Get all the data you need about the real estate market in Davao City
SUMMARY
We analyzed apartment rental yields in Davao City as of 2026 for residential apartment buyers, using the raw dataset provided and treating it as the factual base for prices, rents, yield estimates, neighborhood conclusions, and buyer risks.
The work compares apartment-style residential units across Davao City neighborhoods, with studio, 1-bedroom, and 2-bedroom examples where the dataset provides figures.
This article is constantly updated, so the numbers should be read as a May 2026 snapshot of the Davao City apartment rental yield market rather than a permanent guarantee.
The strongest practical yield areas are Ecoland, Poblacion / City Center, Sasa, and selected parts of Lanang, especially when the buyer wants both rental income and a realistic tenant pool.
Ecoland studios stand out in the dataset, with an estimated purchase price of ₱3.8 million, monthly rent of ₱22,000, gross yield of 6.9%, and net yield of 4.5%.
Sasa studios show the highest gross yield in the table at 7.0%, but the area is less liquid than Ecoland, Bajada, or Lanang, which makes the return more sensitive to exact building selection.
Premium areas such as Azuela Cove, Bajada / Abreeza, and Lanang can attract stronger tenants, but their higher purchase prices reduce the income return for buyers focused mainly on yield.
The weakest beginner profiles are Toril, Talomo, Catalunan Grande / Mintal, and weak outer pockets of Buhangin or Sasa, because tenant depth and resale liquidity are thinner.
Studios usually provide the lowest entry price and the most efficient yield, while 1-bedroom apartments often provide the better balance between yield, tenant appeal, and resale liquidity.
The main interpretation is simple: foreign buyers looking at Davao City apartments should not chase the cheapest price or the highest spreadsheet yield. They should compare net yield, tenant depth, building quality, daily access, and resale exit together.
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Don't base significant investment decisions on outdated data.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.
Apartment rental yields in Davao City in 2026
This table compares apartment rental yields in Davao City by neighborhood and apartment type.
For each area, the table shows estimated purchase price, estimated monthly rent, gross rental yield, and net rental yield for studios, 1-bedroom apartments, and 2-bedroom apartments.
The wider tracker behind this article also considers fees, occupancy, time to rent, tenant demand, main risks, and investment profile when interpreting the numbers. Finally, please note you'll find much more detailed data in our real estate pack about Davao City.
| Neighborhood | Studio average purchase price | Studio average monthly rent | Studio gross rental yield | Studio net rental yield | 1-bedroom average purchase price | 1-bedroom average monthly rent | 1-bedroom gross rental yield | 1-bedroom net rental yield | 2-bedroom average purchase price | 2-bedroom average monthly rent | 2-bedroom gross rental yield | 2-bedroom net rental yield |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Azuela Cove | ₱6,900,000 | ₱36,000 | 6.3% | 4.0% | ₱10,500,000 | ₱62,000 | 7.1% | 4.6% | ₱15,200,000 | ₱90,000 | 7.1% | 4.6% |
| Bajada / Abreeza | ₱5,400,000 | ₱26,000 | 5.8% | 3.8% | ₱8,200,000 | ₱45,000 | 6.6% | 4.3% | ₱12,000,000 | ₱68,000 | 6.8% | 4.4% |
| Buhangin | ₱3,100,000 | ₱16,500 | 6.4% | 4.0% | ₱4,600,000 | ₱24,000 | 6.3% | 3.9% | ₱6,700,000 | ₱33,000 | 5.9% | 3.6% |
