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
Average house prices in the Philippines range from ₱2 million for entry-level provincial homes to ₱27 million for luxury properties in Metro Manila's prime districts.
Property costs vary dramatically by location and type, with condominiums averaging ₱32,000-₱203,000 per square meter while single-family homes typically cost ₱75,000-₱115,000 per square meter. Metro Manila commands the highest prices, followed by major cities like Cebu and Davao, while rural provinces offer the most affordable options for both residents and investors.
If you want to go deeper, you can check our pack of documents related to the real estate market in the Philippines, based on reliable facts and data, not opinions or rumors.
House prices in the Philippines vary significantly from ₱2 million in rural areas to ₱27 million in Manila's premium districts.
Metro Manila leads with ₱115,000-₱203,000 per square meter, while provincial cities offer better value at ₱30,000-₱80,000 per square meter.
| Property Type | Price Range per sqm | Typical Total Price |
|---|---|---|
| Condominiums | ₱32,000-₱203,000 | ₱2M-₱30M+ |
| Townhouses | ₱25,000-₱120,000 | ₱792,000-₱44M |
| Single-family homes | ₱75,000-₱115,000 | ₱3.5M-₱27M |
| Luxury villas | ₱150,000+ | ₱100M+ |
| Provincial entry-level | ₱30,000-₱50,000 | ₱1.5M-₱4M |
What's the average cost for different property types like condos, townhouses, and single-family homes?
Condominiums in the Philippines average ₱32,000-₱203,000 per square meter, with studio units starting at ₱2 million and luxury penthouses exceeding ₱30 million in prime locations.
Townhouses typically cost ₱25,000-₱120,000 per square meter, with total prices ranging from ₱792,000 to ₱44 million depending on location and specifications. These properties offer a middle ground between condos and standalone houses, particularly popular in suburban developments.
Single-family homes command ₱75,000-₱115,000 per square meter, with prices spanning ₱3.5 million to ₱27 million. These properties include both the house and lot, making them attractive for families seeking more space and privacy.
Luxury villas start at ₱150,000 per square meter and commonly exceed ₱100 million for exclusive residences in gated communities. Entry-level provincial properties offer the most affordable option at ₱30,000-₱50,000 per square meter, with complete house-and-lot packages available from ₱1.5 million to ₱4 million.
It's something we develop in our Philippines property pack.
How do average prices differ across regions like Metro Manila, Cebu, Davao, and rural provinces?
| Region | Price per Square Meter | Typical House Price Range |
|---|---|---|
| Metro Manila (CBDs) | ₱115,000-₱203,000 | ₱10M-₱27M |
| Cebu City | ₱80,000-₱150,000 | ₱5M-₱15M |
| Davao City | ₱60,000-₱120,000 | ₱4M-₱12M |
| Provincial Cities | ₱40,000-₱80,000 | ₱3M-₱8M |
| Rural Provinces | ₱30,000-₱60,000 | ₱2M-₱5M |
| National Average | ₱75,000 | ₱3M-₱8M |
How does the price vary based on size per square meter for similar property types?
Metro Manila's central business districts command the highest rates at ₱115,000-₱203,000 per square meter, reflecting the premium for prime urban locations.
The national average sits at ₱75,000 per square meter, though this drops significantly to ₱11,253 per square meter in rural areas when considering raw land purchases. Size efficiency becomes crucial in expensive markets, where smaller units offer better entry points for first-time buyers.
Larger properties in provincial areas benefit from economies of scale, with developers offering better per-square-meter rates for bigger lots. Condominiums typically offer the highest price per square meter due to shared amenities and prime locations, while house-and-lot packages in suburban areas provide more space value.
Premium locations like Makati, BGC, and Rockwell can reach ₱234,000 per square meter for luxury developments. Secondary cities like Iloilo, Bacolod, and Angeles offer attractive middle-market options with prices 40-60% lower than Metro Manila rates.
What's the total cost including taxes, closing costs, and other fees?
Buyers face direct costs of 2.5-3.75% of the property value for transfer taxes, registration fees, and notary expenses.
Sellers bear the heavier burden at 10.5-12.5% of the property value, covering capital gains tax and real estate agent commissions. This means total transaction costs reach 13-16% of the property value, though most falls on the seller for residential sales.
