Due to the surge in supply of mid-range apartments and the departure of POGOs (Philippine Offshore Gaming Operators), rental prices in Manila have fallen to their lowest levels in 15 years. According to real estate experts, this poses a major challenge for apartment owners, but it is also a great opportunity for those looking to buy a home.
David Leechiu, CEO of Leechiu Property Consultants, said that most apartments currently available for rent or sale range in price from ₱3 million to ₱20 million. As a result, the vacancy rate (empty units) is high, so rental prices continue to decline.
Based on the company's latest data, the number of apartments for sale in Metro Manila in 2024 will reach 67,600 units, the highest since the pandemic. Quezon City has the highest supply with 18,500 units, followed by Ortigas with 13,500 units. Major business districts such as Makati and BGC have less supply, with 3,400 units and 1,300 units, respectively.
Leechiu said that the decline in house prices and the oversupply (too many units) provide a good opportunity for those interested in buying a house. "For buyers, now is the right time to enter the market," Leechiu said.
In addition, the Bangko Sentral ng Pilipinas (BSP) lowered the interest rate to 5.75% in December 2024, providing benefits to those planning to take out a loan to buy a house.
While the opportunities are good for homebuyers, the continued decline in rents could have an impact on investment returns. Investors are advised to be cautious in their bets and monitor changes in government policies regarding the real estate market.
