybe one out of every five years you might have a bad experience and incur legal costs and additional repair costs. If you cannot pay cash, and must finance the property, you’ll also have to factor in the interest cost. There is also a need to find out if the condo you are considering has association fees and how often you may need to pay assessments. Assessments are expenses incurred to cover the common areas of the condominium property. Assessments could include landscaping, parking lot and parking garage repairs and maintenance,
improvements to the exterior of the building, and expenses associated with any common areas such as a main lobby or entrance way. These expenses should be factored into your expense estimate before you calculate the estimated return on your condo investment. Now, before making any real estate investment you must also assess how realistic your assumptions are. Some of the basic questions to consider in determining if a condo purchase will be a good investment: Is your condo in an area where rental property is in demand, such as near malls, schools, churches, hospitals? Is it in an area that is getting less popular or more popular? Could a major company in the area close down and cause rental demand to decline? Could a new condo development be built nearby, leaving yours in need of expensive improvements to compete? Finally, it boils down to one’s decision and appreciation of the investment of choice which ultimately requires knowledge of an area, and experience, to assess the many complex risks of investing on condominium property.
VOL. 8 ISSUE 81 • FRIDAY - SATURDAY, JULY 24 - 25, 2015
EDGE DAVAO
DAVAO INVESTMENT PORTFOLIO
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Santos Land Development Corporation
Being homegrown is an advantage
By CHARLES RAYMOND A. MAXEY
A
LMOST half a century is a long time to be in the housing industry, but Santos Land Development Corporation (SLDC) is not about to stop building homes. Being a developer for 44 years now. SLDC continues to be at the forefront of the real estate industry in Davao Cty. “The fact that we are homegrown, we see ourselves at the advantage over the rest,” says Antonio “Tonyboy” S. Domingo, president of SLDC. Domingo said with the property boom being experienced by Davao City, old and new developers have been pouring in billions of pesos into big ticket projects However, despite the entry of big players, SLDC isn’t wavering a bit, undaunted by the growing stiff competition. The reason for this is that Santos Land is not only developing subdivisions it is also building housing components unlike other players in the sector, Domingo said. “That’s our edge over the rest,” he said. Santos Land Development Corp. also boasts of a good track record when it comes to real estate property development.
It has developed many subdivisions, starting with the high-end ones then resorting to building low-cost units. Domingo said that after the Asean crisis, his company got involved in middle-class housing SLDC’s market is not only limited to middle-class housing. The company is now also back to high-end housing development. Now in the drawing board is a condominium and a hotel along J.P. Laurel Avenue fronting the old Durian hotel. The projects, the Ivory Residences and Hotel Onyx, will be developed next year. “We are now in the process of making the detailed plan. As soon as it is in place, we will apply for building permit,” Domingo said. After this, Domingo said they will apply for a license to sell from the Housing Land Use and Regulatory Board. Once they get approval of their application, he said they will proceed with the promotion and selling. “We are talking about this already. Soon, we can make some announcement,” he said. The Santos Land executive went on to say that they have big
Mr. Antonio Tony Boy Domingo, SLDC PresidS. en
t
plans ahead. One of the latest developments of Santos Land is the Celerina Heights, a project that was almost sold out even before it was fully developed. Other projects to be de-
veloped include the Ilumina Estates Phase 2, which is 18 hectares. Domingo said they will also be developing five subdivisions ranging from a P3 million market housing at Sun
City. This involves 40 hectares. Santos Land is also developing a 14-hectare township project in Makilala and tower condominium and two commercial buildings in Nova Tierra.
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EDGEDAVAO
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DAVAO INVESTMENT PORTFOLIO
VOL. 8 ISSUE 81 • FRIDAY - SATURDAY, JULY 24 - 25, 2015
NORTHPOINT – standing on stable ground W
HEN choosing a condominium community, a savvy homebuyer will do quite a bit of homework—from developer reputation, to location, to facilities and amenities. However, it pays to look into one more detail that is equally important: the type of land the structure is built on.
