Go Baguio! Your Complete Guide to Baguio City, Philippines
Tips for Buying or Renting a House, Condo and other Real Estate
in Baguio City, Philippines
Buying a house in Baguio City is easy.  Buying a good house in can be pretty hard.

Baguio is a city in the Philippines designed by the Americans for only  30,000 inhabitants. There are very few good areas to choose from, the terrain is hilly, water is scarce. There are currently 300,000 residents so it becomes a seller's market.

Baguio is very small. With a mountainous land area of just 57 square kilometers, large, flat tracts for land are hard to come by.
Click to enter Baguio Tourist Attractions
Because of the influx of migrants from the lowlands, transient students, and foreign nationals, Koreans studying in what they term 'English Academy,' the Baguio population has increased considerably, and most houses have either been rented or bought in recent months.

Baguio is hilly. Those houses erected on hilly terrain that survived the 1990 earthquake undamaged because they are structurally sound or were not along the fault line, actually increased in value afterwards.
Many new houses built since 1990 have not passed the "earthquake-test." Most houses are 3-storey high with the foundation base at the bottom of the hill and the main floor on top of the hill by the road.

Water. Many areas in Baguio have scheduled water "service" or rely solely on private water delivery businesses. While the local population has been steadily growing in size, basic utility services has not kept up.

Not all the lands are titled or have a clean title. Homesteading has been a very popular mode of acquiring land via "tax declaration" so sometimes there are overlapping titles to one piece of real property, or none at all. Many poor folk, (and even rich ones, too) are occupying hillsides but, technically, cannot be called squatters as the land belongs to the government and not to private individuals.

There is no standard price. Since not all lots have regular cuts, prices change from property to property, even if the land area is the same. For example, the I live on a flat property but the lot across mine has a steep slope so even if we're located in the same good neighborhood, the property I'm on will command a much higher price.
Session Road is the most expensive as it is the commercial center of Baguio. Residential areas are many and the price depends also on the quality of the neighborhood, which is always affected by the density of the "homesteaders"
or those houses and shanties that mushroom all around a good development.

All these considerations have not deterred folks, especially foreign nationals, from buying up the land in Baguio as it is a precious commodity. Demand exceeds the supply. So the other alternative is to rent a house or a condo.
But since the Korean English academies have proliferated throughout the Philippines, and in Baguio city in particular (there are about 30 "registered" ones with an average of 50 students each, exluding Koreans charging their countrymen for "homestay" [board and lodging while studying in the universities]), the prices of real estate rentals has been driven up pretty high. To be able to house so many students because it is a lucrative business on their part, they have resorted, not only to rent the large, elegant vacation homes, but to renting all the small hotels and inns around the city as well.

"Baguio is being marketed in Korea as a virtual paradise
where one can live 'like a King' for just USD2,000 a month"
  -- Dominique Lee

Baguio has a few condominiums. I think I can count them with my fingers, and last I checked, they're pretty much on full occupancy.
 
  Steps One Should Take in Buying Baguio
  Property

So you want to live here?

1. Find a good licensed real estate broker.

Buyiing or renting Baguio real estate is subject to laws of the Philippines. Although there are many "agents" here, not all of them know property law or the code of conduct that governs the profession. Thus a finding registered real estate broker who specializes in Baguio property is of vital importance. Find some good ones in the Baguio Business Directory.

2. Try living in Baguio for a whole month first and see if the lifestyle suits you.

Renting a service residence on a short to medium term basis helps you save in the long run because you will have a chance to explore your options and compare neighborhoods and prices before committing to a purchase.

3. Do your homework.

Read the trade pages, ask the locals, consult  friends, check out schools for the kids, explore employment and business opportunities.

Why do so many folks want a Baguio home?

Because Baguio is beautiful.

Because Baguio life is graceful.

Because you can live a life of leisure and luxury for less.

Because it is a great mix of the benefits of city life and the laid back attitude of many small towns, where everybody knows everybody.

Because the weather is simply great.
And I can go on and on and on.
After all, of all the places in the whole wide world I could have chosen to live in when I moved
from Manila, I did choose Baguio.
4. Compare the costs of renting and buying.

Buying involves huge capital, real property taxes, maintenance costs while renting is an expense that allows you some flexibility.

For example, I used to rent commercial space in  a restaurant row but the flavor of the place changed drastically from romantic cafes to rowdy bars frequented a frightfully young drinking crowd. Renting allowed me to transfer my operations to a better location a minimal cost.

5. Check the water supply.

Water is gold and the lack of it can empty your pockets drastically.

I used to rent a beautiful house with zero water supply. My water delivery expenses exceeded the monthly rental payments.

6. Hire a lawyer.

A realtor is usually the agent of the seller or the lessor. You will want someone to review your contracts, to give you advice on property laws. 

For example, foreign nationals are limited to a 40% ownership share of property. So the option for an alien is to rent a condo or partner up with a Filipino (in the latter case exercising no control over the property). Your lawyer can also advise you on immigration laws, business & labor laws, special retirement visas and business taxes.
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GoBaguio! Your Complete Guide to Baguio City, Philippines