Siargao real estate market
With its expansive area covering 48 islands and islets across nine municipalities totaling 437 square kilometers, Siargao has seen a significant transformation in its real estate market, driven by a notable stream of foreign tourists. Foreign arrivals have increased by 511.89%, causing average real estate prices to rise from ₱ 9,475 ($169) in 2019 to ₱ 11,106 ($198) in 2024. This rising demand is reflected in the values of properties in Siargao and the island’s economic indicators, with an annual revenue of ₱ 900,300 ($16,070) and an occupancy rate of 64%, illustrating the appeal of Siargao as a premier lifestyle and investment destination.
In response to this growing interest, the government has actively pursued several initiatives to strengthen Siargao’s appeal and accessibility. Among these are infrastructure enhancements and efforts to improve gateway access in Siargao. These government-led measures are expected to fuel the market of the properties in Siargao’s upward trend even further, with an estimated 8% rise in the near future. Such proactive measures reassure investors and visitors of Siargao’s commitment to creating a sustainable and booming market, securing its position as a top tourism spot and a thriving real estate market in the Philippines.
Can foreigners buy property in Siargao?
Foreigners interested in buying property in Siargao face certain restrictions as the Philippines safeguards its local real estate market. Nevertheless, while direct freehold land acquisition is not an option, there are other methods of ownership. One method is through a leasehold agreement, enabling foreigners to have use rights over the property for sale in Siargao, typically 25 years, with an option to renew. Another option is purchasing a condominium unit, as the Condominium Act allows foreigners to own up to 40%. Additionally, foreigners can invest in land or properties by buying through a domestic company for those looking to invest in Siargao’s property market, such as starting a rental business.
How to buy property in Siargao as a foreigner
Siargao is ideal for foreigners seeking sustainable adventure and nature experiences, making it a perfect choice for property investment. With its rich biodiversity and eco-friendly activities such as surfing, paddle boarding, snorkeling, and diving, Siargao presents a sustainable way to immerse foreigners in the wonders of nature. Below are the five steps of buying property in Siargao as a foreigner.
Step 1: Find a trustworthy real estate agent
Foreigners must partner with a reliable local agent to navigate the difficulties of the Philippine real estate market. Connect with a real estate agent or professional company in Siargao. Their local knowledge and experience are essential in helping you find the right property that fits your specifications.
Step 2: Browse online property listings
Leverage the internet by exploring property listings on trustworthy websites. Listing platforms offer a comprehensive view of the real estate in Siargao, from developer listings to individual property owners. Once a property captures your interest, direct communication with the seller is just a click away.
Step 3: Secure the property with a deposit and letter of intent
Upon discovering a property that captures your interest, write a letter of intent with the assistance of a knowledgeable real estate agent or company in Siargao. This document should outline the proposed purchase price, payment schedule, initial deposit, timeline for due diligence, and deadline to finalize the sale. The initial deposit secures the property while you conduct your thorough evaluation.
Step 4: Conduct a thorough due diligence
Ensure the Siargao property meets your needs and is clear of any issues by:
- Confirming the property’s ownership and the authenticity of its title.
- Checking for any encumbrances or liens against the property.
- Reviewing local zoning and land use restrictions.
- Evaluating the property through detailed inspections.
- Scrutinizing the property’s tax history for outstanding liabilities.
Step 5: Finalize the acquisition and sign the Deed of Absolute Sale (DoAS)
Close the deal once you are satisfied and have completed your due diligence. The Deed of Absolute Sale, which finalizes the agreement between buyer and seller, must be signed by a notary public. Before this, all agreed-upon payments should be settled.
Additional costs to be aware of
There are several fees and taxes to be considered when buying a residential property in Siargao:
- Transfer tax: Incurs 0.5-0.75% of the property’s selling price.
- Title registration fee: Amounts to 0.25% of the property’s selling price.
- Documentary Stamp Tax: 1.5% of the property’s selling price.
- Real Property Tax: Capped at 1% of the property’s assessed value in a province.
How to find a house in Siargao?
Finding a house in Siargao can be a streamlined process with the right approach. A good starting point is to explore online resources that compile listings of a home and lot for sale in Siargao. Conducting thorough research is crucial before committing to a house and lot for sale in Siargao. This can be done independently or with the assistance of a professional agent to ensure that all documentation, such as contracts, land titles, tax declarations, and zoning permissions, are in order.
