As the Philippines prepares to host the 2025 Southeast Asian (SEA) Games, extensive infrastructure upgrades and venue construction in host cities like Clark and Subic are underway. With the event expected to draw thousands of athletes, officials, and tourists, the spotlight is on whether these preparations will spark a surge in short-term rentals and tourism, alongside delivering long-term investment benefits for the region’s real estate and economy.

SEA Games Preparations and Infrastructure Investments

The Philippines, hosting the 33rd SEA Games from December 9-20, 2025, is leveraging its experience from the 2019 Games, where Clark and Subic were key hubs. New Clark City in Tarlac is undergoing significant upgrades, including renovations to its world-class athletics stadium and aquatics center, built for 2019, to accommodate 56 sports and over 12,000 athletes. Subic Freeport Zone will host events like water sports, benefiting from modernized facilities funded by the Philippine Amusement and Gaming Corporation (PAGCOR) and private investments. The Clark International Airport expansion, targeting 4 million passengers in 2025, and the Subic-Clark railway project enhance connectivity, boosting accessibility for visitors.

Short-Term Rental and Tourism Surge

The influx of SEA Games visitors is poised to drive a short-term rental boom in Clark and Subic. In 2019, Central Luzon saw 2.4 million tourist arrivals via Clark airport alone, and 2025 projections estimate a 20% increase due to expanded routes and visa-free agreements, such as with Taiwan. Short-term rental platforms like Airbnb report strong demand, with Clark listings averaging PHP 20,000 monthly for 45-sqm units, and Subic’s proximity to beaches pushing rates higher. Hotels, including new Marriott and Hilton properties in Clark, are seeing occupancy rates climb to 80% during peak event periods, mirroring trends in Tagaytay’s 2023 Airbnb boom (2,818 active listings). The games are expected to generate PHP 1 billion in tourism revenue, benefiting local businesses and rental hosts.

Long-Term Investment Benefits

Beyond the immediate tourism spike, SEA Games-related infrastructure offers lasting economic advantages. The Clark Freeport Zone, a hub for six casinos and mixed-use developments, is attracting investors with projects like Hann Casino Resort’s expansion, set for completion in 2026. Property values in Pampanga have risen 15% since 2019, driven by airport upgrades and New Clark City’s growth as a business district. Subic’s real estate market benefits from its freeport status, with PHP 4.48 billion in new investments approved in 2024, signaling sustained growth. These developments enhance rental yields (averaging 6-8% in Clark) and property appreciation, making both cities attractive for long-term investors.

Challenges and Considerations

Despite the optimism, challenges include potential oversupply in Clark’s rental market post-games, which could pressure yields if demand softens. Subic’s reliance on tourism requires consistent marketing to sustain visitor numbers. Investors must also navigate environmental risks, such as typhoons, which could impact coastal properties in Subic.

Outlook for 2025 and Beyond

The 2025 SEA Games are set to catalyze a tourism and short-term rental surge in Clark and Subic, driven by enhanced infrastructure and global visibility. Long-term, these investments position both cities as emerging economic hubs, offering robust returns for real estate investors. Monitoring post-event demand and regional policies will be key to maximizing opportunities in this dynamic market.