EDGEDAVAODAVAO INVESTMENT PORTFOLIO

WHY INVESTING IN DAVAO

IS THE BEST OPTION

SUSTAINING DAVAO CITY’S ECONOMIC GAINSINVESTING ON CONDO 101

WHY HOMEGROWN?THE BOOMING DAVAO

VOL. 8 ISSUE 81 • FRIDAY - SATURDAY, JULY 24 - 25, 2015S2 DAVAO INVESTMENT PORTFOLIOEDGE DAVAO

THE local government of Davao City continues to identify eco-nomic opportunities anchored

on the natural competitive advan-tages of the city and its people and “those that will result in stable, so-cially empowered, gender-sensitive, and broad-based development in the provision of access to capital and oth-er 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 opportuni-ties that provide direct and concrete productive linkages between com-munities and established business-es “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 al-ready made significant gains in var-ious economic activities which it is determined to sustain, if not surpass, particularly in the following areas of the economy:

InvestmentIncentive applications partic-

ularly came in droves in 1995 after the introduction of the Davao City In-vestment Incentive Code. Initially im-plemented through “Invest in Davao” project, capitalization of new invest-ments totaled to P3.3 Billion in 1995 which were poured in by 44 investors in the field of agribusiness, light man-ufacturing, property development, tourism and transshipment.

A total of P67 Billion inward in-vestments 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 inves-tors who applied for incentives with a total P31.14 billion capitalization.

In terms of business permits, a total of P109.03 billion of invest-ments were recorded in 2006, and consistently surged in the succeeding years until 2013 when the invest-ments reached P203.04 billion or an increase of 86.22 percent.

From 2006 to 2013, total invest-ments recorded by the business bu-reau totaled to P1.40 trillion.

Last year, total capitalization of new businesses was P5.5 billion. Cap-italization is defined as the aggregate valuation of a company based on its current share price and the total num-ber of outstanding stocks.

Property developmentDavao City experienced a

construction boom since the late 1990s with the entry of various Ma-nila-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 par-ticularly in the central business dis-trict going to the northern part of the city where several construction proj-ects are still ongoing.

From 2006 up to 2013, the local government has issued 14,154 build-ing 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 ex-porter 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 coco-nut, finished wood products, coconut oil, and scrap steel or iron. Together, these constituted the top commodi-ties in terms of value share in the ex-port 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 Bil-lion, the exports from Port of Davao registered a total amount of US$8.28 Billion while the total imports was re-corded at US$ 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 visi-tors surged more than double from 46,728 in 2006 to 100,831 in 2013.

During the same period, a par-allel 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 reg-istered 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.

EmploymentAside 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 in-centives. 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 in-crease of 91.85 percent as compared to 76,794 employment recorded in 2006.

Last year, newly registered estab-lishments generated 11, 361 employ-ees while businesses which sought for renewal declared a total of 154, 105 total number of employees.

Other economic activitiesWith its peculiar topographi-

cal, 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 fi-bre, 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 join-ery, metalwork, and the manufacture of gifts, toys, and household goods. Gregorio G. Deligero

FOR as low as P2,500 per square meter, acquiring a parcel of

land in Davao City’s com-mercial 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 high-ly 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 compet-itive cities in the country since 2013.

Competitiveness index is an annual ranking of Philippine cities and mu-nicipalities spearheaded by the National Compet-itiveness Council (NCC) with the assistance of the United States Agency for International Development (USAid).

Only city in MindanaoThis year, Davao City is

the only city in Mindanao which made in to the top five in the highly-urban-ized 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 sever-al sub-indicators grouped through what it calls the main three pillars: eco-nomic dynamism, govern-ment efficiency and infra-structure.

Economic dynamism is associated with activities that create stable expan-sion business and indus-tries and higher employ-ment from “a combination of the entrepreneurial spirit and the financial in-stitutions that will channel

dynamism.”Government efficiency,

on the other hand, refers to the quality and reliabil-ity of government services and support for effective and sustainable produc-tive expansion while in-frastructure 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 ap-

pears 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 busi-ness.

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 con-sumption, Davao City has the cheapest cost of elec-tricity 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 indus-trial 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 high-ly-urbanized cities.

IncentivesAside from the low-

er cost of doing business, Davao City also offers in-centives 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 devel-opment, establishment of health and wellness, educational and sports facilities, environmental protection and green proj-ects, information and com-munications 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 govern-ment offers local fiscal in-centive 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 exemp-tions are extended up to five years in investment project is within the pre-ferred districts of Calinan, Baguio, Marilog and Paqui-bato.

