Steady demand boosts resilience in residential lease and sales market

• Demand for residential leases stayed positive as absorption settled at 62 units, albeit lower than previous levels. Expatriates and executives continued to fuel demand.
• Sale demand remained stable, with healthy a sale rates. Makati City and Taguig City saw steady growth in foreign investor and executive interest during the quarter, buoying the luxury segment despite headwinds.

Supply shows no movement in Q4 2024

• There were no supply additions in Q4 2024 as some developments scheduled for completion were pushed to Q1 2025, and others are now scheduled between Q2 2025 and Q3 2025.
• The vacancy rate fell slightly to 7.07%, an 8.60 bps decrease q-o-q, due to an increase in occupancy. Nonetheless, supply completions are expected in the near-term, which may challenge vacancy levels.

Financial indicators see improvement in Q4 2024

• Rents rose by 0.5% q-o-q and reached PHP 847.90 per sqm, per month, driven by steady demand from expatriates and executives.
• In addition, capital values increased in Q4 2024 to PHP 296,758 per sqm, a 0.3% uptick q-o-q, due to sustained demand from executives and high net-worth individuals.

Outlook: Rents and capital values to remain steady; any upticks may not be significant

• Lease and sale demand projected to remain steady, driven by ongoing executive and expatriate take-up. However, upcoming supply from 2025 to 2028 is anticipated to increase vacancy rates.
• Rents to rise, driven by local and foreign demand from high net-worth individuals and professionals, but not as high as previous levels. New premium developments are expected to boost capital values, potentially lifting overall residential property prices.