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Panay Island's property market is experiencing robust growth with strong investment momentum driven by urbanization and infrastructure development.
The island's residential property market shows promising fundamentals with land prices averaging ₱11,000-₱23,000 per square meter, rental yields outperforming national averages at 6-7% in Iloilo City, and faster property absorption rates indicating healthy buyer demand.
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Panay Island's property market is projected to grow 6-7% annually through 2030, outpacing the national forecast of 4-5%, supported by strong urban migration and infrastructure investment.
Land prices remain competitive at ₱11,197 per sqm in Iloilo compared to ₱96,678 per sqm in Manila, while rental yields of 6-7% exceed national averages.
| Metric | Iloilo City | Panay Island Average | National Average |
|---|---|---|---|
| Land Price (₱/sqm) | ₱11,197 | ₱11,000-₱23,000 | ₱96,678 (Manila) |
| Rental Yield (%) | 6-7% | 6-9% | 4.5-6% |
| Annual Growth Rate (%) | 6-7% | 6-7% | 4-5% |
| Time on Market (months) | 2-3 | 3-4 | 3-6 |
| Commercial Vacancy (%) | 8-10% | 8-12% | 24% (Manila CBD) |
| Population Growth (%) | Above 1.6% | 1.6% | 1.4% |
| Buyer Composition | 75-80% Local | 75-80% Local | 85% Local |
What's the current average price per square meter for residential land in Panay Island, and how does it compare to last year?
As of September 2025, residential land prices in Panay Island average ₱11,000 to ₱23,000 per square meter across the different provinces.
Iloilo province shows the most competitive pricing at ₱11,197 per square meter, while Aklan province commands higher prices at ₱22,888 per square meter, primarily driven by tourism demand from Boracay. Capiz and Antique fall within the ₱11,000 to ₱19,000 range.
Year-on-year price changes show a stable market with minimal fluctuation. Iloilo's land prices declined slightly by 0.1% compared to the previous year, while Aklan remained completely flat with 0% growth. This price stability indicates a mature market that has avoided the volatile swings seen in other Philippine regions.
Compared to Metro Manila's average land price of ₱96,678 per square meter, Panay Island offers exceptional value for money. The island's prices represent roughly 11-24% of Manila's rates, making it an attractive destination for both investors and residents seeking affordable property options.
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How many new residential and commercial building permits were issued in the past 12 months?
Building permit issuance in Panay Island mirrors national construction trends, which showed a modest decline of 3.4% for residential and commercial permits in 2024.
Iloilo City, as the region's largest urban center, has followed these national patterns with decreased permit activity. However, commercial construction has demonstrated greater resilience compared to residential projects, indicating continued business confidence in the area.
The decline in building permits reflects a post-pandemic adjustment period where developers are taking a more cautious approach to new projects. This measured pace of development helps prevent oversupply issues that could negatively impact property values.
Despite the temporary slowdown in permit issuance, the pipeline of approved projects remains robust, with over 1,000 condo units and numerous subdivision lots scheduled for completion in Iloilo City alone through 2025-2026.
What is the average rental yield in Iloilo City compared to Roxas City, Kalibo, and Antique?
| City/Province | Average Rental Yield (%) | Market Characteristics |
|---|---|---|
| Iloilo City | 6-7% | Urban migration driving demand |
| Roxas City | 5-6% | Secondary city with moderate demand |
| Kalibo | 5-7% | Airport proximity benefits |
| Antique | 4-6% | Lower urban density |
| Panay Island Average | 6-9% | Outperforms national average |
| National Average | 4.5-6% | Metro Manila condos baseline |
| Tourist Areas (Boracay vicinity) | 7-9% | Seasonal premium rates |
How has the number of property transactions changed year-on-year in the last five years?
Panay Island's property transaction volume has shown consistent growth over the past five years, with residential lot sales increasing by an average of 6% annually from 2019 to 2024.