Investors are also en-titled to tax credit on raw materials, supplies and semi-manufactured prod-ucts and additional deduc-tion from taxable income for labor intensive projects and necessary and major infrastructure works.

On top of these advan-tages, Davao City offers public utilities and ameni-ties, market accessibility and linkages, social stabil-ity and safety and quality of human and natural re-sources which are at par with—if not better than —the cities in Metro Ma-nila 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.

BEST OPTION

By GREGORIO G. DELIGERO Sustaining Davao City’s economic gains

Why investing in Davao is the

VOL. 8 ISSUE 81 • FRIDAY - SATURDAY, JULY 24 - 25, 2015 S3

DamosaLand:the Davao Region’s Partner in Growth

By CHARLES RAYMOND A. MAXEY

DAVAO City is now the battleground of the real estate property war,

with big and small developers engaging in a stiff compe-tition to have a piece of the market pie.

One homegrown devel-oper—Damosa Land Inc,--is in the heart of the battle and is proving to be one tough competitor in the highly chal-lenging industry with its rep-utation and background.

“There is no doubt that the last five to seven years have seen the emergence of new, major real estate proj-ects from both Davao-based as well as Manila-based de-velopers,” says Ricardo “Cary” F. Lagdameo, the young and energetic vice president of DLI-Residential.

While Lagdameo acknowl-edges 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 leas-ing, 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 in-ternal capabilities, from hav-ing a full-scale engineering team to a very capable design team,” he added.

Two of the latest projects of DLI are the Damosa Fair-lane 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 develop-ment includes the construc-tion of the road networks and land preparation for the building of a seven story con-dominium 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 tar-geting the young and vibrant market.

For Lagdameo, it’s just but fitting that Davao City is now experiencing an unprecedent-ed growth economically.

“Smart developers will always be prepared for the down cycle. It’s hard to pre-dict really when the down-turn 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 sup-port from government like favorable laws and incentives and easy permit processing, and responsible planning amongst developers,” accord-ing to Lagdameo.

“The continued develop-ment of the city’s infrastruc-ture will also be a huge plus,” he said.

Damosa Land Inc. is a sub-sidiary of the Anflocor Group, the company that is respon-sible for developing busi-ness and lifestyle oriented commercial center Damosa District and the boutique res-idential community Damosa Fairlane.

DAVAO INVESTMENT PORTFOLIOEDGE DAVAO

Ricardo F. Lagdameo, vice president for Residential of Damosa Land, Inc., says the company tries to capitalize on the good-will that they have worked so hard to build up over the years.

Damosa Land, Inc. breaks ground for its 6-tower condominium project, Seawind.

VOL. 8 ISSUE 81 • FRIDAY - SATURDAY, JULY 24 - 25, 2015S4 DAVAO INVESTMENT PORTFOLIOEDGE DAVAO

SO you are considering in-vesting 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 ques-tions 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 infla-tion. Given that there are 3 cer-tainties in life--death, taxes and the fact that real estate value will always increase over time.

Experts in real estate invest-ments will tell you three pow-erful ways to earn a return of investment--property value in-crease, paying down mortgage (equity), and monthly cash flow from rentals.

First, property value in-crease means the historical in-crease 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 con-do, 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 actual-ly 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 actu-ally 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 prop-erty 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 con-sidered “built-in” to the prop-erty.

When considering a condo as an investment, you must ac-curately estimate:

The annual rent you may receive, and the annual expens-es 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 dam-ages 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 ex-perience 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 consid-ering has association fees and how often you may need to pay assessments. Assessments are expenses incurred to cover the common areas of the condo-minium property. Assessments could include landscaping, parking lot and parking ga-rage 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 popu-lar? Could a major company in the area close down and cause rental demand to decline? Could a new condo develop-ment be built nearby, leaving yours in need of expensive im-provements 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.

Investing on Condo 101

njb@edgedavao.net

By NEILWIN JOSEPH L. BRAVO

VOL. 8 ISSUE 81 • FRIDAY - SATURDAY, JULY 24 - 25, 2015

ALMOST half a century is a long time to be in the housing industry, but

Santos Land Development Cor-poration (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 home-grown, we see ourselves at the advantage over the rest,” says Antonio “Tonyboy” S. Domingo, president of SLDC.

Domingo said with the prop-erty boom being experienced by Davao City, old and new develop-ers have been pouring in billions of pesos into big ticket projects

However, despite the entry of big players, SLDC isn’t waver-ing a bit, undaunted by the grow-ing stiff competition.

The reason for this is that Santos Land is not only develop-ing subdivisions it is also build-ing housing components unlike other players in the sector, Do-mingo 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 subdivi-sions, starting with the high-end ones then resorting to building low-cost units.

