Metro Manila renters should act now to secure deals

May 23, 2022

Metro Manila renters just may be able to snag a bargain in some of the city’s best locations should they be willing to act now. According to Colliers International Philippines, discounted rents can be found in the Makati CBD, Fort Bonifacio and Ortigas Center, although these won’t be on the market for long with more people returning to the office.

“Tenants looking for condominium units to rent should capitalize on discounted lease rates in major business districts such as Makati CBD, Ortigas Center, and the Bay Area,” Joey Roi Bondoc, Colliers Associate Director and Head of Research, stated.

Colliers noted that there has been a significant decline in rents for studio and 1-bedroom units in the city’s major central business districts. These remain below pre-pandemic prices. The consultancy recommends Metro Manila renters take advantage of this in the near term as lease rates are likely to increase.

“In our view, the return of more employees to their respective offices should help stoke residential leasing demand for these key locations. We encourage developers with a substantial number of ready-for-occupancy (RFO) units within these CBDs to offer attractive leasing terms to tenants to achieve optimal levels of occupancy,” Bondoc added.

Rental properties could help alleviate housing shortage

The Philippines is facing a housing shortage that was made worse because of the COVID-19 pandemic halting work on many developments. Surging demand coupled with increasing prices means home ownership is now an unrealistic goal for some who still require their own place. The government believes rental housing can be a viable solution.

“Rental housing is being considered as an option for those who cannot afford homeownership right away and will form part of the country’s 20-year housing road map,” Angelito Aguila, Officer in Charge Director of the Real Estate Development and Regulation Bureau of the Department of Human Settlements and Urban Developments (DHSUD) explained.

He also told The Philippine Daily Inquirer that the DHSUD was speaking with the Board of Investments about adding rental housing to the Strategic Investment Priorities Plan. If this was done, developers could be offered incentives to build rental units.