Buying property in Central Luzon: is it worth it?

Authored by the expert who managed and guided the team behind the Philippines Property Pack

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Who is the author of this content?

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 Central Luzon. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Philippine real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Manila, Quezon City, and Angeles. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What are the current average property prices in Central Luzon by city and province?

As of September 2025, Central Luzon property prices vary significantly across different cities and provinces, with Pampanga leading the regional market.

In Pampanga, the average house and lot price reaches approximately ₱5.3 million, while land prices average ₱79,000 per square meter in prime locations. San Fernando and Angeles maintain premium positioning within the province due to their established commercial districts and proximity to Clark Economic Zone.

Across Central Luzon, residential lot prices typically range from ₱10,000 to ₱14,000 per square meter, depending on location and accessibility. Bulacan shows strong growth potential with more affordable entry points, particularly in areas near the upcoming Bulacan International Airport and MRT-7 stations.

Clark and Angeles command higher prices per square meter for condominiums, reflecting their status as established business and entertainment hubs. The region's strategic position between Metro Manila and northern provinces continues to drive price appreciation across all property types.

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How do property prices differ between houses, condos, townhouses, and land?

Property price performance in Central Luzon shows distinct patterns across different property types, with single-detached houses leading the market growth.

Property Type	Annual Growth Rate	Average Price Range	Market Outlook
Single-detached house	+12.8%	₱5.3M - ₱13M	Strongest performer
Land (lot-only)	+9.1% CAGR	₱10K - ₱14K/sqm	Steady demand
Condominium unit	+5.1%	Varies by location	Growing in Clark/Angeles
Townhouse	-3.4%	Mixed pricing	Price softening
Three-bedroom house	Regional average	₱6M average	Popular family choice

What has been the short-term trend in property prices over the past 1-2 years?

Central Luzon's residential property market has experienced remarkable growth momentum over the past two years, with values rising 9.3% year-on-year as of Q4 2024.

Pampanga and Bulacan have emerged as regional growth leaders, driven by aggressive infrastructure development and increased developer activity. Major property developers including Ayala Land, Megaworld, and Filinvest have expanded their presence in these provinces, signaling strong market confidence.

Lot-only properties have shown the most dramatic price expansion, particularly in premium and accessible locations near major transportation arteries. The Central Luzon Link Expressway and ongoing North-South Commuter Railway construction have created demand hotspots along their planned routes.

Single-detached houses have outperformed all other property categories with 12.8% annual growth, reflecting buyer preference for larger living spaces and land ownership. Meanwhile, townhouse values have declined 3.4% due to oversupply in certain mixed-use developments, creating selective opportunities for informed buyers.

What are the medium-term growth forecasts for the next 3-5 years in different areas?

The medium-term outlook for Central Luzon's property market remains exceptionally positive, with infrastructure-driven growth expected to accelerate through 2030.

Pampanga is projected to maintain its leadership position, benefiting from New Clark City's continued development and the completion of major transportation projects. Angeles and San Fernando are expected to see sustained appreciation as commercial and residential demand increases.

Bulacan municipalities near new MRT-7 stations show the highest appreciation potential, with the upcoming Bulacan International Airport creating a new economic hub. Areas within 10-15 kilometers of the airport site are anticipated to experience significant value increases as development progresses.

The Central Luzon Link Expressway completion will unlock previously less accessible areas, creating new growth corridors. Secondary cities along expressway routes may experience rapid price convergence with established centers like Pampanga and Metro Manila suburbs.

Major developers' continued investment indicates sustained market optimism, with new residential and mixed-use projects planned across the region's key growth areas.

What is the long-term outlook (10+ years) for Central Luzon's property market?

Central Luzon's transformation into a core economic hub supports an exceptionally positive long-term property market outlook extending through 2035 and beyond.

The region's strategic positioning between Metro Manila and northern economic centers will become increasingly valuable as urban sprawl continues and businesses seek lower-cost alternatives to the capital. New Clark City's development as a government administrative and business center will create sustained demand for residential properties.

Infrastructure investment momentum shows no signs of slowing, with additional expressway connections, airport expansions, and mass transit systems planned for the coming decade. These projects will further integrate Central Luzon into the Greater Manila Area's economic ecosystem.