Domingo said that after the Asean crisis, his company got in-volved 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 develop-ment.

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 Res-idences 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 ap-ply for building permit,” Domin-go 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 al-ready. Soon, we can make some announcement,” he said.

The Santos Land executive went on to say that they have big

By CHARLES RAYMOND A. MAXEY

plans ahead.One of the latest develop-

ments of Santos Land is the Celerina Heights, a project that was almost sold out even be-fore 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 sub-divisions ranging from a P3 million market housing at Sun

City. This involves 40 hectares.Santos Land is also devel-

oping a 14-hectare township project in Makilala and tower condominium and two com-mercial buildings in Nova Tier-ra.

Being homegrownis an advantage

Santos Land Development Corporation

Mr. Antonio Tony Boy S. Domingo, SLDC President

S5DAVAO INVESTMENT PORTFOLIOEDGE DAVAO

VOL. 8 ISSUE 81 • FRIDAY - SATURDAY, JULY 24 - 25, 2015S6 EDGEDAVAO

VOL. 8 ISSUE 81 • FRIDAY - SATURDAY, JULY 24 - 25, 2015 S7EDGEDAVAO

VOL. 8 ISSUE 81 • FRIDAY - SATURDAY, JULY 24 - 25, 2015S8 DAVAO INVESTMENT PORTFOLIOEDGE DAVAO

NORTHPOINT – standing on stable groundWHEN choosing

a condomini-um communi-

ty, a savvy homebuyer will do quite a bit of homework—from de-veloper reputation, to location, to facilities and amenities. Howev-er, it pays to look into one more detail that is equally important: the type of land the struc-ture is built on.

With several condo-minium projects current-ly being constructed and more yet to be built in Davao City, there are many options for homebuyers. But beyond the beautiful landscape, deluxe ameni-ties, and strategic location, which one stands on stable ground?

Vista Residences’ land-mark condominium de-velopment, 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, Liv-erpool and the recently launched 10-storey Brad-ford will soon rise on this elevated land at the junc-tion 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 natu-ral breeze to flow through for additional ventilation, and will be decked with live plants which, along with the garden atrium, will en-hance the fresh ambiance

inside the condominium building.

At 15-storeys, Liv-erpool will be the tallest building in Northpoint and offers its unit owners the best view of Davao Gulf. This is a perk they can en-joy without the nagging concern of the building’s stability, knowing that Liv-erpool 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, build-ing on wetlands interferes with the natural flow of wa-ter that normally inundates the area. Blocking passag-es 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 af-fect buildings or houses in the area, it will eventually weaken these structures leading to permanent dam-age.

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 im-pact on the prices of homes built in the area.

“Even before we pur-chase 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 nev-er 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 com-pact 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 sol-id ground,” said dela Pena, adding that Northpoint now has more units avail-able with the launch of Bradley.

“Homebuyers can avail of our July promo give-aways 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 North-ing), JP Laurel Avenue, Bajada, Davao City, or call 226-3100.

VOL. 8 ISSUE 81 • FRIDAY - SATURDAY, JULY 24 - 25, 2015

Showcasing modern technologieswith Urban Hive Palms

By CHARLES RAYMOND A. MAXEY

WHEN 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 technolo-gies 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-hect-are lot along Bacaca Road.

Urban Hive Palms is a mid-rise residential con-dominium development of Datem Homes, the real estate property arm of construction giant Datem Inc., and the Dizon family of Davao. The project is com-prised 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 ex-pertise into the affordable residential project with a touch of class.

“Basically, we want to build quality homes at af-fordable prices,” says San Luis.

And, with its technol-ogies, 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 tech-nologies used in Datem’s high rise buildings. These are the Datem wallcrete, specialized formworks sys-tem, Datem precast slabs, beams and external walls, Datem stampcrete, bulk wa-ter filtration system, waste water treatment system and solar panels.

Urban Hive Palms also boasts of a clubhouse hous-ing 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 con-structed next year.

“The market is respond-ing very well with our proj-ect,” 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 Rock-well and One Shangri-La Place.

The company’s new-ly-awarded projects are Botanika Residences in Al-abang and Majent Building, One Uptown Residence and Uptown Ritz all of Fort Boni-facio, 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.facebook.com/UrbanHiveP

www.uhive.ph

www.instagram.com/uhiveph

inquiry.urbanhive@gmail.com

S9DAVAO INVESTMENT PORTFOLIOEDGE DAVAO

VOL. 8 ISSUE 81 • FRIDAY - SATURDAY, JULY 24 - 25, 2015S10 DAVAO INVESTMENT PORTFOLIOEDGE DAVAO

LET’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 de-cision. At a time when prop-erty 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 inev-itable 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-lev-el towering icon modern ar-chitecture 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 consid-ers 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 re-turn of investment )ROI) over years. At present, land value at J.P Laurel Avenue (Baja-da) has consistently yielded high appraisal due to the fast developments happen-ing 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 ma-jestic Mt. Apo on the other.

