Q1 2026 showed moderate absorption with steady market performance

• Net absorption totalled 124 units in Q1 2026, down from 224 units in Q4 2025. During the quarter, the demand was mainly driven by high net-worth clients.
• Sales activity held steady during Q1 2026, supported by continued interest from foreign buyers and local business owners seeking residential assets for end-use and investment.

Vacancy rates softened with no new completions recorded

• No completions recorded in Q1 2026. Unit deliveries are anticipated to continue throughout the rest of the year.
• Vacancy rates had a modest decrease to 6.3% in Q1 2026 in Makati and Taguig. This was attributed to sustained leasing demand for upscale and luxury developments.

Rental rates softened slightly as capital values sustained positive growth

• In Q1 2026, rental rates edged down 0.2% to PHP 879.5 per sqm per month, reflecting landlords providing competitive pricing to draw tenant interest.
• Capital values rose slightly to PHP 306,674 per sqm in Q1 2026, up 0.1% from the previous quarter. The steady appreciation reflects continued demand for premium residential assets.

Outlook: Continued growth trajectory is expected in 2026

• New supply delivery is expected to underpin market growth for the next quarters, while investor demand for premium developments is projected to sustain modest absorption amid prevailing cautious sentiment.
• Rental growth is expected to moderate as upcoming completions may influence competition and pricing strategies to attract tenants. Capital values are expected to maintain steady growth.