How much for a property in Davao City now?

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BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Davao City. If you'd like to learn more about us, you can check our presentation page.

What are the current price ranges for condos, townhouses, single-family houses, and residential lots in Davao City?

As of September 2025, Davao City property prices span a wide spectrum depending on property type and location within the metropolitan area.

Studio and one-bedroom condos start at ₱2 million for entry-level units and reach ₱4 million for basic options. Mid-range condos typically cost ₱4 million to ₱10 million, while premium luxury condos in downtown locations exceed ₱10 million. The price per square meter for condos ranges from ₱80,000 to ₱150,000 in central areas.

Townhouses present more affordable entry points, with basic units priced between ₱2.5 million and ₱4 million. Mid-range townhouses cost ₱6 million to ₱9 million, featuring better locations and amenities. Premium gated community townhouses start at ₱15 million and can go significantly higher. Townhouse pricing averages ₱40,000 to ₱60,000 per square meter.

Single-family homes in middle-tier subdivisions range from ₱4 million to ₱7 million for entry-level options. Exclusive subdivision homes typically cost ₱10 million to ₱12 million, while luxury properties can reach ₱45 million or more. House pricing averages ₱45,000 to ₱75,000 per square meter.

Residential lots offer the most accessible entry point, with 100-300 square meter parcels priced between ₱1.5 million and ₱4 million. Premium large lots cost ₱6 million to ₱10 million, while prime district lots can exceed ₱18 million. The city-wide average for residential lots is ₱12,000 to ₱14,000 per square meter.

How do property prices vary across different neighborhoods and districts in Davao City?

Davao City's property market shows significant price variations based on location, with downtown and established business districts commanding premium rates.

Downtown and central business districts represent the most expensive areas, where condos often fetch ₱100,000 to ₱150,000 per square meter. These locations offer proximity to offices, shopping centers, and transportation hubs, justifying their premium pricing. Lots and townhouses in these areas carry substantial price premiums compared to suburban alternatives.

Established mid-range neighborhoods like Ecoland, Matina, and Lanang offer balanced pricing with solid rental and resale value. Condos and townhouses in these areas typically cost ₱80,000 to ₱110,000 per square meter. These districts provide good infrastructure, amenities, and connectivity while remaining more affordable than downtown locations.

Budget-friendly areas including Toril, Buhangin, and Catalunan Grande offer lower per-square-meter costs but show strong growth potential. Lots in these areas average around ₱12,000 per square meter. These neighborhoods benefit from ongoing development and infrastructure improvements, making them attractive for value-conscious buyers.

Exclusive gated subdivisions like Solariega and Elize Point command the highest prices for residential properties, with land costs reaching ₱75,000 per square meter. These premium communities offer enhanced security, landscaping, and amenities that justify their elevated pricing structure.

What sizes and layouts can buyers expect at different budget levels for each property type?

Property sizes and layouts in Davao City correspond directly to budget levels, with clear distinctions between entry-level, mid-range, and premium offerings.

What are the total acquisition costs including taxes, fees, and other charges?

The true cost of buying property in Davao City extends beyond the purchase price to include various taxes, fees, and ongoing expenses that buyers must factor into their budget.

Transfer tax amounts to approximately 0.5% of the property's sale price, while documentary stamp tax adds another 1.5%. Registration fees contribute 0.25% of the sale price, and notarial fees typically range from ₱10,000 to ₱30,000 depending on the transaction complexity.

For condominiums and gated subdivisions, homeowners association (HOA) dues range from ₱1,000 to ₱4,000 monthly, varying based on amenities and maintenance requirements. These ongoing costs should be considered when evaluating total ownership expenses.

Capital gains tax of 6% is typically paid by the seller, but this cost may be factored into the selling price in some negotiations. Buyers should clarify who bears this expense during purchase discussions.

The total "all-in" acquisition cost for buyers typically ranges from 2.5% to 4% of the property price, plus first-year HOA dues where applicable. For a ₱5 million condo, buyers should budget an additional ₱125,000 to ₱200,000 for acquisition costs beyond the purchase price.

