Strong net absorption amid sales market resilience

• The leasing market remained solid, fuelled by steady demand from corporate tenants, such as expatriate employees and professionals, under hybrid work arrangements.
• Net absorption increased to 1,224 units in Q3 2025. Residential sales stayed resilient with demand from foreign investors and high-net-worth individuals.

Significant volume of new units completed

• Three developments with 1,258 units were completed in Taguig City in Q3 2025. Several other projects faced delays due to revised plans and construction setbacks, with completion now pushed from 2026 to 2027.
• Vacancy rates dropped to 6.6% in Q3 2025, down 6.8 bps q-o-q, driven by active tenant movement in Makati and Taguig. Hybrid work by corporates and professionals sustained solid rental housing demand.

Rents and capital values maintain upward trajectory

• Rents increased by 10.1%, up by 119.6 bps to PHP 854.9 per sqm, per month. This modest growth reflects sustained demand from expatriate and corporate tenants.
• Capital values in the residential market rose by a moderate 0.5% in Q3 2025 to PHP 305,838 per sqm, indicating steady demand for residential condominiums despite slower growth.

Outlook: Strong market momentum projected despite future supply challenges

• While demand is expected to hold steady, supported by corporate and expatriate requirements, the significant influx of new supply from 2025 to 2028 presents a potential hurdle for maintaining high occupancy levels.
• Moderate rent appreciation is expected while capital values continue their upward trend. Sustained demand from affluent local and international professionals is set to drive property values higher.