Philippines Real Estate Analytics

Property market metrics including price-to-income ratio, rental yields, and price trends

Price to Income

27.0x

Ratio of property prices to annual income

Rental Yield

2.9%

Average annual rental return

Price to Rent

34.1

Ratio of property prices to annual rent

Price to Income Ratio

Ratio of median house price to median annual household income

Rental Yield

Annual rental income as percentage of property value

Price to Rent Ratio

Ratio of property price to annual rental income

Apartment Rent (City Centre)

Monthly rent for 1-bedroom apartment in city centre

Apartment Price (City Centre)

Price per square meter to buy apartment in city centre

Building Permits

Number of building permits issued

Apartment Price (Outside Centre)

Price per square meter to buy apartment outside city centre

1BR Rent (Outside Centre)

Monthly rent for 1-bedroom apartment outside city centre

3BR Rent (City Centre)

Monthly rent for 3-bedroom apartment in city centre

3BR Rent (Outside Centre)

Monthly rent for 3-bedroom apartment outside city centre

Mortgage Interest Rate (20Y)

Average mortgage interest rate for 20-year fixed loan

Additional Insights

Expert analysis of Philippines Real Estate trends and investment implications

Market Overview

The Philippine property market is currently characterized by high price-to-income and price-to-rent ratios, indicating potential overheating and reduced affordability. With relatively low rental yields at 2.9%, investors may find limited immediate cash flow potential, though long-term capital appreciation remains a consideration. The market currently sits in a mature phase of the property cycle, possibly approaching a correction, necessitating cautious investment decisions.

Key Findings

Data-driven insights

•The price-to-income ratio at 27 suggests significant affordability challenges for local buyers.
•Gross rental yield of 2.9% is low compared to potential borrowing costs, reducing immediate investment appeal.
•Price-to-rent ratio at 34.1 indicates that buying is less economically rational compared to renting, under present conditions.
•Historical price growth has been strong, but current metrics suggest momentum may be slowing.

Market Trends

Historical patterns

•Property prices have consistently appreciated over the decades, driven by urbanization and economic growth.
•Recent years have seen a deceleration in price growth, hinting at possible market correction.
•Rental yields have remained low, reflective of high property prices relative to rental income.

For Investors

Actionable takeaways

•Consider waiting for a potential market correction before making new purchases to avoid buying at the peak.
•Target properties with rental yields above 3.5% to ensure positive cash flow relative to financing costs.
•Evaluate the economic viability of long-term renting strategies over buying in high-priced areas.
•Monitor interest rate trends closely, as rising rates could further impact affordability and investor yields.

Market Context

The Philippines property market has matured significantly, driven by economic growth and urban development. However, high affordability metrics and low yields suggest a need for cautious investment strategies. The market's maturity implies it is subject to cyclical changes, and investors should be prepared for potential corrections.

💡 Insights based on historical data. Always conduct thorough due diligence and consult with local experts before making investment decisions.