Second, Best Location. Aeon Towers is situated at a prime location in the cen-tral business district (CBD) of Davao which allows for an easy access to major educa-tion centers, public service and health facilities, church-es, entertainment complex and commercial hubs.

Third, Lifestyle Conve-nience. Residents of Aeon

Towers will be enjoy access to life’s basic necessities for living, work, and play-ing in a community that of-fers 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 facili-ties 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 be-ing 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 sys-tem.

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 luxuri-ous condo living.

Fifth, Future-ready Build-ing with Fiber Optic Back-bone. Technology is put to optimum advantage in con-structing 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 technol-ogy, 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 tem-perature 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?

5njb@edgedavao.net

By NEILWIN JOSEPH L. BRAVO

reasons to invest in Aeon Towers

VOL. 8 ISSUE 81 • FRIDAY - SATURDAY, JULY 24 - 25, 2015 S11DAVAO INVESTMENT PORTFOLIOEDGE DAVAO

210,000,000,000.00

215,000,000,000.00

170,000,000,000.002009 2011 20132010 2012 2014

190,000,000,000.00

180,000,000,000.00

200,000,000,000.00

175,000,000,000.00

195,000,000,000.00

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THE BOOMING DAVAOThe unprecedented growth of the city’s economy

By CHARLES RAYMOND A. MAXEY

DAVAO City’s economy has grown by leaps and bounds over the

last past five years, with in-vestments not only keeps pouring in but increasing each year.

Indeed, Davao has dra-matically changed for the better. Just the mere sight of all the ongoing construc-tions all over the metropo-lis—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 in-crease. From the recorded P184 billion in 2010, the to-tal business capitalization in the city reached P211 bil-lion in 2014, or a whopping increased of P27 billion in just five years time.

Records from the Davao City Investment and Pro-motion Center (DCIPC) showed that for 2011, busi-ness capitalization was at P187 billion. This increased in 2012 at P196.408 bil-lion, 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 regis-tered businesses has also been increasing each year. For 2014, the registered businesses reached 36,461, higher than the 33,052 re-corded 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 in-crease of 4.11 percent from the P201.6 billion record-ed for the same period last year.

These new investments are mainly in property de-velopment, services and agri-business.

Cortez attributed the confidence of the investors to pour in their money here to the stable peace and or-der in Davao, market share and accessibility and link-ages.

“They feel safe. They can proceed with their business transactions with-out being afraid,” Cortez said.

IN business, time is of the essence.

So, when Davao City Mayor Rodrigo R. Duterte im-posed the 72-hour processing policy for business applica-tions, 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 un-derstandable the city’s econ-omy has grown by leaps and bounds.

Records from the Davao City Investment and Promo-tion Center (DCIPC) showed that for 2014, business capi-talization in the city increased by 3.94 percent at P211 billion from P203 billion in 2013.

The investments kept on pouring in.

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 in-creasing 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 Jan-uary 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 de-velopment, 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

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 Ma-nila and foreign businessmen.

At the Asia CEO Forum in Makati early this month, Dute-rte not only enumerated the accomplishments of Davao City and took pride of its land-mark 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 busi-nessmen.

“To the businessmen who are here, I have one parting word to you all. This may cap-ture the totality of my mes-sage for you today,” Duterte said.

“Good governance is good business.” CHARLES RAY-MOND A. MAXEY

The business environ-ment in the city is also get-ting stronger and becom-ing more conducive and attractive to businesses.

One top executive of a Manila-based housing de-veloper even lauded May-or 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 con-dominium project located in Bo. Pampanga, Sasa.

Aside from Phinma Properties, also erecting projects in Davao include big developers and home-grown companies like Megaword, DMCI, Camella, Torre Lorenzo Develop-ment Corporation and Da-mosa Land Inc.

Torre Lorenzo alone is investing P4 billion for three luxury property de-velopment 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 Residenc-es 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

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, ex-port 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 report-ed that balance of trade was registered at US$462.61 in 2013, with banana remain-ing as the No. 1 dollar earn-er for both the city and the Davao Region. Other traded commodities include coco-nut oil, pineapple, banana chips and desiccated coco-nut.

Top import commodi-ties include mineral fuels/mineral oils, machinery and mechanical appliances, fertilizers, miscellaneous chemical products and ce-reals.

