Manila: The oversupply of residential condominium units, due in part to the exit of Philippine Offshore Gaming Operators (POGOs), has brought down gains from rental properties.

According to Philippines News Agency, Roy Golez, Leechiu Property Consultants director for research and consultancy, said a decline in rental rates against pre-pandemic levels is most prevalent in the Manila Bay area, which includes Para±aque and Pasay cities.

Citing the third quarter 2025 Philippine Property Market Report during a briefing in Makati City Monday, Golez noted that the average rent per square meter declined by 52 percent in the bay area compared to the first quarter of 2020. Alabang in Muntinlupa City saw a reduction of 39 percent, followed by Ortigas in Pasig City and Mandaluyong City at 22 percent, and Makati City at 18 percent. Conversely, rental rates in Taguig City rose 17 percent, with Bonifacio Global City (BGC) experiencing a 3 percent increase.

Golez explained that the oversupply, combined with the reduction in the Bangko Sentral ng Pilipinas key rates affecting bank rates, has led to lower gains for property owners. Prior to the pandemic and the closure of POGO operations, property owners could still enjoy some income after payments from their property. However, as more companies, including major banks, open their head offices in BGC and Makati, Golez observed that the situation is gradually improving.

Expectations for recovery are high, especially for Makati, as Golez anticipates that once new office buildings are completed, the area should rebound in the next two to four years. Meanwhile, the affordability of condominium units continues to challenge sales in the middle-income segment, as developers struggle to lower prices due to rising material costs. Golez suggested government intervention through programs like the Pantawid Pamilyang Pilipino, GSIS, Pag-IBIG Fund, and the Social Housing Financing Corporation to provide financing for the mid to lower market over long-term periods.