Is the Philippine Condo Market Overheating?

The Philippine condo market is under scrutiny as rising prices, shrinking rental yields, and climbing vacancy rates raise red flags. The video below delves into these issues, highlighting the risks and potential pitfalls of investing in this challenging market.

I fully agree with the creator’s observations. Based on my personal experience and internal calculations, rental yields for new developments more likely fall below 3%, making renting significantly more affordable than buying. In areas like BGC, walking around at night reveals that many buildings appear under 20% occupied—perhaps even closer to 10%—judging by how few units are lit. This supports concerns about overbuilding and waning foreign demand. The absence of official vacancy rate data only adds to the market’s opacity.

Despite these challenges, I see potential opportunities if a market correction occurs. Lower prices could present a chance to acquire properties at more reasonable values, whether for future living or long-term investment.