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
Negros Island's rental market offers competitive yields with condos in Bacolod City commanding ₱30,000-₱60,000 monthly for premium units, while Dumaguete properties provide more affordable options starting at ₱15,000-₱35,000 for apartments.
The island presents diverse investment opportunities from high-yield short-term vacation rentals achieving gross yields up to 15% in tourist areas, to stable long-term residential leases generating 7-9% returns in urban centers. Property investors benefit from strong occupancy rates above 90% in major cities, growing expat and student populations driving demand, and significant infrastructure developments pushing rental appreciation at 6-8% annually across quality properties.
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.
Negros Island rental prices vary significantly by location and property type, with Bacolod City commanding the highest rates and rural areas offering the most affordable options.
Investment properties can generate gross yields between 7-15% depending on strategy, with short-term vacation rentals outperforming traditional long-term leases in tourist zones.
| Property Type | Location | Monthly Rent (PHP) | Gross Yield Range |
|---|---|---|---|
| Premium Condos | Bacolod City | ₱30,000-₱60,000 | 9-10% |
| Standard Condos | Dumaguete City | ₱18,000-₱35,000 | 7-9% |
| 2BR Apartments | Urban Areas | ₱15,000-₱45,000 | 7-9% |
| Houses | Dumaguete/Bacolod | ₱20,000-₱80,000 | 8-10% |
| Luxury Villas | Tourist Areas | ₱40,000-₱80,000 | 12-15% |
| Commercial Units | City Centers | ₱25,000-₱50,000 | 8-12% |
| Rural Properties | Small Towns | ₱7,500-₱18,000 | 7-8% |
What are the current rental prices in Negros Island by property type?
Negros Island rental prices vary significantly by property type and location as of September 2025.
Premium condos in Bacolod City, the island's main commercial hub, command monthly rents between ₱30,000-₱60,000 for modern, furnished 1-2 bedroom units. These properties typically range from 35-65 square meters and achieve rental rates of ₱450-₱925 per square meter.
Standard condos in Dumaguete City and smaller towns offer more affordable options at ₱18,000-₱35,000 monthly for comparable units, while luxury options can reach ₱55,000 or higher. Two-bedroom apartments across urban areas rent for ₱15,000-₱30,000 in Dumaguete and outlying towns, with newer, larger apartments in Bacolod's central areas fetching ₱25,000-₱45,000 monthly.
Houses present the widest range, with fully furnished properties in Dumaguete starting at ₱20,000 monthly for basic units, mid-sized homes ranging ₱35,000-₱50,000, and large upscale houses commanding ₱50,000-₱80,000 depending on location and amenities. Luxury villas throughout the island typically lease for ₱40,000-₱60,000 monthly, with premium beachfront estates reaching ₱75,000-₱80,000.
Commercial units in prime Bacolod and Dumaguete locations range ₱250-₱500 per square meter monthly, meaning a typical 100-square meter retail space costs ₱25,000-₱50,000 monthly.
How do rental prices differ across Negros Island locations?
Location dramatically impacts rental pricing across Negros Island, with Bacolod City commanding premium rates due to its economic importance.
Bacolod City represents the highest-priced rental market, offering the most modern inventory with strong appreciation rates and the greatest selection of premium properties. The city attracts business professionals, government employees, and corporate tenants willing to pay premium rates for quality accommodations.
Dumaguete City offers moderate pricing popular among expats, students, and retirees, with generally lower average rents but consistent high demand generating solid yields. The city's appeal to international residents and proximity to Silliman University creates steady rental demand across property types.
Smaller towns and rural areas throughout Negros Island provide significantly lower rental costs, with basic apartments available for ₱7,500-₱15,000 monthly and houses starting from ₱10,000. These areas appeal primarily to local families and budget-conscious renters.
It's something we develop in our Philippines property pack.
What does rental pricing look like per square meter versus total monthly costs?
Rental costs per square meter provide crucial insights for property investors evaluating different investment opportunities across Negros Island.
| Property Type | Location | Monthly Rent Range | Size Range (sqm) | Rent per sqm (PHP) |
|---|---|---|---|---|
| Premium Condos | Bacolod City | ₱30,000-₱60,000 | 35-65 | ₱450-₱925 |
| Standard Condos | Dumaguete City | ₱18,000-₱35,000 | 32-60 | ₱400-₱700 |
| Apartments (2BR) | Urban Areas | ₱15,000-₱30,000 | 50-75 | ₱300-₱550 |
| Mid-size Houses | Bacolod/Dumaguete | ₱22,000-₱50,000 | 120-303 | ₱180-₱500 |
| Luxury Villas | Tourist Areas | ₱40,000-₱80,000 | 150-500 | ₱267-₱533 |
What additional costs should property owners expect beyond base rent?
