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Property boom foreseen

Posted on October 28, 2012 10:03:42 PM [ BusinessWorld Online ]

DAVAO CITY -- The property sector in this city is expected to flourish even more in the coming years with the entry of Manila-based developers, a local official said.

Jaime G. Adalin, head of the City Building Office, said the entry of major developers indicates a growing market in the years to come. “(They) have made the city a very good investment area,” he pointed out.

Based on City Building Office data, capital flows to the property sector between January and September this year summed up to P2.175 billion for 15 projects, the newest being the 12-floor structure of Felcris Hotels and Resorts Corp. intended for business process outsourcing (BPO).

The Felcris structure will be built just beside the company’s three-floor shopping mall, also the newest commercial/retail project in this city.

The company said it will initially spend P838.967 million for the high-rise building and capital expenditure for the project may hit P1 billion.

Another project is the 26-floor condominium that Alveo Land, Inc. is building within the 10-hectare mixed-use joint venture between Ayala Land, Inc. and Anflo Investment and Management Corp. of the Floirendo family. Alveo is an Ayala Land subsidiary.

Another is the 11-floor hotel of SM Prime Holdings, which opened its second shopping mall in the city last month. The cost of the hotel is estimated at P284 million.

The Gotianun-led Filinvest Land, Inc., meanwhile, is also building a five-floor condominium and investing about P143 million on the project.

Roberto P. Alabado III, City Planning and Development Office head, earlier said big property firms are projecting a rise in demand, not only for residential projects, but for offices as well.

The entry of investors in BPO and other related businesses has been a major source of optimism for local property owners since two years ago. “This is a natural thing for a growing urban center like ours,” said Mr. Alabado.

Jason C. Magnaye, Davao Investment and Promotions Center, has said that property development in general has become an attractive investment area in the city that even when the city government scrapped perks granted to new investments in the property sector, investors have continued to pour in. -- C. Q. Francisco    

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