I think you’ll agree with me when I say:
It’s REALLY a bit costly to buy a property in Baguio City today.
Anyhow, why?
Much has been written of what is Baguio City all about as the Summer Capital of the Philippines and why it is still loved by many people as a tourist destination from time to time. Called the “City of Pines,” Baguio has become a mountain resort home to many and the education center of the North.
Nevertheless, for first time buyers, investors and even locals alike, they are still a bit naïve on what is the entry-level market or median base prices for the type of houses and residential lots here in the city of pines. I will exclude on this article commercial or mix use prime lots for it is another topic to be written about.
According to Lamudi.com.ph blog, Baguio City was rank third with the most expensive houses for sale just after Cebu and Tagaytay City having two to three times land area compared to Baguio City. The declared median house and lot for sale in Baguio City price is at Php7.5 million and the most expensive listing to their site is Php95,000,000.00 million.
So! What are the entry-level market prices of house and lots for sale in Baguio City?
Let’s get in-depth here.
Baguio City has an area of 57.5 km² only and has an Elevation of 1,540 m (5,050 ft) because it is a mountain town. Developing residential subdivisions here is limited. Also, take note that some parts of the city area have no titles. Most landowners only have tax declared documents and because the majority of Baguio City’s original residence before were Ibaloys and other Igorots. We also have a CALT (Certificate of Ancestral Land Title) as a property document.
Since Baguio City has inadequate clean residential titled lots, it already became a privilege to most people to own a residential property lot. This includes prime and near city lots that have appreciated five times from its original price causing high appraisals on some of the executive residential areas of the city.
Another factor that affected the real estate market value is the coming of major real estate developers of the country to cash in on the real estate boom of Baguio City like DMCI, Moldex, Suntrust and Vista Land, considering also some big local developers.
Does this mean it’s hard to buy good residential lots in Baguio City?
The answer would be Yes and No because it would depend on your specification and budget.
Buying a residential lot in Baguio City is easy when you have a local real estate professional like us (contact us now) to help you decide which would be the best for your needs and budget in mind. Also, another tip that I would share when buying a residential lot is considering the terrain of the lot, if it is flat or sloping depending on the topography of the land. Always consider these factors to get the worth of your investment.
For instance, one particular client bought a good deal lot, but then discovered on the internet that there is a lot in that same area which has a lower price. He was furious and frantically called his agent. Calmly, the agent explained the conditions of both land as he knows the lot that was on sale in that same area.
The lot they bought has a higher price value since it is very flat, near the gate; it has a better panoramic view and most of all it is a corner lot located at the primary area of the subdivision. On the other hand, the lot they saw online which has a lower price value has a sloping terrain, it is near the creek side and considered as a tertiary lot of the subdivision.
Satisfied with the explanation, the client finally realized it was worth it after all. If you were the buyer, which lot would you prefer?
Here in Baguio City, each lot has a unique landscape and if it is in the same area it does not always mean that the price should be the same. Some factors would apply considering its terrain, accessibility, developments on the area, and the reputation of the real estate developer and most importantly, as they say in real estate, is location, location, location, and location.
Baguio’s residential lot price factor would be based on how close it is to the town area, how to develop and commercialize is the community, the terrain of the lot, and how close is it to tourist spots. Factors also include the accessibility of universities and/or other institutions and their accessibility to public and private transportation. These factors greatly affect the pricing of residential lots and houses that are for sale in Baguio City.
How much are the residential lots in Baguio City?
For the general idea or scope of the pricing, let’s consider one of the major factors, which are based on the pricing of residential lots on how is it near to the city center of Baguio.
- For 5 to 6 Kilometres from the city center, the expected residential lot price would range from Php15,000.00 to Php30,000.00 per square meter and above
- For 7 to 10 Kilometres from the city center, the expected residential lot price would range from Php7,000.00 to Php15,000.00 per square meter and above
- For 11 to 20 Kilometres from the city center, the expected residential lot price would range from Php2,000.00 to Php5,000.00 per square meter and above
- For 21 Kilometres from the city center and beyond, the expected residential lot price would range from Php1,000.00 to Php5,000.00 per square meter and above
Going on to the median price of House and lot for sale here in Baguio City
Here are the top three factors that affect the prices of the houses here in the summer capital of the Philippines.
Location, location, location
As discussed earlier on how much the location of the property affects its value, the nearer it is to the town area the higher becomes the value of the house. When SLU (Saint Loius University) extended its school campus in Bakakeng, just 9 to 10 kilometers away from the main town, it had greatly affected the appreciation of the properties on the area. That goes to show that Baguio’s student population is rising up and Universities are expanding to cater to this need.
