Real estate consultancy giant Colliers Philippines said residential towers in the Manila Bay area could see the largest surge in vacancies next year as new supply hits the market, overtaking areas such as Bonifacio Global City and Makati City.
“These were launched prepandemic in 2018 and 2019 during the height of the Pogo demand,” Colliers research director Joey Bondoc told the Inquirer.
“Developers tried to capture demand from these Pogos so they launched aggressively during that period,” he added.
The 800-hectare Manila Bay, which is shared by the cities of Pasay and Parañaque, was once a haven for Pogos, given its proximity to the country’s main airport apart from several gaming and commercial facilities.
“If all those projects are completed on time, then vacancies will likely increase and much of the increase will be coming from the Bay Area,” he added.
Data from Colliers Philippines showed around 5,900 condominium units will be completed in the Manila Bay Area next year, bringing its total supply to 44,1000 units.
“Colliers estimates that the Bay Area will have the largest condominium supply in Metro Manila in 2024, surpassing the Makati central business district and Fort Bonifacio,” the property consultancy said.
By end-2024, the Bay Area will likely cover about 27 percent of Metro Manila’s total condominium supply followed by Fort Bonifacio’s 26 percent and the Makati CBD’s 18 percent, it added.
“Colliers believes that vacancy in the secondary market will likely remain elevated in 2024 given the substantial completion of new units,” Colliers Philippines said.
“We see this putting a downward pressure on rents especially in the Bay Area, which will likely account for 27 percent of completed units by end-2024; dominating other submarkets in terms of supply,” it added.