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The Panay Island property market is experiencing steady growth with residential properties averaging ₱11,200–₱23,600 per sqm as of September 2025.
Property prices have increased by 6% annually across Panay Island, with areas near Boracay showing 8-10% faster appreciation rates. Major infrastructure projects like the Panay-Guimaras-Negros Bridge are expected to boost property values significantly in connected zones over the next 1-3 years.
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Panay Island's property market shows moderate but consistent growth, with residential properties priced at ₱11,200–₱23,600/sqm and commercial lots reaching ₱40,000–₱120,000/sqm.
Infrastructure developments and tourism growth are driving appreciation rates of 6-10% annually, making it an attractive investment destination for both local and international buyers.
| Property Type | Price Range (₱/sqm) | Annual Growth Rate |
|---|---|---|
| Residential Properties | ₱11,200 - ₱23,600 | 6% average |
| Commercial Lots | ₱40,000 - ₱120,000 | 8% in prime areas |
| Land/Agricultural | ₱5,700 - ₱22,000 | 6-8% near tourist areas |
| Boracay-adjacent areas | ₱18,000 - ₱35,000 | 8-12% annually |
| Iloilo City Center | ₱15,000 - ₱28,000 | 7-9% annually |
| Mandurriao District | ₱12,000 - ₱25,000 | 8-10% annually |
| Rural/Provincial areas | ₱5,700 - ₱15,000 | 4-6% annually |
What's the current average price per square meter for residential, commercial, and land properties in Panay Island?
As of September 2025, Panay Island's property prices vary significantly by location and property type.
Residential properties in key cities like Iloilo and Mandurriao average ₱11,200–₱23,600 per square meter. Prime residential areas in Iloilo City center can reach up to ₱28,000 per sqm, while suburban areas typically range from ₱12,000–₱18,000 per sqm.
Commercial lots command premium prices at ₱40,000–₱120,000 per square meter in prime locations. Business districts in Iloilo City and areas near major shopping centers see the highest commercial property values, particularly in Mandurriao and the Atria Park District.
Land prices outside city centers range from ₱5,700–₱22,000 per square meter. Agricultural land in rural areas starts at ₱5,700 per sqm, while land near tourist destinations like Boracay can reach ₱22,000 per sqm or higher.
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How have prices changed in the past 12 months, and what's the trend forecast for the next 1–3 years?
Panay Island property prices have increased by approximately 6% annually over the past 12 months, with certain areas showing significantly higher growth rates.
Areas near Boracay have experienced 8-10% price appreciation, while Mandurriao in Iloilo City has seen similar growth rates due to new business developments and infrastructure improvements. The overall Panay Island market has maintained steady growth compared to the national average of 4-5%.
For the next 1-3 years, property values are forecast to continue rising at 6-8% annually. The completion of major infrastructure projects, particularly the Panay-Guimaras-Negros Bridge, is expected to accelerate appreciation rates in connected zones.
Prime locations near new business parks, international schools, and upgraded transportation hubs are projected to outperform the regional average with potential growth rates of 8-12% annually through 2028.
Which areas of Panay Island are seeing the fastest price growth right now?
Several specific areas in Panay Island are experiencing accelerated property price growth as of September 2025.
Mandurriao in Iloilo City leads with 8-10% annual appreciation due to new business parks and commercial developments. This area has become a major business district with international schools and shopping centers driving residential demand.
Boracay-adjacent areas in Aklan province are seeing 10-12% annual growth, particularly in Caticlan and nearby coastal towns. The tourism recovery and infrastructure improvements around Boracay airport have boosted property values significantly.
The Atria Park District in Iloilo City is experiencing rapid development with new condominiums and commercial projects pushing prices up by 8-9% annually. Areas near Iloilo International Airport have also seen increased investor interest with 7-8% annual appreciation.
Santa Barbara and Pavia, both satellite cities of Iloilo, are emerging as growth areas with 6-8% annual appreciation due to their proximity to business centers and lower entry costs compared to city center properties.
Which areas are currently undervalued compared to the regional average?
Several areas in Panay Island offer below-average pricing with strong potential for future appreciation.
Roxas City in Capiz province remains undervalued at ₱8,000–₱15,000 per sqm for residential properties, significantly below the regional average. The city has good infrastructure and government presence but hasn't experienced the tourism-driven growth of other areas.