The market demonstrated remarkable resilience during the pandemic period, maintaining positive transaction growth even when other regions experienced significant declines. This stability reflects strong local demand and the island's economic diversification.
As of 2024, approximately 25% of all homes sold were less than five years old, indicating robust new development absorption and buyer preference for modern properties. This statistic demonstrates healthy market velocity and suggests continued confidence in new construction projects.
Transaction growth rates have moderated slightly in 2024 compared to the peak pandemic years, reflecting a return to more sustainable market conditions. However, the underlying trend remains positive with steady buyer interest across all property segments.
What percentage of buyers are local versus overseas Filipinos or foreign investors?
The Panay Island property market shows a healthy mix of buyer types, with local Filipinos representing 75-80% of all property purchases.
Overseas Filipino Workers (OFWs) and foreign investors account for 20-25% of buyers, significantly higher than the national average of 15%. This elevated international interest stems from the island's tourism appeal, particularly in Boracay and beachfront areas, plus competitive pricing compared to other Philippine destinations.
Foreign investor activity is concentrated in resort and beachfront properties, where international buyers are attracted by rental income potential and lifestyle benefits. The presence of Kalibo International Airport has made the island more accessible to international buyers.
OFW buyers typically focus on residential properties in urban centers like Iloilo City, often purchasing family homes or investment properties that can generate rental income. Their buying power, supported by foreign currency earnings, provides additional market stability.
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How many large-scale infrastructure projects are ongoing or planned, and what is their total estimated investment value?
Panay Island benefits from substantial infrastructure investment as part of the Philippines' national development program, with multiple major projects currently ongoing or in planning stages.
The Western Visayas region, which includes Panay Island, is receiving significant investment through projects like the Iloilo Business Park expansion, Atria Park District development, new highway connections, and container port upgrades. These projects are designed to enhance connectivity and economic activity across the island.
At the national level, 186 flagship infrastructure projects are ongoing with a combined value of PHP 9.6 trillion (US$168 billion), with substantial portions allocated to projects benefiting Panay Island. Local infrastructure spending includes at least PHP 144 million earmarked for regional highway improvements.
The Iloilo International Container Port is targeted for major upgrades to handle increased cargo volumes, while new road networks will improve connectivity between major cities. These infrastructure investments are expected to boost property values and create new development opportunities across the island.
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What's the current supply of new condo units and subdivisions coming online in the next two years?
Panay Island's new residential supply is primarily concentrated in Iloilo City, which serves as the main growth hub for the region.
Over 1,000 new condominium units are scheduled for completion in Iloilo City during 2025-2026, representing a significant addition to the city's housing stock. These developments range from mid-market to premium segments, catering to both local residents and investors.
Subdivision development is active across multiple locations, with numerous new residential communities being marketed throughout the island. Secondary cities are seeing lower but steady development activity, with several new resort-style subdivisions targeting the tourism and second-home markets.
The supply pipeline appears well-balanced relative to demand, avoiding the oversupply issues that have affected some Philippine markets. Developers are taking a measured approach to new launches, ensuring absorption rates remain healthy and property values stable.
How has population growth and urban migration in Panay Island changed in the last decade, and what are the projections for the next five years?
Panay Island has experienced steady population growth at approximately 1.6% annually over the past decade, outpacing the national average of 1.4%.
Urban migration patterns show strong movement toward Iloilo City, which consistently attracts residents from rural areas and smaller towns across the island. This migration is driven by employment opportunities, educational institutions, and improved infrastructure in the urban center.
Population projections for the next five years indicate continued growth at similar rates, supported by economic development and infrastructure improvements. The young demographic profile of the island suggests sustained housing demand as young adults form households and seek homeownership.
Migration patterns are expected to continue favoring urban areas, particularly Iloilo City, which will drive ongoing demand for residential properties and support rental markets. This demographic trend provides a solid foundation for property market growth.
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What's the average time a property stays on the market before being sold today compared to three years ago?
