The Philippines is fast becoming one of Asia’s favourite real estate investment hotspots.
With the number of condominium developments being planned and built in the country, the average gross rental yield of Philippine real estate is among the highest in the region. This may be attributable to a couple of factors – the BPO (Business Process Outsourcing) industry, which is steadily attracting expatriates and top Philippine talent alike, and to some extent, the influx of retirees, both local and foreign.
Before coming up with the list of most popular condos for tenants, the Data Science Team at ZipMatch ran the numbers on the trend of condominiums listed in its database over the past year, and has identified five key cities in Metro Manila: Makati, Taguig, Quezon City, Pasig, and Mandaluyong. While all five have some similarities, the average demand for rent in each city differs significantly.
How much are people willing to pay for rent in Metro Manila
A large portion of rental demand in Makati (69%) and Taguig (72%) range from Php 10,000 – Php 47,000. Both cities have their own business and financial districts that serve as the headquarters for both multinationals and top local companies.
To cope with a demanding clientele, which includes expats working or living in these cities, high-end malls and entertainment options have been built in Ayala Center and Bonifacio High Street.
Correspondingly, a large share of rental demand in Quezon City (67%), range from Php 14,000 – Php 35,999. Aside from being the center of the Philippine entertainment industry, the city also has a high concentration of BPO firms, particularly in Eastwood City and Cubao.
The majority of renters in the cities of Pasig (64%) and Mandaluyong (74%) have budgets that range from Php 6,000 – Php 25,000. Many of these residents work in the Ortigas CBD, which is home to the Asian Development Bank and the Philippine Stock Exchange, while others work in Pioneer district, which is fast becoming a preferred site for BPO locators.
The most popular condos for rent in Metro Manila
*Data was gathered from all condo rental listings on ZipMatch from Jan’16 to Mar’17
ZipMatch’s Data Science team determined that eight of the most popular condos among Metro Manila renters are in Makati, while seven are in Taguig.
Mandaluyong and Quezon City, on the other hand, have two each. In Makati, the most popular condos are in Bel-Air and Salcedo villages – both well recognised as prime locations for those working in the Makati financial district.
Taguig’s most popular condos, are mainly concentrated in Fort Bonifacio Global City, a fast-rising business district for multinational companies.
In Mandaluyong, the popularity of condos is dictated by their accessibility. This is especially true for the Flair Towers complex as it is a short distance from EDSA (Epifanio de los Santos Avenue), Metro Manila’s major access road, while Tivoli Garden Residences is near the Makati CBD.
Quezon City’s most popular condo, Eastwood Le Grand Tower 3, is a relatively new development that caters to BPO employees and executives, while the M Place at South Triangle is right across a major television and entertainment network and nearby EDSA.
The only condo not located in the four cities mentioned, Solemare Parksuites in Parañaque, is close to one of the country’s largest malls and a rising gaming and resort district centred on five-star hotels and amusement centres.
What renters look for in a condo
With a few exceptions, renters generally look for studio-type or 1BR units located in or close to business districts. This is especially true for McKinley Hill, Maybunga, Greenfield District, South Triangle, and Century City, which cater to young professionals or those who are just starting their families.
Larger families, though, prefer unit types that have three or more bedrooms, especially those located in residential districts such as Loyola Heights, Merville Park, San Juan, San Lorenzo Village, and Greenhills, all of which also have excellent schools.
The table below shows rental demand for different types of units in top Metro Manila districts:
Why invest/rent in Philippine property?
Considering the need for quality housing and the prevailing rentals, the ZipMatch Data Team has determined that the Philippine condo trend is not about to end any time soon. In fact, it is only beginning to catch up with the demand generated by young professionals, families, and expatriates. The factors mentioned above make a condominium in the Philippines a sound investment or rental opportunity.
Want to know more? Visit ZipMatch Rankings and find out which properties and locations in the Philippines have the most affordable prices, best investment potential, best amenities, and best neighbourhoods.
Jose Sabilano is a guest contributor from ZipMatch.com, a real estate marketplace for home seekers and property sellers.