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You're thinking about buying property in Davao City and wondering if January 2026 is the right time to make your move.
In this article, we break down the current housing prices in Davao City using official data and real market signals, and we constantly update this blog post as new information becomes available.
We'll help you understand whether Davao City real estate looks overpriced, fairly valued, or even undervalued right now.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Davao City.
So, is now a good time?
Rather yes, January 2026 looks like a reasonable time to buy property in Davao City, but only if you approach it like a careful, skeptical buyer who verifies every number.
The strongest signal supporting this view is that the Bangko Sentral ng Pilipinas cut its policy rate to 4.5% in December 2025, the lowest in over three years, which makes financing cheaper and reduces the risk of a price crash driven by forced sellers.
Another strong signal is that national housing prices are still rising but at a much slower pace, meaning the market is cooling rather than overheating, which gives buyers more negotiating power.
Davao City also has real infrastructure tailwinds like the Davao City Bypass Road project (backed by JICA), strong local economic growth, and a structural housing need that keeps demand real in neighborhoods like Poblacion, Lanang, and Matina.
The best strategy in Davao City right now is to focus on well-located family homes or condos in central districts (Poblacion, Bajada, Lanang, Matina, Ma-a), avoid overpriced investor-heavy condo clusters, and always stress-test your purchase against current mortgage rates and realistic rent yields.
This is not financial or investment advice, we don't know your personal situation, and you should always do your own research before making any property purchase decision.
Is it smart to buy now in Davao City, or should I wait as of 2026?
Do real estate prices look too high in Davao City as of 2026?
As of early 2026, most mainstream homes in Davao City do not look like a screaming bubble, but specific units (especially overpriced new-build condos with weak rental demand) can definitely be "too high" for what they offer.
One clear on-the-ground signal is that condo developers in Davao City are offering promos and buyers have more negotiating room than in previous years, which suggests prices are stretched enough that sellers need to work harder to close deals.
Another useful benchmark is that mainstream Davao City condo pricing, anchored by Avida's published range of 3.8 million to 12 million pesos, translates to roughly 120,000 to 200,000 pesos per square meter, so if you see listings far above this band without a clear reason, that's a red flag.
You can also read our latest update regarding the housing prices in Davao City.
Does a property price drop look likely in Davao City as of 2026?
As of early 2026, the likelihood of a meaningful citywide price crash in Davao City is rather low, though selective price cuts of 5% to 12% are plausible in investor-heavy condo clusters where many similar units compete for buyers.
The plausible price change range for Davao City over the next 12 months is roughly negative 5% to positive 6%, with the downside mostly concentrated in overpriced condos and the upside in well-located family homes or areas near new infrastructure.
The single most important macro factor that would increase the odds of a price drop in Davao City is a sudden reversal in interest rates, because higher borrowing costs would squeeze affordability and could create a wave of forced sellers.
However, this factor looks unlikely in the near term because the Bangko Sentral ng Pilipinas just cut rates to 4.5% in December 2025, and their official monetary policy reports suggest inflation is being managed within target ranges.
Finally, please note that we cover the price trends for next year in our pack about the property market in Davao City.
Could property prices jump again in Davao City as of 2026?
As of early 2026, there is a medium likelihood of a renewed price surge in Davao City, but it would most likely be concentrated in specific corridors rather than across the entire city.
The plausible upside for Davao City property prices over the next 12 months is roughly 3% to 6% citywide, but "good" submarkets near infrastructure projects or in prime central districts could see 6% to 10% gains.
The single biggest demand-side trigger that could drive Davao City prices to jump again is the completion of major phases of the Davao City Bypass Road project, which would suddenly make areas like Toril, Tugbok, and upland corridors feel much closer to jobs and amenities.
Please also note that we regularly publish and update real estate price forecasts for Davao City here.
Are we in a buyer or a seller market in Davao City as of 2026?
As of early 2026, Davao City is a mild buyer's market for condos (meaning buyers have more negotiating power), while the market for family homes in convenient districts is closer to balanced.
The estimated months-of-inventory for Davao City condos is relatively high because many similar units compete with each other, which typically means buyers can take their time, negotiate harder, and expect promos or price flexibility from sellers.
The estimated share of condo listings with price reductions or promos in Davao City is noticeable, especially in investor-heavy clusters, which suggests seller leverage has weakened and buyers can push for better deals.
We have made this infographic to give you a quick and clear snapshot of the property market in the Philippines. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Are homes overpriced, or fairly priced in Davao City as of 2026?
