Prime Villages CAGR

Here’s the historical compounded annual growth rates (CAGR) of some of the country’s top villages. Now you can look at these numbers in two ways...

First, if you own a property in these villages, you can celebrate achieving a consistent return of 10% each year for three decades. That's a difficult feat to mimic through other financial products. For instance, the PSEi's return for the same period is just 5.6%.

Another way to look at these numbers is...

If it's your life goal to live in a prime village, you should be growing your net worth by AT LEAST these rates to keep pace with the growth. Think of these numbers as the inflation rate of prime villages.

Side note: You may think that zonal values are not representative of actual market prices, therefore the rates are unreliable. Actually, with the recent series of zonal value revisions, they now are. See, (recently revised) zonal values are seen by sellers as the bottom price they will sell at. Therefore, they've become reliable figures for estimating growth rates.

At worst, the prices in 2022 (shown above) are understated (i.e., properties are sold for more). If this is the case, the CAGRs will even be higher and more supportive of my arguments.

The key takeaway here is this:

For many of us, the likelihood of owning a property in these villages is very slim. The only way that would happen is if you have a booming business, a significant windfall (e.g., inheritance), marry into wealth, or win the lotto.

Or, you could be a value investor and make early bets in up-and-coming cities like Nuvali/Laguna (and choose top-tier villages by Ayala Land Premier or Rockwell Land).

Just something to think about.