Metro Manila rental yields seen subdued amid high vacancies

RESIDENTIAL RENTAL YIELDS in some parts of Metro Manila are expected to remain weak this year as developers grapple with unsold condominium units and elevated vacancy rates, property consultants said.

- Beatriz Marie D. Cruz Reporter

“The current oversupply of condominiums in Metro Manila has placed downward pressure on rental yields,” Jamie $. Dela Cruz, research manager at KMC Savills, said in an emailed reply to questions. “The exit of PO-GOs (Philippine offshore gaming operators), which previously boosted demand, has further softened the market.”

Data from Colliers Philippines showed rental yields in Metro Manila condominiums rose slightly to 4.2% in the second quarter from 4% in 2019. However, the firm said a meaningful recovery is unlikely in the near term.

“We do not see a significant improvement in Metro Manila residential yields for the remainder of 2025 up to 2026 as we are still projecting vacancy rates to hover between 25% and 26%,” Joey Roi H. Bondoc, director and head of research at Colliers Philippines, said in an email.