Why Buy Real Estate in Palawan?

Once in a while an investment opportunity arrives which gives people a chance to get in at the beginning while prices are low. When it comes to real estate, such opportunities are quite rare these days, especially if you come from a European country such as the UK, where prices have matured long ago and speculative possibilities no longer arise. For real estate investment, buyers need to look overseas for that big opportunity.

A few decades ago, Brits were flocking to Spain and France at incredibly low property prices. Then more recently Thailand was the place to buy a holiday home or invest in land. All those destinations are now far more expensive of course.

Palawan, however, is almost virgin territory. It is not known as the Philippines Last Frontier for nothing. Yet, it is far more beautiful, with much more to offer naturally, than Thailand. Palawan province has over a 1000 islands, and the islands, plus the mainland of Palawan, are blessed with some magnificent white sand beaches, virgin rain forests, some of the best marine life locations in the world, and some spectacular scenery.

The beauty of Palawan is obvious for all to see, yet there are still only a few tourists by comparison to neighbours such as Malaysia and Thailand. However, Palawan is being discovered more now, tourism is increasing steadily, and Mayor Hagedorn of Puerto Princesa City is targeting a 3 fold increase in tourism over the next few years. That boost will come from the new expanded airport (work on which is commencing September 2007) and international flights, plus a steadily increasing flow of Filipino visitors from other parts of the country. Puerto Princesa has also been developing an excellent reputation for conferences and sporting events, and new hotel investment in the city is being actively sought.

The more visitors who come here, the more will want to return or stay, and that often means buying land to build a holiday home. The big demand, not surprisingly, is for beach front property, and that growing demand has already eaten into the supply of available beach side land since 2000. Beach property prices have risen strongly in the last few years as availability has started to decline and word gets around about Palawan. Yet, Palawan prices are still way below other major destinations in the Philippines such as Cebu and Boracay. Incredibly low, in fact.

It was not long ago that real estate prices in Palawan were close to nothing, just a peso or two per square metre. The first new wave settlers in the 1980's became rich on their land purchases at those crazy low prices. In the last few years, though, prices have been motoring upwards from negligible to very cheap.

The Palawan real estate market has not yet matured, and is a long way from doing so. Interior land is plentiful, but that Westerners' dream, shared now by many overseas Filipinos, of a tropical paradise by the sea means that most of the land demand is for beach lots.

Most of the best areas of Palawan for beaches are quite remote, and that does not suit everyone. For those who want or need the city facilities, the best beaches can be several hours away, on rough roads for much of the journey. Nearer the city, Nagtabon provides the paradise dream, but with the convenience of the city and its airport well under an hour away.

The beach property market in Palawan is sure to mature over the next decade, with prices likely to settle at a level more in tune with, although not quite as high as, Boracay and Cebu. In the meantime, prices are low. So, to live the tropical paradise dream and feel you are sitting on a good long term investment, buying beach real estate in Palawan could be an excellent opportunity.