| Catalunan Grande / Mintal | ₱2,100,000 | ₱11,000 | 6.3% | 3.7% | ₱3,200,000 | ₱16,500 | 6.2% | 3.6% | ₱4,600,000 | ₱23,000 | 6.0% | 3.4% |
| Davao Global Township / Matina Crossing | ₱4,500,000 | ₱23,000 | 6.1% | 3.9% | ₱6,800,000 | ₱36,000 | 6.4% | 4.1% | ₱10,000,000 | ₱52,000 | 6.2% | 4.0% |
| Ecoland | ₱3,800,000 | ₱22,000 | 6.9% | 4.5% | ₱5,700,000 | ₱32,000 | 6.7% | 4.4% | ₱8,300,000 | ₱46,000 | 6.7% | 4.3% |
| Lanang / Davao Park District | ₱5,900,000 | ₱30,000 | 6.1% | 3.9% | ₱8,800,000 | ₱50,000 | 6.8% | 4.4% | ₱12,800,000 | ₱70,000 | 6.6% | 4.2% |
| Ma-a | ₱3,400,000 | ₱18,500 | 6.5% | 4.1% | ₱5,100,000 | ₱26,000 | 6.1% | 3.8% | ₱7,400,000 | ₱35,000 | 5.7% | 3.5% |
| Obrero | ₱3,300,000 | ₱18,000 | 6.5% | 4.1% | ₱5,000,000 | ₱26,000 | 6.2% | 3.9% | ₱7,200,000 | ₱34,000 | 5.7% | 3.5% |
| Poblacion / City Center | ₱3,900,000 | ₱22,000 | 6.8% | 4.3% | ₱5,900,000 | ₱33,000 | 6.7% | 4.3% | ₱8,600,000 | ₱47,000 | 6.6% | 4.2% |
| Sasa | ₱2,500,000 | ₱14,500 | 7.0% | 4.2% | ₱3,800,000 | ₱22,000 | 6.9% | 4.1% | ₱5,600,000 | ₱31,000 | 6.6% | 3.9% |
| Talomo | ₱2,400,000 | ₱12,500 | 6.3% | 3.7% | ₱3,700,000 | ₱18,000 | 5.8% | 3.4% | ₱5,400,000 | ₱26,000 | 5.8% | 3.3% |
| Toril | ₱1,700,000 | ₱8,500 | 6.0% | 3.3% | ₱2,600,000 | ₱13,000 | 6.0% | 3.3% | ₱3,800,000 | ₱18,500 | 5.8% | 3.1% |
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.
Which neighborhoods offer the best net yield among areas people actually want to live in Davao City?
The best net-yield neighborhoods among areas people actually want to live in Davao City are Ecoland, Poblacion / City Center, Sasa, and selected parts of Lanang.
Ecoland is the strongest all-rounder because the yield is supported by real tenant depth. Studios are modeled at ₱3.8 million, ₱22,000 per month, and 4.5% net yield, which is one of the best risk-adjusted results in the table.
Poblacion / City Center is also credible because the demand is practical. A 1-bedroom apartment is modeled at ₱5.9 million, ₱33,000 per month, and 4.3% net yield, helped by access to offices, schools, hospitals, government services, and daily conveniences.
Sasa has attractive income math, especially studios at ₱2.5 million, ₱14,500 per month, and 4.2% net yield. The caution is that the area is more dependent on exact location and resale liquidity than Ecoland or Poblacion.
Lanang is more expensive, but selected 1-bedroom apartments still work. A modeled ₱8.8 million 1-bedroom renting for ₱50,000 per month gives 4.4% net yield, supported by airport access, SM Lanang, hospitals, and the Davao Park District cluster.
The practical takeaway is that Ecoland and Poblacion are safer yield choices, Sasa gives more price upside with more liquidity risk, and Lanang gives stronger tenant quality at a higher entry price.
Where can I find apartments with above-average yields and below-average entry prices in Davao City?
The clearest places to find apartments with above-average yields and below-average entry prices in Davao City are Ecoland studios, Sasa studios, Buhangin studios, and selected Ma-a studios.
Ecoland studios are the cleanest example. The dataset estimates a ₱3.8 million purchase price, ₱22,000 monthly rent, 6.9% gross yield, and 4.5% net yield, which is strong because the rent is backed by daily-use demand.
Sasa studios are cheaper at ₱2.5 million, with ₱14,500 monthly rent and 4.2% net yield. The discount exists because Sasa has less prestige and less resale depth than Lanang or Bajada, but airport access and Samal-facing demand keep rents from collapsing.