Policy changes including potential tax reforms and land conversion restrictions may limit future supply while driving capital appreciation. Environmental considerations and smart city initiatives will likely favor well-planned developments over scattered residential projects.

The region's emergence as a logistics and manufacturing hub, supported by improved connectivity to ports and airports, will create employment growth that sustains long-term residential demand across all property segments.

How do rental yields compare across major cities in Central Luzon?

Rental yields across Central Luzon's major cities show significant variation, with Angeles City leading returns for both short-term and conventional rentals.

Angeles City offers the highest short-term rental returns, with Airbnb properties generating average monthly revenue of $514, daily rates of $68, and occupancy at 36%. The city's established entertainment and business district attracts both domestic and international visitors, supporting consistent rental demand.

Conventional rental properties in Pampanga and Clark typically achieve gross yields between 4-6%, with premium developments and branded condominiums commanding higher rates. San Fernando's rental market benefits from its role as the provincial capital and growing commercial center.

Olongapo shows lower average daily rates and occupancy compared to Angeles, reflecting its more limited tourist and business appeal. However, the city offers entry-level investment opportunities with potential for improvement as regional connectivity increases.

Bulacan's rental yields are expected to improve significantly as the international airport nears completion and MRT-7 extends accessibility to Metro Manila employment centers. Current yields reflect the area's emerging status but show strong upward potential.

What is the current average occupancy rate for rental properties by type and area?

Central Luzon maintains strong overall housing occupancy rates, reflecting healthy rental market fundamentals across the region.

The region posts an overall housing occupancy rate near 88.4%, indicating robust demand for rental properties across all segments. This figure represents one of the higher occupancy rates among Philippine regions outside Metro Manila.

Short-term rentals in Angeles City achieve 36% occupancy rates, which translates to approximately 11 days per month. While this may seem low, the higher daily rates ($68 average) compensate for the intermittent nature of tourist and business travel.

Conventional rental properties, particularly condominiums in Clark and Angeles, tend to achieve higher occupancy rates due to steady demand from employees in the economic zones and call center industries. Long-term rentals typically maintain 85-90% occupancy in prime locations.

Residential properties near major employment centers, educational institutions, and transportation hubs consistently outperform regional averages. The improving infrastructure and growing job market support sustained rental demand across property types.

How does the resale market perform and what's the average time to resell?

Central Luzon's resale market performance shows improving liquidity, with faster transaction times in strategic growth corridors.

Average time to resell is trending downward in growth corridors like Clark, Angeles, San Fernando, and Bulacan, reflecting increased buyer confidence and market activity. Properties in these areas typically sell within 6-12 months when priced competitively.

Expected returns vary significantly by property type and location, with houses and lot-only properties in strategic locations commanding premium prices. Single-detached homes near infrastructure projects show the strongest resale appreciation potential.

Townhouses face challenging resale conditions in oversupplied districts, often requiring price adjustments or extended marketing periods. However, well-located townhouse units in limited supply areas maintain better resale performance.

The influx of major developers and institutional buyers has created a more sophisticated resale market, with better pricing transparency and professional transaction processes. This evolution benefits individual sellers through improved market efficiency.

Properties with clear title, proper documentation, and strategic locations continue to attract multiple buyer inquiries, while those requiring legal clarification or in less desirable areas face longer marketing periods.

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 the major infrastructure projects and how might they impact property values?

Central Luzon's infrastructure development pipeline represents one of the Philippines' most ambitious regional transformation programs, with multiple mega-projects set to reshape property values.

The Central Luzon Link Expressway (CLLEX) stands as the region's most significant transportation project, connecting previously isolated areas to Metro Manila and major economic centers. Properties within 5-10 kilometers of CLLEX interchanges are experiencing anticipatory price increases.

New Clark City continues expanding as a mixed-use development featuring government offices, residential areas, technology parks, and commercial hubs. This planned city development creates sustained demand for surrounding residential properties and establishes new premium pricing benchmarks.

