Rental Market Landscape: On-site Housing, Remote Work, and Transit-oriented Spaces

There is now a more evenly distributed market for properties to rent and purchase in Metro Manila – a sign of shifting seeker preferences and diversified market needs.

In the first quarter of 2021, the distribution of leads for properties to buy and properties to rent was nearly equal. This progression is telling of the changes in seeker priorities brought by the pandemic, including shifts in the way people approach renting properties. To guide property sellers in the new demands of rental seekers, Lamudi weighs in on three major trends in the real estate rental market in the time of COVID-19.

buy versus rent lead distribution in metro manila cities with subway stations lamudi

Download the FULL trend report here.

ON-SITE HOUSING AS A HEALTH & SAFETY STRATEGY

Luxury rental demand continues to grow

The share of leads for luxury properties to rent worth PHP 200K – PHP 500K increased in Luzon and Visayas throughout the pandemic. In Luzon (outside Metro Manila), where many industrial plants and export processing zones are located, the share of leads for properties to rent within the PHP100K – PHP200K range increased in 2Q 2021 from the same period a year before. 

Demand for affordable rentals in the metro rebounds

In Metro Manila, we’re seeing demand for affordable rentals bounce back in 2021, as many return to the office or prefer proximity to the office as they transition to more flexible schedules in the new normal. 

GROWING OPENNESS TO REMOTE WORK CULTURE

Freelancing a practical career amid a health crisis

Joining the gig economy is not only a lifestyle choice that the digital nomads of the 2010s preach but a more practical reality for many fresh graduates, employees with little security and reduced wages, migrants, and creatives who wish to earn extra income during the pandemic. During a time when hiring rates are low, many fresh graduates and those freshly out of a job have turned to putting up small businesses and upskilling to enter freelance online-based jobs in order to start earning.

Property seekers prioritize health, seek balance

While cities in Metro Manila were the most commonly searched areas in Lamudi, leisure destinations such as Siargao, Bohol, Boracay and Zambales are also heavily searched.

Property seekers continue to search for vacation destinations

With revenge travel refueling real estate demand, local hospitality markets incentivizing long-term stays, and investors considering leisure destinations for their rental business, domestic tourism has found an unlikely promoter in remote work. 

MOBILITY REMAINS A PRIORITY

For the many that will be returning to the office, a home that enables mobility such as those close to mass transport hubs is the most practical choice. Renting a home near a bus stop or rail station allows for easier access to key commercial areas across Metro Manila. Lamudi data on proposed Metro Manila Subway destinations shows that more property seekers were looking into rental properties in the second quarter of 2021. 

Real estate brokers and owners must gear for eventual return to work

With more vaccines arriving, a sizable share of workers who had moved back to their home provinces during the pandemic may be returning to the metro in search of accommodations close to the workplace. As such, brokers and property managers must be prepared to cater to seekers online – that is where seekers will be searching potential homes and making the necessary transactions. With on-site tours and ocular inspections not accessible to them, property seekers will put a premium on transparent and high-quality online listings as well as attentive customer service.

The future of work is not purely remote nor completely back to the old normal of daily face-to-face interaction. With offices more open to different working styles, the city will experience new schedules of worker-travelers – some alternating between the home and the office on a bi-weekly basis, others making the move across regional borders, and many choosing temporary homes in areas slated to benefit from nearly-finished infrastructure projects. The way workers work is changing, and so is the way they live.

Download the FULL trend report here.

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