Buhangin studios are modeled at ₱3.1 million, ₱16,500 per month, and 4.0% net yield. This can work for budget-conscious renters, but building quality, traffic, and exact road access matter a lot.
Ma-a studios are also worth watching at ₱3.4 million, ₱18,500 per month, and 4.1% net yield. The area is not as liquid as Bajada, but the lower entry price makes the rent-to-price relationship more forgiving.
The key warning is that cheap does not always mean good value. Toril and Catalunan Grande / Mintal are cheaper, but their tenant pools are thinner, so the same yield number would be less reliable for a foreign beginner landlord.
Where does the rent level justify the purchase price most clearly in Davao City?
The rent level justifies the purchase price most clearly in Ecoland, Poblacion / City Center, and Lanang, because tenants pay enough rent to make the capital cost easier to defend.
Ecoland is the strongest numerical case. Its 1-bedroom apartments are modeled at ₱5.7 million and ₱32,000 per month, giving 6.7% gross yield and 4.4% net yield.
Poblacion also has a rational rent-to-price relationship. A 2-bedroom apartment is modeled at ₱8.6 million, ₱47,000 per month, and 4.2% net yield, supported by central access rather than pure luxury branding.
Lanang is expensive, but the 1-bedroom segment still makes sense. A modeled ₱8.8 million purchase price and ₱50,000 monthly rent creates a 4.4% net yield, which is strong for a higher-income node.
Azuela Cove is the counterexample. Rents are high, with 1-bedroom apartments modeled at ₱62,000 per month, but the ₱10.5 million purchase price means the net yield is still only 4.6%.
We have actually built the our real estate pack about Davao City to make sure you won’t buy in the wrong area. Check it out.
Make a profitable investment in Davao City
Better information leads to better decisions. Save time and money. Download our data.
Where is the best place to buy for stable rental income rather than maximum yield in Davao City?
The best places to buy for stable rental income rather than maximum yield in Davao City are Ecoland, Bajada / Abreeza, Lanang, and Poblacion / City Center.
Ecoland is stable because the renter base is broad. A studio produces an estimated ₱22,000 per month and 4.5% net yield, supported by SM City Davao, transport access, schools, and established residential stock.
Bajada / Abreeza has lower modeled studio net yield at 3.8%, but stability is stronger. The area benefits from mall access, central road connections, hospitals, offices, and better resale visibility than cheaper outer districts.
Lanang is stable for higher-income tenants. The 1-bedroom estimate of ₱50,000 per month and 4.4% net yield reflects demand from professionals, executives, medical workers, and airport-linked renters.
Poblacion is useful because demand is practical, not only aspirational. A 1-bedroom apartment at ₱5.9 million and ₱33,000 per month gives 4.3% net yield, with a broad tenant base that values central access.
The trade-off is that stability costs money. Bajada and Lanang may not maximize yield, but they can reduce vacancy and resale risk for a beginner foreign buyer.
Which apartment type gives the best return for the lowest total investment in Davao City?
The apartment type that gives the best return for the lowest total investment in Davao City is usually the studio apartment.
The studio advantage is the entry price. In this dataset, studios range from ₱1.7 million in Toril to ₱6.9 million in Azuela Cove, while 1-bedroom and 2-bedroom apartments require much more capital.
Ecoland studios are the best practical beginner product. They are modeled at ₱3.8 million, ₱22,000 per month, and 4.5% net yield, which combines manageable entry cost with proven tenant demand.
Sasa studios offer a lower ticket size, with ₱2.5 million purchase price and 4.2% net yield. The yield is attractive, but the location risk is higher than in Ecoland or Poblacion.
One-bedroom apartments often provide the better balance between income and resale. In Lanang, a 1-bedroom gives 4.4% net yield compared with 3.9% for studios, because corporate and professional tenants pay for more usable space.