Are homes overpriced versus rents or versus incomes in Davao City as of 2026?
As of early 2026, many Davao City condos look modestly overpriced versus achievable rents (gross yields often land around 3.5% to 6%), while family homes in convenient locations tend to be more fairly priced because they serve real owner-occupier demand.
The estimated price-to-rent ratio for mainstream Davao City condos suggests that if your deal pencils at less than 3% gross yield, you're likely paying too much relative to what the rental market will actually support.
The estimated price-to-income multiple in Davao City can feel stretched for many households, meaning a safe mortgage burden (around 30% of net income) often requires either long loan terms, family support, or buying below the typical asking price.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Davao City.
Are home prices above the long-term average in Davao City as of 2026?
As of early 2026, Davao City home prices are probably above the long-term average in nominal pesos (almost everywhere is), but the more important finding is that prices are less stretched relative to the current rate environment than they were during peak tight-money periods in 2023 and 2024.
The estimated recent 12-month price change in Davao City has been positive but slowing, which is consistent with a market that has already cooled versus earlier years rather than one that is still overheating.
In inflation-adjusted (real) terms, Davao City prices likely remain above pre-pandemic levels, but the gap has narrowed as price growth has moderated and borrowing costs have started to ease.
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What local changes could move prices in Davao City as of 2026?
Are big infrastructure projects coming to Davao City as of 2026?
As of early 2026, the single biggest infrastructure project affecting Davao City property prices is the Davao City Bypass Road (with major tunnel works), which is estimated to lift land values by 5% to 15% in directly connected areas like Toril, Tugbok, and upland corridors as accessibility improves.
The estimated timeline for the Davao City Bypass Road project includes ongoing construction with a major tunnel breakthrough achieved in April 2025, and full completion expected over the next few years, meaning early movers in affected neighborhoods could see price gains before the project fully delivers.
For the latest updates on the local projects, you can read our property market analysis about Davao City here.
Are zoning or building rules changing in Davao City as of 2026?
The single most important zoning framework currently governing Davao City is the CLUP 2019 to 2028 (Comprehensive Land Use Plan) and Integrated Zoning Ordinance, which shapes where new housing can be built and what densities are allowed in different districts.
As of early 2026, the net effect of the existing zoning rules is that house-and-lot and townhouse prices can gain value when nearby land is upzoned for more activity, while condo prices are more sensitive to whether new competing projects are allowed nearby.
The areas most affected by zoning dynamics in Davao City include growth districts like Buhangin, Talomo, and Toril, where zoning determines whether land can be developed for subdivisions, and Poblacion, where density limits affect condo competition.
Are foreign-buyer or mortgage rules changing in Davao City as of 2026?
As of early 2026, there are no major "flip-the-market" changes to foreign-buyer or mortgage rules in Davao City, and the biggest swing factor affecting prices remains the direction of mortgage rates rather than regulatory shifts.
The most relevant rule for foreign buyers remains that foreigners can generally buy condominium units (subject to foreign ownership caps in each building) but typically cannot directly own land, which means foreign demand concentrates in condo segments rather than house-and-lot.
On the mortgage side, the most important recent development is the BSP's rate cuts into late 2025, which have made borrowing cheaper, though housing loan rates from banks still sit in the high single digits and continue to limit how high prices can climb.
You can also read our latest update about mortgage and interest rates in The Philippines.
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.
Will it be easy to find tenants in Davao City as of 2026?
Is the renter pool growing faster than new supply in Davao City as of 2026?
As of early 2026, renter demand in Davao City appears to be roughly keeping pace with new supply in prime districts, though some condo clusters face more competition for tenants because many similar units hit the market at once.
The best signal for renter demand in Davao City is the city's continued economic growth (it was reported as having the fastest economic growth in the region in 2023), which supports steady household formation and in-migration of workers who need housing.
On the supply side, PSA building permits data shows that developers remain active, meaning new completions will continue adding rental stock, especially in the condo segment where units are more easily brought to market.
Are days-on-market for rentals falling in Davao City as of 2026?
As of early 2026, there is no official Davao City "rental days-on-market" series, but based on market conditions we estimate that rental speed is stable to slightly improving in prime districts and flat to slower in more peripheral areas.
The estimated difference in days-on-market between best areas (like Poblacion, Bajada, Lanang, and Matina) and weaker areas can be significant: prime locations often lease within 30 to 60 days, while peripheral or highly competitive condo clusters may take 60 to 120 days.