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What financing terms and mortgage conditions should buyers expect in today's market?

Davao City property financing offers multiple pathways, with banks and developers providing different terms and interest rates to accommodate various buyer profiles.

Most developers require a 20% down payment for ready-for-occupancy units, though some pre-selling projects accept as little as 10% down. Bank mortgage rates currently range from 6.75% to 8.5% annually, while developer in-house financing carries higher rates of 12% to 22%.

Loan terms typically span 5 to 20 years, with 15-year terms being most common among buyers. Monthly payments vary significantly based on loan amount and interest rate. For example, a ₱4 million home with 80% financing at 7.5% interest over 15 years would result in monthly payments of approximately ₱29,600.

Loan approval processes favor employed individuals in Davao City and overseas Filipino workers (OFWs), who benefit from streamlined documentation requirements. Foreign buyers face tighter documentation requirements and may need to explore alternative financing structures.

It's something we develop in our Philippines property pack.

Which property types and areas offer the best value for residents planning to live in their purchase?

For buyers planning to live in their Davao City property, the optimal choice depends on lifestyle preferences, family size, and proximity to work or business districts.

Single-family homes in exclusive subdivisions provide the best overall quality of life for families and long-term residents. These properties offer security, green spaces, community amenities, and sufficient space for growing families. Subdivisions like Solariega and Elize Point exemplify this category with their comprehensive facilities and maintained environments.

Mid-range condos in central districts deliver excellent value for working professionals who prioritize convenience and urban lifestyle. Locations in Ecoland, Matina, and downtown areas provide walkability to offices, restaurants, and entertainment venues while maintaining reasonable acquisition costs.

Townhouses in suburban areas like Toril and Catalunan Grande represent affordable options with good transportation connections and growth potential. These areas offer a balance between space, affordability, and accessibility to the city center.

Young professionals and small families often find one to two-bedroom condos in business districts most suitable, combining convenience with manageable maintenance responsibilities. These units provide easy access to employment centers and urban amenities essential for career-focused individuals.

What locations and property types perform best for short-term rentals?

Davao City's short-term rental market shows strong performance in specific locations and property types, with clear patterns emerging from current market data.

Peak performing Airbnb properties generate approximately $870 monthly revenue, while median properties earn around $303, and entry-level units bring in about $137 monthly. These figures reflect significant variation based on location, property quality, and management effectiveness.

Average daily rates range from $31 to $44 per night for most properties, with best-in-class units commanding up to $61 nightly. Median occupancy rates hover around 30%, though top-performing properties achieve 74% occupancy through superior location and amenities.

The most successful short-term rental neighborhoods include Ecoland, Buhangin, Matina, Toril, and downtown districts. These areas benefit from central access to business districts, tourist attractions, and transportation hubs that drive consistent booking demand.

Condos and well-appointed townhouses perform better than single-family homes for short-term rentals, as they offer hotel-like amenities and security that travelers prefer. Properties with swimming pools, fitness centers, and 24-hour security command higher rates and occupancy levels.

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 neighborhoods and unit types provide the strongest long-term rental yields?

Long-term rental properties in Davao City generate net yields between 4% and 10% annually, with gross yields averaging 5.1% citywide based on current market conditions.

The most dependable tenants typically include families seeking homes in gated subdivisions and working professionals preferring mid-to-high-rise condos near business districts. These tenant profiles offer stable rental income and longer lease commitments.

Entry-level and mid-range properties near business districts consistently deliver the strongest yields due to high demand and stable occupancy rates. Properties in Ecoland, Matina, and downtown areas particularly benefit from proximity to offices and commercial centers.

Two to three-bedroom units generate optimal rental yields as they accommodate both families and young professionals sharing accommodations. These configurations provide flexibility in tenant targeting while maintaining competitive rental rates.

Gated subdivision homes attract family tenants who typically stay longer and maintain properties better, though yields may be slightly lower due to higher acquisition costs. The trade-off favors reduced vacancy periods and maintenance issues.