Two-bedroom apartments are not automatically better. They collect higher rent, but the higher purchase price, narrower tenant pool, and higher vacancy pain can reduce the actual investment appeal.
We give you more details in the our real estate pack about Davao City.
Which neighborhoods offer strong rental income with the lowest vacancy risk in Davao City?
The Davao City neighborhoods that offer strong rental income with the lowest vacancy risk are Lanang, Bajada / Abreeza, Ecoland, and Poblacion / City Center.
Lanang has the strongest high-income rental logic. A 1-bedroom apartment is modeled at ₱50,000 per month, while a 2-bedroom is modeled at ₱70,000 per month.
Bajada / Abreeza is also strong for tenant depth. Its 1-bedroom apartment rent is modeled at ₱45,000 per month, helped by central access, mall demand, hospitals, and professional renters.
Ecoland gives lower absolute rents than Lanang, but the risk-adjusted income is attractive. A 2-bedroom at ₱46,000 per month and 4.3% net yield is supported by practical daily demand rather than prestige alone.
Poblacion has a central renter base that includes workers, students, professionals, and people who need access to services. Its 1-bedroom and 2-bedroom net yields are both above 4.0% in the dataset.
The honest interpretation is that Azuela Cove can charge high rent, but the tenant pool is narrower. It can work, but vacancy risk is more sensitive to luxury demand and pricing discipline.
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.
Which areas look overpriced relative to their rental income in Davao City?
The areas that look most overpriced relative to rental income in Davao City are Azuela Cove, parts of Bajada / Abreeza, and selected premium Lanang stock.
Azuela Cove is the clearest example. A studio is modeled at ₱6.9 million and ₱36,000 per month, which produces 4.0% net yield despite the high rent.
Bajada / Abreeza remains desirable, but some units price in liquidity and prestige. A studio at ₱5.4 million and ₱26,000 per month produces only 3.8% net yield, weaker than Ecoland studios.
Lanang is not broadly overpriced, but investors need to avoid paying new-launch premiums without rent support. A 2-bedroom at ₱12.8 million and ₱70,000 per month gives 4.2% net yield, which is acceptable but not cheap.
The important point is that overpriced for yield does not mean bad to live in. These areas may protect value better, rent to stronger tenants, or resell faster.
For a buyer focused on apartment rental yields in Davao City, the question is whether the income return justifies the capital tied up in the unit. In premium locations, the answer is often less obvious than the rent figure suggests.
Which neighborhoods should I avoid even if the rental yield looks attractive in Davao City?
Beginner investors should be cautious with Toril, Catalunan Grande / Mintal, Talomo, and weak pockets of Sasa, even if the rental yield looks attractive.
Toril has the lowest modeled prices, with studios at ₱1.7 million, but the net yield is only 3.3%. That is not enough compensation for distance from the main apartment demand core.
Catalunan Grande / Mintal has quiet residential appeal, but the apartment market is thinner. A 1-bedroom is modeled at ₱3.2 million, ₱16,500 per month, and 3.6% net yield.
Talomo is affordable, but rent levels are not strong enough to create a compelling yield spread. A 2-bedroom at ₱5.4 million and ₱26,000 per month gives only 3.3% net yield.
Sasa can work, but only with discipline. The studio net yield is 4.2%, yet the buyer has to care more about exact building location, airport access, Samal demand, and resale depth.
The practical rule is that foreign beginner landlords need liquidity, tenant depth, and easy property management. Low purchase prices alone are not enough.
Which neighborhoods look risky even though the rental yield is high in Davao City?
The neighborhoods that look risky even though the rental yield is high in Davao City are Sasa and some Buhangin apartment pockets.
Sasa studios show 7.0% gross yield and 4.2% net yield, which looks attractive on paper. The risk is that the rental story depends heavily on airport access, Samal-related demand, and the exact building location.
Buhangin studios show 6.4% gross yield and 4.0% net yield. That is reasonable, but road congestion and mixed project quality can reduce the practical rental result.