Property owners face several ongoing expenses that significantly impact net rental yields beyond the base monthly rent income.
Real property tax represents the largest fixed cost, typically ranging 0.5-1% of the property's assessed value annually. Homeowners association fees or condominium dues add ₱2,000-₱5,000 monthly for most urban properties, covering shared amenities and building maintenance.
Regular maintenance expenses including repairs, gardening, pool care, cleaning, and security typically cost ₱2,000-₱10,000 monthly depending on property size and type. Property management agencies charge 10% of rental income for long-term leases, increasing to 15-20% for short-term vacation rentals requiring more intensive management.
Properties located within special economic zones benefit from a favorable 5% gross income tax that replaces standard local and national taxes, potentially reducing overall tax burden. Utilities are typically paid by tenants in long-term arrangements, though some vacation rental markets bundle these costs into premium pricing.
How do mortgage payments compare to rental income potential?
Financing analysis reveals favorable debt-to-income ratios for well-selected Negros Island rental properties at current interest rates.
Typical mortgage rates range 6-8.5% APR for 20-30 year terms, meaning a ₱4.5 million property financed at 8% over 25 years requires monthly payments around ₱35,000-₱38,000. Given Bacolod's gross rental yields of approximately 9-10%, quality properties can generate sufficient rental income to cover mortgage payments while maintaining positive cash flow.
Properties in prime Bacolod locations achieving ₱50,000-₱60,000 monthly rental income can comfortably service mortgage payments while generating additional cash flow for maintenance and vacancy reserves. Dumaguete properties typically require larger down payments or lower purchase prices to achieve positive leverage, given their somewhat lower rental rates relative to purchase prices.
High-yield vacation rental properties can dramatically outperform mortgage costs during peak seasons, though seasonal volatility requires careful financial planning and adequate cash reserves for slower periods.
Don't lose money on your property in Negros Island
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 are typical rent ranges for different property sizes?
Property size significantly influences rental pricing across Negros Island, with clear patterns emerging for each category.
Small condos (1 bedroom, 35-50 sqm) in Bacolod rent for ₱25,000-₱45,000 monthly, while comparable units in Dumaguete command ₱15,000-₱28,000. Mid-size apartments (2-3 bedrooms, 60-100 sqm) range ₱30,000-₱55,000 in Bacolod and ₱20,000-₱40,000 in Dumaguete.
Single-family houses show the greatest size variation, with modest 2-bedroom homes (80-120 sqm) renting for ₱18,000-₱35,000 monthly, mid-size 3-bedroom properties (120-200 sqm) commanding ₱25,000-₱50,000, and larger family homes (200+ sqm) achieving ₱40,000-₱70,000 depending on location and amenities.
Larger villas and luxury properties (300+ sqm) represent the premium market segment, with beachfront and resort-style properties commanding ₱50,000-₱80,000 monthly for long-term leases or significantly higher rates for short-term vacation rentals during peak seasons.
How do vacancy rates vary across property types and locations?
Vacancy rates across Negros Island demonstrate strong market fundamentals, particularly in established urban centers.
Residential properties in major cities maintain impressive occupancy levels, with Bacolod condos typically achieving above 90% occupancy rates due to strong demand from business professionals and government employees. Dumaguete apartments and houses maintain 87-92% occupancy, benefiting from consistent student populations and growing expat communities.
Villa and vacation rental markets experience greater seasonal fluctuation, with vacancy rates ranging 10-15% annually due to their dependence on tourism patterns and holiday seasons. These properties often achieve premium rates during peak periods but require careful management during slower months.
Rural and non-central areas face higher vacancy challenges, particularly for properties lacking modern amenities or convenient transportation access. However, affordably priced rural properties targeting local families can achieve stable occupancy when properly positioned in the market.
What types of renters are most common in Negros Island?
Negros Island's rental market serves diverse tenant profiles, each creating distinct demand patterns across different property types and locations.
Bacolod City attracts a professional tenant base including local families, business executives, government employees, and corporate tenants seeking premium accommodations. The city's economic importance draws professionals willing to pay higher rents for modern amenities and convenient locations.
Dumaguete City's rental market is dominated by students from Silliman University, State University, and NORSU, creating consistent demand for affordable apartments and shared accommodations. The city also attracts significant numbers of retirees and digital nomads drawn by affordable living costs and vibrant social communities.
Tourist and coastal areas primarily serve vacationing families, both domestic and international visitors, along with seasonal workers in tourism and agriculture industries. These markets favor short-term rental arrangements and properties with resort-style amenities.