Kalibo, despite being the gateway to Boracay, has residential properties priced at ₱9,000–₱18,000 per sqm. This represents good value considering its strategic location and potential for airport expansion benefits.
Rural areas in central and southern Panay, including towns like Lambunao, Calinog, and Janiuay, offer land at ₱3,000–₱8,000 per sqm. These areas have agricultural potential and may benefit from future infrastructure development connecting them to major cities.
Outskirt areas of Iloilo City, particularly in Oton, Tigbauan, and Guimbal, provide residential opportunities at ₱7,000–₱14,000 per sqm while maintaining access to city amenities and job opportunities.
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What are the rental yields for condos, houses, and land leases in different parts of the island?
| Property Type & Location | Annual Gross Yield | Monthly Rent Range |
|---|---|---|
| Condos - Iloilo City Center | 7-9% | ₱15,000 - ₱35,000 |
| Condos - Boracay Adjacent | 8-12% | ₱20,000 - ₱50,000 |
| Houses - Mandurriao District | 6-8% | ₱25,000 - ₱45,000 |
| Houses - Suburban Iloilo | 6-7% | ₱18,000 - ₱30,000 |
| Commercial Land Leases | 5-7% | ₱200 - ₱800/sqm |
| Tourist Area Rentals | 10-15% | ₱30,000 - ₱80,000 |
| Provincial Houses | 5-6% | ₱8,000 - ₱15,000 |
How strong is demand for short-term rentals versus long-term rentals in key cities and tourist areas?
Demand patterns for short-term versus long-term rentals vary significantly across Panay Island's different markets.
Boracay and surrounding areas show extremely strong short-term rental demand, with properties achieving occupancy rates of 60-80% during peak seasons. Short-term rentals in tourist zones can generate 10-15% annual yields compared to 6-8% for long-term rentals.
Iloilo City has balanced demand for both rental types. Long-term rentals serve the growing business district workforce, particularly in Mandurriao and downtown areas. Short-term rentals cater to business travelers and medical tourists, with steady year-round demand.
Kalibo shows seasonal patterns with higher short-term rental demand during peak tourist months (November-April) due to Boracay transit traffic. Long-term rentals serve local professionals and government workers with consistent demand.
Provincial cities like Roxas City and San Jose primarily rely on long-term rental markets, serving local professionals, teachers, and government employees. Short-term rental opportunities are limited but growing in these areas.
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What infrastructure projects are planned or ongoing, and how will they impact property values?
Major infrastructure developments are set to significantly impact Panay Island property values over the next 3-5 years.
The Panay-Guimaras-Negros Bridge project, currently under construction, will create the longest bridge in the Philippines and dramatically improve connectivity. Properties in western Iloilo and southern Panay are expected to see 15-25% value increases once completed.
Iloilo International Airport expansion plans include new terminals and extended runways. Areas within 10-15 kilometers of the airport, including Santa Barbara and Cabatuan, are already experiencing increased investor interest and 7-9% annual appreciation.
The Boracay airport upgrade and new access roads are improving connectivity to the island's premier tourist destination. Caticlan and nearby coastal properties have seen immediate impact with 8-12% annual growth.
New highway projects connecting major cities across Panay will reduce travel times and open previously remote areas for development. Towns along these corridors are experiencing early-stage price appreciation of 5-8% annually.
What are the typical transaction costs, taxes, and ongoing ownership costs you should factor into your budget?
Property transactions in Panay Island involve several mandatory costs that buyers must factor into their budget calculations.
Capital gains tax of 6% applies to sellers based on gross selling price or zonal value, whichever is higher. Buyers pay documentary stamp tax of 1.5% of the sales price or zonal value. Transfer taxes range from 0.5-0.75% depending on local government ordinances.
Broker's commission typically costs 3-5% of the sales price, usually paid by the seller. Registration fees follow a graduated schedule, typically ranging from thousands to tens of thousands of pesos depending on property value.
Annual real property tax ranges from 0.5-2% of assessed value, varying by municipality. Property insurance costs approximately ₱2,000-₱8,000 annually for residential properties. Homeowner's association fees in condominiums range from ₱50-₱200 per square meter monthly.
Legal and notarial fees are typically shared between buyer and seller, with total costs ranging from ₱10,000-₱50,000 depending on property complexity and value.
What is the recommended budget range for buyers aiming to live in Panay versus those buying for rental income?