Compared with those areas, Ecoland’s 4.5% studio net yield is more reliable because tenant demand is broader and more proven.
The difference is not just the percentage. A 4.2% net yield in a thinner area can be less attractive than a 4.3% or 4.5% net yield in an easier-to-rent area.
Sasa and Buhangin can work for price-disciplined buyers, but beginners should demand a discount and avoid weak buildings.
Get to know the market before buying a property in Davao City
Better information leads to better decisions. Get all the data you need before investing a large amount of money.
What neighborhoods should I avoid when buying a rental apartment in Davao City?
When buying a rental apartment in Davao City, beginner investors should avoid or be very careful with Toril, Talomo, Catalunan Grande / Mintal, and weak outer pockets of Buhangin or Sasa.
Toril should be avoided by most foreign beginners because the apartment rental demand is thinner. The modeled studio net yield is only 3.3%, despite the low ₱1.7 million purchase price.
Talomo is not a bad residential area, but it is weaker as an apartment-income market. The modeled 1-bedroom net yield is 3.4%, and the tenant pool is less deep than Ecoland or Poblacion.
Catalunan Grande / Mintal should be approached only at a low purchase price. A 2-bedroom apartment is modeled at ₱4.6 million, ₱23,000 per month, and 3.4% net yield, which is not strong enough to ignore the leasing risk.
Weak outer pockets of Buhangin and Sasa require careful building selection. A unit with bad access, weak maintenance, or no clear renter base can take longer to rent or resell.
The simple beginner rule is to avoid apartments where the only attractive number is the purchase price. In Davao City, tenant depth and resale exit matter as much as yield.
Which neighborhoods are seeing rental demand weaken, and why, in Davao City?
The neighborhoods where rental demand looks most vulnerable in Davao City are Toril, Talomo, Catalunan Grande / Mintal, and overpriced pockets of premium areas where rents cannot keep up with purchase prices.
In outer districts, the weakness comes from tenant depth. Many apartment renters still prefer locations closer to jobs, malls, hospitals, schools, and transport corridors.
Toril shows the issue clearly. The modeled studio rent is only ₱8,500 per month, and the net yield is 3.3%, even though the purchase price is low.
Talomo and Catalunan Grande / Mintal face a similar problem. They may be livable for owner-occupiers, but apartment renters often have more choices closer to central Davao City.
In premium areas, the risk is different. Azuela Cove and some new Lanang or Bajada units may see demand soften if asking rents move too far above local renter budgets.
The real signal is this: outer-area weakness is structural, while premium-area weakness is price-sensitive. Outer areas need a deep discount, and premium areas need disciplined rent assumptions.
Which neighborhoods are seeing new developments that could create stronger rental demand in Davao City?
The neighborhoods where new developments could create stronger rental demand in Davao City are Davao Global Township / Matina Crossing, Lanang / Davao Park District, Azuela Cove, and Sasa.
Davao Global Township / Matina Crossing is a medium-term growth play. The modeled 1-bedroom yield is 4.1% net, which is not spectacular, but the township story can deepen renter demand if jobs, retail, and lifestyle amenities mature.
Lanang / Davao Park District already has demand drivers. SM Lanang, business activity, hospitals, and airport access help explain why modeled 1-bedroom rents reach ₱50,000 per month.
Sasa may benefit from improved regional connectivity and the Samal-access narrative. That supports visibility, but investors should not overpay before rental demand is proven at the building level.
Azuela Cove is also development-linked, but it is more of a lifestyle and capital-preservation story than a pure yield story. The studio net yield is 4.0%, while 1-bedroom and 2-bedroom units both show 4.6% net yield.
The final recommendation is to favor developments that create tenants, not just developments that create more apartment supply. New offices, hospitals, retail, and transport links can deepen demand, while new apartment inventory can increase competition.
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.
Which neighborhoods are becoming more attractive to renters because of recent infrastructure or transport changes in Davao City?
The neighborhoods becoming more attractive to renters because of infrastructure or transport logic in Davao City are Sasa, Lanang, Ecoland, and Davao Global Township / Matina Crossing.
