Foreign Retirees in the Philippines Face Uncertainty After Baguio Evictions
The Philippines’ efforts to attract foreign retirees have been thrown into question following the forced eviction of expatriates in Baguio City. The incident, which involved the Bases Conversion and Development Authority (BCDA) reclaiming properties in Camp John Hay, has raised concerns about the country’s ability to provide housing security for retirees.
The evictions stem from a Supreme Court ruling that required CJH Development Corp., a private developer, to return its leased property to BCDA. However, many foreign retirees who had legally signed long-term leases under the developer’s management were caught in the fallout. Some reported being forced out of their homes without a chance to collect their belongings.
Among those affected were 12 holders of the Philippines’ Special Resident Retirement Visa (SRRV). Two South Koreans have since left the country, while an Italian and another Korean have secured new lease agreements with BCDA. Seven other Korean retirees, now staying with friends and supported by the Korean Embassy, are considering returning home. Meanwhile, one New Zealander was abroad when the eviction took place and remains out of the country.
A Setback for the Retirement Industry
The Philippine Retirement Authority (PRA), which oversees the SRRV program under the Department of Tourism, has expressed concerns about the long-term impact of the evictions. With close to 70,000 retirees in the program—South Koreans being the second-largest group after mainland Chinese—there is growing unease about how this incident might affect the country’s reputation among potential retirees. The timing is particularly unfortunate, given that the PRA had recently concluded a promotional expo in Seoul aimed at strengthening its foothold in the South Korean market.
The incident echoes past challenges in attracting retirees. More than a decade after the 2010 Manila hostage crisis involving Hong Kong tourists, the perception of the Philippines as an unstable destination has persisted among Hong Kong’s senior community. Now, similar concerns may emerge in South Korea, where media coverage of the evictions could further discourage retirees from choosing the Philippines.
Bureaucratic Hurdles and Government Disconnect
The PRA had attempted to mediate the situation, appealing to BCDA to allow retirees to stay temporarily while they made alternative arrangements. However, BCDA cited compliance issues with the Commission on Audit (COA), preventing them from accommodating the request.
While BCDA later reported that 95 percent of homeowners in John Hay had signed new lease agreements, this offered little reassurance to those already displaced. Some retirees have decided to leave the country altogether, while others remain uncertain about their future.
Broader Implications for the Philippines as a Destination for Foreign Retirees
Since its establishment in 1987, the SRRV program has attracted approximately 85,000 foreign retirees. Visa cancellations typically occur due to retiree deaths, changes in visa status following marriage to Filipinos, or children completing their education in the country—a trend particularly common among South Koreans.
Metro Manila remains the primary residence for 60 percent of SRRV holders, followed by Central Visayas (12 percent) and Southern Luzon (11 percent). Northern Luzon, including Baguio, accounts for only three percent, while Central Luzon, particularly Clark, holds nine percent. Despite Baguio’s small share of the retiree population, the high-profile nature of the evictions may have wider repercussions.
The country’s appeal as a retirement destination has already been under scrutiny. In 2024, Forbes removed the Philippines from its list of the best places to retire, citing concerns over climate risks and natural hazards. Now, the uncertainty surrounding housing rights for foreign retirees adds another layer of hesitation for those considering relocating.
