A FORECAST of further declines in Metro Manila condominium rents has drawn disagreement from a property industry executive, who said landlords should rely on market data, effective marketing and professional property management rather than resort to indiscriminate price cuts.
Anthony Leuterio, president of A Better Real Estate Philippines (Abrep) Movement, disputed a projection by David Leechiu, chief executive and co-founder of Leechiu Property Consultants, that rents for some studio units could fall to as low as P5,000 a month within the next 12 months amid oversupply.
According to a Bilyonaryo News Channel report published on Oct. 25, 2026, Leechiu said studio rents that previously reached about P30,000 a month were now around P12,000 and could decline further to P8,000 or even P5,000.
The report cited about 800,000 condominium units across Metro Manila, including roughly 80,000 unsold units, while only 3,000 units were sold in the previous quarter.
Leechiu said the weakness was concentrated in the middle-market condominium segment, rather than reflecting a broader property market crisis. He expects the market to continue softening over the next 18 months, with the oversupply problem easing within three years or less.
“I don’t agree with Leechiu,” Leuterio said, also founder of Filipino Homes and Rent.ph. He argued that rental performance depends not only on supply but also on location, tenant demand, economic conditions and property management.
“Rental is not just about pricing. It’s about marketing, demand, and professional management,” he said.
Leuterio said weak rental performance in some areas should not be taken as evidence of a market-wide decline, noting that prices and demand vary by location and property type. Poor marketing, unrealistic asking prices and weak tenant screening could also contribute to low returns, he said.
More rental rate studies
While rent cuts may help fill vacancies, lowering rates without checking comparable units and prevailing market prices could erode landlords’ income. Leuterio called for more rental rate studies and reliable market data to help owners set competitive prices.
He also urged property owners to assess agents and managers based on their ability to maintain occupancy and protect long-term rental income, rather than simply close leases and earn commissions.
Population growth in Metro Manila and other parts of Luzon, alongside households unable to afford homeownership, could support rental demand, Leuterio said. However, affordability and location remain key factors in determining whether available units meet tenants’ needs.
Leechiu, meanwhile, said lower rents could give tenants access to condominiums closer to their workplaces, potentially saving three to four hours a day in commuting time. He also described the oversupplied middle-market segment as an attractive buying opportunity.
For investors, actual rental transactions, vacancy rates, operating expenses and management costs are essential to assessing returns, Leuterio said.
Better pricing and professional management could help landlords compete, although they cannot fully offset the effects of genuine oversupply or weak demand. / KOC