Makati CBD condo prices down 4.21% during the year to Q3 2022

The Philippines’ housing market conditions remain dismal, despite strong economic growth. The average price of 3-bedroom condominium units in Makati CBD fell by 4.21% during the year to Q3 2022, an improvement from a y-o-y decline of 16.28% in Q3 2021. Quarter-on-quarter, house prices in the CBD fell by 1.5% in Q3 2022.


House price boom ends

The Philippines experienced a house price boom from 2010 to 2018, with Makati CBD prices rising by more than 132% (76% inflation-adjusted) due to strong demand and rapid economic growth. But with a slowing domestic economy, coupled with the US-China trade war, the housing market slowed sharply in 2019, with real house prices falling by 1%. Worse, the coronavirus pandemic has aggravated the situation, causing house prices to plunge by double-digit figures since 2020.

Real house prices fell by 16.11% in 2020 and by another 9.81% in 2021.

Rents, rental yields; good yields at 5.4%

Philippines: city centre apartment buying price, monthly rent (2-BR apartments)
  Buying price Rate per month Yield
Taguig City $223,093 $1,192 6.41%
Pasay City $195,965 $  682 4.17%
Quezon City $105,651 $  477 5.42%

Recent news: economy growing strongly 

The Philippine economy grew by 7.6% in Q3 2022, following year-on-year expansions of 7.5% in Q2 and 8.2% in Q1, according to the Philippine Statistics Authority (PSA). It was its sixth consecutive quarter of strong y-o-y growth, mainly driven by robust household spending, as well as rising fixed investment. This is on track with the government’s target of a growth of between 6.5% and 7.5% this year. 

The economy grew by 5.6% during 2021, partially offsetting the record contraction of 9.6% seen in 2020, thanks to a strong rebound in manufacturing and construction, as well as due to a low base effect from 2020. Prior to the pandemic, the Philippine economy had been growing by an average of 6.4% annually from 2010 to 2019.