IDO | Why It’s Simpler to Rent or Own Outside Manila | Renting versus buying—which is better? Realtors are often asked this. Both have benefits, but conventional wisdom favors owning because even if monthly house loan payments are more than rent payments, we can benefit from the value increase of our home over time.
When renting or buying in Manila, the question is harder to answer.
Property is 2nd least affordable in Asia in the Capital
Ohmyhome PH says that Manila is the Philippines’ second-most populous metropolis and, as of 2019, the world’s most densely inhabited city proper, making it difficult to afford a property.
Manila “ranks worse than property markets such as Riyadh in Saudi Arabia, Taipei in Taiwan and Seoul in South Korea” for buying property, according to Online Mortgage Advisor.
A U.K. mortgage business compared the average price of one square meter of a Manila city center apartment to the average annual wage in 2016 and 2020 in 212 global cities. Last year, municipal workers could only afford 1.5 square meters of property, down 2.76 sq.m. from 2016.
Manila Rents Not Cheaper
Online Mortgage Advisor found that renting space in Manila declined by 64% in 2020 compared to 2016.
After Tehran and Mashhad in Iran, the city was the third least cheap place to rent a property.
“In 2016, the average rental price of a house in Manila equated to 90% of an average local’s monthly salary,” Online Mortgage Advisor reported. 154 percent in 2020.”
Beyond Manila, cheaper home options
With home buying and rental costs seemingly at an all-time high in Manila, property searchers continue to choose adjacent cities and towns. Quezon City remains popular in Metro Manila. The former national capital has more homes for sale than other cities in the Philippines due to its second-largest land area.
Outdoor and interior living spaces are better outside Metro Manila. While remaining near the National Capital Region, Antipolo, Laguna, and Cavite have more developable terrain and more house and lot alternatives.
There are cheaper residential options in the Philippines, but these are best for homebuyers who are not involved in big cities like Manila for employment, school, or business. Pampanga and Iloilo are prominent alternatives for residential real estate investments and job and business opportunities in the Philippines.
Are you looking for a new home because Manila is too expensive? Ohmyhome has the best and latest Philippine homes for sale!
For questions or concerns about these properties, or to receive assistance finding which best suits your needs and budget, or to start the property acquisition process, we invite you to connect with an Ohmyhome agent for a free consultation.
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Ohmyhome was launched in the Philippines in September 2020, following the company’s establishment of a tech team in the country in 2017. Ohmyhome was originally founded in 2016, and subsequently rose in Singapore as a leading PropTech solution and licensed real estate agency.
Ohmyhome expanded into the Philippines so that Filipino home seekers can have a real estate partner that they can trust to have their best interests at heart and can be relied upon to provide exceptional services throughout the entire property journey.
Featuring thousands of properties across many of the Philippines’ major real estate brands, Ohmyhome differs from other local platforms by going the extra mile and extensively helping buyers narrow down their choices and find the property that best suits their budgets, home needs, and lifestyle preferences.
The company’s Real Estate agents help in the shortlisting of options and provide professional services through the entire purchasing process. These include assistance in property inspections, negotiations, the finalization of the Conditions of Sale, deposit collection, the submission of property documents, as well as providing buyers regular updates.
Ohmyhome helps Filipinos find their dream homes, all while making sure each real estate transaction is complete and is an efficient and enjoyable experience.