Anthony Leuterio, founder of Filipino Homes and Rent.ph, has disputed a forecast that Metro Manila condominium rents could fall to as low as ₱5,000 a month within the next 12 months, saying landlords should focus on professional property management and market-driven pricing instead of indiscriminate rent cuts.
David Leechiu, co-founder and chief executive of Leechiu Property Consultants, warned that rents for studio units could drop to ₱5,000 from about ₱30,000 previously as excess condominium supply intensifies competition for tenants.
“I don’t agree with Leechiu,” Leuterio said, arguing that rental performance depends on location, tenant demand, economic conditions and how effectively properties are marketed and managed.
“Rental is not just about pricing. It’s about marketing, demand, and professional management,” he said.
The differing views underscore the challenges facing condominium investors as concerns about oversupply raise questions about rental income and property returns.
Leuterio said landlords should not assume that weakness in one segment of Metro Manila’s condominium market reflects conditions across the entire rental sector. He argued that disappointing returns may also result from unrealistic asking prices, poor marketing, inadequate tenant screening and ineffective property management.
Lowering rents may help landlords attract tenants and reduce vacancies, but cutting prices without assessing competing properties and prevailing lease rates could unnecessarily reduce income, he said.
He also called on real estate agents to prioritize landlords’ long-term returns rather than focus solely on closing leases and earning commissions. Rental professionals, he said, should be assessed on their ability to maintain occupancy, protect income and preserve property values.
Leuterio urged the industry to develop more reliable rental-rate studies and market data to help property owners set competitive prices and make informed investment decisions. He also called for more professional management of residential buildings.
Population growth across Metro Manila and Luzon, along with households unable to afford homeownership, could support demand for rental housing, Leuterio said. However, demand will depend on whether available units are in suitable locations and rents remain affordable to prospective tenants.
For property investors, advertised rental rates do not necessarily translate into actual returns. Vacancy periods, operating expenses and management fees also determine how much income a condominium generates.
Oversupply can put downward pressure on rents, although the impact may vary by location and property type. Actual lease transactions, vacancy rates and competing inventory will be important in determining whether rental declines are widespread or concentrated in particular market segments.
Leuterio said the property industry should treat leasing and asset management as long-term business functions rather than secondary activities to property sales.
Professional management and disciplined pricing may help landlords compete for tenants, but they cannot fully offset genuine oversupply or weak demand. For investors, the challenge is to balance occupancy and rental income against the costs of holding and managing a property.
Business News Philippines
