La Union’s tourism office reported that the province generated PHP1.06 billion in tourism revenue in 2024, a 3 percent increase from the previous year, even as total visitor numbers dipped slightly. That combination—more money from fewer people—hints at a shift in who is visiting and how long they stay. The average length of stay inched up from 1.33 days to 1.39 days, a small change that matters when you consider what it implies about property demand: longer visits create more need for short-term rentals, second homes, and spaces that function as both a personal retreat and an income source.
The comparison to Bali comes up often in conversations about San Juan, La Union, and it is worth taking seriously—not because the two places are alike in scale or culture, but because the pattern of transformation shares real similarities. Bali became a global destination when surfers, then digital nomads, then investors discovered that a place with good waves and a relaxed pace could also support a year-round lifestyle economy. San Juan is following a compressed version of that arc. The Philippines approved its Digital Nomad Visa in April 2025, with applications expected to open soon, and La Union is positioned to absorb a meaningful share of that new demand. The question is whether the property market has already priced in that future or still offers room for early movers.
What the Surf-Wellness-Nomad Ecosystem Looks Like on the Ground
This is not a place where you fly in, stay at a resort compound, and never leave the property. The appeal of San Juan is that the entire town functions as a walkable hub. Accommodation ranges from budget hostels to boutique beachfront resorts like San Juan Surf Resort, one of the longest-running properties in the area, and FatWave Surf Resort, which has drawn praise for its bohemian interiors and on-site amenities. The mix matters because it means different buyer profiles can find a fit: someone looking for a PHP2-million studio to rent out on weekends, and someone else shopping for a PHP10-million beachfront house for personal use and occasional Airbnb income.
Location Dynamics and the Due Diligence That Matters
San Juan alone accounted for 211,234 visitors in 2024, more than any other municipality in La Union. Metro Manila residents made up 44 percent of all visitors, which tells you something about the primary buyer demographic: people who already own property in the capital and are looking for a weekend escape within a four-to-five-hour drive. That drive time is short enough for a regular trip but long enough that most owners will want a place to stay rather than commuting same-day.
Bacnotan, just north of San Juan, offers a quieter alternative for longer stays and has its own Baybayin Hub coworking branch. Bauang, which recorded 105,527 visitors, is another option, though its beachfront is less surf-focused. The choice between these locations comes down to whether you want to be in the middle of the action or slightly removed from it. Properties in San Juan proper will command higher per-night rental rates during peak season, but they also face more competition from the existing supply of hostels and resorts.
One scenario worth considering: if the Digital Nomad Visa drives a wave of foreign buyers into La Union, the condo market dynamics seen in Davao could repeat here, with pre-selling prices rising faster than rental yields can justify. The difference is that San Juan’s housing stock is mostly low-rise and land-based, not high-rise condominiums, which means foreign ownership restrictions under the 1987 Constitution apply differently. Foreigners cannot own land, but they can own condominium units (provided the Filipino share of the building remains at least 60 percent) or enter into long-term leases of up to 50 years, renewable for another 25 years. That leasehold structure is common in Bali and is becoming more common in La Union.
Ownership Structures, Financing Traps, and Tax Obligations
The table below compares the most common ways to hold property in San Juan, along with the key financial and legal differences.
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| Ownership Type | Who Can Use It | Key Restriction | Typical Term |
|---|---|---|---|
| Freehold Land | Filipino citizens, majority Filipino-owned corporations | Foreigners cannot own land | Perpetual |
| Condo Unit | Foreigners allowed | 60% of building must be Filipino-owned | Perpetual (unit ownership) |
| Long-Term Lease | Foreigners allowed | Must be registered with Register of Deeds | 50 years + 25 renewal |
| Corporation (40% foreign) | Foreigners allowed | 60% Filipino ownership required | Perpetual |
Why the Leasehold Route Catches Buyers Off Guard
A 50-year lease sounds like a long time, but if you are buying a beachfront lot in San Juan today, the lease term starts from the date of the contract, not from when you finish building. If construction takes two years, you have already lost 4 percent of your lease term before you start using the property. Renewal is not automatic; it requires negotiation with the landowner, who may demand a significantly higher rate once they see what you have built. Get the lease terms reviewed by a Philippine lawyer who specializes in real property, not a general practitioner.
The Pre-Selling Premium Trap
Several new developments in San Juan are being marketed on a pre-selling basis, with payment terms spread over three to four years. The risk is that the developer does not complete the project, or completes it with quality issues that make it hard to rent out. Unlike in Metro Manila, where DHSUD (Department of Human Settlements and Urban Development) has a formal complaint process, enforcement in provincial areas can be slower and less predictable. Before signing a pre-selling contract, verify that the developer has a valid License to Sell from DHSUD and that the project is registered with the agency.
