How Philippine Condo Yields Compare Globally
BGC and Makati deliver gross yields of 7-9% — significantly above Singapore (2-3%), Hong Kong (2-4%), Tokyo (3-5%), and Bangkok (4-6%). The Philippines combines relatively low entry prices with strong expat-driven rental demand, creating exceptional yield compression opportunity. As the Philippine economy grows toward high-income status, yields are expected to compress (meaning prices rise faster than rent), rewarding early investors with capital gains on top of rental income.
Gross Yield vs Net Yield: The Real Numbers
Gross yield is simply annual rent divided by purchase price. Net yield (what you actually take home) is significantly lower: subtract association dues (₱8,000-₱25,000/month), real property tax (0.5-1% of assessed value), property management fees (8-12% of rent), vacancy periods (typically 4-8 weeks/year in prime areas), maintenance and repairs (budget 1% of property value annually). A 9% gross yield typically converts to 5.5-7% net yield — still excellent by global standards.
2026 Investment Outlook by Area
BGC: Tightest supply, strongest expat demand, best rental yield. Entry price ₱140,000-₱280,000/sqm. Recommended unit: 1BR 50-60sqm. Makati: Most liquid market, premium tenant profile, lower yield. Best for capital preservation. Rockwell: Ultra-premium, low yield (5-6.5%), extraordinary appreciation. Ortigas: Best value-to-yield ratio. ₱80,000-₱120,000/sqm with 6.5-8.5% yield. Alabang: Family market, lower yield, strong capital growth.