Rural areas mainly house local families and agricultural workers seeking basic, affordable accommodations near their workplaces. These tenants typically prefer longer-term leases and value practical features over luxury amenities.
Do short-term rentals or long-term leases generate better returns?
Short-term rental strategies significantly outperform long-term leases in tourist areas, though they require more intensive management and carry higher operational risks.
Short-term vacation rentals through platforms like Airbnb typically earn 1.5x to 6x more than traditional long-term leases during peak seasons, particularly in tourist destinations like Dumaguete, Sipalay, and Bacolod. Well-managed vacation properties can achieve gross yields reaching 12-15%, substantially exceeding traditional rental returns.
However, short-term rentals incur significantly higher operational costs including frequent cleaning, property management, marketing, and guest services. These additional expenses, combined with seasonal occupancy fluctuations, require careful financial planning and adequate cash reserves.
Long-term leases offer greater stability and predictability, generating lower but more consistent yields of 7-9% with minimal management requirements. These arrangements appeal to investors seeking passive income streams without the operational complexity of vacation rental management.
Prime properties in tourist zones can optimize returns by combining both strategies, offering long-term leases during slower seasons while switching to short-term rentals during peak holiday periods and local festivals.
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.
What are current gross and net yields by property type?
Investment yields across Negros Island property types reflect strong fundamentals, with variation depending on location, property type, and management strategy.
Bacolod downtown condos deliver gross yields around 9.36%, with net yields after management fees, maintenance, and taxes settling around 6.5-7%. These properties benefit from strong tenant demand and consistent appreciation in the city's core business district.
Rural houses and basic properties generate gross yields of 7.5-8.5%, with net yields typically 5-6% after accounting for lower management costs but also reduced rental rates. These investments appeal to conservative investors seeking affordable entry points with stable returns.
Luxury villas and vacation rental properties represent the highest-yield segment, achieving gross yields up to 15% for well-positioned and professionally managed properties. However, intensive management requirements and seasonal fluctuations reduce net yields to 10-12% after accounting for higher operational costs.
Commercial properties in prime urban locations typically generate yields between 8-12%, depending on tenant quality and lease terms. These investments often provide longer-term stability through multi-year commercial leases with established businesses.
How have rental prices and yields changed over recent years?
Negros Island's rental market has demonstrated strong growth momentum, with particularly impressive appreciation in premium property segments over the past five years.
Condominium rents in Bacolod have grown at an exceptional 14.5% annually from 2016-2023, reflecting the city's economic development and increasing demand for modern accommodations. House and lot rentals have increased more moderately at 7.4% annually, still outpacing general inflation and demonstrating healthy market fundamentals.
Over the past 12 months ending September 2025, rental prices for quality properties have increased 6-8% across most segments, with yields holding steady or slightly rising in tourist areas due to recovering tourism demand post-pandemic. City core properties have experienced particularly strong appreciation driven by infrastructure improvements and business growth.
Rural and secondary markets have seen more modest price growth, typically 3-5% annually, though these areas often provide higher initial yields for investors willing to accept lower liquidity and longer hold periods.
It's something we develop in our Philippines property pack.
What are the forecasts for rental prices and yields over the next decade?
Future rental market projections for Negros Island indicate continued strong growth driven by infrastructure development, tourism expansion, and economic diversification initiatives.
Short-term forecasts (1 year) predict rental price increases of 6-8% across quality properties, driven by continued infrastructure improvements including new bridges, highways, and port facilities that enhance connectivity and economic activity. Tourist area properties may see even stronger growth as international travel continues recovering.
Medium-term projections (5 years) anticipate annual rental appreciation of 6-10%, supported by major infrastructure projects, growing tourism industry, and increasing recognition of Negros Island as an attractive destination for both residents and investors. Short-term rental yields in tourist zones are expected to remain particularly strong.
Long-term outlook (10 years) suggests continued outperformance relative to other Philippine markets, though growth rates may moderate as the market matures and prices converge toward national averages. Compared to Manila, Cebu, or Davao, Negros Island currently offers higher yields and lower entry prices, though this advantage may diminish as development accelerates.
Infrastructure connectivity improvements, particularly transportation links to major population centers, will likely drive the strongest appreciation in previously remote but scenic areas that become more accessible to tourists and residents seeking lifestyle destinations.
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.
Negros Island's rental market presents compelling opportunities for property investors seeking high yields and strong growth potential in an emerging market.
The combination of affordable entry prices, diverse tenant demand, and ongoing infrastructure development positions the island as an attractive alternative to more established but expensive Philippine property markets.