Manila to expect residential supply influx until 2028

Maintaining high occupancy levels will be challenging.

While residential demand in Manila is expected to hold steady, supported by corporate and expatriate requirements, JLL said in a report that 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,” the report added.

Here’s more from JLL:

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.