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Davao City property prices in 2025 show condominiums averaging ₱18,347 per square meter for pre-selling units, while house-and-lot properties command around ₱45,600 per square meter. Prices vary dramatically by location, with Lanang and Shrine Hills representing the premium market at up to ₱75,000 per square meter, while budget-friendly areas like Toril and Calinan offer opportunities below ₱4 million for complete properties.
The Davao City real estate market offers compelling value compared to Metro Manila and Cebu, with lower entry costs and competitive rental yields ranging from 4-10%. Prime locations benefit from major infrastructure developments including bypass roads, the upcoming Mindanao Railway, and new commercial centers, driving steady appreciation of 4-6% annually over the past five years.
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Davao City property prices range from ₱18,347 per sqm for condos to ₱45,600 per sqm for house-and-lot properties, with premium areas commanding significantly higher prices.
The market offers competitive financing options with bank loans at 7.5-9% interest rates and developer in-house financing at 12-22%, making property ownership accessible to various budget levels.
| Property Type | Average Price per sqm | Typical Total Price Range |
|---|---|---|
| Studio Condo (30 sqm) | ₱18,347 | ₱2M - ₱3M |
| 2BR Condo (70 sqm) | ₱18,347 | ₱5M - ₱8M |
| House-and-Lot | ₱45,600 | ₱4M - ₱45M+ |
| Townhouse | ₱37,515 | ₱2.4M average |
| Commercial Property | ₱10,000 - ₱17,000 | Up to ₱300,000/sqm (prime) |
| Budget Areas (Toril/Calinan) | ₱16,000 | Under ₱4M |
| Premium Areas (Lanang/Shrine Hills) | ₱70,000 - ₱75,000 | ₱10M+ |
What are the current average price-per-sqm figures in Davao City by property type?
As of September 2025, Davao City property prices vary significantly by property type and market segment.
Condominium units in pre-selling developments average ₱18,347 per square meter, while resale condominiums in central areas command ₱20,000 to ₱25,000 per square meter. Studio and one-bedroom units typically range from ₱2 million to ₱4 million for new developments, with resale units reaching up to ₱10 million in prime locations.
House-and-lot properties average ₱45,600 per square meter, with total prices ranging from ₱4 million for entry-level properties to over ₱45 million for luxury homes in premium locations. Townhouses offer a middle ground at ₱37,515 per square meter, with average total prices around ₱2.4 million.
Commercial properties show the widest price range, with land-only developments starting at ₱10,000 to ₱17,000 per square meter for standard locations, while prime commercial real estate can reach up to ₱300,000 per square meter in the most sought-after business districts.
These prices reflect the current market dynamics where Davao City remains significantly more affordable than Metro Manila while offering strong growth potential.
How do average prices per sqm vary by neighborhood or district in Davao City?
Davao City's real estate market shows distinct price tiers based on location, infrastructure access, and development quality.
The most expensive areas include Lanang, Shrine Hills, and Elize Point, where properties command ₱70,000 to ₱75,000 per square meter or higher. Lanang particularly benefits from proximity to SM Lanang Premier, luxury hotels, and established business parks, making it the premier destination for high-end residential developments.
Up-and-coming neighborhoods like Buhangin, Matina, and Ecoland offer excellent value propositions with steadily rising prices. These areas provide good access to amenities and future growth potential, with subdivisions like Ponte Verde pricing lots at ₱16,000 to ₱17,000 per square meter. These districts benefit from ongoing infrastructure improvements and new commercial developments.
Budget-friendly areas such as Toril, Calinan, and Mintal offer the most affordable entry points, with house-and-lot properties frequently priced below ₱4 million total. While these areas require longer commutes to central business districts, they provide excellent potential for long-term appreciation as urban expansion continues.
The price differential between premium and budget areas can exceed 300%, highlighting the importance of location selection based on individual budget and investment goals.
How do prices change by unit size within each area of Davao City?
| Property Category | Size Range | Price Range |
|---|---|---|
| Studio Condo | Under 30 sqm | ₱2M - ₱3M |
| 1-Bedroom Condo | 30-40 sqm | ₱4M - ₱6M |
| 2-Bedroom Condo | 50-70 sqm | ₱7M - ₱10M |
| Small Lot (Ponte Verde) | 120 sqm | ₱1.92M (₱16,000/sqm) |
| Medium Lot (Ponte Verde) | 150 sqm | ₱2.4M (₱16,000/sqm) |
| Large Lot (Ponte Verde) | 180 sqm | ₱3.15M (₱17,500/sqm) |
What's the all-in cost per sqm after adding taxes and fees in Davao City?
