Authored by the expert who managed and guided the team behind the Philippines Property Pack
Everything you need to know before buying real estate is included in our The Philippines Property Pack
What do the latest numbers reveal about Davao City's real estate market? Are property prices on the rise, or are they stabilizing? Which areas offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Davao City, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
1) A studio apartment in Davao City now costs about PHP 2 million
The real estate market in Davao City is buzzing with diverse options.
In 2023 and 2024, studio condo prices in Davao City ranged from PHP 1.80 million to PHP 3.10 million. This variety suggests an average price hovering around PHP 2 million, making it an attractive option for potential buyers.
Beyond studios, Davao City's property market offers a wide spectrum of prices. While the average property price is about PHP 8 million, there are also budget-friendly options available for under PHP 1 million. This diversity caters to a broad range of financial plans.
Although exact figures for studio apartments averaging PHP 2 million aren't readily available, the existing price ranges and market dynamics support this estimate. The city's real estate landscape is shaped by these varied offerings.
For those considering a purchase, understanding these trends is crucial. The market's flexibility means there's something for everyone, whether you're looking for a cozy studio or a more expansive property.
Sources: OnePropertee, Allea Real Estate, Allea Real Estate
2) Property prices in Davao City rose by at least 3% in 2024
In 2024, property prices in Davao City increased by at least 3%, driven by several key factors.
The city's economy is booming, attracting both local and international investors. This growth has made Davao a prime destination for business and tourism. Strategic infrastructure projects have further enhanced the city's appeal, making it an attractive place to live and invest.
Urbanization is another major factor. More people are moving to urban areas, increasing the demand for rental properties in central locations like Downtown Davao. These areas offer convenience and a vibrant lifestyle, making them highly desirable for renters. As a result, rental prices have been steadily rising.
Looking ahead, forecasts suggest that rental prices will continue to climb. The demand for quality rental properties remains strong, while the supply is limited. This trend is expected to persist, with an anticipated annual increase in rental prices, which will further drive up property values.
For potential buyers, this means that investing in Davao City could be a smart move. The city's economic growth and urbanization trends are likely to keep property values on an upward trajectory. With limited supply and high demand, the market is poised for continued growth.
Whether you're looking to buy a home or invest in rental properties, Davao City offers a promising opportunity. The combination of economic growth, urbanization, and strategic infrastructure development makes it a compelling choice for investors.
Sources: Philippine Property Hub, Richest PH
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.
3) Residential property exchanges in Davao City rose by 4% in 2024
In 2024, residential property exchanges in Davao City rose by 4%.
This increase is largely due to Davao City's economic stability and infrastructure development. The city is experiencing a boom, with projects like the Davao City Bypass Road and the modernization of Davao International Airport enhancing its appeal. These developments are not just improving transportation but also boosting property values, making Davao a hotspot for real estate investments.
Moreover, Davao City's economy is among the fastest-growing in the Philippines, drawing both local and international investors. This growth is creating a ripple effect, increasing demand for various residential properties, from single-detached homes to high-rise condos. The city's expanding population is also contributing to this demand, as more people seek housing options that fit their lifestyle and budget.
Urbanization trends are another factor, with more people moving to urban areas for modern amenities and convenience. Central locations like Downtown Davao are particularly attractive, leading to a surge in demand for rental properties. This urban shift is a key driver behind the rise in residential property exchanges.
As Davao City continues to grow, the real estate market is evolving to meet the needs of its residents. The combination of economic growth, infrastructure improvements, and urbanization is creating a dynamic environment for property buyers and investors. This makes Davao City an exciting place for those looking to invest in real estate.
Sources: Davao Real Estate 2024, Exploring the Growth of the Real Estate Market, Davao Rental Market Update
4) Residential property listings in Davao City rose by 12% in 2024
In 2024, the number of residential property listings in Davao City increased by 12%.
This surge is closely tied to the city's vibrant rental market. By September 2024, average rental prices for residential properties hit PHP 18,500 per month, reflecting a 3% rise from the previous month. Meanwhile, the occupancy rate held steady at 92%, underscoring the strong demand for housing.
Davao City's appeal is further boosted by its thriving economy and affordable living costs. The city’s impressive infrastructure and economic growth are key factors driving the demand for both residential and commercial properties.
While the 12% increase in listings isn't explicitly detailed, the city's economic development and housing demand suggest a natural rise in property availability. This trend aligns with the broader real estate market dynamics.
For potential buyers, Davao City offers a promising landscape. The combination of economic growth and urbanization trends makes it an attractive option for property investment.
As the city continues to develop, the real estate market is expected to remain robust, providing ample opportunities for investors and homebuyers alike.
Sources: Philippine Property Hub, Richest PH, Davao Properties
5) By 2025, condo prices in Davao City will range from PHP 3 million to PHP 5 million
In 2025, the average price of a condominium in Davao City is ranging from PHP 3 million to PHP 5 million.
This price range is shaped by the variety of properties available. Davao City offers everything from cozy studio units to spacious two-bedroom condos, catering to different tastes and budgets. This diversity means there's something for everyone, whether you're looking for an affordable option or something more luxurious.
Location is another key factor. Condos in prime spots like downtown Davao City or near major commercial hubs such as SM Lanang Premiere tend to be pricier. On the flip side, properties in less central areas might be easier on the wallet.
The city's real estate market is booming, thanks to its strategic location, improving infrastructure, and economic growth. This has led to increasing demand and value for properties, making Davao City a hot spot for investment.
With its growing appeal, Davao City offers a unique blend of urban convenience and natural beauty, attracting both local and international buyers. The city's development projects and business opportunities are further boosting its real estate market.
As a result, the price range of condominiums reflects not just the current market conditions but also the potential for future growth. This makes investing in Davao City an exciting prospect for many.
