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What do the latest numbers reveal about the Philippines' real estate market? Are property prices on the rise, or are they stabilizing? Which cities offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in the Philippines, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) House prices in Quezon City rose by at least 6% in 2024
The real estate market in the Philippines, especially in Metro Manila, is on the rise.
In 2023, Metro Manila's property prices showed improvement, thanks to strong economic growth. For instance, the average price of a luxury 3-bedroom condo in the central business districts increased by 3.98% to PHP 203,550 per square meter. This indicates a general upward trend in property prices in the region.
By the first half of 2024, the luxury residential market in Metro Manila saw a substantial 26% year-over-year growth. This surge was fueled by new property launches, highlighting increased demand and rising prices in the broader residential market.
Although specific data on a 6% increase in house prices in Quezon City isn't available, the overall trend in Metro Manila suggests similar growth could occur there. Quezon City's central location and upcoming central terminal are expected to attract more residential projects, potentially driving up property prices.
With the ongoing developments and strategic growth in Metro Manila, it's reasonable to anticipate that Quezon City might follow suit in experiencing a rise in property values. The city's appeal is growing, making it a potential hotspot for future investments.
Sources: Ohmyhome, Global Property Guide, Bed and Go Inc.
2) Beachfront property prices in Siargao rose by at least 8% in 2024
In 2024, beachfront properties in Siargao saw a price increase of at least 8%.
One major factor was the 511.89% rise in foreign arrivals, which significantly boosted tourism. This influx of visitors naturally led to a higher demand for real estate, as many were eager to own a slice of this stunning island. Consequently, average real estate prices jumped from ₱ 9,475 ($161) in 2019 to ₱ 11,106 ($188) in 2024.
The government also played a pivotal role by launching initiatives to improve access to Siargao and upgrade its infrastructure. These efforts not only made the island more reachable but also instilled confidence in investors about its growth potential, further pushing property values upward.
Siargao's charm, with its pristine beaches and vibrant surf culture, has always been a magnet for tourists. However, the recent enhancements in infrastructure have made it even more appealing, turning it into a hotspot for both leisure and investment.
Investors are particularly drawn to the island's potential for growth, seeing it as a promising opportunity. The combination of increased accessibility and a booming tourism industry has made Siargao a prime location for real estate investment.
With these developments, Siargao is not just a travel destination but a lucrative investment opportunity, attracting both local and international buyers eager to capitalize on its rising property market.
Sources: Own Property Abroad
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.
3) Luxury condos in Makati City appreciated by 4-6% in 2024
In 2024, luxury condominiums in Makati City saw a price appreciation of 4-6%.
Makati City, known as the main business district of the Philippines, is a magnet for property buyers. Its proximity to commercial centers keeps demand high, especially for luxury condos, which naturally pushes prices up. The steady rise in real estate capital values in the Makati Central Business District (CBD) also played a part, as it drove up rental prices, influencing overall property values.
The Philippine real estate market was on a roll, thanks to a strong economy and evolving market trends. These elements combined to support the rise in luxury condo prices. Government policies aimed at maintaining market stability and accessibility for local buyers also had an indirect impact on property prices.
Sources: Bed and Go Inc., Alveo Land, Intlbm
4) Over 50% of real estate deals in the Philippines in 2024 were funded by bank loans
In 2024, more than 50% of real estate transactions in the Philippines were financed through bank loans.
This shift is largely due to the significant growth in the loan sector, as noted by the Bangko Sentral ng Pilipinas (BSP) in March 2024. The BSP reported an 11.4% increase in loans to the real estate sector, totaling ₱262.1 billion. This surge reflects a trend where many households are turning to bank loans to fund their property purchases.
By June 2024, the real estate sector had become a major player in the loan market, with approximately 2.5 trillion Philippine pesos in outstanding loans dedicated to real estate activities. This underscores the heavy reliance on bank loans for buying property.
For potential buyers, this means that securing a bank loan is a common and viable option when considering a property purchase. The availability of loans has made it easier for many to enter the real estate market, contributing to the sector's growth.
Moreover, the increase in bank-financed transactions suggests a growing confidence in the financial system and the stability of the real estate market. Buyers are finding it more feasible to invest in property, knowing that financial institutions are supportive.
Sources: Bangko Sentral ng Pilipinas, Statista
5) Pre-selling prices for residential units in Metro Davao rose by 5-7% in 2024
In 2024, pre-selling prices for residential units in Metro Davao increased by 5-7%.
This rise is closely tied to the growing population and business activities in Davao City, which are driving up demand for homes. As more people flock to the city, the need for residential properties naturally pushes prices higher.
There's also a trend towards urban living, with many people preferring the convenience of city life. This has led to a higher demand for condominiums, especially among young professionals, expatriates, and retirees. Developers are launching new condo projects to meet this demand, which often results in increased pre-selling prices.
The rental market in Davao City is another factor, showing strength with a 3% increase in rental prices as of September 2024. A strong rental market indicates a healthy economy and high housing demand, which can also contribute to rising property prices, including pre-selling units.
