Metro Manila condo rents could fall to ₱5,000 ($78): Property consultant

Manila: Condominium rents across Metro Manila could fall to as low as ₱5,000 ($78) a month "within the next 12 months" as an oversupply of middle-market units continues to drive prices down, property consultant David Leechiu said.

Leechiu, CEO and co-founder of Leechiu Property Consultants, said some studio units previously rented for ₱30,000 monthly now cost just ₱12,000, with further declines expected.

“It’s going to go down to as cheap as ₱8,000, maybe even ₱5,000, in the next 12 months for a studio unit, and the others will just get cheaper and cheaper as the months pass,” Leechiu said during a construction industry event in San Juan City.

He attributed the decline to an oversupply of middle-market condominiums rather than a broader property crisis.

Leechiu made the remarks at the Invictus Federation of Construction Suppliers in the Philippines' Mid-Autumn Festival with the Masters event in San Juan City.

Metro Manila has approximately 800,000 condominium units, including about 80,000 unsold.

Only 3,000 units were sold in the previous quarter, highlighting the gap between inventory and demand.

Leechiu expects the imbalance to "resolve" within three years, though rental prices and market conditions could continue weakening over the next 18 months.

For tenants, cheaper condominium rentals could make living closer to workplaces more affordable, potentially saving three to four hours of daily commuting time.

Despite the reported "widespread" vacancy, conditions vary by district.

For example, properties close to public transport and located in central business districts (CBDs) continue to command premium rates.

Metro Manila is composed of 16 cities and 1 municipality, with a population about 14 million (2024 Census).

Affordability constraints, financing costs and political uncertainty continue to weigh on recovery.

Leechiu described current conditions as an "opportunity" for renters to secure more affordable housing in Metro Manila while encouraging prospective buyers to consider middle-market condominium properties.

However, Leechiu's forecast is disputed.

Anthony Leuterio, president of the A Better Real Estate Philippines Movement, warned against "panic rent cuts", saying landlords should not sacrifice income with aggressive price reductions.

Colliers data show Metro Manila’s average lease rate remains "flat" overall, with studio and one-bedroom rents improving in Makati CBD, Fort Bonifacio and Ortigas Center.

The Bay Area, near the Mall of Asia (MOA) continues to see "corrections".

If Leechiu’s forecast holds, renters could gain access to cheaper housing near workplaces. But landlords and investors may face lower yields, longer vacancies and pressure to cut prices further.

What’s next

Watch quarterly inventory data, rental-rate trends and developer discounting. The market’s recovery will depend on whether unsold units decline and whether demand picks up in the middle-market segment.

What’s in it for renters

If you rent, you may find cheaper condo options, especially in oversupplied areas. If you own or plan to buy, compare location, vacancy rates and rental yields before committing.