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The Philippines property market offers diverse opportunities across Metro Manila, Cebu, and Davao, with prices per square meter ranging from PHP 30,000 in rural provinces to over PHP 270,000 in premium Metro Manila locations. Understanding these price variations is crucial for making informed property investment decisions in Southeast Asia's emerging real estate market.
As of September 2025, the Philippine residential property market shows strong fundamentals with condos in Makati and BGC commanding the highest prices at PHP 200,000-270,000 per sqm, while emerging secondary cities like Cebu and Davao offer more attractive entry points between PHP 45,000-150,000 per sqm. The market demonstrates healthy rental yields of 4.5-8% depending on location and property type.
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.
Metro Manila leads with condo prices of PHP 200,000-270,000 per sqm in prime areas, while Cebu offers mid-range options at PHP 75,000-200,000 per sqm and Davao provides affordable entry points from PHP 45,600 per sqm.
All-in purchase costs typically add 8-10% to headline prices due to taxes and fees, while mortgage rates range from 5.75-8.25% with down payments of 10-20%.
| Area | Condo Price (PHP/sqm) | House-and-Lot Price (PHP/sqm) | Rental Yield |
|---|---|---|---|
| Metro Manila (Makati/BGC) | 200,000-270,000 | 115,000-203,000 | 4.5-6% |
| Quezon City | 100,000-150,000 | 100,000-150,000 | 4.5-6% |
| Cebu City | 75,000-200,000 | 80,000-150,000 | 6-8% |
| Davao | 45,600-120,000 | 60,000-120,000 | 5-7% |
| Provincial Cities | 40,000-80,000 | 40,000-80,000 | 6-8% |
| Rural Provinces | 30,000-60,000 | 30,000-60,000 | 7-9% |
Which cities and regions in the Philippines should you focus on for property investment?
Metro Manila remains the top destination for property investment, particularly the prime areas of Makati, Bonifacio Global City (BGC), Ortigas, and Quezon City.
Cebu follows as the second most important market, encompassing Cebu City, Mandaue, and Lapu-Lapu. The city's growing IT sector and tourism industry drive consistent demand for both residential and commercial properties.
Davao represents the emerging third tier, with downtown areas, Lanang, and established subdivisions showing strong growth potential. The city benefits from being the gateway to Mindanao and President Duterte's hometown infrastructure investments.
Secondary cities gaining momentum include Batangas, Pampanga, and Iloilo, driven by infrastructure projects like the new international airports and improved highway connections to Metro Manila.
New builds dominate central business districts in all major cities, while resales offer better value in mature neighborhoods with established amenities and infrastructure.
What are the current average prices per square meter by property type in each area?
Metro Manila commands the highest prices across all property types, with significant variations between districts and property categories.
In Makati and BGC, condominiums range from PHP 200,000 to PHP 270,000 per sqm for premium units, while house-and-lot properties cost PHP 115,000 to PHP 203,000 per sqm. Townhouses typically fall between PHP 120,000 to PHP 160,000 per sqm, and lot-only purchases can reach up to PHP 234,000 per sqm in prime locations.
Quezon City offers more moderate pricing with condos at PHP 100,000 to PHP 150,000 per sqm, house-and-lot properties at similar levels, and lot-only options ranging from PHP 96,678 to PHP 234,063 per sqm depending on the specific area.
Cebu provides competitive alternatives with condos priced between PHP 75,000 to PHP 200,000 per sqm, house-and-lot properties at PHP 80,000 to PHP 150,000 per sqm, and significantly lower land costs of PHP 12,176 to PHP 13,608 per sqm.
Davao offers the most affordable major city pricing, with house properties averaging PHP 45,600 per sqm and land costs at approximately PHP 13,608 per sqm, making it attractive for first-time investors and end-users seeking value.
How do prices change based on unit size within each area?
Smaller units consistently command higher prices per square meter due to higher demand and better rental yields.
In Metro Manila's prime locations, studio units often exceed PHP 220,000 per sqm, while 2-bedroom units average PHP 170,000 to PHP 210,000 per sqm. This inverse relationship reflects the premium buyers pay for convenience and lower absolute purchase prices.
One-bedroom condos in Makati and BGC typically cost PHP 200,000 to PHP 240,000 per sqm, representing the sweet spot for investor demand from young professionals and expatriates.
Larger floor plates above 80 square meters generally offer lower per-sqm costs but require higher absolute investments, making them less liquid in the resale market.
The same pattern applies across Cebu and Davao, where studio and 1-bedroom units command 15-25% premiums per square meter compared to larger family-sized units in the same developments.