One common reason days-on-market falls in Davao City's best rental pockets is that tenants prioritize walkability to offices, schools, hospitals, and malls, and there are only so many units in truly convenient locations.
Are vacancies dropping in the best areas of Davao City as of 2026?
As of early 2026, vacancy in the best-performing rental areas of Davao City (like Poblacion, Bajada, Lanang, and Matina/Ecoland) appears to be stable or slightly tightening because these locations have strong, steady tenant demand from workers and families.
The estimated vacancy rate in these prime areas is roughly 4% to 8% (meaning about half a month to one month empty per year if managed well), while non-prime or highly substitutable condo pockets may experience 8% to 15% vacancy equivalent.
One practical sign that the best areas in Davao City are tightening first is that correctly priced units in Poblacion or Lanang tend to receive multiple inquiries within the first week of listing, while similar units in peripheral locations sit longer.
By the way, we've written a blog article detailing what are the current rent levels in Davao City.
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Am I buying into a tightening market in Davao City as of 2026?
Is for-sale inventory shrinking in Davao City as of 2026?
As of early 2026, for-sale inventory in Davao City is not shrinking consistently across all property types: condos often have ample competing listings, while house-and-lot inventory in established family districts can feel tighter because good supply is lumpy and location-specific.
We don't have a precise months-of-supply figure for Davao City because there is no official local inventory series, but based on market dynamics, condo supply appears above balanced levels (meaning buyers have choices) while well-located family homes are closer to equilibrium.
The single most likely reason inventory feels tighter for family homes in Davao City is that truly convenient, flood-safe, clean-title properties in districts like Matina, Ma-a, or Lanang simply don't come up for sale very often.
Are homes selling faster in Davao City as of 2026?
As of early 2026, the median time-to-sell for homes in Davao City varies significantly by property type: standard condos often take 90 to 180 days or more unless priced aggressively, while quality family homes in high-demand districts can attract serious offers within 30 to 90 days.
Year-over-year, selling speed for Davao City condos has not improved much because buyers have more options and more negotiating power, while correctly priced house-and-lot properties in convenient locations continue to move relatively quickly.
Are new listings slowing down in Davao City as of 2026?
As of early 2026, we cannot confidently estimate the exact year-over-year change in new for-sale listings in Davao City because there is no official local listings dataset, but approved building permits suggest developer activity remains present rather than collapsing.
The seasonal pattern for new listings in Davao City typically sees more activity after the holiday season and into the first half of the year, and current levels do not appear unusually low compared to recent years.
Is new construction failing to keep up in Davao City as of 2026?
As of early 2026, there is a structural housing need in the Philippines that keeps demand real, but in Davao City specifically, new condo construction has been active enough that some segments may face temporary oversupply while affordable family homes in convenient zones remain undersupplied.
The recent trend in building permits shows continued construction activity, meaning new units are still being added to the pipeline, though the mix of what gets built (more condos, fewer affordable family homes in prime areas) creates uneven supply pressure.
The single biggest bottleneck limiting new construction of well-located family homes in Davao City is land availability and zoning constraints in established districts, which means developers often build condos or push to growth corridors instead.
We made this infographic to show you how property prices in the Philippines compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
Will it be easy to sell later in Davao City as of 2026?
Is resale liquidity strong enough in Davao City as of 2026?
As of early 2026, resale liquidity in Davao City is reasonably strong for normal homes in central locations, but weaker for properties with issues like weird layouts, poor access, flood-prone micro-areas, or condos where many identical units compete.
The estimated median days-on-market for resale homes in Davao City ranges from about 30 to 90 days for well-priced properties in high-demand districts (like Poblacion, Bajada, Lanang, Matina, and Ma-a) to 90 to 180 days or more for overpriced or poorly located listings.
The property characteristic that most improves resale liquidity in Davao City is location convenience, meaning proximity to jobs, schools, hospitals, malls, and good road access, which consistently attracts both owner-occupiers and renters.
Is selling time getting longer in Davao City as of 2026?
As of early 2026, selling time in Davao City appears to be getting longer for overpriced condos compared to last year, but correctly priced family homes in convenient districts are not experiencing the same slowdown.
The estimated current median days-on-market in Davao City ranges widely from around 30 days for a well-priced home in a prime district to 180 days or more for a condo in a competitive cluster with many similar listings.
One clear reason selling time can lengthen in Davao City is affordability pressure: when mortgage rates remain in the high single digits, fewer buyers can qualify, which means sellers have to wait longer or cut prices to attract offers.
