Residents panicked as a waterspout turned into a tornado in the Philippines.

Footage shows the tropical warm weather phenomenon moving towards the shore in Aparri, Cagayan province on July 27.

The vortex then reached the coastal village and hit two rows of homes before dissipating after almost five minutes.

Terrified residents fled their properties and watched from a distance as the waterspout crossed the water to the beach.

Onlooker Jonas Callangan said: ‘We thought it was just a regular waterspout but it grew bigger until we realised it was heading towards us.

‘We were so shocked that we could only watch from where we stood until it reached some of our neighbour's homes.'

No significant damage was reported to the affected houses.

Waterspout tornadoes are intense columns of swirling tornado clouds that form over a body of water. They are most commonly found in subtropical areas and disappear shortly after they come into contact with land.

Scientists believe they are formed when pockets of warm air near the water surface rise suddenly. Cooler air is then sucked into the low-pressure air, which picks up water and rises towards the clouds in a rotating motion.