The North-South Commuter Railway extends Metro Manila's mass transit network into Central Luzon, dramatically improving accessibility for daily commuters. Properties near planned stations show strong appreciation potential as travel times to Metro Manila employment centers decrease.

Bulacan International Airport represents a game-changing infrastructure investment, creating a new aviation hub that will drive commercial and residential development across northern Bulacan. The airport's economic impact extends 20-30 kilometers radius, affecting property values region-wide.

Additional projects including NLEX Segment 8.2, EDSA Busway improvements, and district cooling systems in Clark collectively enhance the region's appeal for both residents and businesses, supporting broad-based property appreciation.

Which areas are considered undervalued now and likely to see appreciation soon?

Several areas in Central Luzon present compelling value opportunities with strong near-term appreciation potential based on infrastructure development and market positioning.

1. **Bulacan municipalities near Bulacan International Airport** - Current pricing reflects rural/suburban levels despite the transformative airport project nearing completion2. **Mabalacat, Pampanga** - Offers strategic spillover potential from Clark's growth at more accessible price points than Angeles3. **MRT-7 corridor locations in Bulacan** - Areas along the planned railway extension show significant upside as mass transit access improves4. **Secondary cities with upcoming expressway connections** - Towns gaining CLLEX access may rapidly close pricing gaps with established centers5. **Industrial zone peripheries** - Areas surrounding existing and planned industrial parks offer residential investment opportunities supported by employment growth

These locations combine current affordability with clear catalysts for future appreciation, making them attractive for investors seeking maximum upside potential.

The key investment criteria include proximity to planned infrastructure, clear land titles, and availability of basic utilities. Areas meeting these requirements while trading at discounts to regional averages present the best risk-adjusted opportunities.

What is the recommended budget range for buyers depending on their goals?

Budget recommendations for Central Luzon property purchases vary significantly based on investment objectives and expected returns.

For buyers planning to live in their property, a budget range of ₱5 million to ₱8 million provides access to entry-level house and lot combinations or modest condominiums in Pampanga or Bulacan. This range offers comfortable family living with good appreciation potential.

Investors focused on rental income should consider ₱2 million to ₱5 million for smaller units requiring low maintenance in high-occupancy areas like Clark, Angeles, and Olongapo. These properties generate steady cash flow while requiring minimal management involvement.

Buyers targeting resale appreciation should budget ₱7 million to ₱13 million for mid-sized landed homes or lots in upcoming zones. This strategy focuses on capital gains rather than immediate income, requiring patience but offering higher returns.

Avoid townhouses unless located in limited supply areas, as this segment shows price softening and challenging resale conditions. Focus resources on single-detached homes or condominiums with stronger market fundamentals.

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Which specific property type and location would position you best for your chosen goal?

The optimal property selection in Central Luzon depends entirely on your primary investment or living objective, with each goal requiring a different strategic approach.

For buyers planning to live in their property, large house and lot combinations in Pampanga or San Fernando offer the best combination of lifestyle and future value. These locations provide excellent amenities, established communities, and strong appreciation potential for long-term homeowners.

Investors seeking rental income should focus on studio or one-bedroom condominiums in Angeles or Clark, which generate steady occupancy for both short-term and long-term rentals. These properties require minimal maintenance while providing consistent cash flow from the region's growing workforce.

Buyers targeting resale appreciation should concentrate on land plots or single-detached homes near infrastructure corridors, particularly in Mabalacat, North Bulacan, and Angeles outskirts. These locations maximize future gains with the lowest risk as transportation improvements unlock their potential.

Short-term rental investors should consider furnished condominiums in Angeles City, which offers the region's highest daily rates and occupancy levels for Airbnb-style operations. The city's entertainment and business district supports year-round demand from domestic and international visitors.

Long-term hold strategies work best with raw land purchases along planned expressway routes or near major infrastructure projects, allowing investors to benefit from the region's ongoing transformation over the next decade.

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. Central Luzon Price Forecasts
2. Central Luzon Real Estate Market
3. Central Luzon Real Estate Forecasts
4. AirROI Central Luzon Report
5. PSA Population and Housing Statistics
6. BSP Infrastructure Projects Report
7. Tradelink Media Infrastructure News
8. Central Luzon Property Analysis