How Much Is a Home in the Philippines?

The cost of a home in the Philippines varies significantly based on location, property type, and market conditions. Understanding these variables is important for anyone considering a real estate investment or purchase.

General Price Ranges and Regional Differences

Home prices vary significantly across the Philippines. In Metro Manila, the average appraised value for new housing units is approximately ₱132,743 per square meter. In Makati, condominium prices range from ₱200,000 to ₱250,000 per square meter, with luxury developments exceeding ₱364,000 to over ₱590,000 per square meter. Residential land in Makati averages ₱234,063 per square meter.

Taguig City, a prime Metro Manila location, has houses averaging ₱169,001 per square meter. Apartments in Taguig’s city center can reach ₱249,997 per square meter, while those outside the center are ₱84,999 per square meter. Quezon City’s condominiums average ₱140,687 per square meter, and residential land here is ₱114,742 per square meter. Apartments in Quezon City’s city center are priced at ₱134,771 per square meter.

Outside the capital, Cebu City condominiums average ₱160,000 to ₱162,195 per square meter, and houses are around ₱65,000 to ₱67,918 per square meter. Residential land in Cebu City averages ₱12,176 per square meter. Davao City offers houses averaging ₱45,600 per square meter, with studio condominiums around ₱2 million and townhouses at ₱4 million. Residential land in Davao City averages ₱13,608 per square meter.

Provincial and rural areas offer more accessible price points. Agricultural land can range from ₱100 to ₱10,000 per square meter, depending on proximity to urban centers. Residential land in these provinces varies from ₱500 to ₱15,000 per square meter, reflecting development and infrastructure. Smaller provincial cities can see house prices from ₱40,000 to ₱80,000 per square meter, while more remote rural areas could be ₱30,000 to ₱60,000 per square meter.

Key Factors Influencing Home Values

Location desirability plays a substantial role, with properties near business districts, educational institutions, transportation hubs, and amenities commanding higher values. Proximity to these conveniences increases demand and property costs.

Property characteristics, including size, age, and condition, impact its valuation. Newer, well-maintained homes with modern designs and spacious layouts fetch higher prices. Conversely, older properties needing renovations or with smaller footprints may be more affordable.

Market dynamics, including supply and demand, exert influence. Areas with high population growth and limited housing inventory see upward price pressure. Conversely, an oversupply can lead to competitive pricing. Infrastructure development, such as new roads or public transit, can boost property values by improving accessibility and connectivity.

Understanding Property Types and Their Price Points

Residential property prices also vary by dwelling type. Condominiums are common in urban centers, offering shared amenities and compact living. Their prices depend on floor area, building age, developer reputation, and available facilities.

Single-detached houses offer more privacy and land ownership, generally cost more than condominiums due to the land parcel. Townhouses, multi-story units sharing common walls, offer a middle ground in space and price.

Luxury properties, regardless of type, represent the highest price points. These homes featuring premium finishes, expansive areas, exclusive amenities, and prime locations. Raw land for residential development also carries a price, varying by size, location, zoning, and development potential.

Associated Costs Beyond the Purchase Price

Acquiring a home involves additional costs beyond the purchase price.

Taxes and Fees

Documentary Stamp Tax (DST): 1.5% of the selling price, fair market value, or zonal value, whichever is higher. This tax is paid within five days after the month of execution.
Local Transfer Tax: 0.5% for properties in provinces to up to 0.75% for those in Metro Manila, calculated on the selling price or fair market value, whichever is higher. This tax is paid by the buyer within 60 days from the Deed of Sale execution.
Registration Fees: Paid to the Registry of Deeds, typically around 0.25% of the selling price or property value.
Legal Fees: For drafting the Deed of Sale and notarization, these range from 0.5% to 3% of the property value, with notarial fees between ₱5,000 and ₱20,000.
Real Estate Agent Commissions: Usually 3% to 7% of the selling price, paid by the seller.

Recurring Costs

Property Taxes (“Amilyar”): Annual obligations based on assessed value. The rate is 1% of the assessed value for properties in provinces and 2% for those within Metro Manila. This tax is due January 1st and payable by January 31st, with discounts for early payment.
Homeowners Association (HOA) or Condominium Dues: Monthly fees for shared services like maintenance, security, and amenities. These are calculated per square meter, ranging from ₱30 to ₱70 for standard condominiums and potentially ₱96 or more for luxury buildings. Value Added Tax (VAT) is also applied to these dues.