Suggestion: Watch the 5 minutes video tutorial before reading this article
Palawan is one of the most beautiful islands in the world, located in the Western parts of the Philippines.
As many retirees, especially from the US, decide to go to the Philippines, Palawan is definitely a point of interest.
Here, you’ll not only have the option to buy a house, condo or land, but also parts of islands (sounds amazing, right).
Today, I have Jonabe V. Daquer with me, the founder of Palawan Real Property, to explain the details you need to know before buying property in Palawan.
It’s one of the biggest real estate agencies in Palawan that helps both locals and foreigners.
Jonabe, can you tell us about yourself and your current business in Palawan?
Yes, I’m Jonabe V. Daquer, 32 years old, a licensed real estate broker and founder of Palawan Real Property. I was born and raised here in Palawan and I lived here my entire life. I’m in love in this place because it’s a paradise!
I started the business with my brother, Jeb and my common law husband, Voltaire. We built this Real Estate Agency to help clients get the property they need, reduce hassle, making the purchase headache free.
My mother is the one who thought me the real estate industry and she is part of the team as a consultant for property documentation. At the time we started, basically no one had an office to help clients not only to buy properties, but sellers who wanted to sell their property.
So, that’s how Palawan Real Property was born.
How we help foreigners and locals
Our agency is a general real estate brokerage that help people to buy and sell commercial, residential, houses with lots, farm land, beach and island properties, in all municipalities of Palawan, Philippines.
We also manage projects and sell property from from different developers. In addition to that, we do other services such as land verifications, surveys, acting as real estate paralegals and property titling.
We also assist with Property management for leased properties is also something, including houses and lots. Raw land, or even resorts. We have an in house architect, engineers, lawyers and other professionals, if you need to start your own real estate venture here in Palawan.
Palawan Real Property is a registered trademark under my name. We have a legitimate office located at Unit B, Moraga Building, Rizal Avenue., Puerto Princesa City, Palawan.
As Palawan Real Property grows, we’re becoming a trusted brand for investors, migrants, and even locals because of its transparency and quality service. We are the one stop shop for your Real Estate needs here in Palawan, Philippines.
The Philippines is growing fast and condos are sought after in places like Manila and Cebu. Can you tell us how the Palawan market has performed the past decade and what’s your projection of the future?
The real estate market in Palawan will sky rocket once international companies invest here.
Palawan has a natural beauty, it’s preserved and untouched, many people want to live in this paradise. Not only that, this place is so blessed because we have no typhoons, earthquakes, volcanic eruptions, and not to forget: less crime.
It was booming since I started this business, especially since infrastructure is almost completed. Aside from being one of the most popular destinations in the Philippines, we have a new airport being built, that will be open international flights soo.
Once this happen, foreigners won’t need to make that extra transit in Manila or Cebu, making this place even more accessible and attractive to tourists and investors.
New projects being built in Palawan
As of the moment, Camella Homes Puerto Princesa, launched its seven store condominium this month in town proper. And SM Mall opened as well recently.
These are the top real estate developers, they are here because their foresight will probably be correct this time as well: Palawan will become big!
We have zoning compliance before you can build high rise buildings in Puerto Princesa City, but with every municipality we have unique requirements that investors must comply with.
Our local government wants to achieve sustainable development in Palawan in order to protect its environment.
How’s the process when buying property on Palawan? What are the differences in the conveyancing process compared to buying a condo?
In general, foreigners cannot own land but they can get freehold ownership of condos (the same it goes in Thailand and Vietnam).
However if you have Filipino spouse, you can acquire property as a couple. If you intend to do business, I suggest you form a domestic corporation, 40% is foreign owned and 60% must be Filipino owned.
There must be at least 5 members of the corporation. Formation of a corporation is covered by Corporation Code of the Philippines, a legal service from an Attorney as well as an Accountant is necessary.
However, if you really like Palawan, you can become a Filipino citizen after some time and acquire properties here too (if you want full freehold ownership).
Crucial things to consider before buying property
The best land to acquire is titled property. Verified documents must be presented such as a certified copy of the title, a tax declaration and a tax map. The records must be clean and without encumbrances or liens, at the back of the title.
If there is an encumbrance like existing mortgages or anything else, make sure it’s cancelled or released before you buy.
For spot cash payment especially in raw land, the buyer and seller must execute a Deed of Absolute Sale and Acknowledgement Receipt in front of a notary public.
If the term is Installment payment, the parties must sign a Contract to Sell and a Acknowledgement of Receipt. Other legal contracts needed will be required by your lawyer.
After the execution of the contracts, it will be processed for the Bureau of Internal Revenue for payment of taxes, a Certificate Authorizing Registration (CAR) will be issued. Once the process is completed, another process of payment of transfer taxes from the City Assessor s office and Registry of Deeds.
