DECEMBER 2018 MMARKETA R K E T VVISTAI S T A
Eye on Davao Why Mindanao’s largest city is the place to be in the years to come. by Pinnacle.PH Davao City has become the Touted as the largest city in the Phil- Talomo, and Buhangin. Almost 77 hottest investment hub in south- ippines, Davao City spans an area percent of the total residential areas, ern Philippines today, largely due of approximately 244,000 hectares. on the other hand, are in Talomo, About 64 percent of its land area is Buhangin, Toril, and Tugbok. Indus- to the continuous growth of the considered forest and pasture land, trial areas equivalent to 73 percent local economy, its investor-friendly agricultural land comprises 30 per- of the total industrial zones are in business environment, impressive cent of its area, and urbanized areas Bunawan alone. Prime agricultural infrastructure projects and prop- occupy about 6 percent. land and agro-industrial lands com- erty developments, and a capable prising about 79 percent of the total The city is divided into three con- local government. economic agricultural area in the gressional districts, which are further city are situated in Calinan, Toril, and subdivided into 11 administrative Tugbok. districts and 182 barangays. The First Location and Land Use Congressional District consists of Poblacion and Tolomo, which are Davao City is located in the south- mainly urbanized areas. The Second Population eastern part of Mindanao and within Congressional District, meanwhile, Based on the 2015 Population the geographical boundaries of encompasses Agdao, Buhangin, the province of Davao Del Sur. It is Census, Davao City has 1,632,991 and Bunawan, which are mixed residents, which is 183,695 more bounded on the north by the munic- urbanized and agricultural area, ipality of Talaingod in the province than its 2010 population of 1,449,296, while Paquibato is mainly forest and giving an average annual increase of Davao Del Norte, on the east by pasture land. The Third Congressio- the municipality of Santo Tomas and of 2.3 percent in the last 5 years. The nal District covers Baguio, Calinan, city’s annual growth rate from 2000 city of Panabo both in the province Marilog, Toril, and Tugbok, which of Davao Del Norte and partly by to 2010 based on the 2000 Popu- are mixed agricultural, forest, and lation Census was at 2.36 percent. the Davao Gulf, on the south by the pasture lands. municipality of Santa Cruz in the The annual population growth rate province of Davao Del Sur, and fi nal- For the urbanized areas, minor and of Davao City is the highest in the ly on the west by the municipalities major trade zones equivalent to 68 Davao Region. In addition, the city of Magpet and Arakan both in the percent of the total commercial area has the third largest population province of Cotabato. of Davao City are found in Poblacion, among the 33 highly urbanized cities in the Philippines, next only to Quezon City (2.94 million) and Manila (1.78 million).
As expected, Tolomo and Buhangin have the highest populations. These
Davao City’s total number of house- holds based on the 2015 Census is At 244,000 hectares, Davao City is the Philippines’ largest city in terms of land area. 409,951, which is 75,478 higher than It is also Mindanao’s most populous city. the 2010 Census of 334,473 house- holds. The 2000 Census, meanwhile,
Market Vista | December 2018 DAVAO FACTS AND FIGURES
AREA IN HECTARES 244,000 64% OF WHICH IS FOREST & PASTURE LAND, 30% IS AGRICULTURAL, AND 6% IS URBAN
RESIDENTS POPULATION GROWTH BASED ON THE 2015 ANNUALLY FROM 1.639M POPULATION CENSUS 2.3% 2010 TO 2015
ADMINSITRATIVE DISTRICTS CONGRESSIONAL DISTRICTS POBLACION, TOLOMO, AGDAO, BUHANGIN, BUNAWAN, PAQUIBATO, BAGUIO, CALINAN, 11 MARILOG, TORIL, AND TUGBOK 3 reported that there were 240,057 In addition to the existing road construction of the Tagum–Davao– households during the survey. network, the city is embarking on Digos segment of the Mindanao In addition, Davao City’s average several major road infrastructure Railway System. There will be three household size based on the 2015 projects, which aim to mitigate con- stations within Davao City: one in Census is 4.0, which is lower than gestion and improve transportation Mudiang at the northeast, one in the 4.3 and 4.8 averages recorded logistics not only for the city itself central Davao City, and another at during the 2010 and 2000 censuses, but also for the whole Davao Re- the southwest corner in Toril.2 respectively. gion. Foremost is the construction of the 44.6-kilometer Davao City There has been numerous discus- Bypass Road that will commence sions as well to put up an urban light rail transit system in Davao City. The Infrastructure in 2019. This ambitious project will include a tunnel section and will project design is for an 82.7-kilome- The total road network in Davao start from the Davao–Digos of the ter light rail transit system with 37 City is approximately 2,504 kilo- Pan-Philippine Highway in Toril passenger terminals running from meters (2016 data), indicating an and will terminate intersecting the Panabo City in Davao Del Norte above-standard road density. Almost Davao–Agusan National Highway in through Davao City and with the 11 percent of this road network is Panabo