Palawan is an island paradise known for its beaches, crystal-clear waters, and marine life. With its skyrocketing popularity among tourists and expats, it’s no wonder that Palawan has become a hotspot for real estate investment. Whether looking for a beachfront home or an investment opportunity in one of Asia’s most beautiful destinations, Palawan offers a unique blend of natural beauty and growth potential. In this article, we will discuss buying property in Palawan, Philippines.
Overview of the Palawan real estate market 2024
The Palawan property market has shown notable trends and changes in recent years. As of 2023, the average real estate price for residential properties in Palawan stands at approximately ₱ 60,000 ($1,071) per square meter, marking a substantial increase from the average of ₱ 40,000 ($714) per square meter in 2019. The price surge can be attributed to the heightened demand for real estate investment in Palawan. It is driven by local and international buyers attracted by the island’s natural beauty and increasing prominence as a tourist destination.
There has been a shift towards more high-end and luxury developments when buying property in Palawan. Recently, there has also been a rise in eco-friendly and sustainable property developments, reflecting the global trend towards greener living standards. These shifts are accompanied by government initiatives aimed at enhancing infrastructure and accessibility, which further stimulate the market for buying property in Palawan. Cities like El Nido and Coron have been the focal points for tourism, fueling the real estate market. These areas have seen the highest number of tourists, with approximately 200,000 visitors annually.
Can foreigners buy property in Palawan?
Specific rules restrict foreign real estate ownership in the Philippines to safeguard the local market. However, foreigners still have several options when buying property in Palawan. A popular strategy for buying property in Palawan is leasehold, which gives foreigners ownership and use rights over land or structures for a set amount of time—usually 25 years—with the possibility of extending the agreement for another 25 years. Buying a condominium unit is another well-liked strategy; according to the Condominium Act, foreigners can acquire 100% ownership of a unit if foreigners own no more than 40% of the building’s units. People who want to invest in freehold land or a house and lot for sale in Palawan can also buy through a company. Land and buildings may be owned by domestic companies, which allows investors to start a property rental business in Palawan.
5 steps to buying property in Palawan, the Philippines
Palawan has become a popular destination for both travelers and investors. If you’re a foreigner considering buying properties for sale in Palawan, it’s essential to understand the legal procedures and requirements involved. Below are the five steps to buying property in Palawan as a foreigner.
Step 1: Choose a reliable real estate agent
Although foreigners can purchase real estate in the Philippines, working with a local agent is highly recommended. You can negotiate and find houses that meet your needs with a reputable real estate company in Palawan or an experienced agent. Their expertise comes in quite handy when making a purchase.
Step 2: Explore property listings online
Besides working with an agent or real estate company in Palawan, you can also look over properties on reputable real estate listing platforms such as Own Property Abroad. These portals provide consumers with a comprehensive picture of all the properties available in Palawan, including listings from developers, brokers, and property owners. If you are interested in a house for sale in Palawan, you can contact the seller directly.
Step 3: Deposit money and send a letter of intent
If a particular property piques your attention, submit a letter of intent. This document typically includes the purchase price, payment terms, first deposit amount, duration of the due diligence period, and the deadline for signing the sales agreement. While you complete your due diligence, the initial deposit keeps the property in place.
Step 4: Take careful consideration
You must ensure the property in Palawan is legitimate and meets your demands at this crucial stage. Among the essential points to check when conducting real estate due diligence are:
- Confirming who owns the land and its title.
- Checking for any possible liens or encumbrances there.
- Looking over zoning and land use regulations.
- Conducting assessments of properties.
- Looking over the levies and charges record.
Step 5: Complete the purchase and sign the Deed of Absolute Sale (DoAS)
You can conclude the deal as soon as you have finished your due diligence. A public notary has to witness the signing of the legally binding Deed of Absolute Sale, solidifying the buyer and seller agreement. Ensure you have paid all designated payment fees before signing the purchase agreement.
Other costs to consider when buying property in Palawan, the Philippines, include:
- Transfer tax: 0.5-0.75% of the property’s sale price.
- Title registration fee: About 0.25% of the total sale price.
- Documentary Stamp Tax: 1.5% of the property’s sale price.
- Real Property Tax: Not exceeding 1% of the property’s assessed value in the case of a province.
How to find a house in Palawan?
There are a few efficient ways to find a house for sale in Palawan. Many homes in Palawan are also featured on our listing platform, which is maintained by real estate companies, developers, and private owners. You can contact the sellers directly to get additional information when buying property in Palawan. When thinking about purchasing a house and lot for sale in Palawan, it is strongly advised to work with a real estate agent who can not only help you find a suitable property but also check all paperwork, including agreements, land titles, tax records, and zoning permits, are in order.
