Due to a surge in the supply of mid-range apartments and the withdrawal of gaming operators (POGOs), rental prices in Manila have fallen to their lowest level in 15 years. Real estate experts point out that this not only poses challenges for landlords but also provides a rare opportunity for potential homebuyers.
David Leechiu, CEO of Leechiu Property Consultants, stated that the current market primarily consists of mid-range apartment units priced between 3 million to 20 million pesos, with a high vacancy rate leading to a continuous decline in rental prices.
According to the latest data from the company, the number of apartments for sale in the Greater Manila area in 2024 reached a new high since the pandemic, totaling 67,600 units. Quezon City has the highest supply with 18,500 units; followed by Ortigas with 13,500 units; major business districts like Makati and Bonifacio Global City (BGC) have relatively fewer units, with 3,400 and 1,300 units respectively.
Leechiu noted that the current price reduction, combined with an oversupply in the market, offers an attractive investment opportunity for those interested in buying homes. "For buyers, now might be the best time to enter the market," he said.
Furthermore, the Central Bank of the Philippines (BSP) announced on December 19, 2024, that it would lower the benchmark interest rate to 5.75%, bringing good news for home loan borrowers and further stimulating housing market demand.
Although homebuyers can profit from the current market downturn, the continuous decline in rental prices may still impact investment returns. Experts advise investors to carefully assess market trends and pay attention to future government policy adjustments regarding the real estate market.