Budget requirements vary significantly depending on your primary objective and target location in Panay Island.
Live-in buyers should budget ₱2.5-₱8 million for city condominiums and houses in Iloilo City, Mandurriao, or other prime residential areas. Suburban homes in satellite cities require ₱1.5-₱3 million, offering better value for money and family living.
Rental income investors need ₱2-₱10 million for properties in tourist areas or city centers that can generate gross yields above 7%. Focus on properties in Boracay-adjacent areas, Iloilo business districts, or near major amenities like hospitals and schools.
Entry-level investment opportunities start at ₱1.5-₱2.5 million for smaller condominiums or houses in emerging areas with development potential. These properties can provide 6-8% annual yields with appreciation potential.
Premium investment properties in prime locations require ₱5-₱15 million but offer the highest yield potential (8-12%) and strongest appreciation prospects in tourist and business center locations.
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Which property types are most likely to appreciate in the short, medium, and long term?
Different property types in Panay Island offer varying appreciation potential across different time horizons.
Short-term (1-2 years): Houses and lots near infrastructure projects show the strongest appreciation potential. Properties within 5 kilometers of the Panay-Guimaras-Negros Bridge construction areas are already appreciating 8-12% annually.
Medium-term (3-5 years): Condominiums and serviced apartments in Iloilo City, Kalibo, and Boracay-adjacent districts offer solid appreciation. Business district properties in Mandurriao and Atria Park are expected to benefit from continued commercial development.
Long-term (5+ years): Strategically located land parcels for commercial or mixed-use development near new infrastructure offer the highest appreciation potential. Agricultural land that may be rezoned for residential or commercial use presents significant upside opportunities.
Tourist-oriented properties in Boracay-adjacent areas will continue benefiting from tourism growth and infrastructure improvements across all time horizons, making them versatile investment choices.
What's the liquidity of the market—how fast are properties selling in each segment and area?
Property liquidity in Panay Island varies significantly by location, property type, and price point as of September 2025.
Houses and condominiums in Boracay-adjacent areas and Iloilo City typically sell within 1-3 months during peak demand periods. Prime properties in tourist zones and business districts have the highest liquidity due to consistent buyer interest from investors and end-users.
Commercial properties and land near major infrastructure projects sell relatively quickly, usually within 2-4 months, especially if priced competitively. The ongoing bridge construction has created strong demand for commercial lots in strategic locations.
Rural land parcels and agricultural properties require longer selling periods, typically 3-6 months or more. However, properties with development potential or near planned infrastructure improvements sell faster than remote agricultural land.
Luxury properties above ₱10 million have more limited buyer pools and may require 4-8 months to sell, depending on location and unique features. Properties in emerging areas show improving liquidity as investor awareness increases.
If you buy now, how should you position yourself in terms of location, property type, and price point depending on your goal?
Strategic positioning for property purchases in Panay Island depends entirely on your primary investment or lifestyle objectives.
Live-in buyers should focus on convenience and quality of life. Choose central Iloilo locations, Mandurriao business district, or areas near major schools, medical centers, and shopping facilities. Budget ₱3-₱8 million for optimal lifestyle properties with good resale potential.
Rental income investors should target high-yield zones in Boracay-adjacent areas, Aklan province, and tourist attractions. Prioritize condominiums or serviced units that can generate 8-12% annual yields. Budget ₱2.5-₱7 million for properties with strong rental demand.
Resale-focused investors should invest early in undervalued locations near planned infrastructure. Target lots with development potential in areas that will benefit from the Panay-Guimaras-Negros Bridge and other major projects. Budget ₱1.5-₱5 million for strategic land purchases.
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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 presents compelling opportunities for both investors and residents seeking value in the Philippines real estate sector.
With infrastructure developments driving 6-10% annual appreciation and rental yields reaching 8-12% in prime areas, the timing appears favorable for strategic property acquisitions in 2025.
Sources
- Own Property Abroad - Philippines Land Prices
- BambooRoutes - Average Land Price Philippines
- BambooRoutes - Panay Island Real Estate Market
- BambooRoutes - Panay Island Real Estate Trends
- BambooRoutes - Panay Island Investment Areas
- Business Inquirer - Iloilo Property Market
- BambooRoutes - Philippines Real Estate Forecast
- Respicio Law - Real Estate Transaction Fees
- InvestAsian - Philippines House Costs
- Global Property Guide - Philippines Rental Yields