What is the current price spectrum across different market segments?
| Location | Budget Segment (PHP/sqm) | Mid-Market Segment (PHP/sqm) | Premium Segment (PHP/sqm) |
|---|---|---|---|
| Metro Manila | 70,000-100,000 | 150,000-200,000 | 250,000-900,000 |
| Cebu | 45,000-75,000 | 100,000-150,000 | 180,000-200,000 |
| Davao | 35,000-50,000 | 60,000-90,000 | 100,000-120,000 |
| Provincial Cities | 25,000-40,000 | 50,000-70,000 | 80,000-100,000 |
| Rural Areas | 15,000-30,000 | 35,000-50,000 | 60,000-80,000 |
The most expensive neighborhoods in Metro Manila include Forbes Park, DasmariƱas Village, and Salcedo in Makati, along with BGC and Rockwell, where penthouses can reach PHP 900,000 per sqm.
Up-and-coming areas showing strong growth potential include ParaƱaque, Las PiƱas, and Alabang, where infrastructure improvements and new developments are driving appreciation.
What are the all-in costs per square meter after adding taxes and fees?
Total acquisition costs typically add 8-10% to the headline property price due to various taxes and fees required for property transfer.
Value Added Tax (VAT) of 12% applies to new builds and some resale properties, representing the largest additional cost. Transfer tax ranges from 0.5% to 0.8% of the property value, while Documentary Stamp Tax adds another 1.5%.
Registration fees cost 0.25% to 0.35% of the property value, and notarial fees typically range from 2.5% to 3% or a flat PHP 10,000 to PHP 50,000 depending on property value.
Monthly association dues for condominiums range from PHP 80 to PHP 150 per sqm, representing an ongoing cost that affects long-term ownership economics. Agent commissions of 3% to 5% may apply depending on whether you use a broker.
For example, a 35 square meter unit priced at PHP 200,000 per sqm costs PHP 7 million, but all-in acquisition costs reach approximately PHP 7.6 to 7.7 million after taxes and fees.
What are realistic mortgage terms and how do they affect monthly costs?
Philippine banks typically require down payments of 10% to 20% for residential properties, with loan tenors extending up to 10 to 25 years depending on the borrower's profile and property type.
Interest rates as of September 2025 range from 5.75% to 8.25%, typically structured as fixed rates for the first five years before converting to variable rates. These rates vary based on the borrower's creditworthiness, loan amount, and chosen bank.
For a PHP 7 million property with 20% down payment, monthly mortgage payments range from PHP 50,000 to PHP 70,000 depending on the specific terms negotiated.
Lower down payments increase the effective cost per square meter due to higher interest payments over the loan life, making higher down payments more economical for long-term ownership.
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Can you provide concrete examples of recent property deals in each area?
Metro Manila offers the most diverse range of property options, from compact units to luxury penthouses.
In Salcedo Village, Makati, a 1-bedroom unit of 37 square meters recently sold for PHP 7.7 million (PHP 208,000 per sqm), with all-in costs reaching approximately PHP 8.3 million. A premium 2-bedroom penthouse in Rockwell spanning 90 square meters commanded PHP 20 million (PHP 222,000 per sqm) with total acquisition costs around PHP 22 million.
Quezon City presents more affordable options, such as a 2-bedroom unit of 65 square meters priced at PHP 8.5 million (PHP 131,000 per sqm), with all-in costs of approximately PHP 9.2 million.
Cebu examples include an Ayala Center 1-bedroom unit of 40 square meters for PHP 6.8 million (PHP 170,000 per sqm), totaling PHP 7.3 million all-in, and a Banilad townhouse of 90 square meters for PHP 7 million (PHP 77,700 per sqm).
Davao showcases affordability with a Lanang studio condo of 28 square meters at PHP 2 million (PHP 71,400 per sqm) and a Mintal subdivision house of 73 square meters for PHP 4.5 million (PHP 61,600 per sqm).
Which property types and areas offer the best value for owner-occupiers?
Quezon City consistently delivers the best value for money when considering the balance of price, commute accessibility, school quality, safety, and amenities.
Specific areas like New Manila and Eastwood provide excellent infrastructure, established educational institutions, and reasonable commute times to major business districts while maintaining more affordable pricing than Makati or BGC.
In Cebu, Banilad and Talamban offer similar value propositions with good schools, low crime rates, mall access, and proximity to the central business district without the premium pricing of IT Park or Ayala Center.
Davao's Lanang and Ecoland areas provide exceptional value for families, combining safety, amenities, and growth potential at significantly lower per-square-meter costs than Metro Manila alternatives.
Townhouses and horizontal developments in suburban areas typically offer larger living spaces at lower per-square-meter costs, making them ideal for families prioritizing space over location prestige.