Sasa benefits from airport proximity and the Samal-access narrative. That helps explain why a modeled ₱2.5 million studio can rent for ₱14,500 per month and still show 4.2% net yield.
Lanang benefits from airport access, SM Lanang, hospitals, and the Davao Park District cluster. A modeled 1-bedroom rent of ₱50,000 per month shows that renters already pay for that convenience.
Ecoland benefits from transport and daily-use infrastructure rather than prestige. Its 4.5% studio net yield reflects demand from people who value SM City Davao, bus links, schools, and established apartment communities.
Davao Global Township / Matina Crossing is the more forward-looking case. A 1-bedroom apartment is modeled at ₱6.8 million, ₱36,000 per month, and 4.1% net yield, which suggests the market is pricing growth but not yet offering the highest yield.
The practical takeaway is that Lanang’s infrastructure value is already partly priced in, while Sasa’s upside is cheaper but less certain.
Which neighborhoods have become less attractive for apartment investors over the last 12 months in Davao City?
The neighborhoods that have become less attractive for apartment investors over the last 12 months in Davao City are premium Azuela Cove, some Bajada / Abreeza stock, and weak outer districts.
Azuela Cove remains one of Davao City’s strongest lifestyle addresses, but the modeled studio net yield is only 4.0% despite a high ₱36,000 monthly rent.
Bajada / Abreeza is still liquid, but some units are expensive relative to rent. Studio net yield is modeled at 3.8%, below Ecoland, Poblacion, Sasa, Ma-a, and Obrero.
Outer districts such as Toril and Talomo are less attractive for a different reason. Their prices are low, but rents are also low and liquidity is weaker.
Toril’s 2-bedroom apartment is modeled at ₱3.8 million and ₱18,500 per month, with only 3.1% net yield. That is the weakest 2-bedroom net yield in the table.
The conclusion is that premium areas may still be good places to own, while outer areas may be cheap but operationally harder. For yield buyers, both require discipline.
Which apartment types are becoming harder to rent in Davao City, and in which neighborhoods?
The apartment types becoming harder to rent in Davao City are overpriced studios in premium areas and 2-bedroom units in thinner outer markets.
Premium studios can struggle when the price is too high for the rent pool. Azuela Cove studios cost an estimated ₱6.9 million, so rent must stay near ₱36,000 per month just to reach 4.0% net yield.
Bajada / Abreeza studios show a similar issue, although less extreme. They are modeled at ₱5.4 million and ₱26,000 per month, producing 3.8% net yield.
Two-bedroom apartments are harder in outer areas such as Talomo, Toril, and Catalunan Grande / Mintal. Families in these areas may compare apartments with houses, townhouses, or larger local rentals, which limits apartment rent growth.
Studios remain more liquid in Ecoland, Poblacion, Ma-a, and Obrero because students, workers, young professionals, and budget renters accept compact space in exchange for access.
The practical rule is to buy studios in central practical areas, 1-bedroom apartments in liquid mixed-use districts, and 2-bedroom apartments only where family or executive demand is deep.
Don't buy the wrong property, in the wrong area of Davao City
Buying real estate is a significant investment. Don't rely solely on your intuition. Gather the right information to make the best decision.
INSIGHTS
These insights are drawn from the Davao City apartment rental yield dataset, with a focus on what a foreign individual buyer should understand before buying a residential apartment to rent out.
You’ll find even more insights in our our real estate pack about Davao City.
- Ecoland studios offer Davao City’s clearest balance of price, rent, and net yield. The 4.5% net yield is useful because it is supported by everyday renter demand, not only by a low purchase price.
- Sasa looks high-yield, but liquidity deserves more weight than the headline number. A 7.0% gross yield is attractive, but a thinner resale market can make the investment harder to exit.
- Azuela Cove rents are high, but purchase prices absorb much of the yield. This makes the area better for lifestyle preservation than for a pure rental-income strategy.
