Makati CBD condo prices down 4.61% during the year to Q2 2022

The Philippines’ housing market remains weak, despite strong economic growth. The average price of 3-bedroom condominium units in Makati CBD fell by 4.61% during the year to Q2 2022, an improvement from a y-o-y decline of 20.61% in Q2 2021. Quarter-on-quarter, house prices in the CBD fell by 1.29% in Q2 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 6.13%

Metro Manila apartment costs are moderate, at around $3,952 per sq. m. 

Philippines: typical city centre apartment buying price, monthly rent (120 sq. m)
  Buying price Rate per month Yield
Metro Manila $474,240 $2,422 6.13%

Recent news: economy growing strongly 

The Philippine economy grew by 7.4% in Q2 2022, its fifth consecutive quarter of strong year-on-year expansion, mainly driven by robust household spending, as well as rising fixed investment and government spending, amidst the easing of coronavirus curbs, according to the Philippine Statistics Authority (PSA). This is on track with the government’s target of a growth of between 7% and 9% 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.