With several condominium projects currently being constructed and more yet to be built in Davao City, there are many options for homebuyers. But beyond the beautiful landscape, deluxe amenities, and strategic location, which one stands on stable ground? Vista Residences’ landmark condominium development, Northpoint, is built on solid bedrock. This British colonial themed condominium community gives its homeowners the assurance that their condo home is securely built on solid ground. Northpoint currently has three buildings and two more towers, Liverpool and the recently launched 10-storey Bradford will soon rise on this elevated land at the junction of Buhangin Road and JP Laurel Avenue, Bajada. The recently topped off Liverpool will have unique building features such as the Sky Courts in the upper floor levels. These wide openings in the building allow natural breeze to flow through for additional ventilation, and will be decked with live plants which, along with the garden atrium, will enhance the fresh ambiance
inside the condominium building. At 15-storeys, Liverpool will be the tallest building in Northpoint and offers its unit owners the best view of Davao Gulf. This is a perk they can enjoy without the nagging concern of the building’s stability, knowing that Liverpool is standing on solid ground. Many areas north of Davao have swampy land, and soil in wetland areas are not the best for building big structures. First, building on wetlands interferes with the natural flow of water that normally inundates the area. Blocking passages where water freely flows through is interfering with the natural landscape. This can be addressed by constructing provisional channels to redirect water passage, but if these do not have a clear destination for drainage, they may fill up and cause flooding. Flooding will not only affect buildings or houses in the area, it will eventually weaken these structures leading to permanent damage. Building on swampy areas or wetlands will also cost so much more than building on bedrock, as the foundation will have to be fortified to keep it from sinking to the ground. This will have a significant impact on the prices of homes built in the area. “Even before we purchase a property for our projects, a careful study of the land and soil quality is made. Vista Residences and its mother company, Vista Residences, will never risk its homebuyers’ investment in its devel-
opments,” said Anna Mae dela Pena, Marketing Head of Camella Davao, a Vista Land company. Northpoint being built on solid bedrock is more resistant to shaking during an earthquake because the bedrock itself vibrates a lot less as its structure is compact or tightly bound. This gives unit owners a lot of assurance on their homes’ safety and stability. “Building on swampy land just doesn’t give homeowners the same assurance as knowing their homes stand on solid ground,” said dela Pena, adding that Northpoint now has more units available with the launch of Bradley. “Homebuyers can avail of our July promo giveaways such as a home the-
atre, air-conditioner, flat screen TVs, free interior design for selected units, and investment premiums
of as much as P350,000,” said dela Pena, urging homebuyers to visit the Camella offices at Delgar
Building (fronting Northing), JP Laurel Avenue, Bajada, Davao City, or call 226-3100.
VOL. 8 ISSUE 81 • FRIDAY - SATURDAY, JULY 24 - 25, 2015
EDGE DAVAO
Showcasing modern technologies with Urban Hive Palms By CHARLES RAYMOND A. MAXEY
W
HEN Datem Inc. decided to develop a project in Davao, it meant only one thing: The country’s leading contractor took the growing real estate industry in the city to a new level with its innovative and modern technologies. These unique technologies will be brought to the fore with the construction of Urban Hive Palms, Davao’s latest urban dwelling that will soon rise in a 2.8-hectare lot along Bacaca Road. Urban Hive Palms is a mid-rise residential condominium development of Datem Homes, the real estate property arm of construction giant Datem Inc., and the Dizon family of Davao. The project is comprised of seven six-storey buildings with a total of 840 units. Angelica San Luis, Urban Hive Palms vice president for sales, said Datem Inc. brings its construction expertise into the affordable residential project with a touch of class.