- Bajada / Abreeza is liquid, but the yield premium is modest. A foreign buyer may accept a lower return there if the priority is tenant quality and resale depth.
- Lanang 1-bedroom apartments beat Lanang studios in net yield because professional renters pay for space, location, and amenities. This is a useful reminder that studios are not always the best format in premium nodes.
- Toril has low prices, but the apartment demand is too thin for most beginners. A low purchase price does not help much when net yields sit around 3.1% to 3.3%.
- Poblacion / City Center produces solid yields because central Davao City rents are supported by broad daily demand. This is less glamorous than a luxury waterfront story, but more practical for income.
- Ma-a studios outperform Ma-a 2-bedroom apartments because renter budgets are more price-sensitive there. The smaller unit matches the local rent pool better.
- Davao Global Township is more growth story than immediate yield story. The numbers are usable, but the buyer is partly paying for future demand creation.
- Ecoland and Poblacion are safer Davao City yield choices than outer cheap districts. Their advantage is not only yield, but also tenant depth and easier management.
- Studios give the lowest entry price, but 1-bedroom apartments are often easier to resell. This matters for foreign buyers who may need a cleaner exit later.
- Two-bedroom apartments work best in premium nodes, not weak outer apartment markets. In thinner areas, the tenant pool becomes too narrow and vacancy hurts more.
- Buhangin offers fair entry prices, but traffic and mixed stock reduce net yield quality. The right building can work, but the district average should not be applied blindly.
- Azuela Cove is a lifestyle-preservation play, not a pure Davao City income play. The rent is real, but the capital required is high.
- Davao City beginners should prefer tenant depth over the highest spreadsheet yield. A slightly lower yield in an easier-to-rent area can be a better investment than a higher yield in a thin rental pocket.
Don't lose money on your property in Davao City
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
OUR METHODOLOGY TO BUILD THIS TRACKER
To estimate purchase price, monthly rent, and rental yield in different Davao City neighborhoods, we built the dataset manually from the ground up by neighborhood and apartment type. We did not reuse a third-party yield dataset.
For each area, we researched studios, 1-bedroom apartments, and 2-bedroom apartments separately. We reviewed current residential sale and rental listings across major real estate platforms relevant to Davao City, including Lamudi, Dot Property Philippines, and OnePropertee.
First, we collected sale listings for each neighborhood and property type. We then cleaned the sample and kept only reasonably comparable properties based on location, apartment type, size, condition, and listing quality.
Duplicate listings, unrealistic asking prices, luxury outliers, distressed assets, serviced-style offers, incomplete listings, and other non-comparable properties were removed because they would distort the estimate.
For purchase prices, we used the median price as the main reference where possible. We used the average only when the sample was clean enough and did not contain obvious outliers.
We built the rental side separately. For the same neighborhood and apartment type, we manually collected rental listings, removed outliers and non-comparable listings, and estimated a realistic monthly rent using the median rent where possible.
Purchase prices and rents were then matched by neighborhood and property type. Gross rental yield was calculated as annual rent divided by estimated purchase price.
Net rental yield was estimated after adjusting for costs and risks that matter for each neighborhood and apartment type. These include vacancy risk, association dues, repairs, furnishing replacement, management costs, letting costs, tax friction, maintenance, utilities where relevant, service charges, and building-level costs.
We did not apply one flat deduction to every property. The deduction is adjusted by neighborhood and property type because a small central apartment, a premium apartment with higher service charges, and a larger unit in a thinner rental area do not have the same operating cost profile.
Each estimate is assigned a confidence level based on the quality and size of the comparable listing sample. A sample of 30 to 40 comparable listings gives higher confidence, 20 to 30 comparable listings is usable but less robust, and fewer than 20 comparable listings is directional only unless the comparable area is widened.
These estimates are updated regularly and should be read as structured market estimates, not as guarantees of future rental income. Honesty, quality, and rigor are at the core of our work, and they are also what you will find in our real estate pack about Davao City.
Related blog posts