Property Market Overview

The Philippines has been steadily building its profile as a destination for tourists and investors alike, with its abundant natural draws spread across its 7,107 islands, its rich history and culture and it warm people driving interest.

The Philippines was still very much a minor player among its neighbours when the Asian Financial Crisis struck in the late 1990s and although the country did suffer a range of adverse affects, they were not as deep or far-reaching as countries where development was further along and spending more liberal.

As elsewhere however, there are exceptions with regard to ownership. Foreigners who marry Filipino citizens can have ownership of the land under the Filipino's name. However, should the marriage be ended by death or separation, the title cannot be transferred to the foreigner. Another option is to acquire land through a corporation although Philippine law stipulates that all such firms must be at least 60 per cent owned by Philippine nationals. In the Philippines, the maximum area that may be acquired for residential purposes is 1,000 sqm in urban areas. This is increased to one hectare in rural areas.

Major property investment regions
Manila, Angeles City

Upcoming markets
Cebu

MANILA

Manila is the fast-paced, often hectic cosmopolitan capital of the Philippines, located in the west coast of the island of Luzon. Up until World War II, Manila was considered one of the most beautiful cities in Asia but the war put the city into complete ruins. Since then however, the Christian capital of Asia has generated a new, modern skyline and seen as one of the continent's more cosmopolitan cities.
Read the latest analysis of the Manila property market.

ANGELES CITY

Angeles City is in Pampanga province in the Central Luzon region of the Philippines. The city is rich in history and heritage with a wealth of historically and architecturally significant buildings scattered around, but Angeles City's booming sex tourism trade is the major attraction for a large portion of the overseas visitors it receives. But for good or bad, the city's nightlife is driving tourism destination and sees thousands of visitors opt to invest in real estate with a view to relocating there long-term.
Read the latest analysis of the Angeles City property market.

CEBU

Cebu Island is a long narrow island stretching 225 km from north to south, surrounded by 167 neighboring smaller islands, that includes Mactan Island, Bantayan, Malapascua, Olango and the Camotes Islands. Its capital is Cebu City, the oldest city in the country, which forms part of the Cebu Metropolitan Area together with six neighboring cities Carcar City, Danao City, Lapu-Lapu City, Mandaue City, Naga City, Bogo, and Talisay City.
Read the latest analysis of the Cebu property market.

Essential information

Location
The Republic of the Philippines is an archipelago in South-East Asia consisting of 7,107 islands located between the Philippine Sea and the South China Sea, east of Vietnam, and north of Sabah and Borneo.

Area
Total: 300,000 sq km
Land: 298,170 sq km
Water: 1,830 sq km

Population
The Philippines is the world's 12th most populous country with a population of 90 million people.

Language
Filipino, based on Tagalog, is the most commonly spoken language in the Philippines, although English, the country's second official language, is also widespread.

Religion
Some 80 per cent of the country's population are Roman Catholic. There is also a Muslim minority or around 5 per cent, 2.8 per cent are Evangelical, 2.8 per cent Iglesia ni Kristo and 2 per cent are Aglipayan.

Currency/Money
Philippine peso (PHP). At time of writing, $US1= 48.5 PHP.

Climate
The local climate is hot, humid, and tropical. The average yearly temperature is around 26.5 ?C (79.7 ?F). There are three recognized seasons, namely, the hot season or summer from March to May, the rainy season from June to November and the cold season from December to February. The southwest monsoon runs from May to October and the dry winds of the northeast monsoon flow across the country from November to April.

International dialling code
+63

Capital
Manila

Electricity
220 Volts, AC 60 cycles. Most hotels have 110-volt outlets.

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History

The Philippines had cultural ties with Malaysia, Indonesia, India during ancient times, and trade relations with southern China and other neighbouring countries as early as the 9th century. When the Spaniards arrived in the 16th century under Portuguese explorer Ferdinand Magellan, the majority of the estimated 500,000 people in the islands lived in independent settlements.

Colonisation started in 1565 in Cebu and in 1571 Manila was established as the capital of the Spanish East Indies. Spanish rule brought political unification to an archipelago of previously independent islands and communities which later became the Philippines, and introduced elements of western civilisation such as the code of law, printing and the Gregorian calendar.

