How much for a property in The Philippines now?

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

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 the Philippines. 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 Philippines 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, Cebu, and Davao. 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.

Trustworthiness 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.

Which cities and neighborhoods in the Philippines should you target right now?

Metro Manila remains the premiere market for property investment, with Makati, BGC (Taguig), Ortigas, and Quezon City leading the pack.

Makati and BGC command the highest prices but offer the best liquidity and international appeal for resale. These areas attract multinational corporations and high-earning professionals, making them ideal for premium property investments.

Cebu City and Mandaue are emerging as strong alternatives to Metro Manila, with tech hubs and lifestyle developments driving demand. The Cebu IT Park and Ayala Center Cebu areas show consistent appreciation rates that often outpace Metro Manila.

Davao City offers excellent value with low crime rates and strong local demand from the growing BPO sector. Areas near SM Lanang Premier and Abreeza Mall provide good rental potential.

Secondary cities like Pampanga (Clark), Iloilo, Laguna, and Batangas are gaining traction for infrastructure-driven growth and suburban living preferences post-pandemic.

What property type and size should you consider?

Condo units dominate the urban market with studios ranging from 24-35 sqm, 1-bedroom units at 36-50 sqm, and 2-3 bedroom units spanning 60-120 sqm.

Studios work best for young professionals and investors seeking rental income, while 1-2 bedroom units attract families and offer better resale flexibility. Larger 3-bedroom condos appeal to affluent buyers but have smaller target markets.

Townhouses and single-detached properties typically range from 60-220 sqm floor area with land areas of 80-200 sqm. These suit families seeking more space and privacy while maintaining urban convenience.

Pre-selling units provide initial discounts of 10-20% compared to ready-for-occupancy properties, with turnover periods of 2-4 years. This option requires patience but offers significant savings for buyers who can wait.

Lot-only purchases range from 50 sqm in urban areas to 1000+ sqm in provincial locations, appealing to buyers planning custom construction or long-term land banking strategies.

What's the total purchase price including all fees?

The all-in purchase price includes the property cost plus 8-10% in additional fees covering transfer taxes, VAT, documentary stamps, notary fees, and initial HOA dues.

Location	Typical Unit Price	All-in Cost (with fees)
Makati/BGC Premium	₱5M-₱28M	₱5.5M-₱30M
Metro Manila Mid-range	₱3M-₱12M	₱3.3M-₱13.2M
Cebu City	₱4M-₱15M	₱4.4M-₱16.5M
Davao	₱2.5M-₱13.4M	₱2.7M-₱14.5M
Iloilo/Bacolod	₱2M-₱5M	₱2.2M-₱5.5M
Provincial Cities	₱1.5M-₱4M	₱1.6M-₱4.4M
Luxury BGC/Makati	₱1M+/sqm	₱1.1M+/sqm

Transfer fees typically include 6% capital gains tax, 0.5-0.75% documentary stamps, 1-2% registration fees, and notary costs of ₱50,000-₱200,000 depending on property value.

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

How can you finance your property purchase?

Banks typically offer loan-to-value ratios of up to 80% for Filipino citizens, but foreigners face restrictions at 60-70% LTV in most cases.

Current interest rates range from 5.75-7.94% as of September 2025, with expectations of further drops toward 4.75-5% by year-end due to central bank policy adjustments.

Down payment requirements start at 20-30% for locals but often increase to 30-40% for foreigners, who face additional restrictions since they cannot own land directly but can own up to 40% of condominium units in a building.

A ₱10 million property with 80% financing at 6% interest over 20 years results in monthly payments of approximately ₱57,300. Pre-selling projects often offer flexible, step-up payment schemes during construction.

Cash purchases remain popular, especially among overseas Filipino workers and foreign retirees who prefer avoiding financing complications and securing better negotiating positions with developers.

What are current price ranges per square meter?

Metro Manila leads with ₱96K-₱234K per square meter, with luxury projects in BGC and Makati reaching the upper end of this range.

Cebu City properties command ₱80K-₱150K per square meter, reflecting the city's growing status as a business and tech hub outside Manila.

Davao offers excellent value at ₱40K-₱90K per square meter, while Iloilo and Bacolod provide even more affordable options at ₱25K-₱60K per square meter.

The national median sits at ₱11,252 per square meter when including provincial areas and lot-only purchases, but urban condo markets significantly exceed this baseline.

Premium waterfront and resort properties in areas like Boracay, prime Batangas, and exclusive Cebu developments can exceed ₱300K per square meter for luxury units with direct beach or golf course access.

Which areas offer the best value proposition right now?

Metro Manila CBDs and resort destinations like Boracay represent the most expensive segments, appealing to buyers prioritizing prestige and immediate liquidity.

1. **Up-and-coming winners**: Cebu IT Park area, Pampanga Clark developments, Iloilo business district, and Batangas resort communities near Tagaytay2. **Infrastructure catalysts**: Areas near new MRT/LRT extensions, North and South Expressway access points, and proximity to Clark and new Cebu airports 3. **Budget-friendly alternatives**: Davao residential areas, select Laguna projects, and Cavite developments with good transport links4. **Emerging tech hubs**: Areas around new IT parks in secondary cities where BPO companies are expanding operations5. **Tourism recovery plays**: Beach resort areas in Palawan, Bohol, and northern Luzon that benefit from returning international visitors

Secondary cities offer better appreciation potential due to lower base prices and infrastructure development, while Metro Manila provides stability and liquidity for conservative investors.

