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Everything you need to know before buying real estate is included in our The Philippines Property Pack
The Philippines property market presents significantly different pricing compared to Thailand, with Manila condos averaging $2,000-$3,600 per square meter versus Bangkok's $5,600-$6,500 for prime areas.
While Bangkok's central business districts command premium prices, the Philippines offers more affordable entry points for foreign investors, particularly in suburban Metro Manila areas. However, rental yields, financing options, and ongoing costs vary substantially between these two Southeast Asian markets, making the "cheaper" option dependent on your specific investment goals and property type preferences.
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.
Philippines property is generally cheaper than Thailand in prime locations, with Manila CBD condos costing 40-50% less per square meter than Bangkok equivalents.
However, Thailand offers better rental yields, lower property taxes, and more accessible mortgage financing for foreigners, making the total cost of ownership more complex to compare.
| Comparison Factor | Philippines (Manila) | Thailand (Bangkok) |
|---|---|---|
| CBD Condo Price/sqm | $2,000-$3,600 | $5,600-$6,500 |
| Suburban Price/sqm | $1,050-$2,100 | $2,000-$3,500 |
| Property Tax | 1-2% assessed value | 0.02-0.10% assessed |
| Rental Yields | 5.1-5.4% gross | 6-7% gross |
| Foreign Ownership | 40% condo quota | 49% condo quota |
| Transaction Costs | 2.5-4% for buyers | 1-2% for buyers |
| Mortgage Rates (Foreigners) | 6.8-8.3% | 8-12% |
How much does the average price per square meter cost in Manila compared to Bangkok right now?
Manila's average condo prices range from ₱115,000 to ₱203,000 per square meter ($2,000 to $3,600), making it significantly cheaper than Bangkok's prime areas.
Bangkok's central business districts like Sukhumvit and Sathorn command much higher prices at THB 200,000 to 236,000 per square meter ($5,600 to $6,500) for luxury condos. Bangkok's suburban areas are more comparable to Manila, ranging from THB 72,000 to 127,000 per square meter ($2,000 to $3,500).
The price gap becomes even more pronounced in luxury segments, where Makati's premium condos top out at ₱590,000 per square meter ($10,400), while Bangkok's equivalent luxury properties can exceed this by 20-30%. As of September 2025, Manila offers approximately 40-50% savings on prime condo purchases compared to Bangkok's CBD areas.
It's something we develop in our Philippines property pack.
What are the typical condo prices in central business districts like Makati versus Sukhumvit?
Makati condos show substantially lower entry costs compared to Sukhumvit, with studio units starting from $32,000 to $60,000 versus Sukhumvit's $72,000 minimum.
One-bedroom condos in Makati range from $53,000 to $130,000, while Sukhumvit equivalents start at $120,000 and can reach $200,000 for newer developments. Two-bedroom units show the biggest gap: Makati ranges from $80,000 to $250,000+, compared to Sukhumvit's $303,000 average for quality projects.
Makati's luxury segment reaches ₱590,000 per square meter ($10,400) in premium towers, while Sukhumvit consistently exceeds THB 200,000 per square meter ($5,600-$7,900) across most new developments. The price differential reflects Bangkok's more mature luxury market and higher land costs in central areas.
Foreign buyers in Makati can access prime CBD locations at nearly half the cost of equivalent Sukhumvit properties, though this comes with trade-offs in rental yields and resale liquidity.
How do housing costs in suburban areas of Metro Manila compare to those in Greater Bangkok?
Metro Manila's suburban areas offer more affordable options at ₱60,000 to ₱120,000 per square meter ($1,050 to $2,100), compared to Greater Bangkok's THB 72,000 to 127,000 per square meter ($2,000 to $3,500).
Greater Bangkok suburbs maintain higher baseline prices due to better infrastructure development and mass transit connectivity. Areas like Samut Prakan or Nonthaburi still command premium pricing compared to equivalent distance locations in Metro Manila like Quezon City outskirts or Marikina.
The gap narrows significantly for transit-connected suburban developments, where Manila prices can jump 50-70% above baseline suburban rates. Bangkok's BTS and MRT extensions have created more consistent pricing across suburban zones, while Manila's incomplete transit network creates wider price variations based on accessibility.
Landed housing options remain more accessible in Manila suburbs, with townhouses and small lots available at prices that would only secure high-rise units in Bangkok's equivalent areas.
What are the differences in property taxes and annual maintenance fees between the Philippines and the Philippines?