Where are the best buy-and-resell opportunities with realistic profit margins?

Davao City's buy-and-resell market offers several opportunities for investors willing to hold properties for 2-3 years while targeting specific market segments.

Pre-selling condos and townhouses in downtown and Ecoland areas typically experience 5-7% price appreciation upon completion. These projects benefit from developer marketing, improved infrastructure, and rising property values in established areas.

Value-add opportunities exist in emerging districts like Buhangin and Toril, where strategic improvements to existing properties can yield 12-15% margins. These areas benefit from ongoing infrastructure development and increasing demand from middle-income buyers.

Build-to-sell strategies on residential lots in growth areas can generate realistic profit margins of 10-13% after accounting for taxes, notary fees, and holding costs. Success depends on choosing locations with confirmed infrastructure improvements and rising demand.

The most successful resale strategies focus on properties in areas with planned infrastructure improvements, such as new road connections, shopping centers, or business district expansions. These external factors drive appreciation beyond general market trends.

It's something we develop in our Philippines property pack.

What are recent sale examples with total acquisition costs for different property types?

Recent closed sales in Davao City provide concrete examples of actual transaction costs across different property categories, reflecting current market conditions as of September 2025.

Which areas are most expensive, up-and-coming, and budget-friendly in Davao City?

Davao City's property market segments into distinct price tiers based on location, development level, and market dynamics driving each area's valuation.

The most expensive areas include downtown districts, Lanang, and exclusive subdivisions like Solariega. These locations command premium prices due to established infrastructure, proximity to business centers, and prestige factors that attract affluent buyers and investors.

Up-and-coming areas showing strong growth potential include Buhangin, Ecoland, and Toril. These districts benefit from new infrastructure development, planned townships by major developers, and increasing accessibility to the city center. Property values in these areas are rising faster than the city average.

Budget-friendly options exist primarily in Catalunan Grande and Baguio District, where lower entry prices combine with rapid urbanization trends. These areas offer significant future upside potential as development spreads outward from the city center.

Key drivers of price differences include infrastructure quality, proximity to employment centers, peace and order stability, and the growing business process outsourcing (BPO) sector that creates demand for housing near office locations.

It's something we develop in our Philippines property pack.

How have property prices changed over recent years and what's the outlook for Davao City compared to other Philippine cities?

Davao City property market has demonstrated steady growth patterns over both recent and longer-term periods, with distinct trends emerging across different timeframes.

Year-on-year price growth from 2024 to 2025 averaged 3% overall, with condos and townhouses in pre-selling developments showing stronger appreciation of 5-7%. This growth reflects continued demand from both local buyers and investors seeking stable returns.

Compared to five years ago (2019-2025), average property values have increased 20-24% across all categories. Premium locations have experienced even stronger appreciation of nearly 30%, reflecting concentrated demand in established areas with proven track records.

The outlook for the next 1-10 years projects annual growth of 3-5%, with acceleration expected in districts benefiting from major infrastructure projects. The planned Mindanao Railway, highway bypasses, and Samal Bridge connections will likely drive above-average appreciation in served areas.

Compared to peer cities, Davao offers more affordable entry prices than Cebu and Bacolod for comparable condo and lot purchases. The city demonstrates similar appreciation rates to these markets while maintaining stronger rental occupancy rates, making it attractive for both residential and investment purposes.

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.

Sources

1. Davao City Price Forecasts - BambooRoutes
2. Davao City Property Market Analysis - BambooRoutes
3. Davao City Condominiums - OnePropertee
4. Davao Townhouse Real Estate - Davao Properties
5. Davao City Subdivisions - OnePropertee
6. Houses for Sale Davao City - Dot Property
7. Lots for Sale Davao City - OnePropertee
8. Davao Lots for Sale - Davao Properties
9. Average Land Price per SQM Philippines - BambooRoutes
10. Davao City Airbnb Market Report - AirROI