“Basically, we want to build quality homes at affordable prices,” says San Luis. And, with its technologies, Datem will not only build a quality residential project in Davao but will also make its construction faster. For Urban Hive Palms, each residence is inherently built-in with the same seven unique and innovative technologies used in Datem’s high rise buildings. These are the Datem wallcrete, specialized formworks system, Datem precast slabs, beams and external walls, Datem stampcrete, bulk water filtration system, waste water treatment system and solar panels. Urban Hive Palms also boasts of a clubhouse housing function rooms, a fully equipped fitness gym, adult and kiddie pools and jogging and strolling paths around the area. The condominium is also less than a kilometer away from Abreeza and Victoria
Plaza, and about 1.5 km to MDMRC Hospital and Davao Medical School. Its nearby places of worship are the Redemptorist Church and Bajada Bible Baptist Church. San Luis said they are happy with the reception of the people of Davao with their project as almost all the units of the first two buildings are already sold out. They target to have the first two buildings constructed next year. “The market is responding very well with our project,” San Luis said. “We want to prove that we can deliver what we promise,” she added. Some of Datem’s most recognized commercial and residential projects in the country include One Rockwell and One Shangri-La Place. The company’s newly-awarded projects are Botanika Residences in Alabang and Majent Building, One Uptown Residence and Uptown Ritz all of Fort Bonifacio, Global City
You may visit their showroom at the Ground Floor Filandia IT Center, Quirino Avenue corner Jacinto Extension Street, Davao City. Or you may also follow them on the following sites:
www.uhive.ph www.facebook.com/UrbanHiveP www.instagram.com/uhiveph inquiry.urbanhive@gmail.com
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reasons to invest in Aeon Towers
By NEILWIN JOSEPH L. BRAVO njb@edgedavao.net
L
ET’S face it. Davao City is becoming the haven of real estate development as major firms--the Goliaths in the industry--have all come to establish their empire. It’s a sound business decision. At a time when property value and cost of living are too high in metropolitan Manila, there is no way to go but scale the emerging cities in the South. No surprise that the so-called giants in the property market are all here. Undaunted by this inevitable scenario, homegrown developer FTC Group of Companies has boldly joined the crowded competition--a hard-nosed newbie in the land of the giants. FTC has embarked on an ambitious project that will erect the tallest skyscraper ever in the entire Mindanao island. The Aeon Towers project is bound to become a 33-level towering icon modern architecture and sophisticated living. With construction now moving up to the third level, FTC president and CEO Ian Cruz believes the project will be completed by December next year.
More than believing in the product that FTC considers its signature project, Cruz outlines five reasons why people should invest in Aeon Towers. First, Best Investment. Aeon Towers has one of the highest property value that provides the investors the return of investment )ROI) over years. At present, land value at J.P Laurel Avenue (Bajada) has consistently yielded high appraisal due to the fast developments happening in the area as it is being transformed into a modern metropolis. Aeon Towers is situated perfectly where one can have the view of the wide expanse of the blue of Davao Gulf on one side and the majestic Mt. Apo on the other. Second, Best Location. Aeon Towers is situated at a prime location in the central business district (CBD) of Davao which allows for an easy access to major education centers, public service and health facilities, churches, entertainment complex and commercial hubs. Third, Lifestyle Convenience. Residents of Aeon
Towers will be enjoy access to life’s basic necessities for living, work, and playing in a community that offers boundless possibilities. There’s the easy access to public transport for both jeepneys and taxi cabs to all available routes in the city. The environs include upscale shops, restaurants, de luxe cinema recreational facilities and points of interest. It provides comfortable living space with its spacious units, high ceiling, contemporary modular furniture from an industry leader. Fourth, Iconic Structure. Aeon Towers promises to be an iconic skyscraper that will be the king of Mindanao and Visayas skies. Other than being the tallest, it will also be a fine example of combining the comforts of modern living with a conscientious green lifestyle. It adopts “Green Technology” using LED lights and energy and water-saving pre-paid consumption system. Aeon Towers is the only “all-glass” tower to rise in the heart of Davao City. It creates a very unique structural de-
sign that will redefine luxurious condo living. Fifth, Future-ready Building with Fiber Optic Backbone. Technology is put to optimum advantage in constructing the Aeon Towers. It will be the first ever condo property in the country that has the capability for Smart Home Technology. Aeon Towers is fitted with fiber optic backbone in every unit. Fused with wireless technology, it goves residents the opportunity to experience a new level of modern, truly smart amnd connected living with Cicso Smart Connected Home System. This technology allows residents to be the master of the house. How? The house simply takes care of you. There’s the touch screen master controller that allows residents to dim lights, turn the aircon on and off, draw curtains, play your favorite music, adjust shower temperature and control door access from anywhere and wherever, 24 hours a day. Now, if these are not reasons enough to invest in Aeon, what could be?