The Philippines imposes higher property taxes at 1-2% of assessed value, with Makati specifically charging 2% compared to Thailand's much lower 0.02-0.10% property tax introduced in 2020.
| Cost Type | Philippines | Thailand |
|---|---|---|
| Property Tax Rate | 1-2% assessed value | 0.02-0.10% assessed |
| Condo Fees (monthly) | ₱30-96/sqm ($0.50-$1.70) | THB 50-90/sqm ($1.35-$2.50) |
| Luxury Condo Fees | ₱100+/sqm ($1.70+) | THB 100/sqm ($2.50) |
| Sinking Fund | Monthly association fees | One-time THB 500-800+/sqm |
| Insurance (annual) | $100-300 for condos | $100-250 for condos |
Thailand's lower property tax burden is offset by higher monthly maintenance fees and upfront sinking fund requirements. Philippines condo associations typically charge lower monthly fees but include sinking fund contributions in regular dues rather than as lump sum payments.
How much do foreigners need to pay in additional legal or government fees when buying property in each country?
Foreign buyers in the Philippines face total transaction costs of 2.5-4% of purchase price, including registration fees (0.25-1%), transfer tax (0.5-0.8%), documentary stamp tax (1.5%), and notary fees (1-2%).
Thailand's buyer transaction costs are lower at 1-2% of purchase price, primarily the 2% transfer fee (recently reduced temporarily for some buyers), plus 0.5% stamp duty and minimal additional charges. Thailand's streamlined process results in lower upfront government fees.
Additional Philippines costs include title processing fees of ₱35,000-50,000 ($615-880) and various local government unit charges that vary by city. Thailand requires bank remittance certification for foreign currency transfers and extra legal due diligence, but these costs are typically lower than Philippines equivalents.
Both countries typically assign broker commissions (3-5%) to sellers, though this is negotiable and can impact final pricing for buyers in competitive markets.
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What are the restrictions for foreigners buying condos or land in the Philippines versus Thailand?
The Philippines allows foreigners to own up to 40% of any condominium project, while Thailand permits 49% foreign ownership in condo developments.
Neither country allows direct foreign land ownership, limiting foreigners to leasehold arrangements. Philippines offers lease terms up to 50 years with a 25-year extension option, while Thailand provides 30-year leases with potential renewals, though recent Supreme Court rulings have limited the enforceability of automatic "30+30+30" extensions.
Philippines corporate ownership requires 60% Filipino shareholding for land acquisition, which complicates foreign investment structures. Thailand has stricter enforcement against nominee arrangements and regularly audits corporate land ownership for compliance.
As of September 2025, Thailand is considering proposals to increase foreign condo quotas to 75% and extend leasehold terms to 99 years, but these changes have not yet been implemented. The current 49% rule remains in effect.
Agricultural land restrictions apply in both countries, with the Philippines maintaining particularly strict rules against foreign ownership of agricultural or rural properties.
How do rental yields in Manila compare with rental yields in Bangkok for the same type of condo?
Manila's rental yields currently average 5.1-5.4% gross in central areas like BGC, Makati, and Taguig, which is lower than Bangkok's 6-7% average gross rental yields.
Bangkok maintains higher yields partly due to strong tourism demand and more stable rental markets, while Manila faces oversupply issues in certain segments that depress rental rates. Bangkok's small studio units in emerging areas can achieve up to 8% gross yields, compared to Manila's maximum range of around 6% in select locations.
Net yields after taxes, management, and maintenance typically run 1.5-2% lower than gross yields in both markets. Bangkok's advantage comes from higher rental rates relative to property prices, despite higher purchase costs per square meter.
Manila's rental market shows more volatility and longer vacancy periods, particularly affecting newer developments in oversupplied areas like Bay Area and some Ortigas locations. Bangkok's more mature rental infrastructure and diverse tenant base contribute to more consistent rental income.
It's something we develop in our Philippines property pack.
What are the average monthly condo association fees in the Philippines compared to Thailand?
Philippines condo association fees range from ₱30-96 per square meter monthly ($0.50-$1.70), making them significantly lower than Thailand's THB 50-90 per square meter ($1.35-$2.50).
Luxury developments in both countries charge premium rates, with Philippines reaching ₱100+ per square meter ($1.70+) and Thailand up to THB 100 per square meter ($2.50) for high-end amenities and prime locations.
The key difference lies in sinking fund structures: Philippines typically includes reserve funds in monthly dues, while Thailand charges a one-time sinking fund payment of THB 500-800+ per square meter ($13.50-$22+) at purchase.
Thailand's higher monthly fees often include more comprehensive maintenance services and amenities management, while Philippines fees may require additional special assessments for major repairs or improvements. Both countries' fees can increase 5-10% annually based on inflation and building needs.
How do mortgage interest rates and loan availability for foreigners differ between the Philippines and Thailand?
The Philippines offers more accessible mortgage financing for foreigners with rates of 6.8-8.3% for residents with proper visas (SRRV, work permits, or marriage visas), compared to Thailand's 8-12% rates for foreign borrowers.