DCIPC listed Japan as occupying the top coun-try of destination of Davao products for more than two decades. China is at second spot for Davao’s biggest buyers, while USA and Ko-rea are at third and fourth places, respectively.

It is easy to understand why traders and compa-nies, 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 eco-nomic heights.

VOL. 8 ISSUE 81 • FRIDAY - SATURDAY, JULY 24 - 25, 2015S12 EDGEDAVAO

VOL. 8 ISSUE 81 • FRIDAY - SATURDAY, JULY 24 - 25, 2015 ADAVAO INVESTMENT PORTFOLIOEDGE DAVAO

Why homegrown investors love Davaoas investment destination

MANY 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 deci-

sion 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 Busi-ness Council and member of the board of the Mindan-ao Development Authority representing the private sector.

________

Just like Lao, Ferdinand Marañon, Davao chapter president of the PhilEx-port Confederation and president of Sagrex Cor-poration, an export-ori-ented company, placed peace and order as the No. 1 factor in consider-ing to invest in Davao City.

This is followed by availability of logistics in the area, and acces-sibility to the world market whether one is an exporter or an im-porter.

Marañon also gave credit to the “ideal busi-ness climate and all-out support provided by the local government.”

________

Domingo Ang, own-er of the famous Ma-rina 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 Dabawen-yo who continues to take pride in the absence of typhoons in Davao as one of the blessings enjoyed by businessmen and customers alike.

“Davao is also an iconic place that continues to attract tourists and in-vestors,” Ang said, citing the place of Davao in the country’s history of com-merce and industry.

He cited as example the city’s be-ing the center of trade, commerce and agriculture during the years prior to World War 11 when Davao was a ab-aca capital of the country. It was called Little Tokyo as more than 25,000 Jap-anese businessmen, professionals and agriculture experts settled in the city.

He said the Japanese fishermen de-veloped the tuna industry in the then pristine waters of Davao Gulf.

Ang said his father Ricardo, revived the tuna industry four decades after the end of the war. The Ang family also pio-neered 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 In-dustry, Inc., believes that Davao City’s long-time 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 be-cause I can see where the market is going and can be assured of re-turn of my investment,” said Dan-iel 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 ticket project is beyond my ca-

pacity,” 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.

Vicente T. Lao

Ferdinand Marañon

Domingo Ang

Bonifacio Tan

Daniel T. Lim

VOL. 8 ISSUE 81 • FRIDAY - SATURDAY, JULY 24 - 25, 2015B DAVAO INVESTMENT PORTFOLIOEDGE DAVAO

Global Filipinos or overseas Filipino profes-sionals (OFP) are the un-seen workforce that is a key factor in driving the Philippines’ economic progress.

One of the most com-mon reasons these indi-viduals brave the unfamil-iarity 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 Philip-pines 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 prop-erties for several reasons: either they want to have it rented out for additional income, to acquire it for their loved ones, or even-tually live in it if they in-tend to move back to the country.

These reasons should be clarified in the initial phase of the buying pro-cess to rule out the im-portant things the buyers have to factor in in their decisions. These factors dictate what type of prop-erty 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 reputa-ble developer

With the business of real estate booming now

5tips for OFPs about real estate investment

REAL estate giant Megaworld Corporation lists down tips every Filipino national working abroad should know when pur-

chasing a property in the Philippines.

more than ever, one fac-tor that is non-negotiable is the developer’s reputa-tion. 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 eval-uate the transparency of its development projects.

One of the most reli-able real estate develop-ers in the Philippines is Megaworld Corporation. Leading the real estate business with numerous awards, esteemed recog-nition, and 15 large-scale

urban townships under its belt, Megaworld has not only been touted as one of the most trust-worthy real estate compa-nies, but is also known for its high-quality projects across the country. Inves-tor confidence is high-ly valued and mirrored through this company’s background, and it is highly accommodating for its clients.

3. Choosing a trust-worthy real estate bro-ker is as important

Another bane you should be careful about in transactions are individu-als who pass themselves off as legitimate real es-tate brokers. Buyers fall into this trap since most of the time, these con bro-kers 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 no-ticed, the importance of trust in the parties in-volved is recapitulated over and over. Buying a property, especially when you are abroad, is a sen-sitive 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 le-gal 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 in-vest in

At the end of the day, it is all about the proper-ty you will invest in that matters. Your asset-to-be should address all of your objectives and pur-poses, but you should also be on the lookout for highly profitable and livable areas so that your hard-earned investments achieve their full poten-tial.

Besides the Philippine real estate industry cur-rently being on a growth trajectory, valuation of the property is important. PR

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.