What rental yields can investors expect for short-term versus long-term rentals?
Metro Manila delivers gross rental yields of 4.5% to 6%, with net yields of 3% to 4% after deducting management fees, taxes, and maintenance costs.
Cebu outperforms with gross yields of 6% to 8% and net yields of 5% to 6%, driven by strong tourism demand and growing expat communities. Short-term rental occupancy rates in central Cebu range from 41% to 84%, while long-term rentals achieve 85% to 92% occupancy.
Davao offers competitive yields of 5% to 7% gross and 4.5% to 6% net, with exceptional long-term occupancy rates of 87% to 94% due to limited quality rental supply and growing business process outsourcing sector demand.
Short-term rentals (Airbnb) perform best in Cebu and central Manila business districts, while long-term rentals targeting expatriates, BPO workers, and overseas Filipino workers provide more stable income streams across all markets.
Higher rental yields typically correlate with lower per-square-meter purchase prices, creating an inverse relationship between capital appreciation potential and immediate cash flow returns.
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 segments offer the strongest resale liquidity for property flipping?
Studio and 1-bedroom condominiums in prime central business districts demonstrate the strongest absorption rates and quickest resale cycles.
Small units under 50 square meters consistently attract the largest buyer pool, including young professionals, investors, and overseas Filipino workers, ensuring faster transaction completion times.
Mid-market horizontal products in Cebu and Davao, particularly townhouses and house-and-lot packages in established subdivisions, offer excellent liquidity due to growing middle-class demand and limited supply in quality developments.
Typical holding periods range from 3 to 6 months for immediate resale, though 12 to 24 months are recommended to capture meaningful capital appreciation and justify transaction costs.
Transaction costs for selling include 8% to 10% of the selling price plus agency fees and taxes, making longer holding periods essential for profitable flipping strategies in most market segments.
How have prices moved over the past 1-5 years and what's the forecast?
Metro Manila property prices increased 6.5% year-over-year as of September 2025, with mid-market segments outperforming the luxury market which remained relatively flat due to oversupply concerns.
Cebu demonstrated consistent growth of 3% to 7% annually for condominiums and townhouses, driven by tourism recovery and business process outsourcing expansion.
Davao maintained stable to rising trends with approximately 3% annual appreciation, supported by infrastructure investments and growing regional economic importance.
Over the past five years, urban fringe areas and secondary cities like Cebu, Davao, Batangas, and Pampanga significantly outpaced central business district price growth, reflecting infrastructure improvements and urban sprawl patterns.
Future growth drivers include ongoing infrastructure projects, urban expansion, and continued business process outsourcing and technology sector development. Key risks include market saturation in some segments, rising interest rates, potential POGO business exits, and global economic volatility affecting remittance flows.
How do Philippine markets compare to other Southeast Asian cities?
| City | Price per sqm (USD) | Typical Gross Yield | Market Maturity |
|---|---|---|---|
| Metro Manila | $2,800-$5,000 | 4.5-6% | Developed |
| Cebu | $1,500-$3,000 | 6-8% | Emerging |
| Davao | $1,100-$2,500 | 5-7% | Emerging |
| Bangkok | $4,000-$8,600 | 4-6% | Mature |
| Ho Chi Minh City | $3,200-$7,200 | 5-7% | Developing |
| Jakarta | $1,800-$3,800 | 6-8% | Developing |
The Philippines offers higher rental yields than Bangkok on average and provides similar or better value propositions compared to Jakarta, with stronger occupancy rates and more stable political environments.
Philippine markets benefit from English language advantages, established legal frameworks for foreign investment, and strong remittance flows from overseas Filipino workers supporting domestic demand.
It's something we develop in our Philippines property pack.
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.
The Philippine property market presents compelling opportunities across multiple price points and geographic areas, from premium Metro Manila locations to emerging secondary cities.
Focus on areas with strong fundamentals like Metro Manila CBDs for liquidity, Quezon City for livability value, and Cebu or Davao for higher yields and growth potential, while carefully considering all-in costs and financing options to maximize returns.
Sources
- Torre Lorenzo - Emerging Cities Philippines Real Estate 2025
- Property Report - The Rise of Future Urban Centers
- Gabriel Realtors - Philippine Real Estate Market 2025
- Business Inquirer - PH Real Estate 2025 Growth
- Global Property Guide - Philippines Price History
- BambooRoutes - Average Condo Price Manila
- BambooRoutes - Average House Price Philippines
- BambooRoutes - Average Land Price Per Sqm Philippines
- Spire - Top 10 Most Expensive Condominiums Metro Manila
- BambooRoutes - Philippines 5 Year Real Estate Forecast