The rental housing market saw a stable increase in demand in the second quarter from the same period last year, real estate platform Lamudi said Tuesday.
It said the increased demand, driven by the new normal of work, offers a promising opportunity for landlords and investors. The trend, it said, touches different residential real estate niches across different market segments, from affordable condominiums to staff housing down to vacation homes.
At the height of the pandemic in 2020, with all the strict travel restrictions and limited public transportation, several companies in key sectors turned to large residential spaces near their offices and industrial plants to house employees.
Lamudi’s data showed that the share of leads for rental properties priced at P200,000 to P500,000 in Luzon outside Metro Manila and the Visayas saw a significant increase in the second quarter from a year ago. Luzon particularly showed a double-digit hike.
Meanwhile, the affordable condo for rent market sustained a lead share above 15 percent since the first quarter of 2021. These are properties priced from P5,000 to P15,000.
Lamudi said with the return to office gradually picking up, more workers were expected to gravitate towards condo rentals near their workplace to avoid the hassle and health risks associated with long commutes or limited transportation options due to community restrictions.
Other than the need to be close to the workplace, the trend of workcations (working while on vacation) likely contributed to the aggressive rental market observed in the second quarter of 2021.
Lamudi said the five most-searched cities in this period were travel hotspots and cities with access to nature, including Cebu City, Baguio, Tagaytay, Antipolo and Quezon City.
A lot of property seekers were also searching for Siargao, Bohol, Boracay and Zambales. The Batangas province and Lapu-Lapu City generated bigger lead growth since the first half of 2020.
Rentals priced between P5,000 and P30,000 represented the fastest growing price range in terms of leads generated.
More were also searching for properties near the proposed Metro Manila Subway, according to Lamudi. Districts such as Ortigas Avenue, West Rembo and Western Bicutan were popular among renters, likely because of their proximity to mass transit.
Lamudi said with the rental market flexing strong demand, there are bright spots for property investors amid the pandemic. Brokers, meanwhile, are encouraged to maximize the unlimited rental listings available.