What is the Housing Market like in the Philippines?

["P2"]

I'm thinking of retiring with my filipina wife in the Philippines. We haven't decided where yet. We are also undecided on if we should build/buy or rent. I'm a little concerned that if I invest money into buying and existing house or building one and then somewhere down the road we change our minds, that I will have a difficult time selling it and recouping my money. What's the average sale time for a house there that averages around $300K (US). How the resale market? Thanks in advance for answering my questions.

[fillipino_wannabe]

Outside of the major cities I'd guess years or maybe never. I spent about $400k building my house, another $200k on 5 hectares of land. It's nice but I can't imagine many people would pay me 35 million pesos for it.

[usa32]

Why buy?

Certain areas, might sell quick like in BGC for that kind of money. But if you are building a house i assume you are outside the bigger cities.

The prices that people are paying for shitty small condos, and other real estate, in a relatively unstable country, and an awful court system, is nuts. $300k? in the Philippines? Are you kidding? Do your self a favor and rent, then you wont be like some of these idiots in 5 or 10 or 15 years that want to move, and find they have a piece of real estate no one will buy, or you have to take a 50 percent loss. Rule number 1. Don't buy in the Philippines 

[Old55]

5 minutes ago, usa32 said:

Why buy?

Certain areas, might sell quick like in BGC for that kind of money. But if you are building a house i assume you are outside the bigger cities.

The prices that people are paying for shitty small condos, and other real estate, in a relatively unstable country, and an awful court system, is nuts. $300k? in the Philippines? Are you kidding? Do your self a favor and rent, then you wont be like some of these idiots in 5 or 10 or 15 years that want to move, and find they have a piece of real estate no one will buy, or you have to take a 50 percent loss. Rule number 1. Don't buy in the Philippines 

While certainly true there are some folks who simply want to own a home. Perhaps to leave to their younger wife once they pass or any number of other reasons. 

I would suggest renting homes moving around until you find a location you both truly loved. If you both were determined to own a home know it is unlikely to be a profitable investment. On the other hand we know of two Americans who sold a home outside Cebu City one did very well the other at a loss.

[Mike J]

As previous posters say, you should rent, probably for period of years, before you decided to buy or build.    Expensive expat built houses here tend to become an "albatross" on the market and can take many years to sell.  If the owners have to leave they either deteriorate from being empty or you have to try and keep it rented which comes with its own challenges and pitfalls.

Care to share your reasons for moving here?  Have you spent time in the Philippines? 

[BrettGC]

When buying/building we as foreigners tend to over-capitalise getting a house to a standard that we consider comfortable/acceptable.  Unfortunately Filipinos don't see the value in what we've done for themselves with all the conveniences/comforts we've added; they tend to think purely in square footage and not take into account the value added.  Another foreigner might, or might not.  So results on sale are often mixed and very hit and miss.  

As @Old55 said, I'd strongly consider renting to begin with until you find an area you're both sure you want to stay in. Many apartments/houses come furnished with the basics here so moving isn't that big a deal if you should want to move on and removalists are cheap if you should need them.  It cost us 5kPHP to move a 2 bedroom apartment worth of furniture and the rest of it 3 hours away. 

Edited May 23, 2023 by BrettGC

[Onemore52]

One of the biggest mistakes I have made here is building a house because of the shoddy workmanship here, with a list too long to mention here.

Four years on we are still fixing things. Only yesterday I went to the AG shop to get  more rat poison because of the many gaps in the roof where the rats come in, really the whole roof needs to come off and start again.

I wish I had been a member of this group beforehand, to gain more insight to the ways of these people to the pitfalls of it all, where it starts with the purchase of the land.

Be warned.

[baronapart]

Great advice by some very experienced board members. I have made a few decisions during my current 6 week visit. We purchased a 2500 SQM plot on the cheap close to my wife's family. I will never live there. It is for my wife to build a small house to live in after I go to the great mango grove in the sky. I prefer condo living with pool/gym/amenities access. We will rent and follow the two island rule concerning family. Love 'em but only in small doses ;-)

Edited May 23, 2023 by baronapart

[Onemore52]

Guilty as charged were I built in the same town as her siblings, not a day goes by that I curse myself for it.

[Ram1957]

One of the problems here is that there is no market analysis on houses and land here. People just pull a number out of the sky and they stick to it. Sad thing about it most realtors have no idea on how to sell homes in the first place. Then we have foreigners coming here thinking they are getting a good deal without looking into it deeper.