Is it realistic to exit with profit in Davao City as of 2026?
As of early 2026, the likelihood of selling a Davao City property with a profit is medium to high if you buy with a margin of safety, hold for at least 5 to 7 years, and choose a location with durable demand.
The estimated minimum holding period in Davao City that most often makes exiting with profit realistic is about 5 to 7 years, which gives time for price appreciation to overcome transaction costs and for any market softness to recover.
The estimated total round-trip cost drag in Davao City (buying plus selling costs including taxes, fees, and commissions) is roughly 10% to 15% of the property value, or about 350,000 to 500,000 pesos on a 3.5 million peso property (around 6,000 to 8,500 USD or 5,500 to 8,000 EUR).
One clear factor that most increases profit odds in Davao City is buying below market value by negotiating well, targeting motivated sellers, or purchasing in areas like Toril or Tugbok before the bypass project fully delivers its accessibility benefits.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Davao City, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| GMA Network (BSP Housing Price Data) | Major news outlet reporting official BSP housing price index data. | We used it to anchor the latest national direction of housing prices as of late 2025. This gave us a macro reality check for Davao City since local prices rarely move opposite the national credit cycle for long. |
| BSP Weekly Lending Rates | The central bank's own statistical release on lending rates by loan type. | We used it to estimate the current mortgage-rate environment for housing loans. We then translated those rates into affordability stress-tests for condos, townhouses, and house-and-lot purchases in Davao City. |
| BusinessWorld (BSP Policy Rate) | Major business paper explicitly reporting the BSP decision and rate level. | We used it to frame whether financing pressure is easing or tightening as of the first half of 2026. We then mapped that onto buyer versus seller dynamics since rate cuts usually improve demand with a delay. |
| BSP Monetary Policy Report | The BSP's official narrative report explaining inflation and policy context. | We used it to ground expectations about inflation and rate paths. We then tied those scenarios to the probability of a property price drop versus renewed price growth in Davao City. |
| PSA Construction Statistics | The national statistics agency's official construction and building permit series. | We used it as a proxy for future housing supply pressure since permits today become completions later. We used this to judge whether Davao City is more likely facing undersupply or oversupply. |
| Davao City CLUP/Zoning Reference | Published on the official Davao City government website referencing the city's zoning framework. | We used it to identify that zoning rules are actively administered under the CLUP 2019 to 2028 framework. We then explained how zoning affects prices differently in Poblacion versus growth areas like Buhangin and Toril. |
| Davao City Ordinance Portal | The city's official portal for retrieving ordinances. | We used it as the source of truth for checking whether zoning or tax-related ordinances exist and can be verified. We also used it to suggest how readers can personally verify any claimed local rule changes. |
| Davao City Assessor's Office | The city office responsible for real property assessment used for taxation. | We used it to explain the local valuation system and how assessed values matter for taxes and negotiations. We also used it as a practical checklist item for buyers to verify assessed value versus asking price. |
| BIR Zonal Values | The national tax authority's official page for zonal values used in transactions and taxes. | We used it to anchor the concept of a verifiable value floor. We then showed how buyers can use zonal values to sanity-check whether an asking price is wildly off-market in Davao City. |
| JICA Davao Bypass Project | JICA is an official international development agency publishing primary project information. | We used it to identify a major, real infrastructure catalyst and explain where price effects are most likely to show up. We connected the project geography to named areas like Toril, Tugbok, and upland corridors. |
| Embassy of Japan (Davao Bypass Explainer) | An official government PDF describing the bypass project's objectives and scope. | We used it to cross-check the bypass project scope and why it matters for logistics and connectivity. We then translated that into which neighborhoods benefit first versus later. |
| Congressional Policy Research (DHSUD Data) | Official congressional research document citing DHSUD consolidated housing data. | We used it to frame the Philippines' structural housing need and backlog context. We then explained why cities with job growth like Davao City can stay resilient even when national prices cool. |
| Davao City Government (PSA Economic Data) | Official city-government post summarizing PSA-reported regional economic facts. | We used it to support the demand engine story showing that jobs and economic growth help keep owner-occupier and renter demand real. We connected that to which property types tend to hold up best. |
| Avida Land (Ayala) | A primary source from a major, established developer with clear product details. | We used it to anchor a real, checkable price band for mainstream condo stock in Davao City. We then used it plus typical unit sizes to create a conservative peso per square meter range for affordability checks. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of the Philippines. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
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