According to ABS-CBN News, the residential condominium market in Metro Manila is facing an oversupply challenge, with rental prices falling to a 15-year low. This phenomenon provides a rare opportunity for tenants to rent their ideal housing at a lower cost.
David Leechiu, CEO of Leechiu Property Consultants, stated that the rental prices for mid-market apartments have significantly decreased, and this trend is expected to continue until 2025, especially in areas like Manila Bay, Alabang, and Makati.
These areas have seen an increase in vacancy rates due to the withdrawal of the offshore gaming industry POGO, further exacerbating the market's supply-demand imbalance.
Although data from the Central Bank of the Philippines shows that housing prices have also declined, Leechiu pointed out that the economic advantage of renting is now more significant. He explained, "The discount on house prices might be between 10% to 30%, but the rental discount has already reached 50% to 60%."
Leechiu advises the middle class to fully utilize this opportunity to divert the saved rental costs to other purposes, such as consumption, entrepreneurship, or stock market investments. He mentioned that renting not only alleviates financial pressure but also allows for flexible allocation of funds.
According to estimates by Leechiu Property, the current inventory of residential condominiums in Metro Manila is expected to take **34 months** (nearly three years) to be fully absorbed by the market. Although some analysts hold a more pessimistic view regarding the inventory absorption time, Leechiu believes that this oversupply issue is a short-term problem and does not constitute a systemic crisis.
He further explained, "We have not seen signs of a severe economic crisis, such as bank failures, business closures, or a collapse in real estate prices. The current situation is merely an adjustment of excess supply."
Meanwhile, Michael Ricafort, Chief Economist at RCBC, pointed out that the continuous interest rate cuts by the Central Bank of the Philippines could stimulate the real estate market. He stated, "As borrowing costs decrease, buying homes becomes more affordable, whether it's apartments, townhouses, or detached houses, the market appeal will significantly increase."
Overall, the real estate market in Metro Manila is currently in a period of adjustment. For tenants, this may be an ideal time to seize low-price opportunities, while for developers, accelerating inventory absorption remains the main challenge.
