Residential rental rates for average prime three-bedroom residential homes continue to soften across major business districts.
Research from Colliers International showed residential rental rates for this type of property in Makati’s CBD dropped 1.2 percent to PHP 858 per sqm / month.
This was down from PHP 869 per sqm during the first quarter of the year.
The decline is slower than the 1.6 percent drop recorded in 1Q 2016, reflecting slow absorption amid lack of new completions.
Rents also dropped in Fort Bonifacio (1.5 percent) and Rockwell (-0.4 percent).
Colliers International said it sees further declines in residential rental rates given the additional 10,000+ units due for completion before the end of the year.
Over the next twelve months Colliers also sees residential rental rates in Makati CBD, Fort Bonifacio, and Ortigas Center declining between 4 percent and 7 percent.
With these trends, the real estate firm reported condominium investors with units being completed face a challenging market environment.
In order to assist unit buyers to achieve expected yields, condominium developers should explore creative rental models, it said.
