Makati has again been named as the second most-expensive city for residential rental in Southeast Asia, according to the latest mid-yearly survey by comparison website numbeo.com.
The Philippines’ city scored 32.45 in the website’s Rental Index – rising in its score from last year although still retaining second place. This, according to the website, is estimation of prices of renting apartments in the city compared to New York City. If the Rental Index is 80, www.numbeo.com estimates that prices for renting in that city is 80 percent of prices in New York.
In the same report last year Makati also occupied second place but with a lower score of 27.12. Singapore topped the Southeast Asia chart with a score of 81.19, while other cities in the Philippines scored 16.63 (Manila), 11.99 (Cebu), 6.05 (Davao) and 3.49 (Valenzuela).
What does this mean?
For buy-to-rent investors it means anyone who purchased in Makati last year, on average, will have made a profit. Buying further back in time will mean more profit. Just four years ago the city recorded a score of 13.47 and residential rental prices were less than one-fifth of those in Singapore.
Whether there is still room for buy-to-rent investors to make money in Makati is a question that many will be asking, but with continuing rises there’s an extremely good chance they will – given the significant miss-match between demand and supply.