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THE BOOMING DAVAO
The unprecedented growth of the city’s economy By CHARLES RAYMOND A. MAXEY
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AVAO City’s economy has grown by leaps and bounds over the last past five years, with investments not only keeps pouring in but increasing each year. Indeed, Davao has dramatically changed for the better. Just the mere sight of all the ongoing constructions all over the metropolis—from North to South— is an indicative of how fast the city has developed. Investments poured into the city for the last five years marked a rapid increase. From the recorded P184 billion in 2010, the total business capitalization in the city reached P211 billion in 2014, or a whopping increased of P27 billion in just five years time. Records from the Davao City Investment and Promotion Center (DCIPC) showed that for 2011, business capitalization was at P187 billion. This increased in 2012 at P196.408 billion, and hiked further the following year at P203.04 billion, breaching the P200-billion mark. The total capitalization hiked by 3.94 percent from P203 billion in 2013 to P211 billion in 2014. The number of registered businesses has also been increasing each year. For 2014, the registered businesses reached 36,461, higher than the 33,052 recorded in 2013. “Davao has really grown,” says DCIPC chief Ivan Cortez. It has, and is not about to stop growing. DCIPC noted that for the first quarter of 2015, new investments poured into the city from January to March already reached P209.9 billion, or an increase of 4.11 percent from the P201.6 billion recorded for the same period last year. These new investments are mainly in property development, services and agri-business. Cortez attributed the confidence of the investors to pour in their money here to the stable peace and order in Davao, market share and accessibility and linkages. “They feel safe. They can proceed with their business transactions without being afraid,” Cortez said.
215,000,000,000.00 210,000,000,000.00 205,000,000,000.00 200,000,000,000.00 195,000,000,000.00 190,000,000,000.00 185,000,000,000.00 180,000,000,000.00 175,000,000,000.00 170,000,000,000.00 The business environment in the city is also getting stronger and becoming more conducive and attractive to businesses. One top executive of a Manila-based housing developer even lauded Mayor Rodrigo R. Duterte for keeping the city safe. The stable peace and order, he said, made them decide to develop a project in Davao. “You have a very good local government. You have a fantastic mayor,” Phinma Properties president and CEO Willie Uy told guests during the opening of their sales office here weeks back. Phinma Properties is developing Arezzo Place Davao, an affordable condominium project located in Bo. Pampanga, Sasa. Aside from Phinma Properties, also erecting projects in Davao include big developers and homegrown companies like Megaword, DMCI, Camella, Torre Lorenzo Development Corporation and Damosa Land Inc. Torre Lorenzo alone is investing P4 billion for three luxury property development projects in the region. These projects will be built in partnership with Dusit International. Two of the projects will be developed in Davao City, the Dusit Thani Residences and dusitD2 Hotel. The other one, called the Lubi Plantation Resort, will rise in Compostela Valley. “The steady economic gains of Davao can be seen through its ever changing
2009
economic landscape as new buildings rise from almost every corner,” the DCIPC said. Based on the DCIPC data under the “Davao City Economic Situationer 2014” of the DCIPC, export earnings of the city’s merchandise that was channeled through the Davao Port rose by almost 1.36 percent in 2013 at US$1.617 billion. The DCIPC also reported that balance of trade was registered at US$462.61 in 2013, with banana remaining as the No. 1 dollar earner for both the city and the Davao Region. Other traded commodities include coconut oil, pineapple, banana chips and desiccated coconut. Top import commodities include mineral fuels/ mineral oils, machinery and mechanical appliances, fertilizers, miscellaneous chemical products and cereals. DCIPC listed Japan as occupying the top country of destination of Davao products for more than two decades. China is at second spot for Davao’s biggest buyers, while USA and Korea are at third and fourth places, respectively. It is easy to understand why traders and companies, including the big ones from Manila, have put their projects and invested a lot in this part of the land. Davao is experiencing tremendous growth and there’s no stopping the city from scaling greater economic heights.
