Metro Manila’s Residential Real Estate Market: The Booming Bay Area

The shifting real estate tides in the Philippines have called for improvement and growth across all parts of the country, the most affected being, of course, the capital — Metro Manila.

In the residential sector, the robust demand for residential condominiums continue to buoy the Philippine real estate market, according to property consultant Colliers International. In fact, the fast absorption of units encouraged property developers to create new market supply. Condominium stock in Metro Manila grew 2% in Q2 2019, with the Bay Area growing at one of the fastest paces across all central business districts with an 18% increase in the quarter to 21,900 units, behind a 27% increase in Fort Bonifacio to 34,100 units and a 22% increase in the Makati CBD to 27,900 units.

Colliers expects Metro Manila’s total condominium supply to grow by 25.4% from 118,700 units in 2018 to 149,040 units in 2021, with the Bay Area to account for 78% of the expected new supply.

Colliers, however, forecast a slight uptick in vacancies for Q2 2019 to an average vacancy rate of 10.6% across Metro Manila, and to 11% in 2019 to 2021. Despite this, the Metro Manila residential condominium market continues to perform impressively. 

The Bay Area continued to dominate Metro Manila in terms of selling prices. According to a report by Santos Knight Frank, selling prices around the vicinity averaged Php 273,006 per sq.m. across different price segments — signifying a healthy and thriving residential market even with the influx of supply. The presence of Philippine Offshore Gaming Operators (POGOs) drastically escalated the prices of residential condominium units in the area.

Opportunities for the Metro Manila Residential Market 

The improving real estate scene has given rise to projects that are effectively redefining and reshaping the Metro Manila residential market. The increasing popularity of joint venture projects between local and foreign property developers have created a new type of market supply that will surely be easily absorbed by waiting residential demand. 

The consistently growing supply and demand ensures that there is no residential bubble plaguing an already precarious Philippine economy. Supply is moving in step with demand, and take-up will likely breach 40,000 units by the end of 2019. In H1 2019, the Bay Area accounted for the largest share of launched units at 3,800 units, or 19.3% of the total launches in Metro Manila. Colliers observed that around 39% of the launches in H1 2019 were directed toward the middle income market. Consequently, take-up from this segment accounted for 37% of total residential take-up across Metro Manila.

Colliers recommends more co-branding strategies that will effectively allow property developers to tap previously underserved markets. In addition, it also noted that further diversification of projects is needed, since the Luxury, Upscale, and Economic markets are segments that would generate increased recurring revenue should they be capable of serving the demand for residential properties.

To complement the continuously rising POGO market, Colliers also said it would be wise to target new business hubs likely to house offshore gaming employees, much like the growing Bay Area — seeing as it is now considered one of the fastest-growing business districts in the Philippines due to the demand from the sector. The industry’s impact not only flows into the office sector, but is also carried over to the residential market.

Check out Lamudi’s The Outlook E-magazine for more articles about trends to watch in the industry. For more details about The Outlook 2020: Philippine Buyers’ Choice Property Awards, visit


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