The Registry of Deeds will then issue a new title in your name, this title is the Transfer Certificate of Title while in condominium you will get a Condominium Certificate of Title.
Where should I buy property on Palawan, if I want to rent out my property? How are the rental yields? Can I manage to rent out all year around?
The best option is in Camella Homes Puerto Princesa community because of its strategic location, amenities and 24/7 security.
You can buy an inner unit townhouse at around PHP 1,800,000 (around USD 35,000). Fully furnished rentals can range from PHP 13,000 to 15,000 per month (USD 250 – 300). This will give you a 13 % rental yield.
Since tourists are coming all year round you can manage to get rental income on a continuous basis, all year round.
There are a lot new business establishments around here, and their executive management or staff will be looking for a temporary home, this can be your prospect lessee as well.
Which nationalities usually buy on Palawan, is it mostly locals? How’s the demographics?
With regards to number, mostly locals buy in Palawan, either for investment or for retirement. Locals buy smaller land size or in installment basis, because it’s affordable.
However, big investments are coming from mostly European corporations as well as Filipinos and Filipinas with European spouses.
They are concentrated in purchasing raw land with beach front or commercial land for resort developments and other tourist oriented establishments.
Other nationalities who has business here are Americans, that for example owns the Best Western Hotel. Asians like, Chinese, Koreans, and Japanese are also investing in Palawan.
I mostly hear about El Nido and Puerto Princesa when talking about Palawan with people. But are there other areas that will be more interesting, or that are generally overlooked?
El Nido is the most popular because it’s a paradise, beautiful is an understatement.
Puerto Princesa City is known because this is where the New 7 Wonder of the World, Puerto Princesa Underground River or Puerto Princesa Subterranean River National Park is located.
It’s also the capital of Palawan where the airport is located as well as the province’s business district. Here you can find easy access to malls, hospitals, schools, markets and churches. The West Coast of Puerto Princesa has a chain of long beaches.
Palawan is the largest province by land area in the Philippines. El Nido and Puerto Princesa City are only two among twenty three (23) municipalities, so yes there are a lot of areas that are interesting!
Beautiful beaches, are also found in Coron,Busuanga Island, Cuyo, San Vicente, Linapacan, Taytay and Roxas.
a.Coron is famous for diving sites as well as its clearest lake, Kayangan Lake, it is part of Busuanga Island.
b. In Busuanga, the Calauit Safari Park is the home of African giraffes and zebras. You can also find beautiful islands and beaches in Busuanga.
c. Cuyo, Palawan has the best beach and wind for kite surfers
d. Linapacan has the clearest water in the world
e. Tubbataha Reefs, a world heritage site located in Cagayancillo
f. Roxas has beautiful beaches as well. It is known for high grade silica
g. Taytay has the magnificent Lake Danao
h. Port Barton in San Vicente has beautiful beach also
These municipalities are north of Palawan and mostly tourist oriented. Prices here are higher compared to the Southern municipalities of Palawan, where you can invest in farm land and industrial land.
Quezon Palawan used to be the famous spot because of historical Tabon Cave discovery.
Being in a Real Estate industry, we always have the chance to do an ocular inspection of properties for sale, and we found more undiscovered places with a lot of potential.
I’ve seen that some foreigners are interested in buying islands in the Philippines. And there are agencies out there who actually have islands on their listings. Surprisingly, these islands don’t seem very expensive(!). Can you explain more about the process when buying an island. Any common pitfalls or differences in the buying process that foreigners should be aware of?
We always go back to the general rule, foreigners cannot own land. However, a domestic corporation with a 40% foreign share can buy land.
Some of other property listings are actually not for complete islands, but only parts of them. If you want to develop an island, you need to abide with the Philippine laws and to comply with the local government permits.
You may apply for a 25 years lease agreement with the government. It’s covered by an appropriate tenure instrument.
So, as informed: Foreigners are not able to own land in the Philippines, this is the standard in Southeast Asia. Still, some people want to buy and control land. How can foreigners buy vacant, residential or agricultural land?
Being a Foreigner, the following are the ways that you can buy land in the Philippines:
a. Marry a Filipino
b. Create a domestic corporation with forty percent foreign owned
c. Become Filipino citizen
You have also an option of leasing for 25 and renew the lease term for an additional 25 years, instead of buying.
Foreigners should hire a notary and a solicitor when buying property in the Philippines. Can I find these services on Palawan, or should I look in other cities, like in Cebu?
Yes you can find these services in Palawan.
We have a lot of lawyers here that we can refer you. Actually, all real estate professionals you need are here including appraisers and consultants.
We are as competent as in other cities of the Philippines.
Thanks Jonabe. Finally, can you give any tips to our readers when buying property on Palawan?
Buy from a licensed real estate broker. They are equipped with real estate legal procedures and can give you the best advice.
Always buy a property with verified clean title.
Land banking is one of the best options for investors in Palawan because this place ensures real estate boom in the next few years.