City.1 fi nal stopover in Sta. Cruz, Davao National Roads maintained by the Del Sur. Currently, the City of Davao Department of Public Works and Another signifi cant road develop- is inviting investors to partake in Highways – Davao City and Davao ment is the ongoing 19.8-kilometer this project through a Build-Oper- City 2nd District Engineering Offi ce. Davao City Coastal Road Project ate-Transfer scheme. The remaining 89 percent are City running along the shoreline from Tolomo to Poblacion district ex- Davao has the Francisco Bangoy- and Barangay Roads maintained by International Airport (or Davao the Davao City Engineer’s Offi ce. pected to be completed by 2021. Under study is the 23.3-kilometer International Airport). It is the third Davao City Expressway planned to busiest airport in the Philippines have three phases and targeted to after the Ninoy Aquino Interna- improve traffi c within Davao City by tional Airport (NAIA) in Manila and connecting its port directly to the Mactan–Cebu International Airport outer part of the city. (MCIA) in Cebu. The airport’s newest terminal was inaugurated in 2003, The Local Government of Davao City which is designed to handle approxi- will also launch by 2019 the High mately 2 million passengers annually Priority Bus System project. Similar and 84,600 metric tons of cargo. It to road expansion projects, it aims is currently serving seven airlines, to improve city traffi c by reducing three of which are foreign carriers, vehicular volume with the replace- and is handling between 3 and 4 ment of public utility jeepneys million passengers annually.3 plying along the major routes. The airport’s annual capacity was The planned 44.6-kilometer Davao City There are currently no railway breached in 2010 when it handled Bypass Road, which aims to mitigate system in Davao City, but that will 2,229,177 passengers. In 2017, the congestion in the city. change next year as the govern- airport handled 4,234,667 passen- Image courtesy of DPWH ment recently announced that gers, which is more than double its
Pinnacle Real Estate Consulting Services, Inc. design capacity, resulting to termi- The service for potable water shall from diesel plants, hydroelectric nal congestion during peak hours. soon be given a boost as Davao power plants, and with some small Data show that the airport’s pas- City Water District entered into a solar power plants. The Therma senger volume has been increasing joint venture agreement with Apo South Inc. Coal Fired Energy Projects an average of 10.9 percent annually Agua Infrastructura, which is a 1 and 2 in Davao City and neighbor- since 2010.4 joint venture partnership as well ing municipality of Sta. Cruz, Davao between Aboitiz Equity Ventures Del Sur, with an installed capacity of To cope with increasing passenger and JV Angeles Construction. They 300 megawatts are the latest power volume, the government is under- will be undertaking the Bulk Water facilities commissioned in most taking the Davao Airport Operations, Supply Project, which shall source recent years. Maintenance and Development water from the Tamugan River. Project by the start of 2019. The new The strategic plan not only makes design capacity will be signifi cantly water source more reliable, but at Local Governance increased to 17.9 million passengers the same time gives the under- annually—more than 500 percent ground water table of Davao City Through the efforts of the city’s local capacity improvement—which is some breather as it has been the government, Davao was conferred based on the airport’s projected main water source for over 40 years. the 4th Most Competitive City for demand by 2045. It is expected that the new facilities 2018 in the Highly Urbanized cate- For sea transports, Davao City has installed will be operational by the gory during 6th Regional Compet- two government international fi rst half of 2021 and bring about 300 itiveness Summit under the Cities seaports (Sasa Wharf and Sta. Ana million liters of water daily. and Municipalities Competitiveness Wharf) and 25 private-corporate sea- Index Awards. The Department Power in Davao City is distribut- of Trade and Industry confers this ports. In 2017, cargo traffi c is about ed by the Davao Light and Power 16.3 million metric tons and about recognition to local government Company, which is another entity units that showed exemplary perfor- 2.1 million passengers. Sasa Wharf in under the Aboitiz. Power generation, Davao City is the third busiest port mance in the fi eld of economy, gov- not only for Davao City but for the ernance, infrastructure, and resilien- in the country and a major port in whole Davao Region, is still heavily Mindanao. It will soon be upgraded cy. Davao City has been consistently dependent on non-renewables. Coal in the Top 5 list for the past 3 years.5 as the national government allocat- thermal plants comprise 65 per- ed an initial budget of Php2 billion cent of the generating capacity of Another recent recognition for the for the modernization of the 8-hect- the power plants in the region. The local government is the Seal of are port. remaining sources of power come Good Local Governance. Davao City
SMDC is building 8-tower Lane Residences as part the SM Lanang Premier Complex.
