How much for a property in Panay Island now?

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Everything you need to know before buying real estate is included in our The Philippines Property Pack

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

What property types are available in Panay Island and what do they cost?

Panay Island offers six main property categories with distinct price ranges and investment profiles.

Condominiums are most common in urban cores like Iloilo City, with limited but rising supply. These units typically range from ₱3 million to ₱5.5 million for 40-100 square meters with 2-3 bedrooms and one parking slot. In Boracay gateway areas, premium condos can reach ₱100,000 per square meter.

House-and-lot developments dominate the suburban markets across Roxas, Iloilo City, and Kalibo. National developers and local builders offer 2-5+ bedroom homes ranging from ₱4 million for basic units to ₱12 million for premium properties with 80-200+ square meters of floor area and 2+ parking spaces.

Townhouses provide middle-ground options at ₱2.5-6 million, popular in subdivision developments across all major cities. Beach lots and inland raw land vary dramatically based on proximity to tourist sites like Boracay, with beachfront commanding double the price of inland equivalents.

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Which specific areas should you consider and why?

Five distinct areas offer different advantages for property buyers in Panay Island.

Iloilo City provides the strongest urban amenities and infrastructure, making it ideal for both residential living and business investments. The active condo and house market benefits from business parks driving employment growth, while remaining more affordable than Metro Manila. Properties here range from ₱5-12 million for houses and ₱3+ million for condos.

Roxas in Capiz offers a quieter urban pace with coastal access, featuring affordable house-and-lot and subdivision homes from ₱4-12 million. The area shows rising rental demand from students and medical professionals, making it attractive for long-term investment yields of 6-8%.

Kalibo serves as the key gateway to Boracay, creating development corridors perfect for pre-selling investments and rental yield opportunities. Tourism and air traffic drive demand, with properties ranging from ₱4-9 million for house-and-lot units.

The Antique coast and countryside areas offer the lowest land costs, ideal for land banking, farm investments, or eco-resort concepts. Farm properties start at ₱1.5 million, while raw land can cost as little as ₱23-104 per square meter.

Boracay adjacent areas command premium prices due to resort and tourism proximity, but offer the highest potential returns for short-term rental investments.

What size and configuration options are available?

Property configurations in Panay Island vary by location and target market, with clear patterns emerging across urban and rural areas.

What's your realistic budget for 2025?

Budget planning for Panay Island properties requires understanding both purchase prices and additional costs that can add 5-8% to your total investment.

Entry-level buyers can find opportunities starting at ₱1.5 million for countryside farm properties or ₱2.5 million for townhouses in secondary cities. Mid-range budgets of ₱4-8 million access quality house-and-lot properties in Roxas, Kalibo, or outer Iloilo areas with good rental potential.

Premium buyers with ₱8-12+ million budgets can target central Iloilo City houses, Boracay gateway properties, or commercial buildings in prime locations. These properties typically offer the best liquidity and appreciation potential.

Currency considerations matter significantly as of September 2025, with most transactions conducted in Philippine pesos. Foreign buyers should factor in exchange rate fluctuations when budgeting, especially for properties requiring extended payment terms.

The "all-in" pricing approach includes transfer taxes, documentary stamps, notarial fees, HOA charges, broker commissions, and closing costs. These additional expenses typically range from ₱200,000 to ₱600,000 depending on property value and location.

How does financing work for property purchases?

Financing options in Panay Island follow standard Philippine banking practices with several accessible pathways for qualified buyers.

Major banks offer mortgage loans for non-land-banking residential units with typical terms requiring 20% down payment, interest rates of 6-8% annually, and loan terms of 10-20 years. Pre-approved amounts depend on documented income and debt-to-income ratios.

Developer financing presents an alternative for new-build houses and subdivision properties, often with more flexible terms but potentially higher interest rates. Some developers offer in-house financing for 5-15 year terms with down payments as low as 10-15%.

Pag-IBIG financing serves lower-priced properties, particularly beneficial for Filipino citizens and permanent residents. This government program offers competitive rates and longer terms for qualified borrowers purchasing homes under ₱6 million.

Target monthly payments typically range from ₱25,000-80,000 depending on loan amount and terms. A ₱5 million property with 20% down payment results in monthly payments around ₱35,000-45,000 over 15 years.

Cash purchases remain common and often yield 5-10% price discounts, particularly for ready-for-occupancy units or distressed properties.

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Should you price net or all-in for your purchase?

Understanding the difference between net and all-in pricing prevents budget surprises and enables accurate investment calculations.

Net pricing covers only the property purchase price without additional transaction costs. All-in pricing includes transfer taxes (typically 0.5-1.5% of property value), documentary stamp taxes (1.5% of purchase price or assessed value, whichever is higher), notarial fees (usually 1-2% of loan amount if financed), HOA membership fees, broker commissions (typically 3-5%), and various closing costs.

Total additional costs typically add 5-8% to the purchase price. A ₱5 million property might incur ₱250,000-400,000 in additional expenses, while a ₱10 million property could see ₱500,000-800,000 in extras.

Specific cost breakdowns vary by location within Panay Island. Iloilo City properties often carry higher notarial and processing fees due to urban complexity, while rural properties in Antique may have lower administrative costs but higher surveying expenses.

Smart buyers negotiate whether listed prices include these costs upfront to avoid closing surprises and ensure adequate budget allocation for the complete transaction.

What's your investment strategy and target returns?

Investment strategies in Panay Island align with distinct market segments offering different risk-return profiles.

Short-term vacation rental investments near Boracay and Kalibo can generate 8-12% gross annual yields due to year-round tourism demand. These properties require active management but benefit from premium nightly rates and high occupancy during peak seasons.