Philippines banks will lend to foreigners with at least 2 years of residency and stable income, offering up to 60-70% loan-to-value ratios. Thailand restricts foreign mortgages to select banks like UOB and some international institutions, requiring work permits or resident status and limiting LTV to 60-70%.
Thai citizens enjoy much lower rates of 4-6%, creating a significant gap compared to foreign borrowers who face substantial risk premiums. Philippines shows smaller rate differentials between citizens and qualifying foreign residents.
Minimum loan values differ substantially: Thailand requires minimum THB 3 million ($83,000) property values, while Philippines has more flexible minimums starting around $50,000 for qualifying properties. Both countries require comprehensive income verification and have strict lending criteria for non-residents.
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 is the typical appreciation rate of property in Metro Manila versus Bangkok over the last five years?
Metro Manila property appreciation has averaged 2-4% annually over the past five years, with central luxury markets stagnating since 2024 while provincial cities have outperformed with 7%+ annual growth.
Bangkok CBD condos have shown 3-3.6% annual growth from 2021-2025, with select premium areas like Thonglor experiencing dramatic 36% year-on-year jumps in specific projects. Bangkok's landed property market has been much slower at 0.2-2.1% annually.
The appreciation gap reflects different market dynamics: Manila faces oversupply in luxury segments and economic headwinds affecting purchasing power, while Bangkok benefits from sustained foreign investment and tourism recovery driving demand.
Provincial Philippines markets including Cebu, Davao, and Iloilo have significantly outperformed Metro Manila, suggesting a geographic shift in investment returns. Bangkok's appreciation has been more concentrated in specific districts rather than market-wide growth.
As of September 2025, Bangkok shows stronger momentum for continued price growth, while Manila markets are expected to remain flat or show modest gains until oversupply issues resolve.
How do transaction costs like transfer taxes, notary fees, and agent commissions compare between the two countries?
Transaction cost structures favor Thailand for buyers, with total buyer costs of 1-2% compared to the Philippines' 2.5-4% of purchase price.
| Cost Component | Philippines | Thailand |
|---|---|---|
| Registration/Transfer | 0.25-1% | 2% (may be reduced temporarily) |
| Transfer/Specific Tax | 0.5-0.8% | Included in transfer fee |
| Stamp Duty | 1.5% | 0.5% (seller pays) |
| Notary Fees | 1-2% | Negotiable, typically low |
| Agent Commission | 3-5% (seller pays) | 3-5% (seller pays) |
| Total Buyer Cost | 2.5-4% | 1-2% |
The Philippines' higher transaction costs reflect more complex bureaucratic requirements and multiple overlapping fees across different government levels. Thailand's streamlined transfer process reduces administrative burden and costs for buyers.
Agent commissions are similar in both countries at 3-5%, traditionally paid by sellers but sometimes negotiated as part of the purchase price in competitive markets.
What are the main ongoing costs of owning a property in the Philippines versus Thailand, such as utilities, insurance, and upkeep?
Utility costs significantly favor Thailand, with electricity at $0.10-0.14 per kWh compared to the Philippines' $0.20+ per kWh, among the highest rates in ASEAN.
Monthly utility comparisons show Thailand's advantage across all categories: water costs $5-20 monthly versus Philippines' $10-30, while internet runs $25-50 in Thailand compared to $30-60 in the Philippines.
Insurance costs are comparable at $100-300 annually for small condos in the Philippines and $100-250 in Thailand. Both countries require fire insurance, with the Philippines also recommending earthquake coverage given higher seismic risk.
Maintenance and upkeep costs vary by property type and location, but the Philippines' higher humidity and typhoon exposure can increase long-term maintenance needs. Thailand's more stable climate typically results in lower ongoing repair and replacement costs for exterior elements and systems.
It's something we develop in our Philippines property pack.
Property management services cost similarly in both markets, though Thailand offers more professional management options in urban areas, which can improve property maintenance and rental management efficiency.
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.
The Philippines offers significantly cheaper property prices than Thailand, particularly in prime locations where buyers can save 40-50% on purchase costs, making it an attractive entry point for foreign investors seeking Southeast Asian real estate exposure.
However, Thailand's superior rental yields, lower ongoing costs, and better financing terms can offset the higher initial investment, making the total cost of ownership comparison more nuanced than simple purchase price differences.
Sources
- Condo Prices Makati
- Average House Price Philippines
- Philippines House Cost - InvestAsian
- Philippines 5-Year Real Estate Forecast
- Average House Price Bangkok
- Bangkok Price Forecasts
- Bangkok Condo Market Outlook 2025
- Bangkok Property Prices Trend
- Philippines Rental Yields - Global Property Guide
- Thailand Rental Yields - Global Property Guide