Upscale Condo Rentals in CBDs Flex Double-Digit Demand Growth

As many professionals gear for a shift from fully remote to on-site and hybrid work, demand for residential rentals in Metro Manila CBDs have increased tremendously. From the fourth quarter of 2021 to the first quarter of 2022 alone, Lamudi data showed that condo rentals across Makati, Pasig and Taguig have flexed double-digit growths in leads.

Mid-cost condominium units for rent priced PHP15,000 to PHP60,000 continued to contribute the most leads in the aforementioned CBDs. However, Lamudi data revealed that potential property renters were increasingly interested in upscale rentals as higher price segments attracted significant upticks in leads across the CBDs.

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CBD Renters Show Growing Interest in Upscale Segments

In Makati, leads for condo rentals priced between PHP60,000 to PHP100,000 increased by almost 90% quarter-on-quarter (q-o-q), the largest spike out of all other price segments in 1Q 2022. This may be attributed to increasing interest in larger personal space following the pandemic, as the majority of leads for listings under this price segment went to 2-bedroom followed by 3-bedroom units. The largest share of leads for Makati condo rentals still belonged to the affordable segment in 1Q 2022, with condos priced at PHP15,000 to PHP30,000 composing most leads.

In Pasig, the PHP15,000 to PHP30,000 segment composed the largest share of leads and exhibited the highest q-o-q growth in leads with a 46% increase from 4Q 2021 to 1Q 2022. This was followed by the PHP100,000 to PHP200,000 price segment, which garnered 42% more leads q-o-q in 1Q 2022. The most searched sub-categories for condominiums for rent in Pasig overall were 2-bedroom units followed by 1-bedroom units.

Leads for condominium units in Taguig increased by over 60% q-o-q in 1Q 2022, with the PHP30,000 to PHP60,000 price segment attracting the highest number of leads. However, potential Taguig condo renters showed growing demand for upscale rentals as leads for the PHP200,000 to PHP500,000 price band doubled from 4Q 2021 to 1Q 2022, possibly driven by interest from returning expats and investors following amendments to the Retail Trade Liberalization Act.

Renters from Outside Metro Manila Prefer Smaller Units

Lamudi data for the first quarter of 2022 also revealed that the majority of leads for Metro Manila CBDs were from property seekers also within NCR.

The most popular condominium rental subcategories for property seekers within Metro Manila were 1-bedroom followed by 2-bedroom units. On the other hand, seekers outside Metro Manila in cities such as Angeles, Bacoor, Baguio, Calamba, Cebu City, and Lipa sent more inquiries for smaller condominium units in Metro Manila such as studios followed by 1-bedroom units.

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Property seekers from these cities who are looking at CBDs mostly belonged to the 25 to 34 year old age bracket and were likely renting for work, requiring a smaller space. The costs of living in Metro Manila also significantly differ from that in cities outside the metro, and renters moving into the CBDs for work may be looking at smaller condo units to save on costs.

To learn more about the latest residential real estate trends in CBDs, visit  lamudi.com.ph.

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The article was originally published in Lamudi.

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