Transfer taxes vary by location but typically range from 0.5-0.75% of the property's assessed value or fair market value, whichever is higher. Documentary stamp tax adds another 1.5% of the property price or assessed value.
Registration fees with the Registry of Deeds cost approximately 0.25% of the property value, while notary fees for deed execution range from ₱1,000-₱5,000. Real estate agent commissions typically cost 5-6% of the sale price, paid by the seller.
How do mortgage rates, down payments, and financing terms affect monthly payments?
Current interest rates range from 6.25% to 10.5%, with Pag-IBIG offering the lowest rates at 6.25% for qualified borrowers.
Major banks typically charge 6.8-8.5% for 5-year fixed-rate loans, with rates varying based on loan amount, borrower profile, and property type. Down payments generally require 10-30% of the property price, with 20% being the most common requirement.
Loan terms extend up to 20-30 years, significantly affecting monthly payments and total interest costs. For example, a ₱5 million property with 20% down payment and 7% interest over 20 years results in monthly payments of approximately ₱31,000.
Pag-IBIG members enjoy preferential rates and can borrow up to ₱6 million, while private banks offer higher loan amounts but at premium rates. Processing times typically take 30-45 days for complete loan approval and release.
Don't lose money on your property in the Philippines
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.
What areas or property types offer the best value for comfortable living?
Laguna, Cavite, and Bulacan provide excellent value for residents seeking suburban living with good access to Metro Manila.
These provinces offer house-and-lot packages starting from ₱3-5 million for 3-bedroom homes with decent-sized lots, while maintaining reasonable commute times to the capital. Developments in these areas often include amenities like clubhouses, playgrounds, and security services.
Cebu and Iloilo represent strong mid-market options for regional city living, offering urban conveniences at 30-50% lower costs than Metro Manila. These cities provide good infrastructure, international schools, hospitals, and business opportunities.
Provincial capitals like Dumaguete, Baguio, and Tagaytay appeal to retirees and remote workers, offering cooler climates, lower living costs, and peaceful environments. Properties in these areas typically cost ₱2-6 million for comfortable family homes.
It's something we develop in our Philippines property pack.
What regions or property types work best for short-term versus long-term rental investments?
Short-term rentals perform best in Metro Manila's business districts (Makati, BGC), Cebu City, and tourist destinations like Boracay, Palawan, and Baguio.
These locations attract business travelers, tourists, and conference attendees willing to pay premium rates for convenience and location. Condominiums near airports, business centers, and tourist attractions typically generate the highest short-term rental yields.
Long-term rental investments show strong potential in Cebu City, Davao City, and Iloilo, where growing professional populations create steady tenant demand. These markets offer affordable entry points with gross yields typically ranging from 4.5-7%.
Provincial university towns like Los Baños, Dumaguete, and Baguio provide stable long-term rental income from students and faculty. Properties near established universities maintain consistent occupancy rates throughout the academic year.
Industrial and economic zones in Clark (Pampanga), Subic, and Cavite attract expatriate and professional tenants, supporting both short and long-term rental strategies.
Where are the most promising areas for resale and capital appreciation?
Metro Manila's established CBDs including BGC, Makati, and Quezon City continue showing strong resale potential due to their business and commercial importance.
Cebu and Davao benefit from business and tourism growth, making them reliable choices for capital appreciation over 5-10 year periods. These cities combine affordability with solid economic fundamentals and infrastructure development.
Emerging areas include Pampanga (Clark), the Laguna/Cavite expressway corridor, and Iloilo, where new infrastructure projects, airports, and expressways serve as catalysts for future price appreciation. Clark's transformation into a major aviation hub and business center particularly stands out.
The CALABARZON region (Cavite, Laguna, Batangas, Rizal, Quezon) benefits from ongoing infrastructure improvements and proximity to Metro Manila, making it attractive for both end-users and investors. New expressway connections reduce travel times and increase property values along these corridors.
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.
Can you provide examples of actual recent purchase prices in major cities?
A 2-bedroom condominium in Parañaque (Metro Manila) with approximately 58 square meters recently sold for ₱12.5 million, translating to ₱215,517 per square meter.
In Quezon City's Escalades development, a similar 2-bedroom apartment of 58 square meters sold for ₱9 million, representing ₱155,172 per square meter. This price difference illustrates how location within Metro Manila significantly affects property values.