4,234,667 Number of passengers handled by the Davao airport in 2017
10.9% Average annual increase of Davao airport’s passenger volume since 2010 202 Peaklane, Anchor Land Holdings
Market Vista | December 2018 received this award for three consec- ber of visitors to Davao City steadily Alcantara Group of Companies for utive years (2015 to 2017) from the increased by an average of 8 percent the 25-hectare mixed-use devel- Department of Interior and Local per year for the past 2 years. This is opment. The project will feature Government. The award is conferred further buoyed by the fact that the residential, offi ce, and retail spaces, by the national agency to select city is the main gateway of tourists plus St. Luke’s Medical Center, one of provinces, cities, and municipalities and preferred venue for Meetings, the premier healthcare providers in in recognition of the quality of their Incentives, Conventions and Exhibits the country today. Ayala Land envi- public service delivery. (MICE) in Southern Mindanao. They sions the project to be the premiere recorded about 2 million foreign, do- waterfront address in Davao City. mestic, and overseas Filipino tourists Not so distant is the 11-hectare Business and Industry in 2017 that greatly benefi ted the local hospitality and retail industries.6 Davao Park District project by Business in Davao City is growing Some of the notable places to go Megaworld Corporation. Sitting on thanks to the sustainable and friend- in Davao City and nearby areas are the former Lanang Golf and Country ly business environment established Mount Apo, Pearl Farm Beach Re- Club beside SM Lanang Premier, by the local government and major sort, the Island Garden City of Samal, this project is envisioned to become infrastructure set to be completed in and Taclobo Sanctuary. Davao’s newest central business the next few years. More companies district. In keeping with the develop- are drawn in putting up business in er’s tradition of self-contained mini the city and increasing their stakes. cities, Davao Park District will feature Real Estate Projects fl oor spaces suitable for IT and busi- Registered businesses for 2017 With key infrastructures set to be ness process outsourcing (IT-BPO) reached a total capitalization of delivered over the next few years, occupiers and traditional corporate Php272 billion, up by 18 percent property developers have been very offi ces. The township will also have from Php230 billion in 2016. 2017’s busy changing the landscape and residential towers, lifestyle mall, and capitalization growth for Davao City skyline of Davao City dramatically. retail strips, among others. was very remarkable as the average A multitude of property giants are Just a few hundred meters away total increase in capitalization is only bringing their unique and different 4 percent in the previous 3 years. with the SM Lanang Premier com- brands into the real estate market of plex is SMDC’s Lane Residences, the They saw a 14 percent increase in the the city. average capitalization of each reg- Sy-owned developer’s fi rst residen- istered business, while the number One of the most anticipated devel- tial foray in Davao. This residential of investors slightly increased by 3 opments in the years to come is the complex is planned to be developed percent. Azuela Cove. Ayala Land formed a in two phases with eight towers and joint venture partnership with the more than 3,700 condo units. The Davao City Investment and Promotion Center cited that their 10 Investment Priorities are Agri-Busi- ness, Tourism and Recreational Facilities, Light Manufacturing and Assembly, Property Development, Health and Wellness, Educational and Sports Facilities, Environment Protection or Green Projects, In- formation and Communications Technology (ICT), Generation of New Sources of Energy, Transportation and Infrastructure, and Public–Pri- vate Partnership (PPP) Projects. Business or investments under these categories will be given local fi scal incentives such as Business and Real Property Tax exemptions on top of the incentives provided by the national government under existing laws and policies.
