Manila’s bustling streets and modern skyline make it an attractive hub for many young professionals looking to lay roots. But with real estate prices climbing and incomes barely keeping pace, the big question is—can young people actually afford to buy property in Manila?
This blog explores that very question. From the current property market landscape to tips for securing your dream home, we break down everything you need to know about how (and if!) young people can join the property ladder in Manila.
Understanding Manila’s Property Market
Before we dive into tips and solutions, it’s crucial to understand the current state of Manila’s real estate market.
Why is Property in Manila Expensive?
The buy Manila property prices reflect its status as the economic and cultural capital of the Philippines. Factors driving real estate demand include:
- Urbanization: With the city being a hub for business and employment, millions of young people move to Manila every year.
- Limited Land Supply: High demand paired with limited availability of prime land drives up the cost.
- Overseas Buyers: Foreign investments in luxury condos and developments inflate prices in prime areas.
According to recent trends, key neighborhoods like Makati, Bonifacio Global City (BGC), and Ortigas Center boast some of the highest prices, with rates ranging from PHP 250,000 to PHP 450,000 per square meter.
What Does This Mean for Young Buyers?
While these figures seem discouraging, young people aren’t completely priced out of the market. More accessible properties can still be found in emerging areas or smaller condo developments. However, understanding your financial capacity and long-term goals will be key to making smart investments.
Is It Feasible for Young People to Buy Property in Manila?
The feasibility of purchasing property often boils down to three factors:
- Financial Stability
- Market Savvy
- Available Financing Options
Here’s a breakdown of how these elements play a role and what young buyers can do to work around challenges.
Financial Stability
To buy property, you’ll first have to assess your financial health. Consider these key questions:
- Do you have stable income streams to afford a loan or mortgage?
- Have you built an emergency fund, separate from your savings for property?
- Are you saving for other financial goals, like education or travel, that might conflict with property payments?
Young people often overlook the total cost of homeownership, which includes:
- Down Payment (usually 10-20% of the property price)
- Monthly Amortization or Mortgage payments
- Taxes and fees, such as transfer taxes and registration costs
- Homeowners’ Association Fees (HOA) in condos
Solution
Start small. Consider a studio unit or a one-bedroom apartment in less expensive areas. For example, take a look at neighborhoods like Quezon City or Mandaluyong, where prices are often lower than in central business districts but still provide plenty of amenities.
Financing and Loan Options
What sets many young buyers apart is the lack of sufficient capital to pay upfront. Fortunately, lenders and developers are filling this gap by offering accessible payment terms.
Bank Loans
Banks offer housing loans with flexible terms lasting up to 25 years. For first-time buyers, many banks offer competitive interest rates, often ranging from 6%-8% annually.
Developer Payment Schemes
Pre-selling condos often come with staggered payment terms like no-interest monthly installments during the construction phase. This is a great option to lock in prices while paying off the property over time.
Government Support
The Pag-IBIG Housing Loan offers affordable financing to qualified members, boasting interest rates as low as 3% for loans under PHP 2 million.
Tips for Young People Looking to Buy Property
Now that you’re aware of market trends and financing options, here are actionable tips to help you start your property ownership journey.
1. Set Clear Financial Goals
Start by creating a budget. Determine the amount you can comfortably allocate for monthly property-related expenses. Many financial advisors recommend keeping housing costs below 30% of your monthly income.
2. Boost Your Savings
If you’re starting from scratch, consider these savings strategies:
- Automate Your Savings: Regularly deposit a portion of your income into a separate account.
- Side Hustle Income: Consider freelance jobs or part-time gigs to build your property fund.
3. Research Locations Thoroughly
Don’t get stuck on dream properties in Makati or BGC. Expanding your horizons can reveal more budget-friendly areas, such as:
- Antipolo – Ideal for those seeking a quieter lifestyle outside the hustle of the city.
- Cainta or Rizal – Affordable up-and-coming areas with convenient access to central Manila.
- San Juan – Offers proximity to major cities while keeping prices competitive.
4. Prioritize Pre-Selling Properties
Pre-selling units are typically 30-40% cheaper than completed developments. However, ensure the developer is reliable—check their track record and read reviews to avoid delays or incomplete projects.
5. Take Advantage of Online Resources
Real estate platforms, such as Lamudi and Property24, allow you to search and compare properties based on price, location, and features from the comfort of your home.
6. Join Communities
Networking with other young homeowners or online groups can offer valuable advice on financing deals, developer perks, and common pitfalls to avoid.
Buying Property as a Long-Term Investment
For young people, property ownership isn’t just about having a place to live—it’s also a smart investment.
Why Real Estate is a Great Long-Term Investment
- Historically, property prices in the Philippines appreciate over time, especially in areas of urban development.
- Owning property allows young buyers to generate passive income through rentals or Airbnbs, especially in business districts.
However, don’t view property as a get-rich-quick scheme. Choose properties you can realistically afford and that will suit your needs for years to come.
Final Thoughts—Yes, You Can Buy Property in Manila
Buying property in Manila might seem daunting for young people, especially with rising costs, but it’s by no means impossible. With a touch of financial discipline, market research, and savvy planning, joining the property market is a goal within reach for many young Filipinos.
Looking for more property tips or need help navigating your options? Drop Property Pulse a message or browse their resources to find the perfect property match for your goals.