Taxes That Reduce Your Net Yield
If you buy a property and later sell it, you will owe Capital Gains Tax (CGT) of 6 percent of the selling price or the fair market value, whichever is higher. If you rent it out, your rental income is subject to income tax, and you must also pay the annual Real Property Tax (RPT) to the local government. For a short-term rental property in San Juan, the RPT rate is typically 1 to 2 percent of the assessed value, but reassessments can happen after a property is improved. Factor in a property management fee of 20 to 30 percent if you are not on-site, and your net rental yield could drop to 3 to 5 percent, which is comparable to what you would get from a Metro Manila condo but with higher volatility due to seasonality.
How to Approach a Purchase in San Juan
Verify the Title and Zoning Before Anything Else
Start with the Register of Deeds in San Fernando, La Union. Request a certified true copy of the Transfer Certificate of Title (TCT) and check for liens, encumbrances, or adverse claims. Then visit the Municipal Planning and Development Office in San Juan to confirm the property’s zoning classification. Some beachfront lots are classified as tourism zones, which may restrict the type of structure you can build or require environmental compliance certificates. If the lot is within the easement zone (20 meters from the high-water mark on public beaches), you cannot build a permanent structure there.
- 1Get a Certified TCT from the Register of DeedsBring the lot number and the owner’s name. Pay the certification fee (usually a few hundred pesos). Check for any annotations indicating mortgages, easements, or pending cases.
- 2Verify Zoning at the Municipal Planning OfficeAsk for the official zoning map and confirm the property’s classification. If it falls under a tourism or conservation zone, ask about building height limits, setback requirements, and environmental permits.
- 3Check for DHSUD License (if pre-selling)Visit the DHSUD regional office or check online. The developer must have a valid License to Sell for the specific project. If they cannot produce one, walk away.
- 4Engage a Local Real Estate LawyerHave the lawyer review the Contract to Sell or lease agreement. Pay special attention to default clauses, escalation provisions, and dispute resolution mechanisms. A lawyer familiar with La Union property will know which local officials to check with.
Financing: What the Banks Will Ask For
If you are a Filipino citizen buying a lot or house, banks will typically finance up to 70 to 80 percent of the appraised value for a RFO property, with a loan term of 10 to 20 years. For pre-selling, banks may require a higher down payment (20 to 30 percent) and will only release the loan once the unit is substantially complete. Foreign buyers will find it harder to get a local mortgage; most will need to pay in cash or secure financing from their home country. The BSP’s loan-to-value (LTV) ratio for third and subsequent housing loans is 70 percent, which applies if you already own two other properties.
The Digital Nomad Visa Effect
The Philippine Digital Nomad Visa, once implemented, will allow remote workers to stay for up to 12 months with the possibility of renewal. This does not grant the right to own land, but it does create a pool of long-term renters who are willing to pay a premium for furnished, well-connected spaces. If you are buying a property to rent to digital nomads, prioritize units near Baybayin Hub or El Union Coffee, with reliable fiber internet and a dedicated workspace. The peak surf season from December to March will command the highest rates, but the nomad demographic tends to stay year-round, smoothing out the seasonal trough.
Frequently Asked Questions
Can a foreigner buy a house and lot in San Juan, La Union? ▾
What is the best time of year to rent out a property in San Juan? ▾
How do I verify if a developer is legitimate in La Union? ▾
What are the property taxes I need to pay annually? ▾
Is San Juan safe for long-term stays? ▾
What is the difference between buying in San Juan vs. Bacnotan? ▾
What to Watch for Next
The comparison to Bali is not just marketing hype—it reflects a real structural shift in how people think about work, travel, and where they want to spend their time. But Bali also offers a cautionary tale: rapid tourism growth led to traffic congestion, water shortages, and a backlash from local communities. La Union is still early enough in its trajectory that a thoughtful buyer can avoid those pitfalls by choosing locations with good infrastructure, respecting local zoning, and investing in properties that contribute to the community rather than extracting from it. If this was useful, you might also want to read how eco-conscious communities in Laguna are balancing development with sustainability.
Sources
Congestion Crisis: Are Too Many Condos Stifling Davao’s Property Market? — A look at how oversupply in one market can inform investment decisions in another emerging destination.
La Union’s Tourism Soars to New Heights: P1.06 Billion in Revenue Despite Fewer Visitors. Manila Herald, 2025.
La Union Philippines: Surf, Wellness & Digital Nomad Guide 2025-2026. Remarkable Destination, 2025.
