What is better, to rent or to own a home? This is a question commonly asked of real estate professionals. Both have merits of their own, but conventional thinking leans towards homeownership because while monthly home loan payments are typically higher than monthly rent payments, the former at least means we one the place we live in can benefit from its value appreciation over time.
Unfortunately, the question is a little bit more difficult to answer when the location of where to rent or own is the city of Manila.
The Capital is the 2nd Least Affordable City in Asia for Buying Property
Given its standing as the Philippines’ second-most populous city and, as of 2019, the world’s most densely populated city proper, Manila is understandably among the more difficult places in the country to afford a home in.
Unfortunately, this status of the city is no longer limited to the country, as Manila is now also considered the second least affordable city in Asia for buying property next to Mashdad in Iran according to Online Mortgage Advisor, and “ranks worse than property hotspots such as Riyadh in Saudi Arabia, Taipei in Taiwan and Seoul in South Korea.”
Covering 212 global cities in its analysis, a U.K.-based mortgage company compared the average price of one square meter of an apartment in the city center of Manila to the average annual salary in 2016 and 2020. It found that workers in the city could only afford 1.5 square meters of property last year, 2.76 sq.m. less than the 4.6 sq.m. in 2016.
Manila Proving to Not Be Any More Affordable in Terms of Rent
Using the latest raw figures from the online database Numbeo on city affordability, Online Mortgage Advisor also discovered how affordability in renting space in Manila dropped by 64-percent in 2020 compared to 2016.
The city specifically ranked third among places that became least affordable to rent a home in, following only the cities of Tehran and Mashhad in Iran.
Online Mortgage Advisor’s latest report further elaborated that “in 2016, the average rental price of a property in Manila equated to 90-percent of an average local’s monthly salary. This jumped to a staggering 154-percent in 2020.”
Alternative and More Affordable Home Options Beyond Manila Borders
With home buying and rental prices seemingly at an all-time high in Manila, other nearby cities and towns continue to be the choice for property seekers. Among the more popular that is still within Metro Manila is Quezon City. Being the second-largest city in terms of land in the Philippines, the former national capital features a slightly wider variety of homes for sale when compared to other cities in the region.
In terms of larger living spaces–both indoors and outdoors–venturing out further from Metro Manila is the better option. Areas such as Antipolo, Laguna, and Cavite, while still neighboring the National Capital Region, feature a greater amount of developable land and as a result offer more options in terms of houses and lots for sale.
Of course, there are even more affordable residential options all over the Philippines, however, these prove to be the better choice for home seekers that are not invested in big cities like Manila at all, be it for work, school, or business opportunities. Areas such as Pampanga and Iloilo have continued to emerge as not only prime locations for residential real estate investments in the Philippines but also top choices for employment and business opportunities.
Is the cost of residing in Manila having you looking elsewhere for a new home? Visit Ohmyhome to view the best and latest homes for sale in the Philippines!
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.