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The luxury property segment in the Philippines is soaring, pushing home prices to nearly PhP 1M per square meter in some of the country’s most expensive developments. High-net-worth individuals and foreign investors are drawn not only to the quality and details of luxury homes but also to their income-generating potential.
The following sections provide accounts of the Philippines’ ascent as a top-performing luxury property market and its future as an economic powerhouse and preferred investment destination in Asia.
Manila: Unbeatable in the Global Luxury Real Estate Market
Manila made global headlines in 3Q2023 when it unseated Dubai as the world’s hottest luxury housing market. Two quarters later, Manila proved it’s not just a one-hit wonder. Based on Knight Frank’s Prime Global Cities Index in 1Q2024, Manila remained the fastest-growing luxury property market, with its prime residential prices surging by 26.2% over the past year and 6% in the last six months.
Experts attribute Manila’s robust growth to two main factors (1) strong economic performance and (2) significant infrastructure investment. In 1Q2024, the entire Philippine economy grew at 5.7%, marginally higher than the previous quarter with 5.6% growth rate. The Philippines’ full-year 2023 GDP growth was also the strongest among major Asian economies.
Meanwhile, the Department of Finance observed high private consumption in 4Q2023, driven by hotels, restaurants, and transport. This indicates that people are engaging more in outdoor activities and have more money to spend on non-essential activities. The strong domestic demand is also reflected in the country’s growing Gross National Income (GNI) per capita, which reached a record high of USD 4,230 in 2023. The country surpassed its GNI per capita target of USD 3,130 to USD 4,203 in the same year, continuing on its path to achieving upper middle-income status by 2025.
In Pursuit of a Life Well Lived
Subsequent to global healthcare challenges and economic uncertainties, how we work, interact, and value stability and wellness wildly changed. In the Philippines, as disposable income rises, there’s a renewed focus on the comfort and privacy that luxury homes generously offer. People are starting to choose properties that serve as personal retreats, complete with home offices, fitness centers, and other forms of entertainment.
The growing appetite for premium residential properties was observed even before Manila led the world in luxury home prices. Based on Colliers’ data for Metro Manila’s pre-selling market in 2022, the majority of the launches and take-ups were in the luxury segment. In the same year, the share of the luxury segment in pre-selling take-ups was 30% higher than in 2021.
In response to the rapidly expanding luxury property market, developers are expected to launch more projects in the high-end pockets of Metro Manila. As projected by Colliers, from 2023 to 2025, the annual average delivery of condo units will reach around 6,700 units. As of 2022, Metro Manila’s condominium stock reached 151,200 units.
Metro Manila’s Most Expensive Properties
Among the most expensive projects in Metro Manila are condominiums, offering the convenience of low-maintenance living plus the benefits of house-like proportions and value-added amenities.
As of 4Q2023, Santos Knight Frank mentioned that the highest-priced projects in Metro Manila include the following condominiums: Banyan Tree Residences (PhP 800,000 per square meter), Balmori Suites (PhP 600,000 per sqm), Aurelia Residences (PhP 431,000 per sqm), and Haraya Residences (PhP 310,000 per sqm).
Meanwhile, Leechiu Property Consultants observed that the asking price per sqm in prime villages is also rising. Based on the firm’s 2Q2024 data, Forbes Park showed the highest quarterly price growth at 6.4% (PhP 642,000 per sqm). Other neighborhoods that recorded price growth include Dasmariñas Village, Ayala Alabang, and Green Meadows, with prices hovering around Php 231,000 to PhP 635,000 per sqm.
External data shows that luxury properties, whether in vertical or horizontal communities, continue to hold a unique allure and enduring value. Investors who are diversifying should keep an eye on locations that offer substantial capital appreciation and neighborhoods with a limited supply of exclusive real estate.
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