The Philippine Property Market Remains Resilient Amid Corruption Issues

Despite recent corruption controversies making headlines, the Philippine property market continues to show remarkable strength and resilience. Industry experts and government agencies alike emphasize that while corruption remains a national concern, ongoing reforms, transparency initiatives, and investor confidence are keeping the sector stable and growing.

Investor Confidence Remains Strong

According to KMC Savills CEO Joe Curran, investor sentiment in the Philippines has evolved rather than declined. “While corruption remains a long-standing concern, the Philippine property market continues to show resilience,” Curran said. “Investors are now more discerning—focusing on developers and locations with strong compliance, transparency, and ESG (Environmental, Social, and Governance) practices.”

This shift has encouraged developers to strengthen governance, adopt digital permitting systems, and align more closely with sustainability standards that appeal to both local and international investors.

Temporary Caution in the Luxury Market

Reports of weaker demand in the luxury residential segment following recent corruption issues have surfaced, but experts consider this only a temporary slowdown.

Leechiu Property Consultants CEO David Leechiu explained that the market may see short-term caution but prices are expected to remain stable. “There might be a pullback in transaction volume, but I don’t think prices are going to fall,” he said.

Licensed broker Michelle Daygo, president of Kuaima Realty, echoed this sentiment, saying demand remains strong among businessmen, expatriates, and overseas Filipinos. In fact, data from Leechiu Property Consultants show that luxury property sales increased by 214% year-on-year, reflecting continued confidence in high-end real estate.

Developers are also responding to investor caution by raising quality standards—integrating sustainability certifications, enhancing property management services, and aligning with global benchmarks to maintain trust in the premium market.

Government’s Zero Tolerance for Corruption

The Department of Human Settlements and Urban Development (DHSUD) has taken major steps to fight corruption in the housing sector.

Undersecretary Sharon Faith Paquiz highlighted the agency’s zero-tolerance policy and zero-backlog program, which successfully resolved over 3,000 pending cases within six weeks.

These efforts sped up the release of long-delayed permits and licenses—an important move that removes opportunities for bribery and boosts developer confidence. “Too many delays breed corruption,” Paquiz explained. “We are now ensuring that applications are processed within a set timeframe.”

Improving Transparency in Real Estate

While the Philippines continues to improve, it still ranks 45th among 89 countries in the 2024 Global Real Estate Transparency Index by Jones Lang LaSalle (JLL), classifying it as a semi-transparent market. The country ranks high in market fundamentals but still has room to improve in its regulatory and legal frameworks.

To address this, the government passed the Real Property Valuation and Assessment Reform Act, which standardizes property valuations, updates market values, and establishes a Real Property Information System to record all sales and lease transactions.

According to Santos Knight Frank Chairman and CEO Rick Santos, this law is “an important step in raising valuation standards and encouraging transparency,” helping attract more global investors to the Philippines.

Outlook: Strong Fundamentals for Long-Term Growth

Experts believe that the country’s young population, robust domestic consumption, and continued urbanization will remain key drivers of real estate growth. With ongoing reforms, digitalization, and stronger collaboration between the public and private sectors, the Philippines is well-positioned to sustain property market growth in the years ahead.

“Overall, while corruption remains an ongoing challenge, both the government and the private sector have made visible efforts toward modernization, transparency, and stronger governance,” Curran said. “These are factors that are slowly but surely enhancing investor confidence in the Philippine property market.”

Key Takeaway

Despite governance challenges, the Philippine real estate sector stands firm—supported by transparency reforms, market discipline, and a strong investor base. For both local and international buyers, the Philippines remains a promising and resilient property market.