The best value often comes from pre-selling projects in growth corridors where infrastructure improvements will enhance accessibility and property values over the next 3-5 years.

What are the best options for owner-occupied properties?

CBD condos and major subdivisions in Alabang, Pasig, and Quezon City deliver the best combination of amenities, accessibility, and resale protection for families.

BGC and Makati offer world-class amenities and walkability but command premium prices with monthly HOA fees of ₱100-₱150 per square meter for high-end buildings.

Monthly carrying costs include HOA fees of ₱50-₱150 per square meter for condos, property taxes of 0.75-1.5% of assessed value annually, insurance premiums of ₱200-₱500 monthly, and maintenance reserves of ₱1,000-₱5,000 monthly.

Townhouse communities in Alabang, Eastwood, and similar developments offer better space and privacy while maintaining urban convenience, though HOA fees and maintenance costs can be substantial.

Quality of life factors favor areas with reliable power and water, proximity to international schools, shopping centers, hospitals, and efficient transportation links to business districts.

What returns can you expect from long-term rentals?

Gross rental yields typically range from 4.5-7.2%, with condos in central locations providing the strongest returns compared to townhouses and lots.

Monthly rental rates vary significantly by location: 1-bedroom units in Metro Manila command ₱20,000-₱60,000, Cebu properties rent for ₱18,000-₱45,000, and Davao units typically achieve ₱12,000-₱25,000.

Occupancy rates of 85-95% are achievable for well-located, properly maintained units near business districts, universities, or transportation hubs.

Landlord obligations include 10% income tax on rental earnings, while property management fees consume 5-10% of gross rental income for professional management services.

Net rental yields after taxes, management fees, vacancy allowances, and maintenance typically range from 3-6%, with prime CBD locations often achieving the higher end of this spectrum despite higher purchase prices.

How viable are short-term vacation rentals?

Many premium CBD buildings in Makati and BGC prohibit short-term Airbnb rentals through HOA restrictions, while suburban areas and tourist destinations like Cebu, Batangas, and Boracay remain more flexible.

Daily rates vary dramatically by location and season, ranging from ₱2,000-₱7,000 per night, with beach resorts and city-center locations commanding premium rates during peak periods.

Expected occupancy rates range from 55-85% depending on location, with tourist zones achieving higher occupancy during peak seasons but facing significant volatility during off-peak periods.

Operating costs include cleaning fees, platform commissions, property management, utilities, and higher insurance premiums, often consuming 30-50% of gross revenues.

Net yields after all costs typically range from 4-8% before taxes, but short-term rentals face greater regulatory risk and require more active management than traditional long-term leases.

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's the outlook for property flipping and resale?

The strongest catalysts for property appreciation include new transport infrastructure like MRT/LRT extensions, expressway connections, IT park developments, and proximity to new airports in Clark, Cebu, and Iloilo.

Optimal holding periods typically range from 3-7 years to maximize capital gains while avoiding short-term speculation penalties and allowing infrastructure developments to mature.

Resale costs include 6-7% capital gains tax (or 6% if held over 5 years), 1.5% real estate agent commissions, and 0.5-1% in documentary stamps and transfer fees.

Areas showing the strongest development momentum include Clark Pampanga (New Clark City), Cebu IT corridors, Iloilo business district expansions, and Batangas tourism zones with improved highway access.

Successful flipping strategies focus on pre-selling purchases in growth corridors, allowing infrastructure development and area maturation to drive value appreciation during the construction period.

How have prices moved in recent years?

Metro Manila property prices increased approximately 6.5% year-over-year from 2024 to 2025, with cumulative gains of 30-45% over the past five years driven by infrastructure development and urbanization.

Cebu has outpaced Manila with annual growth rates of 3-7%, benefiting from its emergence as a tech hub and more affordable base prices that attract diverse buyer segments.

Davao has shown stable growth with niche appreciation in premium developments, while secondary cities demonstrate strong percentage gains from lower starting bases.

Main price drivers include infrastructure investments, BPO and tech sector expansion, urbanization trends, and growing middle-class purchasing power supported by overseas Filipino worker remittances.

Luxury condo segments have experienced softer growth post-pandemic as buyers shifted toward mid-market and value segments offering better affordability and rental yields.

What do future price scenarios look like?

One-year outlook suggests steady price growth of 3-7% in secondary cities, with subdued but positive growth in Manila luxury segments as the market normalizes post-pandemic.

Five-year projections favor secondary cities like Cebu, Iloilo, Clark, and Batangas potentially surpassing Metro Manila for percentage appreciation due to infrastructure development and lower base effects.

Ten-year scenarios point toward urban sprawl, decentralization, and new tech industry centers driving growth patterns similar to Ho Chi Minh City, Kuala Lumpur, and Jakarta.

Compared to regional peers, Manila luxury properties cost more per square meter than Jakarta and approach central Bangkok pricing, but Philippines mid-market units offer higher yields than comparable properties in Thailand or Malaysia.

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

Up-and-coming Philippines cities provide better value propositions than Bangkok, Kuala Lumpur, or Ho Chi Minh City at similar price points, making them attractive for forward-looking investors seeking strong appreciation potential combined with improving livability standards.

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.

Sources

1. Philippines 5-Year Real Estate Forecast
2. Best Cities to Invest in Real Estate Philippines
3. Average Land Price per SQM Philippines
4. Emerging Cities Philippines Real Estate 2025
5. Philippines Price Forecasts
6. Philippines Real Estate Trends 2025
7. Global Property Guide Philippines
8. JLL Manila Residential Market