Similarly, if the house and lot are in the executive lane like Military Cut Off, South Drive, Outlook Drive and some parts of Gibraltar going to Mines View, the property’s expected value would be on the eight-digit figure for sure. Properties located at Brent Rd, Leonard Wood Rd, Gen. Luna Rd, Laubach Rd, Lower Brookside, Kisad Rd, Legarda Rd, Bokawkan Rd, Easter Rd, Manzanillo Rd and many other more, have a high price value because of its location.
Baguio City as the Summer Capital of the Philippines
The year-round cool climate that you can still feel in Baguio has undeniably lasted its charm to many people. This is a testament up to these days that many people come up to Baguio to escape the lowland heat and savor the cool climate which is only felt in this place. This had been attracting a lot of Filipinos and foreigners alike to make Baguio as their second home.
Supply and Demand
Put simply, if the demand for houses increases faster than supply, the house price goes up. For house prices to fall, the demand needs to fall. So let’s see the demand for houses in Baguio.
Who would not want to own a house and lot in a city where you can still enjoy a cool breeze of air, and a natural landscape of beauty with its mountain ranges around? Many would certainly consider Baguio City as their second home.
People from other towns migrate here to have a fresh start, to take a break and also preferred by retirees to spend the rest of their lives here. Thus, the demand is high but the supply is low because Baguio City has a limited area to develop.
So what is the median price for house and lot in Baguio City?
My answer would be subjective on the location size of the property and other considerations.
Starting with the cheapest price offer for Single Detached, Duplex and Townhouse here in Baguio City whether it is brand new or pre-owned:
The median price for:
Single Detached House and Lot for Sale in Baguio City
Php7,500,000.00 and above
Duplex House and Lot for Sale in Baguio City
Php6,500,000.00 and above
Townhouse Type for sale in Baguio City
Php5,500,000.00 and above
The varieties of houses and lots in Baguio with its terminologies will surely confuse you. We are going to tackle these house terms in a separate article which will be soon provided with a link.
What are the different types of house and lots for sale in Baguio City?
Brand New Ready for Occupancy House and Lot
When we say new house and lot, the house is equipped with some of the design elements that today’s lifestyle demands: open, eat-in kitchens, walk-in closets, and large master bedroom to name a few. Newly built house and lot in the arena of real estate here in Baguio is reasonable to have a prime price.
A big financial advantage of new houses is that you won’t have to do much maintenance. You’re moving into a house that should be totally complete and absolutely impeccable to be called a home. That “new house smell” is definitely a luxury!
Pre-Owned House and Lot
Buying a pre-owned house and lot is a time saver. No need to wait for months before moving into your home. The only downside is structural defects which are inevitable through time, so it is really best to ask first the owners regarding the expected minor and major defects of the house.
Then make computations also on how much a renovation could cost you if you would like to make an upgrade on the house. Due diligence is a must on buying pre-owned houses.
House and Lot Packages Deal
A House and lot package offer is specifically tailored to appeal to a specific group of buyers who want full customization of their house. Hence, most developers in Baguio City offer a number of standard or customizable home designs, so that you can choose which property land you want or the property lot that they only offer and the features you’d like in your new home.
A potential advantage of buying your new home this way is that you can ensure you get a property that suits your needs. Buying a new home can also help you plan your finances with confidence, with low maintenance costs and no major repair expenses in the foreseeable future.
Foreclosed House and Lot
You can surely grab some good foreclosed house and lot in Baguio which is like getting a steal with a deal. But give or take only some are worth the bargain. A lot of potential pitfalls can be involved in buying a foreclosed property on a bank, so again due diligence is needed. Foreclosed property for sale doesn’t always mean below market value, sometimes some bank can sell the property at a high present market value of the property.
Foreclosed properties are still pre-owned and sometimes are not well maintained and exposed to the elements for a few months and sometimes years. Therefore, it is expected that a buyer should do inspections within standard due diligence/contingency period.
Conclusion
This article presented some of the higher-level factors that play a significant role in the real estate housing and residential lot market in Baguio City, but there are also more intricate parts that come in to play. Although some of these above-mentioned factors suggest a straightforward relationship between each reason and the market, in practice, the results can sometimes be very different.
Nevertheless, understanding the key factors that drive the real estate market is essential to carrying out a comprehensive assessment of a potential investment. Contact Me so we could guide you on what is the best investment you can have here in the city Pines.