Total buyer costs in Davao City range from 2.5% to 3.75% of the contract price for direct closing costs when purchasing resale properties.
Transfer tax typically amounts to 0.5% of the property value, while registration fees add another 0.25%. Notary fees range from 1% to 2% of the transaction value, and legal processing involves minor additional fees for document review and preparation.
For condominium purchases, association dues represent an ongoing cost of ₱60 to ₱120 per square meter monthly, subject to VAT. These fees cover building maintenance, security, and common area utilities.
New development purchases often bundle closing costs under "miscellaneous fees" that typically range from 5% to 7% of the property price. This comprehensive approach simplifies the buying process but requires careful budget planning for the additional expense beyond the base property price.
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What are example total purchase prices for different property types in Davao City?
Real-world purchase examples demonstrate the range of investment required across different property categories in Davao City.
A 30-square-meter studio condominium typically requires a minimum investment of ₱2 million all-in, despite the theoretical calculation of ₱642,000 based on average per-square-meter pricing. Market realities show that developers set minimum pricing floors for complete units regardless of size calculations.
A 70-square-meter two-bedroom condominium represents a more substantial investment, with all-in costs ranging from ₱5.3 million to ₱8.6 million depending on location and building quality. These units offer better value per square meter and stronger rental potential for investors.
A 150-square-meter house-and-lot property shows the greatest price variation by location. Budget-friendly areas like Toril or Calinan offer complete properties for approximately ₱2.57 million all-in, while similar-sized properties in prime locations like Lanang command ₱10.5 million or more.
These examples illustrate why location selection significantly impacts total investment requirements and potential returns in the Davao City market.
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What financing and mortgage options are available in Davao City?
Davao City property buyers have access to multiple financing options with varying terms and requirements.
Bank housing loans from institutions like BanKo, BPI, and PSBank offer the most competitive interest rates at 7.5% to 9% annually. These loans typically require 10% to 20% down payment and can extend up to 20 years. For example, a ₱5 million two-bedroom condominium with 20% down payment (₱1 million) would result in a ₱4 million loan with monthly payments of approximately ₱39,200 over 15 years at 8.5% interest.
Developer in-house financing provides easier approval processes but at higher interest rates ranging from 12% to 22% annually. These arrangements typically feature shorter terms of 5 to 10 years but accommodate buyers who may not qualify for traditional bank loans.
Some developers offer rent-to-own programs where the first year's rent counts toward the down payment, providing an alternative path to ownership for budget-conscious buyers.
Reservation fees typically amount to ₱20,000 and are non-refundable, representing the first step in securing a property purchase regardless of the chosen financing method.
Which areas offer the best value for end-users planning to live in Davao City?
For residents planning to live in their Davao City property, location selection should balance commute convenience, safety, amenities, and future resale potential.
Buhangin, Matina, and Ecoland represent the best value proposition for end-users, offering an optimal blend of accessibility, safety, and family amenities. These areas provide walkable access to malls, schools, and business parks while maintaining reasonable property prices and strong potential for future appreciation from ongoing infrastructure development.
Premium living areas like Lanang and Shrine Hills command higher prices but deliver top-tier security, lifestyle amenities, and business district access. These locations suit buyers prioritizing convenience and prestige over affordability.
Budget-conscious buyers should consider Toril, Mintal, and Calinan for starter homes, accepting longer commutes in exchange for significantly lower purchase prices and strong long-term appreciation potential as the city expands.
The new bypass road and planned Davao-Tagum connectivity particularly benefit northern and eastern suburbs, making these areas increasingly attractive for commuters working in central business districts.
What are typical rental yields for investment properties in Davao City?
Davao City rental market delivers competitive yields ranging from 4% to 10% gross, with net yields of 3% to 7% after operating expenses.
Condominium units generate the strongest rental income, with studio apartments commanding ₱12,000 to ₱18,000 monthly, one-bedroom units earning ₱18,000 to ₱25,000 monthly, and two-bedroom units achieving ₱25,000 to ₱38,000 monthly rent. These figures translate to attractive yields given the relatively affordable purchase prices.
House-and-lot properties typically rent for ₱30,000 to ₱70,000 monthly for family-sized homes with adequate lot areas in urban locations. While offering lower yields than condominiums, these properties provide steady long-term appreciation and appeal to families seeking more space.
Short-term rental arrangements through platforms like Airbnb can generate up to 15% higher gross income compared to traditional long-term leases, but investors must account for higher vacancy rates and operational costs including frequent cleaning, maintenance, and guest management.