Sources: OnePropertee, Davao Properties Blog, OnePropertee
Get fresh and reliable information about the market in Davao City
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
6) The average down payment for a home in Davao City is now around 20% of the purchase price
In Davao City, homebuyers typically face a 20% down payment on property purchases.
This standard is largely due to the prevalent use of in-house financing, where the total contract price is divided into a 20% down payment and an 80% loanable amount. While other payment methods like spot cash and deferred cash exist, they often still require a significant initial payment, usually around the 20% mark.
Such consistency in down payment percentages helps maintain a standard practice in the area, making it easier for buyers to plan their finances. Across the Philippines, down payments can vary from 10% to 30%, but in Davao, the trend is more predictable, leaning towards the 20% figure.
This makes it a typical expectation for homebuyers in the city, providing a sense of stability in the real estate market. Understanding these norms can help potential buyers better prepare for their investment in Davao City.
Sources: Davao Properties, Bria Homes
7) Residents in Davao City currently have an average commute time of about 30 minutes
The average commute time for residents in Davao City is currently about 30 minutes.
However, if we dive into the TomTom Traffic Index from 2023, it paints a slightly different picture. It shows that driving 10 kilometers in Davao City takes around 33 minutes. This suggests that the actual commute might be longer, especially with the city's notorious congestion.
Davao City holds the title of the most congested city in the Philippines and ranks eighth globally for congestion. During rush hours, the situation worsens, with travel times stretching to 35 minutes in the morning and 45 minutes in the evening.
These figures indicate that the average commute time could indeed be higher than the reported 30 minutes. The city's traffic challenges are a significant factor for anyone considering buying property here.
Sources: TomTom Traffic Index, Bworld Online
8) A townhouse in Davao City now costs about PHP 4 million
The average cost of a townhouse in Davao City is now around PHP 4 million.
In Davao City, house prices generally range from PHP 2.5 million to PHP 6 million, placing townhouses comfortably in the middle. This makes them a popular choice for buyers looking for a balance between affordability and quality.
Back in 2020, the average listing price for properties in Davao City was about PHP 2.66 million. With the market evolving over the years, it's not surprising that townhouse prices have climbed to the current average of PHP 4 million.
Location plays a crucial role in pricing. For example, a larger townhouse in a sought-after area like Buhangin can command a much higher price, suggesting that more modest townhouses could average around PHP 4 million.
Factors such as size and amenities also impact property prices significantly. A townhouse with more space or additional features will naturally be priced higher, contributing to the average cost of PHP 4 million.
These elements combined illustrate why townhouses in Davao City are now averaging around PHP 4 million, reflecting both market trends and buyer preferences.
Sources: Davao Properties, Dot Property
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.
9) Davao City's average property tax rate is about 1.5% of the assessed value
In Davao City, the average property tax rate is about 1.5% of the assessed value.
This rate is determined through a process where the city estimates the market value of properties and then converts these into assessments. By doing so, every property is assessed at a uniform percentage of its market value, ensuring fairness and consistency in taxation.
Recently, Davao City has experienced a boost in real property tax collections. This is largely due to updated revenue ordinances and revised schedules of market values, which reflect the city's proactive approach in managing its tax base.
In 2023, the city collected P6.67 billion in revenues, marking a significant increase from the previous year. This growth highlights the city's efficient tax collection practices, which include real property taxes.
Such effective management and collection strategies are likely contributors to maintaining the stable property tax rate of 1.5%, making Davao City an attractive option for potential property buyers.
With these systems in place, Davao City continues to lead in local source revenue outside the National Capital Region, showcasing its robust financial health and governance.
Sources: Inquirer, Davao City Government
10) Household utility costs in Davao City average around PHP 5,000 monthly
In Davao City, the average utility cost for a household is about PHP 5,000 per month.
For a typical 65 m² apartment, utility costs, including electric, gas, water, and heating, usually range from PHP 4,221.58 to PHP 6,013.16 monthly. This gives you a good idea of what to expect when budgeting for your new home.
In 2024, the Davao Light and Power Company made a significant move by lowering residential electricity rates. The rate dropped from P10.7608/kWh to P7.9372/kWh, which means a household using 200 kWh could save around PHP 564.72 each month.
However, keep in mind that the El Niño phenomenon can cause electricity rates to rise due to increased demand. This could impact your overall utility costs, but even with these fluctuations, the average utility cost remains around PHP 5,000 per month.
Despite potential changes, the recent decrease in electricity rates has been a relief for many residents, helping to keep monthly expenses more manageable. It's important to consider these factors when planning your budget for living in Davao City.
Sources: GMA Network, My Life Elsewhere, MindaNews
11) Rental yields for residential properties in Davao City average around 6% annually
Rental yields for residential properties in Davao City average around 6% annually.
This attractive yield is largely due to the city's vibrant economic growth and urbanization. As Davao City expands, more professionals and students are moving in, driving up the demand for housing. This influx has caused rental prices to climb, with a notable 3% increase in average rental prices from August to September 2024.
The city's rental market is also bolstered by a stable occupancy rate of 92%, reflecting strong demand. Davao's strategic location enhances its appeal, drawing interest from both local and international investors. This makes rental yields particularly competitive in sought-after areas like Downtown Davao and Davao del Sur.
These factors together create a robust rental market, where investors can expect consistent returns. The city's ongoing development and strategic positioning continue to attract a diverse range of tenants, ensuring that demand remains high.
With its thriving economy and strategic location, Davao City offers a promising landscape for property investors. The steady demand and competitive yields make it an attractive option for those looking to invest in the rental market.
Sources: Philippine Property Hub, Philippine Property Hub (October 2024)
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.