By lovely a. carillo
Real estate consultancy firm Prime Philippines conducted a survey of private companies with different backgrounds, including large companies which are their clients, and found out that life and business in the city are still climbing towards their peak under a martial law.
“The effects of the martial law in Davao’s property business is not that significant for the first 30 days, as land value continued to grow, and even under martial law business is thriving,” Prime Philippines Managing Director Jettson Yu said in an interview yesterday.
Prime earlier targeted to close up to P2 billion worth of business deals for the city before the end of the year and it has now achieved P130 million. It expects to close another P1 billion this August as their negotiations with their client’s resume.
He said they conducted the survey among investors around the Philippines to check their willingness to invest in Mindanao specifically Davao. The survey grouped the investors (a total of 150 investors/companies) into investors from Davao who already have investments here, investors from Luzon and Visayas who already have investments here and investors from Luzon and Visayas who do not have investments in Davao.
“The data shows that a high percentage of investors who already have investments in Davao are unaffected by the declaration of martial law, he said. This shows that “the less exposed the investors are to the martial law in Davao, the less certain they are.”
Prime Philippines Research Group surveyed different developers and realty corporations to present real cases of martial law effects in the city’s real estate. It was found out that even during martial law, Patrimonio Realty sold 69 lots in June this year which increased its sales.
Martial law had no effect on the following realty corporations: Damosa IT Park which enjoys full occupancy without pre-termination, Ayala Business Center, Torre Lorenzo which is a joint venture with a foreign hotel worth P2 billion, Commercial Development A (undisclosed as per company request) which leased retail space and Commercial Development B which leased small cut office spaces.
Yu said the residential sector was not affected by martial law as prime condominiums have generally shown the same trend in gross sales of their residential spaces since martial law was implemented.
“The office sector remains healthy as a large enterprise expanded its operations from Metro Manila to Davao City and there are continuing negotiations to lease other office buildings by local and multinational companies. The identities of the companies remained undisclosed as per their request.
He said from the fourth quarter of 2016 to the second quarter of 2017, land values in the prime areas of the city significantly increased. It experienced growth particularly during the second quarter this year and has not experienced a drop even after martial law was declared.
“Though the increase cannot be correlated to martial law its resistance to a decrease shows that martial law had no effect on the land values in Davao City, he said.