Davao City townhouses with 3 bedrooms and approximately 102 square meters typically sell for ₱5.5-7 million, offering more space and value compared to Metro Manila condominiums. These properties often include small yards and parking spaces.
Cebu house-and-lot packages with around 200 square meters of living space commonly sell for ₱12-15 million in upper-tier developments. These properties provide substantial space for families while maintaining proximity to business and commercial centers.
Provincial properties show dramatically different pricing, with complete house-and-lot packages in areas like Batangas or Iloilo available from ₱2-4 million for similar specifications.
Which neighborhoods are most expensive, up-and-coming, and budget-friendly?
The most expensive neighborhoods include Forbes Park, Dasmariñas Village in Makati, BGC, Rockwell, and San Lorenzo, all in Metro Manila, where land reaches ₱234,000 per square meter.
Up-and-coming areas showing strong growth potential include Clark in Pampanga, the Cavite/Laguna expressway corridor, Iloilo and Bacolod in the Visayas, Davao suburbs, and select Cebu districts benefiting from infrastructure development.
Budget-friendly options include rural provinces like Batangas, Pampanga, Iloilo, and Palawan, where properties start from ₱1.5-3 million. Cavite, Laguna, and Bulacan offer affordable commuter-friendly zones for Metro Manila workers.
Cities like Dumaguete, Angeles, and secondary Cebu locations provide budget-conscious buyers with urban amenities at significantly lower costs than major metropolitan areas. These areas appeal particularly to retirees, remote workers, and families seeking affordable quality of life.
How have house prices changed over the past five years and one year?
Metro Manila prices peaked during 2022-2023 but softened in 2024-2025 due to oversupply concerns, though they remain 15-25% higher than 2020 levels.
The past year saw a small correction of 2-5% in major urban areas, particularly affecting luxury segments and speculative developments. This cooling reflects market adjustment after rapid growth during the pandemic recovery period.
Provincial and secondary cities experienced more moderate but stable growth of 1-3% annually, achieving total appreciation of 10-20% over five years. These markets showed greater resilience due to more balanced supply-demand dynamics.
Infrastructure-linked provinces and regional growth centers outperformed major urban areas in the past year, benefiting from improved connectivity and government development programs. Areas along new expressways and near emerging business districts saw continued price appreciation.
It's something we develop in our Philippines property pack.
What's the price forecast for the next 1, 5, and 10 years, and how does it compare to other Southeast Asian cities?
Metro Manila prices are likely to remain soft over the next year with possible corrections, while provinces and growth corridors should see mild gains of 1-3%.
The five-year forecast predicts 3-5% annual growth for infrastructure-rich locations, with potential speculative gains in emerging areas benefiting from new developments and connectivity improvements. Provincial markets are expected to outperform Metro Manila during this period.
The ten-year outlook remains strongly positive due to continued urbanization, sustained migration to economic centers, infrastructure development, and regional business growth. Population growth and rising middle-class income should support steady demand.
Compared to Southeast Asian peers, Metro Manila CBD land at ₱96,000-₱234,000 per square meter costs less than Bangkok (US$3,000-$7,000+ per square meter) but aligns with Ho Chi Minh City and Jakarta pricing. Regional Philippine cities at ₱12,000-₱14,000 per square meter offer significant value compared to most ASEAN major cities, presenting upside potential for patient investors.
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.
House prices in the Philippines range dramatically from ₱2 million in rural provinces to ₱27 million in Metro Manila's premium districts, reflecting the country's diverse economic landscape and development levels.
As of September 2025, the market shows a cooling trend in major urban centers while provincial and infrastructure-connected areas continue showing steady growth, making them attractive for both residents and investors seeking value and long-term appreciation potential.
Sources
- Average House Price Philippines - BambooRoutes
- Philippines Price Forecasts - BambooRoutes
- Moving to Philippines Buy Property - BambooRoutes
- Cost of Transfer of Title in the Philippines - Suntrust
- Best Home Loan Interest Rates Philippines 2025 - Nook
- Mastering Down Payments Philippines - UProperty
- Best Time to Invest Real Estate 2025 - Ciudades
- Most Affordable Cities Philippines - Find The Home Pros
- Best Cities Real Estate Investment Philippines - Buy Sell Lease
- Highest Rental Yields Manila 2025 - BedAndGo