Makati CBD condo prices down 6.54% during the year to Q1 2022

The Philippines’ housing market remains fragile, despite gradually improving economic conditions. The average price of 3-bedroom condominium units in Makati CBD fell by 6.54% during the year to Q1 2022, an improvement from a y-o-y decline of 23.59% in Q1 2021. Quarter-on-quarter, house prices in the CBD fell slightly by 0.25% in Q1 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 fall 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: Economic growth surpasses pre-pandemic level 

The Philippine economy grew by a better-than-expected 8.3% in Q1 2022, driven by a surge in household spending amidst the easing of coronavirus curbs, according to the Philippine Statistics Authority (PSA). The government targets 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.

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