Through the promotional efforts of the local regional offi ce of the Ayala Land’s 25-hectare Azuela Cove is one of Davao’s most anticipated Department of Tourism and the City real estate projects. Tourism Operations Offi ce, the num-
Pinnacle Real Estate Consulting Services, Inc. Verdon Park, DMCI Homes Davao Park District, Megaworld Corporation
Amani Grand, Gaisano Group of Companies Mesa Tiera, Cebu Landmasters
Other big names in property devel- search and advisory fi rm. Testament full capacity, an estimated 80,000 opment that also ventured in the to that fact is the continuous growth workers can be employed in these real estate market of Davao City are of the sector over the years. As of IT centers. Some of the other eco- Cebu Landmasters for their Mesa- 2017, there are almost 100 IT-BPO nomic zones operated and being tiera Garden Residences and the companies operating in the city em- developed in Davao City are for 22-hectare Davao Matina Business ploying between 36,000 and 45,000 agro-industrial, manufacturing, and Park; Grand Land under the Gai- individuals. Employment in this tourism. sano Group of Companies for their sector is seen to increase to about In 2017, PEZA opened up its fi rst ever Amani Grand; DMCI Homes for their 70,000 in the next two or three years. four-tower VerdonParc; and Anchor business and investment center in Land Holdings for the 202 Peaklane As of February 2018, the Philippine Davao City located in Damosa IT project. Economic Zone Authority (PEZA) Park. The current purpose of the has 14 operating Special Economic center is to assist PEZA-accredited In 2018, the Offi ce of City Building Zones in Davao City. Another two will entities in processing their import Offi cial of Davao City gave approval be operating soon and with eight and/or export permits and network- for the construction of 21 high-rise new zones currently under develop- ing not only with Davao City mem- buildings. The tallest building in ment. bers but with other PEZA offi ces and Davao City as of date is the 33-sto- members as well. ry Aeon Tower of the FTC Group of Most of the operating zones in the Companies. city are IT centers with a gross fl oor area of about 277,000 sqm. These For the IT-BPO industry, Davao City cater to a number of call centers; is consistently in the Top 100 Super BPOs; software development, data Cities for Global Outsourcing and encoding, transcribing, and related Investments as ranked by Tholons services; engineering, architectural, 7 International. The so-called Super and other design services; and other Cities all showed their capabilities in IT-enabled services locators. The many aspects of digital and out- additional IT centers to be operated sourcing services based on specifi c and under development will give an parameters evaluated by the re- extra 125,000 sqm of fl oor space. At
Market Vista | December 2018 References:
1. Department of Public Works and Highways. Davao City Bypass Construction Project. Last accessed January 3, 2019. http://www.dpwh.gov.ph/dpwh/PPP/projs/davao_bypass
2. Department of Transportation. First Phase of Mindanao Railway Project to Cut Tagum to Digos Travel Time from 3.5 to 1.3 hours. Last accessed January 3, 2019. http://dotr.gov.ph/10-press-releases/246-fi rst- phase-of-mindanao-railway-project-to-cut-tagum-to-digos-travel-time-from-3-5-to-1-3-hours.html
3. Davao International Airport. Last accessed January 3, 2019. https://www.davaoairport.com/
4. Freedom of Information. Yearly Passenger, Cargo and Aircraft Movements of all airports in the Philip pines 1997–2017. Last accessed January 3, 2019. https://www.foi.gov.ph/requests/aglzfmVmb2ktcGhy HgsSB0NvbnRlbnQiEUNBQVAtNDExOTA5NjEyNjAyDA
5. Manuel Cayon (August 26, 2018). Davao 4th-most competitive behind Metro Manila cities. Business Mirror. Last accessed January 3, 2019.https://businessmirror.com.ph/davao-4th-most-competitive-be hind-metro-manila-cities/
6. Department of Trade and Industry (November 22, 2018). Davao City Delegation Successfully Complet ed Investment and Tourism Roadshow in Singapore. Last accessed January 3, 2019. https://www.dti. gov.ph/regions/ncr/96-main-content/singapore-news/12492-davao-city-delegation-successful ly-completed-investment-and-tourism-roadshow-in-singapore
7. Tholons (January 29, 2016). Tholons 2016 Top 100 Outsourcing Destinations: Rankings and Executive Summary. Last accessed January 3, 2019. http://www.tholons.com/Tholonstop100/Tholons_ Top_100_2016_Executive_Summary_and_Rankings.pdf
Additional Sources:
1. Davao City Comprehensive Land Use Plan (2013 – 2022) 2. Davao City Investment Promotion Center 3. Offi ce of the City Planning and Development Coordinator – Davao City 4. Philippine Economic Zone Authority 5. Philippine Statistics Authority 6. Department of Public Works and Highways
7. National Economic and Development Authority – Region XI 8. Department of Transportation 9. Civil Aviation Authority of the Philippines 10. Department of Tourism – Region XI
Cover photo courtesy of Davao Construction
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