The oversupply of residential condominium units, due in part to the exit of Philippine Offshore Gaming Operators (POGOs), has brought down gains from rental properties.
Roy Golez, Leechiu Property Consultants director for research and consultancy, said a decline in rental rates against pre-pandemic levels is most prevalent in the Manila Bay area, which includes Parañaque and Pasay cities.
Citing the third quarter 2025 Philippine Property Market Report during a briefing in Makati City Monday, Golez said average rent per square meter declined by 52 percent in the bay area compared to the first quarter of 2020.
It was followed by those in Alabang in Muntinlupa City, down 39 percent; Ortigas in Pasig City and in Mandaluyong City, 22 percent; and Makati City, 18 percent.
On the other hand, rental rates in Taguig City area rose 17 percent, with those in Bonifacio Global City (BGC) up 3 percent.
Golez said oversupply, along with the impact of the reduction in the Bangko Sentral ng Pilipinas key rates which affect bank rates, has resulted in lower gains among property owners.
Prior to the pandemic and the closure of POGO operations, property owners still enjoyed some income, net of their payments from their property, he said.
However, as more companies like major banks open their head offices in BGC and in Makati, Golez said things are slowly improving.
“We expect Makati to recover much faster as soon as these office buildings are finished. Perhaps in the next two to four years, Makati numbers should be much better,” he said.
Meanwhile, Golez said the affordability of condominium units hampers sales of condominium units in the middle-income segment since developers cannot bring down prices anymore, given the rising prices of materials.
“So that’s where government comes in. The 4Ps (Pantawid Pamilyang Pilipino) program, the GSIS (Government Service Insurance System), Pag-IBIG (Fund and) SHFC (Social Housing Financing Corporation), where they can provide financing for the mid to lower market. [It can be for] long term, they can do 30 years at six percent or even lower,” he added. (PNA)
