Manila residential vacancy dips to 6.9% in Q1

Thanks to solid demand in Makati and Taguig. 

According to a JLL report, the Gentry Residences, a 391-unit development in Manila, was completed in Q1 2025. Meanwhile, other developments scheduled in the quarter were moved to Q4 2025, with the remaining developments scheduled between 2026 and 2027.

“Meanwhile, vacancy fell slightly to 6.9%, a 17.4 bps decrease q-o-q, due to solid lease demand in Makati City and Taguig City,” the report said.

Here’s more from JLL:

Net absorption increased to 490 units in Q1 2025 due to sustained residential demand. The leasing market saw heightened activity, primarily from expatriate employees, C-level executives and professionals in hybrid work arrangements.

On the other hand, the residential sales market showed a strong performance with high volumes of sold units in Makati City and Taguig City.

Financial indicators show stability with slight capital value growth

Rents remained stable and settled at PHP 847.7 per sqm, per month, due to steady demand from expatriates, local executives and working professionals in hybrid work arrangements.

Capital values rose to PHP 299,434 per sqm in Q1 2025, a 0.9% increase q-o-q, attributed to buyer interest in prime assets amid new promotional offers that boosted sales activity.

Outlook: Positive trend expected for rents and capital values

Residential lease and sales demand are expected to continue rising due to sustained interest from foreign and local executives. Nonetheless, projected supply additions from 2025 to 2028 may potentially exert upward pressure on market vacancy rates.

Rents and prices are projected to rise as solid market demand continues. New supply in upcoming quarters may pull average rates upward, with capital values likely to be driven by new prime assets.