2010
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2011
N business, time is of the essence. So, when Davao City Mayor Rodrigo R. Duterte imposed the 72-hour processing policy for business applications, the move was hailed by the business community no end. Aside from securing their permits faster, businessmen do not have to fear of falling prey to government red tape as this was designed by the mayor to fight corruption. No wonder businessmen and big companies have so much confidence in doing business and investing in Davao. And it is definitely understandable the city’s economy has grown by leaps and bounds. Records from the Davao City Investment and Promotion Center (DCIPC) showed that for 2014, business capitalization in the city increased by 3.94 percent at P211 billion from P203 billion in 2013. The investments kept on pouring in.
2012
2013
Back in 2011, business capitalization was only at P187 billion. This increased in 2012 at P196.408 billion, and hiked further the following year at P203.04 billion, breaching the P200-billion mark. The number of registered businesses has also been increasing each year. For 2014, the registered businesses reached 36,461, higher than the 33,052 recorded in 2013. For the first quarter of 2015, new investments poured into the city from January to March already reached P209.9 billion, or an increase of 4.11 percent from the P201.6 billion recorded for the same period last year. These new investments are mainly in property development, services and agri-business. But, more than the policies imposed by City Hall to draw investors, the stable peace and order situation and the mayor himself have been attracting businesses. Businessmen feel safe
2014
when they do their trade here, and a mere audience with Mayor Duterte is already one good selling point for them to come to Davao. The local chief executive was also a hit even to the Manila and foreign businessmen. At the Asia CEO Forum in Makati early this month, Duterte not only enumerated the accomplishments of Davao City and took pride of its landmark legislations but also reiterated his hard-line stand against all forms of criminality. “Davao City is a haven to law-abiding individuals, but a hell hole to criminals,” Duterte said in his speech during in the well-attended forum. The mayor then told businessmen. “To the businessmen who are here, I have one parting word to you all. This may capture the totality of my message for you today,” Duterte said. “Good governance is good business.” CHARLES RAYMOND A. MAXEY
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EDGEDAVAO
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EDGE DAVAO
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DAVAO INVESTMENT PORTFOLIO
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Why homegrown investors love Davao as investment destination
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ANY of the individuals and companies doing business in Davao City and neighboring areas have become very prosperous. They continue to grow as they ride on the continuing boom business and industry are experiencing today. Obviously, these entrepreneurs and establishments made the right decision the first time they chose to settle and do business in Davao. EDGE DAVAO asked a number of these homegrown investors what they consider to be the best things about Davao as an investment haven. These are some of their answers: “Peace and order is the primary consideration why I invested in Davao,” said Vicente T. Lao, investor in export food products and bigtime contractor who heads the Mindanao Business Council and member of the board of the Mindanao Development Authority representing the private sector. ________
Just like Lao, Ferdinand Marañon, Davao chapter president of the PhilExport Confederation and president of Sagrex Corporation, an export-oriented company, placed peace and order as the No. 1 factor in considering to invest in Davao City. This is followed by availability of logistics in the area, and accessibility to the world market whether one is an exporter or an importer. Marañon also gave credit to the “ideal business climate and all-out support provided by the local government.” ________
Domingo Ang, owner of the famous Marina Tuna Restaurant, echoed the views of Lao and Maranon on the role played by stable law and order in Davao City as an investment area. Ang is one Dabawenyo who continues to take pride in the absence of typhoons in Davao as one of the blessings enjoyed by businessmen and customers alike.
