Rental Prices Hit 15-Year Low for Mid-Range Condominiums
At least according to one property expert.
(SPOT.ph) Looking for a fresh start this 2025? Now might be the best time for renters to look for a place, as condominium rental prices have plummeted to its lowest in 15 years, according to property expert David Leechiu, CEO of Leechiu Property Consultants (LPC).
An oversupply in the condo market is driving rental rates to new lows, Leechiu shared with ANC, with empty units piling up after the exodus of Philippine Offshore Gaming Operators (POGOs). He said most of the available units fall within the mid-segment market, which is priced between P3 million and P20 million.
Adding to the favorable conditions, the Bangko Sentral ng Pilipinas (BSP) also lowered interest rates to 5.75% from December 19, 2024 onwards, making it easier for aspiring homebuyers to get home loans.
“It’s a very good time to buy because you can take advantage of all the terms available today,” Leechiu said.
Also read: Looking for a Home? Here Are the Metro Manila Cities With the Most Condo Supply
Excess in supply
In 2024, LPC reported 67,600 unsold condominium units across the city—the highest since the pandemic. Quezon City leads with 18,500 available units, while Ortigas follows with 13,500. The usual commercial business districts are also on the table but have less inventory at 3,400 units in Makati City and 1,300 in Bonifacio Global City.
According to Leechiu, it could take up to three years for the excess residential units to be taken up. Some industry players are pessimistic given the news but Leechiu sees the situation as “temporary” more than anything.
“Hindi siya structural, fundamental crisis. We just built too much residential space,” Leechiu told ABS-CBN News, likening the situation to a flood. “Over time, bababa ‘yung tubig.”
Renting versus buying
We’ve all heard the saying that buying is always better than renting, but for Leechiu this is not always true. He pointed out that renting is more financially advantageous than buying, even as housing prices—including condominium units—have also dropped.
“’Yung bagsak ng presyo sa rental prices is so big compared to the capital values. If you want to buy units right now, the discounts are probably 10%, 20%, 30% of the purchase price. The rents are discounted at 50% to 60% percent,” Leechiu said, adding that renting gives people “free capital” to invest in other opportunities, such as starting a business or entering the stock market. “The money you could’ve put buying and borrowing money, you could use that to grow a business or invest in the stock market.”
Also read: What to Consider If You're Buying a Condo in the Philippines