House prices in Siargao
House prices in Siargao are stable, especially in the house and land sectors. The residential property in Siargao stands at ₱ 3.85 million ($68,649), with a price per square meter of ₱ 36,045 ($643), reflecting a steady annual growth rate of 0.0%. On the other hand, land in Siargao presents a higher investment attraction, evidenced by a significant median price of ₱ 74.1 million ($1.32 million) and a price per square meter of ₱ 11,106 ($198), alongside a minimal annual growth rate of 0.1%. This data indicates a stable housing market while highlighting an inclination towards increased value in land investments within the region.
| Type | Median price | Median price/m2 | Annual growth |
|---|---|---|---|
| House | ₱ 3.85 million ($68,649) | ₱ 36,045 ($643) | + 0.0% |
| Land | ₱ 74.1 million ($1.32 million) | ₱ 11,106 ($198) | + 0.1% |
The best places to buy property in Siargao
Siargao has become a popular and attractive location for property buyers and tourists because it is known as the most beautiful island in the Philippines. Each area of the isle boasts unique attractions, making them ideal for different preferences and lifestyles. Here are the five best places to buy property in Siargao:
- General Luna: Known as the “Surfing Capital of the Philippines,” General Luna hosts annual international and national surfing competitions, drawing enthusiasts to the famous Cloud 9 waves. Its reputation makes it a perfect place for adventurers to own property in Siargao.
- Del Carmen: It is home to Siargao’s main airport, the Sayak Airport, and it is celebrated as the largest mangrove forest in the Philippines. These mangroves offer natural protection, making Del Carmen a prime location for foreigners seeking relaxation.
- Dapa: Dapa is recognized as the “Growth Center of the beautiful islands of Siargao,” offering potential for investment and development. Attractions like the Naked Island make it a perfect spot for island-hopping enthusiasts.
- Pilar: A perfect place for fishing enthusiasts, Pilar annually hosts the Siargao international game fishing tournament. Dive off the cliffs into the Magpupungko Rock Pools or explore the surrounding caves, which provide a unique blend of adventure and calmness.
- Burgos: As the province’s smallest area in population and size, Burgos offers a unique, intimate community experience. Renowned for its sunrise beach resorts and hub for sea sports activities such as scuba diving and windsurfing, it’s perfect for those looking for an active yet peaceful lifestyle by the sea.
Starting property rentals in Siargao
Starting property rentals in Siargao presents a promising opportunity, especially considering the island’s remarkable 323.56% growth in tourist arrivals from 2022 to 2023. This surge has resulted in a significant increase in the demand for vacation rentals and accommodations, with the number of tourists reaching 529,822 in 2023, up from 125,088 in the previous year. Investing in condos, guesthouses, and beach properties for sale in Siargao offers the potential for lucrative rental income streams. The island’s renown as a premier surfing destination and its natural attractions ensure a consistent stream of tourists seeking high-quality accommodations.
Is buying property in Siargao a good investment?
Investing in property in Siargao presents a promising opportunity for both capital appreciation and a high rental yield of 4 to 8%, making it an attractive option for investors looking for a good return on investment. Furthermore, the island of Siargao’s limited land supply and steadily rising demand indicate an upward trend for investments in real estate in Siargao. It has the potential to generate an annual return on investment (ROI) of 10–15% due to the land’s capital appreciation and strong rental incomes.
Further enhancing Siargao’s investment appeal is the Philippine government’s commitment to infrastructural development and environmental conservation. Initiatives such as expanding airports and significant road improvements make the island more accessible to tourists. Siargao’s shift towards a blue economy emphasizes sustainable ocean resource use that aims to diversify its economy beyond tourism and attract more investors to buy property in Siargao. This strategy promises long-term growth in its property market while preserving marine ecosystems. The limited property availability, a growing tourism sector, and supportive government policies make Siargao a compelling destination for investors looking to capitalize on the increasing value of sustainable and eco-friendly destinations.
Expert guidance for buying a house in Siargao, the Philippines
Buying a house or land in Siargao can be a great investment, but unique legal and compliance challenges exist. Our experienced team is here to assist you every step of the way, from understanding the legal requirements and navigating local regulations to finding your ideal property and closing the deal. Whether you’re looking for a private retreat or an investment opportunity, we offer personalized support tailored to your needs. You can also email us directly at [email protected] for detailed inquiries and specialized guidance. Contact us today to ensure a smooth and successful property purchase in Siargao!
Frequently Asked Questions (FAQs)
Can foreigners buy land for sale in Siargao?
Foreigners cannot buy land for sale in Siargao but may engage in leasehold agreements or own condominium units up to 40% and can invest through a domestic corporation.
How much does land cost in Siargao?
The land cost in Siargao is ₱ 74.1 million ($1.32 million) with a price per square meter of ₱ 11,106 ($198).
What are the requirements for buying property in Siargao?
The requirements for buying property in Siargao include providing identification documents and proof of funds. You may also need to establish a local corporation to adhere to the 40% foreign ownership restriction.
Is it possible to buy Siargao property in installments?
Yes, buying Siargao property in installments is possible, usually through developer financing or bank loans.
Where can I find cheap houses for sale in Siargao?
You can find cheap houses for sale in Siargao on trustworthy property listings like Own Property Abroad.
Why is Siargao the most beautiful island in the Philippines?
Siargao is the most beautiful island in the Philippines because it is surrounded by emerald-green waters covered in coconut palm trees. It hosts some of the country’s most exquisite beach resorts.