Vicente T. Lao
“Davao is also an iconic place that continues to attract tourists and investors,” Ang said, citing the place of Davao in the country’s history of commerce and industry. He cited as example the city’s being the center of trade, commerce and agriculture during the years prior to World War 11 when Davao was a abaca capital of the country. It was called Little Tokyo as more than 25,000 Japanese businessmen, professionals and agriculture experts settled in the city. He said the Japanese fishermen developed the tuna industry in the then pristine waters of Davao Gulf. Domingo Ang Ang said his father Ricardo, revived the tuna industry four decades after the end of the war. The Ang family also pioneered in tuna canning in General Santos City. Undoubtedly, the Philippines is now a leader in the tuna industry, all because Davao started it all, Ang enthused. ________ Bonifacio Tan, past president of the Davao City Chamber of Commerce and Industry, Inc., believes that Davao City’s longtime secrets as a vibrant investment haven include stable power supply, availability of competent labor and ideal peace and order situation. Tan’s main line of business now is rubber exportation. ________
“I prefer to invest in Davao because I can see where the market is going and can be assured of return of my investment,” said Daniel T. Lim, an architect, who is into the construction business. Lim is also past president of the Davao City Chamber. “I am always confident I can convince more partners to pitch in if the investment cost of a big Ferdinand Marañon ticket project is beyond my capacity,” Lim said. “I love Davao City, that why’s reinvesting what I earn from my ventures here is a fulfilling thing,” The architect contractor rhapsodized. Daniel T. Lim
Bonifacio Tan
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DAVAO INVESTMENT PORTFOLIO
tips for OFPs about real estate investment
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EAL estate giant Megaworld Corporation lists down tips every Filipino national working abroad should know when purchasing a property in the Philippines.
One of the most common reasons these individuals brave the unfamiliarity of foreign countries is their desire for a more financially secure life for themselves and their family.
VOL. 8 ISSUE 81 • FRIDAY - SATURDAY, JULY 24 - 25, 2015
Global Filipinos or overseas Filipino professionals (OFP) are the unseen workforce that is a key factor in driving the Philippines’ economic progress. One of the most common reasons these individuals brave the unfamiliarity of foreign countries is their desire for a more financially secure life for themselves and their family. With this, it is no surprise that a majority of them opt to invest in their home country, either for renting or leasing, or settling back in the Philippines in the future. Having been out of the country for a while, OFP may have gotten a bit out of the loop on real estate business. We listed down some tips for OFPs who intend to invest in a property in the Philippines.
1. Know exactly why you want to invest in a property OFPs purchase properties for several reasons: either they want to have it rented out for additional income, to acquire it for their loved ones, or eventually live in it if they intend to move back to the country. These reasons should be clarified in the initial phase of the buying process to rule out the important things the buyers have to factor in in their decisions. These factors dictate what type of property to purchase, budget, the property’s location, etc. Knowing what you want gives you less room for error, and may even save you precious time and money. 2. Choose a reputable developer With the business of real estate booming now
more than ever, one factor that is non-negotiable is the developer’s reputation. Make sure you know about your prospective developer’s background and its track record, to check the quality of its previous projects, and know the process you have to go through with the transactions. It also helps to look at its website as you will be able to evaluate the transparency of its development projects. One of the most reliable real estate developers in the Philippines is Megaworld Corporation. Leading the real estate business with numerous awards, esteemed recognition, and 15 large-scale
urban townships under its belt, Megaworld has not only been touted as one of the most trustworthy real estate companies, but is also known for its high-quality projects across the country. Investor confidence is highly valued and mirrored through this company’s background, and it is highly accommodating for its clients.
3. Choosing a trustworthy real estate broker is as important Another bane you should be careful about in transactions are individuals who pass themselves off as legitimate real estate brokers. Buyers fall into this trap since most of the time, these con brokers promise tempting deals that are too good to be true. It is good to search
feedback on brokerage firms or to simply ask about recommendations for reliable, licensed real estate brokers (the best people to ask are those whom you also trust, too). Do your research well; in all investments, it is better to get all the information you can about whom you are dealing with.
4. If another person is transacting on your behalf, make sure they are trustworthy As you may have noticed, the importance of trust in the parties involved is recapitulated over and over. Buying a property, especially when you are abroad, is a sensitive transaction and you must proceed with utter caution. Make sure the people whom you entrust your money with are re-
sponsible enough to find out the financial and legal aspects of transacting in real estate, in which case, a trusted relative or a close friend can be your best options. 5. Above all, choose the right property to invest in At the end of the day, it is all about the property you will invest in that matters. Your asset-tobe should address all of your objectives and purposes, but you should also be on the lookout for highly profitable and livable areas so that your hard-earned investments achieve their full potential. Besides the Philippine real estate industry currently being on a growth trajectory, valuation of the property is important. PR