Long-term residential rentals in Iloilo City and Roxas typically yield 5-7% annually with lower management requirements. Student housing near universities and medical professional housing near hospitals show particularly stable demand patterns.

Resale appreciation strategies work best in growth corridors around new infrastructure projects. Properties near planned airport expansions, highway developments, or business park constructions often appreciate 8-15% annually during development phases.

Land banking in countryside areas requires longer investment horizons but can yield significant returns as urban areas expand. Agricultural land purchased at ₱100-500 per square meter may appreciate to ₱2,000-5,000 per square meter as development approaches.

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What are current market prices for comparable properties?

Recent sales data from September 2025 reveals clear pricing patterns across Panay Island's major markets.

Which neighborhoods offer the best value propositions?

Panay Island's property markets show distinct value patterns across price segments and growth potential.

Premium neighborhoods center around Boracay gateway areas in Kalibo and beachfront sections of Aklan, where properties command the highest prices but also offer the strongest short-term rental yields. These areas see consistent international buyer interest and tourism-driven demand.

Up-and-coming pockets include business district fringes in Iloilo City, where new commercial developments drive residential demand. Properties here often cost 20-30% less than city center equivalents while offering similar appreciation potential as commercial expansion continues.

Budget-friendly zones encompass countryside areas in Antique and inland portions of Capiz, where land costs remain low but development pressure builds gradually. These markets suit long-term investors comfortable with 5-10 year investment horizons.

The most strategic locations combine accessibility with growth drivers: properties near planned infrastructure like airport expansions, highway improvements, or new commercial centers offer optimal risk-adjusted returns.

Roxas represents a sweet spot for many investors, offering urban amenities at 30-40% below Iloilo City prices while maintaining strong rental demand from educational and medical sectors.

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.

Should you buy pre-selling or ready-for-occupancy properties?

The choice between pre-selling and ready-for-occupancy properties in Panay Island depends on your timeline, risk tolerance, and investment goals.

Pre-selling properties offer maximum value appreciation potential, typically priced 15-25% below ready-for-occupancy equivalents. Buyers can secure prime locations in new developments with extended payment terms, often just 10-20% down with the balance spread over 24-36 months during construction.

Ready-for-occupancy units provide immediate income generation and eliminate construction delays, quality issues, or developer default risks. These properties suit investors needing immediate rental income or buyers requiring quick occupancy for personal use.

City core properties tend to hold value better during market downturns, while fringe areas offer higher growth potential but greater volatility. Iloilo City center properties show consistent 5-8% annual appreciation, while developing suburbs might see 12-20% growth during expansion phases or stagnate during economic slowdowns.

Land banking strategies work best in areas with confirmed infrastructure development, such as planned highway extensions or airport improvements. Raw land purchases require thorough due diligence on development timelines and regulatory approvals.

Income-producing units in established rental markets provide steady cash flow with 5-7% yields, while development plays offer potential for higher returns but require longer investment periods and greater expertise.

How have prices changed over recent years and what's the forecast?

Panay Island property market trends show distinct patterns over the past five years with varying forecasts across different sectors.

From 2020 to 2025, prices have generally risen 8-15% annually in prime areas, with Boracay gateway properties leading appreciation due to tourism recovery post-pandemic. Iloilo City residential properties averaged 6-10% annual growth, while rural areas saw more modest 3-6% increases.

One-year forecasts suggest continued moderate growth of 5-8% across most property types, driven by infrastructure improvements and steady economic development. Short-term factors include new airport terminal construction in Kalibo and highway extensions connecting major cities.

Five-year projections indicate stronger growth potential of 8-12% annually in tourism-adjacent areas as Boracay development restrictions ease and new resort projects commence. Secondary cities like Roxas may see 6-9% annual appreciation as regional economic centers strengthen.

Ten-year outlook remains positive with conservative base case scenarios projecting 6-8% annual appreciation, bull case scenarios reaching 10-15% in prime locations, and bear case scenarios showing 2-4% growth during economic downturns.

Infrastructure development represents the primary growth driver, with planned improvements to airports, seaports, and highway connections likely to boost property values significantly in affected corridors.

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

How does Panay Island compare to other Philippine markets?

Panay Island's property market positions favorably against other major Philippine investment destinations when considering price-to-yield ratios and growth potential.

Compared to Cebu, Panay Island offers similar tourism upside but at 20-30% lower entry costs. Cebu condos average ₱80,000-120,000 per square meter while Panay equivalents cost ₱50,000-75,000 per square meter, yet both markets target similar international buyer segments.

Davao properties show strong industrial and commercial growth but limited tourism appeal compared to Panay's Boracay proximity. Davao residential yields typically range 4-6% while Panay tourism areas can achieve 8-12% gross yields.

Bacolod remains more affordable than Panay urban areas but lacks the infrastructure development momentum seen in Iloilo City. Bacolod houses cost ₱3-7 million compared to Panay's ₱4-9 million range, but appreciation potential appears more limited.

Regional beach cities like Subic Bay command higher prices (₱100,000-150,000 per square meter) but face greater market volatility. Panay's diversified economy provides more stability while maintaining significant tourism upside.

Among secondary Philippine markets, Panay Island offers optimal balance of affordability, yield potential, and appreciation prospects, particularly for investors seeking exposure to both residential and tourism sectors.

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. OnePropertee Panay Capiz Properties
2. Phil Realty Global Panay
3. Panay News Camella Communities
4. BambooRoutes Philippines Real Estate Forecasts
5. InvestAsian Philippines House Cost
6. BambooRoutes Philippines 5-Year Real Estate Forecast
7. Philippine Island Properties
8. OnePropertee Affordable Beach Property Philippines