One of my mother’s friends recently inquired about the availability of houses within walking distance of the town center, expressing a desire to minimize reliance on jeepney rides. Regrettably, finding a house in close proximity to the city center is exceedingly rare in our area.
Moreover, water shortage is a huge problem. In San Luis, our household typically receives water supply once a week, but sometimes, there is none during a typhoon. The Baguio Water District supplies 121 out of 128 barangays, with over 70 percent experiencing shortages.Those outside the coverage rely on private trucks, sources like John Hay, or have their own water supply systems.
Baguio City, the renowned “Summer Capital of the Philippines,” has long been a sought-after destination for locals and tourists. However, the city’s growing popularity and limited land availability have contributed to the rising real estate costs in the area.
Here’s a breakdown of the advantages and disadvantages of residing in the City of Baguio based on my observances and experiences:
Pros of living in Baguio:
- Desirable Climate and Lifestyle
Baguio’s cool, temperate climate and picturesque natural surroundings make it an attractive destination for those seeking a respite from the tropical heat. The city’s vibrant cultural scene, thriving tourism industry, and proximity to various outdoor attractions add to its appeal, driving up the demand for real estate and contributing to the high prices.
- Infrastructure Improvements and Accessibility
The development of infrastructure projects, such as the Tarlac-Pangasinan-La Union Expressway (TPLEX) and the NLEX-SLEX road network, has improved the accessibility and connectivity of Baguio City. This has made the city more attractive for residential and commercial investments, further driving up property values.
- Rental and Investment Opportunities
Baguio’s popularity as a tourist destination and retirement haven has created a demand for rental properties, making it an attractive investment opportunity. The potential for generating rental income and the long-term appreciation of property values contribute to the high prices of Baguio real estate.
Cons of living in Baguio:
- Traffic Congestion
Baguio City is known for its narrow, winding roads, which can become heavily congested, especially during peak tourist seasons. The influx of vehicles and the city’s geography can lead to traffic jams and longer travel times.
- Limited Infrastructure
Despite being a popular tourist destination, Baguio City’s infrastructure, including roads, public transportation, and utilities, may not be as developed as in larger cities. This can lead to issues such as water shortages, power outages, and inadequate public transportation options.
- High Cost of Living
While the cost of living in Baguio is generally lower than in metropolitan areas like Manila, property prices, especially in prime locations, can be relatively high. Additionally, goods and services may be more expensive compared to other cities in the Philippines.
- Weather Challenges
While many people are attracted to Baguio’s cool climate, the city’s weather can pose challenges. Heavy rainfall, especially during the monsoon season, can lead to flooding and landslides, affecting transportation and infrastructure.
- Tourist Crowds
Baguio’s popularity as a tourist destination means the city can get crowded, especially during peak seasons. This can lead to longer wait times at tourist attractions, restaurants, and other amenities, as well as increased noise levels and littering.
- Environmental Concerns
The rapid urbanization of Baguio City has raised concerns about environmental degradation. Deforestation, improper waste disposal, and pollution are some issues the city faces, impacting residents and the environment.
Moreover, here are the key reasons why Baguio properties are considered expensive:
- Limited Space and Congestion
Baguio City is known for its congested streets, especially during peak tourist seasons. The limited space within the city center has led to higher property prices, pushing potential homeowners to consider areas farther from the city center, where prices are relatively lower than near the town but still increasing. Baguio City is a mountainous area with limited flat and developable land. The demand for residential and commercial properties has increased significantly for more than ten years, driving up land and property prices. The scarcity of available land has made it challenging for developers to meet the growing housing needs, further contributing to the high costs of Baguio properties.
- High Land Prices
The closer a property is to the city center or famous landmarks, the higher its price tends to be. Lots around key areas can cost anywhere from 10,000 to 25,000 pesos per square meter. This is a significant factor contributing to the overall cost of owning a property in Baguio.
- Housing Market Dynamics
The housing market in Baguio is competitive, with prices influenced by factors such as location, size, and condition of the property. For example, old houses, including lots, can still fetch prices starting at 5 million pesos for a standard two-bedroom house. Similarly, newly-built condominiums may begin at 4 million pesos for similar specifications.
- Standard of Living
Despite the higher property prices, the cost of living in Baguio is generally lower compared to metropolitan areas like Manila. Commodities and utilities are more affordable, making it an attractive option for those looking to live in a vibrant urban environment without the high costs associated with big cities.
- Lifestyle and Climate
Baguio’s cool climate and clean air are significant attractions for residents, especially those seeking a respite from the heat and pollution of larger cities. The city’s creative atmosphere, art scene, and cultural events also appeal to its appeal.
- Tourist Impact
While tourism is a significant part of Baguio’s economy, it can also inconvenience locals. The influx of tourists, especially during peak seasons, can lead to traffic congestion, increased noise levels, and environmental concerns.
The combination of limited land supply, desirable climate and lifestyle, improved accessibility, higher construction costs, and the potential for rental and investment opportunities have all contributed to the high prices of Baguio properties. As the city continues to grow and develop, the demand for real estate will likely remain strong, further driving up the costs of owning a piece of this picturesque and sought-after destination.
