Rental housing in Metro Manila ranks as the 10th most expensive place in Asia for expatriates in 2018, according to a survey.
However, a room for rent in Makati City or Quezon City remains cheaper than in Hong Kong, where the average rent for a three-bedroom unit costs $10,461. The city continues to be the most expensive place in the continent for professionals from other countries.
A shortage of housing mainly caused Hong Kong’s rental rates to be sky-high since 2017. On top of that, the level of demand causes prices to be inflated in the city. The average monthly rent costs more than $2,000 more for a similar three-bedroom unit in Tokyo, which is the second most expensive city.
Shanghai, Seoul, and Mumbai completed the survey’s top five. High demand in these cities also served as the common denominator for more expensive rents. The same scenario has happened in Metro Manila, where employees of offshore gaming companies from China have mostly driven the increase in the leases.
Chinese expatriates have caused property rental prices to increase between 30% and 50% in Makati and the Bay Area. Colliers International Philippines said that the average cost of a three-bedroom unit in Makati’s central business district amounted up to P1,080 per square meter.
The situation will likely persist in the following year, as many developments continue to sprout along the borders of business districts. If you’re looking for the best room for rent in Makati, now might be a good time to do so before rents increase further.
Metro Manila might be an expensive place for rental properties, but it’s still an affordable option compared to other key cities in Asia. Competition among property developers in the Philippines and a more significant supply serve as the main reasons for its affordability, unlike in Hong Kong where the housing supply is limited.