These dynamics are shaping the real estate landscape in Davao, making it a vibrant market for potential buyers. The combination of a growing population, urban living trends, and a robust rental market are key drivers behind the 5-7% increase in pre-selling prices.
Sources: Davao Properties, Philippine Property Hub, Davao Properties
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6) Residential property prices in Pampanga rose by 3-5% in 2024 due to infrastructure improvements
In 2024, residential property prices in Pampanga increased by 3-5% due to infrastructure improvements.
Pampanga's strategic location, with easy access to major highways like NLEX and SCTEX and its proximity to Clark International Airport, has made it a hot spot for investors. These infrastructure upgrades have significantly boosted the property market.
The rise of mixed-use developments in cities like San Fernando, which combine living, working, and recreational spaces, has also contributed to this growth. Increased investor confidence and policy reforms have accelerated these infrastructure projects.
Additionally, the easing of restrictions and steady remittances from overseas Filipino workers have increased demand for residential properties. This has encouraged developers to embark on large-scale projects, further driving up property values.
These factors, combined with the region's development, have made Pampanga an attractive investment destination. The blend of modern infrastructure and strategic location continues to draw interest from both local and international investors.
As a result, Pampanga's property market is thriving, with new developments and opportunities emerging regularly. The region's growth is a testament to the impact of well-planned infrastructure and strategic investments.
7) Luxury villa prices in Batangas increased by 6% in 2024 due to high demand for weekend homes
In 2024, the average price of luxury villas in Batangas rose by 6% due to high demand for weekend homes.
Batangas has become a go-to spot for those seeking a quick escape from city life. Its tourist-friendly vibe makes it an attractive choice for weekend getaways. This trend is part of a larger movement in the Philippines, where more people are looking for weekend retreats.
The demand for luxury properties has been on the rise, and Batangas is no exception. This increased interest in luxury villas has contributed to the price hike. While exact figures aren't available, the trend is clear.
People are drawn to Batangas not just for its beauty but also for the lifestyle it offers. The allure of owning a piece of paradise close to the city is hard to resist. This has made Batangas a hot spot for real estate investment.
As more individuals seek luxury and comfort, the market for high-end properties continues to grow. Batangas, with its scenic views and serene environment, is perfectly positioned to meet this demand.
With the rise in demand, property values in Batangas are expected to keep climbing. This makes it an ideal time for potential buyers to consider investing in this region.
Sources: Trip.com, Camella, Ohmyhome
8) Vacant lot prices in Cavite rose by 5-7% in 2024 due to increasing suburban housing demand
In 2024, vacant lot prices in Cavite increased by 5-7%, driven by the growing demand for suburban housing.
People are seeking homes in quieter, more spacious areas, and Cavite fits the bill perfectly. This demand is fueled by significant infrastructure developments, such as the extension of the LRT-1 and the completion of the CALAX project, which have made Cavite more accessible and connected.
Improved connectivity has made Cavite a more attractive place for both living and business, encouraging more people to consider moving there. Compared to nearby areas like Metro Manila, Cavite offers more affordable real estate prices, making it an appealing choice for homebuyers and investors.
The local economy is booming, further boosting property values as developers focus more on the area. This affordability, combined with the potential for good returns on investment, has made Cavite a hotspot for real estate activity.
As developers continue to invest in Cavite, the area is becoming increasingly popular. The combination of infrastructure improvements and economic growth is creating a perfect storm for rising property values.
Sources: Oh My Home, Bed and Go Inc., OnePropertee
We have made this infographic to give you a quick and clear snapshot of the property market in the Philippines. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Over 25% of Filipino millennials now see real estate as their top investment choice
More than 25% of Filipino millennials now see real estate as their top investment choice.
This shift is happening because over 60% of families in the Philippines now own their homes, according to the Philippine Statistics Authority and Lamudi. This trend shows that younger generations are increasingly interested in real estate.
Filipino millennials are drawn to properties that offer convenience, lifestyle, and modern features. They often prefer urban living and homes with sustainable elements, which strongly influence their investment decisions.
Financial stability is another factor, as many Filipino millennials are free from college debts. This financial freedom gives them more savings and spending power, making real estate a practical investment.
Being digital-savvy, they use social media and online platforms to stay informed about investment opportunities, including real estate. This access to information helps them make informed decisions.
Sources: Kadence, Federal Land, Inquirer
10) About 20% of residential real estate investors in the Philippines target short-term rental properties
The short-term rental market in the Philippines has seen remarkable growth in recent years.
Platforms like Airbnb are booming, especially in cities like Taguig and Manila, attracting investors who are keen on short-term rental properties. This shift from long-term to short-term rentals is largely due to digital platforms that have disrupted traditional renting schemes. As a result, rental prices have increased, making it harder for long-term renters to find affordable housing, but creating lucrative opportunities for investors.