Operating costs typically consume 10% to 25% of rental income, covering property management, repairs, homeowners association fees, and property taxes.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in the Philippines versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
Where are the strongest catalysts for price growth in Davao City?
Davao City's strongest price appreciation catalysts center on major infrastructure developments and commercial expansions currently underway or planned.
The Bypass Road system and planned Mindanao Railway represent the most significant infrastructure improvements, enhancing connectivity and reducing travel times across the metropolitan area. Properties along these corridors show the strongest potential for appreciation as accessibility improves.
New commercial developments including SM and Ayala mall projects, university expansions like Davao Doctors and Ateneo, and business park developments by Damosa Land and Park District create employment centers that drive residential demand in surrounding areas.
The upcoming Samal Bridge project will dramatically improve access to Samal Island, potentially creating new residential and tourism opportunities that benefit mainland Davao properties.
Realistic investment strategies should target 3 to 5-year hold periods for meaningful appreciation in established areas, with 7 to 10-year holds optimal for emerging districts. Net margins of 10% to 25% over the hold period represent achievable targets after accounting for transaction costs and taxes, with higher returns possible for pre-selling investments in growth corridors.
How have average prices moved over the last 5 years in Davao City?
Davao City real estate has demonstrated steady appreciation over both recent and longer-term periods, outpacing inflation and delivering solid returns to property owners.
Over the past five years, citywide property prices have appreciated approximately 4% to 6% annually, with stronger performance in areas like Buhangin and Lanang benefiting from infrastructure improvements and commercial development. This consistent growth reflects the city's expanding economy and increasing population.
The most recent 12-month period shows continued momentum with 3% overall appreciation from 2024 to 2025, while new condominium developments have achieved up to 7% price increases during the same period.
Specific examples include lot values in Ponte Verde, which increased from ₱12,000 per square meter in 2020 to ₱16,000 per square meter in 2025, representing a 33% cumulative gain over five years or approximately 6% annually.
These appreciation rates compare favorably to other investment options while providing the additional benefits of rental income and inflation hedging that real estate uniquely offers.
What's the outlook for Davao City property prices over the next 1, 5, and 10 years?
Davao City's property market outlook remains positive across all time horizons, supported by fundamental economic growth drivers and infrastructure development.
The next 12 months should see continued appreciation of 2% to 4%, particularly in areas near new major roads and mall developments. This near-term growth reflects ongoing projects reaching completion and the market's response to improved infrastructure.
Five-year projections suggest 5% to 7% compounded annual gains, especially benefiting early investors in new growth zones connected by planned infrastructure. These returns assume steady population growth, continued business and ITBPO investments, and mortgage rates remaining in the 7% to 9% range.
Ten-year outlook projects 7% to 10% annual appreciation for areas well-positioned along upcoming infrastructure corridors and mixed-use developments. This longer-term view factors in the full realization of major projects like the Mindanao Railway and the transformation of emerging districts into established residential and commercial centers.
Key assumptions underlying these forecasts include continued economic expansion, adequate land supply to meet absorption rates, and successful execution of planned infrastructure projects.
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How do Davao's prices and yields compare with peer cities?
| City | Condo Price per sqm | House Price per sqm | Typical Gross Yield |
|---|---|---|---|
| Davao City | ₱18,347 | ₱45,600 | 4-10% |
| Cebu City | ₱160,000 | ₱60,000-₱110,000 | 4-8% |
| Cagayan de Oro | ₱17,000-₱22,000 | ₱43,000-₱52,000 | 4-10% |
| Metro Manila | ₱155,000-₱364,000 | ₱120,000-₱180,000 | 3-7% |
| Bangkok (Thailand) | ₱80,000-₱170,000 | ₱50,000-₱120,000 | 4-6% |
| Kuala Lumpur (Malaysia) | ₱80,000-₱170,000 | ₱50,000-₱120,000 | 4-6% |
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Davao City presents compelling opportunities for both end-users and investors, with property prices significantly below major Philippine cities while offering competitive rental yields and strong appreciation potential.
It's something we develop in our Philippines property pack.
Sources
- BambooRoutes - Average Condo Prices Philippines
- BambooRoutes - Davao City Property
- BambooRoutes - Davao City Price Forecasts
- Dot Property - Davao Townhouses
- Davao Properties - Commercial Properties
- BambooRoutes - Davao City Areas
- Sta Lucia Prime - Ponte Verde Lot Prices
- BambooRoutes - Moving Philippines Property
- GetHome.ph - Property Buying Fees Davao
- Respicio Law - Title Transfer Fees