While the Spanish military fought off various indigenous revolts and several external threats, especially from the British, Chinese pirates, Dutch, and Portuguese. Roman Catholic missionaries converted most of the inhabitants to Christianity, and founded numerous schools, universities and hospitals. The Spanish-American which began in Cuba in 1898 reached the Philippines and when the Spanish were defeated in Manila Bay Spain was forced to officially cede the Philippines to the United States.

Filipinos struggled for independence in the following decades and led to partial self-governance by 1935. Plans for increasing independence over the next decade were interrupted during World War II when Japan invaded and occupied the islands. After the War the Philippines was granted independence from the United States on July 4, 1946.

After a series of false starts democracy returned in 1986 although the country struggled with national debt, government corruption, coup attempts, a communist insurgency, and a Islamic separatist movement. However, the Philippine economy improved rapidly from the early 1990s and has stepped up since the election of Gloria Macapagal-Arroyo in 2001.

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Government

The Philippines has a presidential, unitary form of government where the President functions as both head of state and head of government, and is commander-in-chief of the armed forces. The president is elected by popular vote to a single six year term, during which time she or he appoints and presides over the cabinet.

The bicameral Congress is composed of a Senate, serving as the upper house whose members are elected nationally to a six year term, and a House of Representatives serving as the lower house whose members are elected to a three year term and are elected from both legislative districts and through sectoral representation.

The judicial power is vested in the Supreme Court, composed of a Chief Justice as its presiding officer and fourteen associate justices, all appointed by the President from nominations submitted by the Judicial and Bar Council. Attempts to amend the constitution to either a federal, unicameral or parliamentary form of government have been satisfactory since the Ramos administration.

Economy

The Philippines is a newly industrialised country with an economy anchored on agriculture but with substantial contributions from manufacturing, mining, remittances from overseas Filipinos and service industries such as tourism and, increasingly, business process outsourcing.

The Asian Financial Crisis affected the Philippine economy to an extent, resulting in a lingering decline of the value of the Philippine peso and falls in the stock market, although the extent to which it was affected was not as severe as that of its Asian neighbors. This is largely due to the fiscal conservatism of the Philippine government partly as a result of decades of monitoring and fiscal supervision from the International Monetary Fund, in comparison to the massive spending of its neighbors on the rapid acceleration of economic growth. By 2004, the Philippine economy experienced six percent growth in gross domestic product and 7.3 per cent in 2007, in line with the '7, 8, 9' project of the government to accelerate GDP growth by 2009.

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Visas

On entering the Philippines foreigners from most countries automatically get a free three-week tourist visa. If intending on staying longer you should apply for a visa extension. Each visa extension is valid for 59 days, except the first which is 38 days. You can pay on departure a fine of PhP1000 per month of overstay plus the PhP2020 fee. Many visitors choose to get the longer visa from an embassy (or a consulate). Rules vary from country to country although the various Philippine embassies provide information on the exact requirements for a visa application and opening hours of the consular section.

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Healthcare

The risk of malaria exists in areas below 600 metres, except for the provinces of Aklan, Bilaran, Bohol, Camiguin, Capiz, Catanduanes, Cebu, Guimaras, Iloilo, Leyte, Masbate, northern Samar, Sequijor, and metropolitan Manila. However, in general malaria is not common in the Philippines and around half of the c. 40,000 annual cases are in a couple of discrete locations.

Tuberculosis is very common in the countryside, it is advisable not to stay in certain villages in areas you are not familiar with for a very long time. It is also highly advisable that if one coughs or looks weak in strength it is highly advisable to avoid contact with that person.

Travel

Since the Philippines is an archipelago, most visitors will arrive by plane. International travelers normally fly into airports in Manila, Cebu, Davao, Clark (Angeles), Kalibo, Laoag, Subic (Zambales), and Zamboanga.

The fastest options when coming from Europe or South America is transiting via Singapore or Hong Kong and from North America, using Philippine Airlines which has direct service from Vancouver and a stopover in Guam from San Francisco and Los Angeles. Most visitors will fly in through the Ninoy Aquino International Airport (NAIA) in Manila.

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