Property prices in Palawan
Property prices in Palawan show a varied landscape across different real estate types, reflecting both stability and slight declines. The cost of a median-priced condo when buying property in Palawan is approximately ₱ 5.78 million ($103,163), and it has shown no annual growth change. Similarly, houses have seen a stable trend with a median price of ₱ 6.04 million ($107,862), also experiencing no growth. In contrast, land for sale in Palawan has decreased by 1%, with a median price of ₱ 44.76 million ($799,040) and a price per square meter at ₱ 5,726 ($102). The commercial property segment remains stable, with a price per square meter of ₱ 2,013 ($35.93), showing no annual growth. These figures suggest a steady market for condos, houses, and commercial properties, while land for sale in Palawan has slightly declined.
| Type | Median price | Median price/m2 | Annual growth |
|---|---|---|---|
| Condo | ₱ 5.78 million ($103,163) | ₱ 171,623 ($3,063) | + 0.0% |
| House | ₱ 6.04 million ($107,862) | ₱ 67,568 ($1,206) | + 0.0% |
| Land | ₱ 44.76 million ($799,040) | ₱ 5,726 ($102) | – 1.0% |
| Commercial | ₱ 17.5 million ($312,432) | ₱ 2,013 ($35.93) | + 0.0% |
The best locations to buy property in Palawan
Palawan is a large island with several locations and areas that are interesting to buy property in. Here are the five best places to buy property in Palawan:
- El Nido: Located in the northernmost part of Palawan, this city is known for its beautiful cliffs, blue lagoons, and hidden beaches. It also offers a diverse range of restaurants, bars, and shops. Many tourists who visit Palawan always enjoy El Nido, one of the island’s best locations for property investment.
- Coron: It is famous for its World War II shipwreck dives, but it also has limestone cliffs, beautiful beaches, clear lakes, and coral reefs, perfect for foreigners buying property in Palawan who enjoy diving activities.
- Puerto Princesa: The capital of Palawan is most famous for its UNESCO World Heritage Site, the underground river, and serves as the central hub for trade, commerce, communication, education, and government services.
- Port Barton: Features a beautiful beach with amazing sunsets, nearby islands with coral and snorkeling sites, a turtle area for swimming with turtles, and several easily accessible waterfalls perfect for nature lovers seeking a peaceful and secluded atmosphere.
- San Vicente: This town is known for Long Beach, the longest white-sand beach in the Philippines. This beach offers a relaxed vibe perfect for sightseeing, beach lounging, and island-hopping.
Starting property rentals in Palawan
Palawan’s expanding tourism industry and natural beauty attract tourists worldwide, making it an attractive place to invest in rental properties. As the “last frontier” of the Philippines, Palawan is frequently ranked among the top tourism destinations worldwide, attracting 1,527,159 tourists, according to the Provincial Tourism Promotions and Development Office (PTPDO). Palawan’s development is accelerating, with 48 infrastructure projects lined up in 2024 and a 90% increase in tourist arrivals compared to the previous year.
There is a possibility of substantial returns on investment, ranging from 10-15%, due to increasing property values and rental rates when buying property in Palawan. According to the latest Airbnb data, the occupancy rate in El Nido averages around 54%, where property owners earn an average of ₱ 1.4 million ($24,990) yearly. The occupancy in Palawan’s capital city, Puerto Princesa, is lower, with an average of 37%. Property owners earn an average of ₱ 1.4 million ($24,990) yearly by renting out their property on Airbnb. The occupancy rate in Coron has an average of 45%, and property owners generate annual revenue of ₱ 989,400 ($17,661) on average.
Is it worth buying property in Palawan in 2024?
Whether seeking a successful investment or a peaceful getaway, buying property in Palawan in 2024 is highly enticing. A popular location for retirees and tourists alike, Palawan is known for its stunning landscapes and offers the ideal balance of peace and natural beauty. The real estate investment in Palawan is becoming increasingly appealing due to its booming tourism sector and continuous infrastructure development. Palawan’s tourism income surged to ₱ 57.2 billion ($1.02 billion) in 2023, up from ₱ 30.5 billion ($544.43 million) in 2022, highlighting the growing demand for accommodation and services, making property ownership particularly profitable.
The growing network of amenities, such as shopping malls, healthcare facilities, and educational institutions, ensures a comfortable lifestyle for residents. Property prices rose by 15% from 2022 to 2023, reflecting the escalating demand and rental yields range from 6% to 8%. For foreign investors, 2024 presents an excellent opportunity to invest in Palawan, offering the dual benefits of owning a piece of paradise and realizing significant financial gains.
Expert guidance for buying property in Palawan, the Philippines
Purchasing property in Palawan can be a rewarding investment, but there are unique legal and compliance challenges. 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 Palawan!
Frequently Asked Questions (FAQs)
Is real estate in Palawan a good investment?
Yes, real estate in Palawan is a good investment due to a 90% rise in tourist arrivals, reaching approximately 1 million, indicating a strong and growing tourism industry.
Where is the best place to live in Palawan?
The best place to live in Palawan is El Nido because of its limestone cliffs, blue lagoons, and hidden beaches. You can also enjoy great outdoor activities and delicious food.
How much does it cost to buy a house in Palawan?
The cost to buy a house in Palawan is approximately ₱ 6.04 million ($107,862), with a median price per square meter of ₱ 67,568 ($1,206).
Is Palawan a good place to retire?
Yes, Palawan is a good place to retire as it is the third safest city in the country and has shopping malls that provide everyday essentials year-round.
Which documents do foreigners need to buy property in Palawan?
Documents foreigners need to buy real estate in Palawan are identification documents, proof of funds, and possibly the establishment of a local corporation to comply with the 40% foreign ownership rule.