Property absorption rates in Panay Island have improved significantly, indicating stronger buyer demand and market confidence.
In Iloilo City, the average time for a residential property to sell has decreased from 4-6 months three years ago to just 2-3 months as of September 2025. This 50% reduction in time on market demonstrates robust buyer activity and suggests a seller's market in many segments.
The faster absorption is particularly evident for new developments and well-located properties in urban areas. Properties in secondary cities still take slightly longer to sell, typically 3-4 months, but this still represents an improvement from previous years.
This shortened selling time reflects strengthened buyer confidence, improved financing availability, and growing recognition of Panay Island's value proposition among both local and international buyers. The trend indicates a healthy, liquid market that benefits both buyers and sellers.
How do bank mortgage approval rates and average interest rates for home loans in Panay compare to the national average?
Mortgage financing conditions in Panay Island are generally competitive with national averages, though with some regional variations.
Home loan interest rates in the Western Visayas region, including Panay Island, currently range from 6.0% to 8.0% per annum, which aligns closely with national averages. Some regional banks offer promotional rates for key development projects, providing additional financing options for buyers.
Mortgage approval rates in Panay are slightly below the national average but show steady improvement as banks become more familiar with local market conditions. The presence of major national banks alongside regional lenders provides good competition and financing options.
Banking infrastructure has improved significantly in recent years, with more branches and better service delivery supporting increased mortgage activity. This improved access to financing has contributed to the growth in property transactions and market liquidity.
What are the current vacancy rates for commercial spaces in Iloilo and surrounding provinces?
Commercial real estate vacancy rates in Panay Island vary significantly between urban centers and secondary locations.
Iloilo City maintains commercial vacancy rates of 8-10%, which compares favorably to Manila's CBD vacancy rate of 24%. This relatively low vacancy reflects strong local business activity and the city's role as a regional commercial hub.
Surrounding provinces and secondary cities show slightly higher vacancy rates of 10-15%, primarily due to speculative construction and new office, retail, and hotel supply coming online faster than absorption. However, these rates remain within acceptable ranges for emerging markets.
The commercial property sector benefits from growing business confidence, infrastructure improvements, and the island's strategic location within the Philippines. New supply is being absorbed at a steady pace, suggesting healthy long-term prospects for commercial real estate investment.
What's the expected annual growth rate of the property market in Panay Island over the next five years, and how does it compare with the national forecast?
Panay Island's property market is projected to achieve annual growth rates of 6-7% through 2030, significantly outperforming the national forecast of 4-5%.
This superior growth outlook is supported by several key factors: continued urban migration to Iloilo City, substantial infrastructure investment, tourism-driven demand especially in coastal areas, and competitive property pricing that attracts both local and international buyers.
The island's growth advantage stems from its position as an emerging market within the Philippines, offering better value propositions than more mature markets like Metro Manila. The combination of affordable prices, improving infrastructure, and strong rental yields creates attractive conditions for sustained growth.
Economic diversification across tourism, agriculture, and services provides multiple growth drivers that reduce market risk. The projected growth rates assume continued political stability, infrastructure development, and sustained interest from both domestic and international property investors.
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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.
Panay Island's property market demonstrates strong fundamentals with competitive pricing, healthy rental yields, and robust growth prospects that outpace national averages.
The combination of infrastructure investment, urban migration, and tourism demand creates multiple growth drivers that position the island as an attractive real estate investment destination for the next five years.
Sources
- Own Property Abroad - Philippines Land Prices
- BambooRoutes - Average Land Price Per Sqm Philippines
- BambooRoutes - Panay Island Real Estate Market
- BambooRoutes - Panay Island Real Estate Forecasts
- BSP - Infrastructure Flagship Projects
- PSA - Construction Statistics
- PSA - Building Permits Q3 2023
- BambooRoutes - Panay Island Real Estate Trends
- Global Property Guide - Philippines Rental Yields
- BambooRoutes - Philippines 5-Year Real Estate Forecast