Vol. XXII, No. 60 [ BusinessWorld Online ]
Friday, October 17, 2008 | MANILA, PHILIPPINES
DAVAO CITY — The construction industry expects to be a growth driver for the Davao Region despite the threat of a economic slowdown, city-based architects told reporters here earlier this week.
Francis Gerard S. Hidalgo of the United Architects of the Philippines (UAP) said the current property development boom in this city could even spill out of the Davao Region next year.
UAP will be holding its 17th national conference here Oct. 23-25.
Agatha Ellen S. Valencia, president of the UAP, said she is "optimistic" that construction activities here will go on even if remittances coming from overseas Filipino workers (OFWs) have slowed.
Mr. Hidalgo took note that major construction players from Metro Manila have been coming to the city to take advantage of the boom. He cited Abreeza, a 10-hectare joint venture between Anflo Management and Investment Corp. and Ayala Land Inc.
Robinsons Gateway Davao is set to open early next year, even as Gaisano Mall of Davao plans to expand its floor space to at least 200,000 square meters, from the current 130,000 square meters.
There are also small shopping malls being built in nearby areas, such as in Panabo and Tagum cities in Davao del Norte.
There were reports that the Gaisano Group is interested in setting up malls in these two nearby cities.
The boom has been driven not only by mall development but also by residential projects, said Jose Joaquin P. Mendoza, another official of the organization. He said a big housing project is being developed in Kidapawan City, North Cotabato despite conflict in some areas in the province and in nearby Maguindanao.
Although OFWs are one of the biggest housing markets, the architects said local investors have also been on the lookout for new properties.
A problem, however, is the rise in prices of construction supplies like cement. Mr. Hidalgo said because of the increase in prices of construction materials, construction cost per square-meter has risen from about P15,000 last year to about P25,000 this year. — Carmelito Q. Francisco