In Taguig, a typical short-term rental is booked for 230 nights a year, with a median occupancy rate of 63% and an average daily rate of PHP2,943. This translates to an average annual host income of PHP650,000. Meanwhile, in Manila, the average annual host income is PHP347,000, with a median occupancy rate of 51% and an average daily rate of PHP1,847. These figures underscore the profitability potential of short-term rentals, making them an attractive option for investors.
Moreover, the regulation of short-term rentals in Manila is lenient, which might encourage more investors to consider this type of property investment.
Approximately 20% of residential real estate investors in the Philippines focus on short-term rental properties, drawn by the high returns and flexible regulations.
Sources: Inquirer, Airbtics Taguig, Airbtics Manila
11) Metro Manila's annual property tax for homes is 1-2% of the property value
In Metro Manila, the average annual property tax for residential properties is 1-2% of the property's value.
This tax rate is largely influenced by the realty property tax (RPT), which is set at 2% of the assessed value of your home. The assessed value is calculated by taking the fair market value and multiplying it by the assessment level, which is typically around 20% for residential properties.
For instance, if your home is valued at P1 million, the assessed value would be P200,000. Applying the 2% RPT rate to this assessed value means you'd pay a basic realty property tax of P4,000.
But that's not all. Local governments might add an extra 1% tax for a Special Education Fund. If your property is idle or undeveloped, a 5% tax could be added on top of that.
These additional taxes can make a difference, especially if you're considering buying a property that might not be immediately developed or used. It's crucial to factor these potential costs into your budget.
Sources: Cocogen, Camella Homes, Asterra
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12) The average construction cost of residential homes in the Philippines rose by 6% in 2024
The average construction cost of residential homes in the Philippines increased by 6% in 2024.
This rise is largely due to the higher cost per square meter, which jumped to around Php 11,232.88 from about 10,500 pesos earlier in the year. Such an increase directly impacts the overall expenses for building homes.
Costs also vary depending on the type of property and its location. For example, if you're considering a residential condominium, expect to pay Php 18,347 per square meter, much higher than the Php 10,482 for a single house. These differences can significantly affect the average construction costs as various property types are developed.
The Philippine real estate market is booming, thanks to a strong economy and increased public spending on urban revitalization and infrastructure. This growth, noticeable since the third quarter of 2023, has pushed up residential property prices, which in turn influences construction costs.
As the market expands, the demand for new homes rises, further driving up costs. The combination of these factors means that building a home in the Philippines is becoming more expensive, reflecting the broader economic trends.
Sources: Digido, Intlbm, Business Inquirer
13) In 2024, the average monthly rent for a studio in Bonifacio Global City was about PHP 25,000
In 2024, the average monthly rent for a studio apartment in Bonifacio Global City was around PHP 25,000.
To put this into perspective, the general rental market in Metro Manila had an average rent of PHP 1,050 per square meter per month as of September 2024. This figure gives us a snapshot of the broader pricing trends across the city.
When diving into specific listings, platforms like Rentpad.com.ph showed that studio apartments in BGC ranged from PHP 23,000 to PHP 45,000 per month. This range highlights the diversity in pricing, with some units being more affordable and others commanding higher prices.
For those looking at the lower end of the spectrum, the PHP 25,000 mark was quite reasonable, especially for units that might not be fully furnished or located in less prime areas within BGC.
These pricing dynamics reflect the overall market trends in Metro Manila, where rental prices can vary significantly based on location and amenities.
So, if you're considering a move to BGC, expect to find a variety of options around the PHP 25,000 range, depending on your preferences and needs.
Sources: Rentpad.com.ph, Philippine Property Hub
14) Townhouse prices in Pasig City rose by 6-8% in 2024
The average price of a townhouse in Pasig City increased by 6-8% in 2024.
Pasig City is strategically located near major business hubs like Makati, Taguig, and Ortigas, making it a prime spot for real estate investment. This proximity not only boosts its appeal for residential buyers but also attracts commercial interests, which in turn drives up demand and prices. The competitive nature of Pasig's real estate market, as noted by Lamudi, further fuels the rise in property values.
In 2023, the National Capital Region (NCR), where Pasig is situated, saw a 2.8% increase in residential property prices in the first quarter alone. This trend is part of a broader pattern of rising real estate prices across the region. Notably, condominium units experienced a significant 10.2% year-on-year growth, highlighting the strong demand for housing in urban areas.
While the specific 6-8% increase for townhouses in Pasig isn't directly mentioned in the sources, the overall upward trend in property prices in the NCR and the competitive market dynamics in Pasig support this growth. The demand for housing in key locations like Pasig plays a crucial role in pushing property prices higher.
Pasig's appeal is not just about location; it's also about lifestyle. The city offers a blend of urban convenience and suburban comfort, making it a desirable place to live. This unique combination attracts a diverse range of buyers, from young professionals to growing families, all contributing to the steady rise in property values.
As more people look to invest in areas with strong growth potential, Pasig stands out as a top choice. Its vibrant community, coupled with ongoing infrastructure developments, ensures that the demand for properties remains robust. This demand is a key factor in the consistent increase in real estate prices in the area.
Sources: Daily Guardian, Manila Standard
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.